In Which One of the Following Situations Is the Political

question 127

Multiple Choice

In which one of the following situations is the political process most likely to result in both the acceptance of efficient (productive) programs and the rejection of inefficient (counterproductive) political activities?

• A) The people who benefit from a government program pay the costs of the program roughly in proportion to the benefits that each receives.
• B) The benefits are highly concentrated, and the costs are widespread among voters.
• C) The costs are highly concentrated, and the benefits are widespread among voters.
• D) The benefits accrue primarily in the future, while the costs are more visible during the current period.

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Definitions:

Efficiency

The ability to accomplish or produce a desired result with the minimum amount of waste, effort, or inefficiency.

Trade-Off

A scenario where one characteristic or element is sacrificed to acquire a different characteristic or element.

Price System

The price system is the mechanism through which prices are determined for goods and services in an economy, facilitating the allocation of resources, signaling what to produce and consume, and coordinating economic activity.

Supply and Demand

Fundamental economic model that explains how the interaction between the quantity of a good or service available (supply) and the desire for it (demand) determines its price.