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

question 9

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. In economics this is referred to as the

• A) long-term effect.
• B) political-fallacy effect.
• C) shortsightedness effect.
• D) inefficiency effect.

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Definitions:

Legally Obligated

Bound by law to perform a particular action or adhere to a set of rules or outcomes.

Basic Need

Fundamental requirements that sustain human life, such as food, water, shelter, and safety.

Shelter

A structure or place providing protection from weather, danger, or discomfort; it can also refer to organizations offering refuge to the homeless or abused.

Emancipated Minor

A person under the age of majority who is granted most adult rights through a legal process, including the ability to enter contracts and make healthcare decisions.