Economists Use the Term Shortsightedness Effect to Describe Which One

question 40

Multiple Choice

Economists use the term shortsightedness effect to describe which one of the following phenomena?

• A) Politicians tend to support actions that have immediate and easily recognized current benefits.
• B) Individuals are apt to spend their income on goods that bring immediate personal benefits.
• C) Voters elect politicians on the basis of campaign promises, regardless of what they may do once they are in office.
• D) Politicians support the programs of special interest groups in order to get elected; however, special interest support may be detrimental later, costing politicians popularity after the programs are implemented.

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Definitions:

Monopolist

An individual or entity that holds exclusive control over the supply of a particular good or service, potentially manipulating market conditions.

Consuming Units

Entities, typically individuals or households, that use goods and services for personal needs or wants.

Households

The consuming units in an economy.

Factors Of Production

The inputs used in the creation of goods or services; traditionally includes land, labor, capital, and entrepreneurship.