A source of inefficiency in the public sector occurs when the benefits from a government decision are obtained by ____ people,but the costs are paid by ____.

Question

Quizplus · Accepted Answer

When the benefits are obtained by a few people, they may have more power to lobby for the decision and may not consider the cost to the many who will have to bear the burden of the decision. This can lead to an inefficient allocation of resources.

A Source of Inefficiency in the Public Sector Occurs When