Politicians Have a Strong Incentive to Support Projects Even When

question 150

Multiple Choice

Politicians have a strong incentive to support projects even when their costs outweigh their benefits if:

• A) the costs are concentrated among a small group and the benefits are widely dispersed across taxpayers.
• B) the costs of the project are spread widely across taxpayers and the benefits are spread widely across taxpayers.
• C) all voters and taxpayers are perfectly informed.
• D) the costs of the project are spread widely across taxpayers and the benefits are concentrated on a small group.

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