Economics 1st Edition by Dean Karlan,Jonathan Morduch

Exercise 13

For each of the following, state who benefits and who bears the costs, and whether the costs and benefits are concentrated or diffuse. Based on this assessment, predict which side is likely to get its way.
a. A rubber producer lobbies the government to prohibit the import of cheaper foreign rubber, driving up the cost of consumer goods.
b. The government increases federal gas taxes by 1 cent per gallon to finance building high-speed train routes between major East Coast cities.