Import quotas on sugar may cost consumers $2 billion per year. But this quota goes unchallenged because the $10 average annual cost per person is so small that probably not one voter in 200 knows the quota exists. This statement describes

Question

Quizplus · Accepted Answer

The statement describes the special-interest effect, where policies that impose significant costs on society as a whole are enacted because they benefit a small, politically powerful interest group. In this case, the sugar quota benefits a small number of sugar producers at the expense of the general public, but the cost per person is so low that there is little incentive for individuals to take action against it.

Import Quotas on Sugar May Cost Consumers $2 Billion Per