Legislation That Offers Immediate and Easily Recognized Benefits, at the Expense

question 194

Multiple Choice

Legislation that offers immediate and easily recognized benefits, at the expense of costs that are observable only in the distant future, is often enacted even when economic inefficiency results. This can be expected because of

• A) a lack of incentive for operational efficiency in the public sector.
• B) market failure.
• C) the special-interest effect.
• D) the shortsightedness effect.