Policy A adversely affects 50 million people at a cost of $1 perperson. But Policy A also benefits 1,000 people at $30,000 perperson. Which of the following statements is true?

Question

Quizplus · Accepted Answer

Policy A is likely to be supported by politicians because it provides substantial benefits to a small group, who may be more politically active or influential, despite the broader societal costs. This dynamic is common in politics where concentrated benefits and dispersed costs can lead to the adoption of policies that are not beneficial on the aggregate.

Policy a Adversely Affects 50 Million People at a Cost