Which of the following explains why the sugar quota is a winning policy for politicians?
A) The people who are harmed by the quota are rationally ignorant.
B) The people who are harmed by the quota have strong incentive to oppose the policy.
C) The people who benefit from the quota are rationally ignorant.
D) The people who benefit from the quota are too small in number to influence the outcome of elections.

Question

Quizplus · Accepted Answer

The people who are harmed by the sugar quota are rationally ignorant because the cost of the quota is spread across many consumers, making it not worth their time and effort to oppose it. Meanwhile, the benefits are concentrated among a smaller group (e.g., sugar producers), who have a strong incentive to support and lobby for the policy.

Which of the Following Explains Why the Sugar Quota Is