Use the figure below to answer the following question(s).
Figure 6-1

Figure 6-1 illustrates the four possibilities of the distribution of costs and benefits among voters for a government project. For which type would the government most likely undertake many projects that would be considered inefficient or counterproductive (in other words, do too many of them relative to economic efficiency)?

Question

Use the figure below to answer the following question(s).
Figure 6-1

Figure 6-1 illustrates the four possibilities of the distribution of costs and benefits among voters for a government project. For which type would the government most likely undertake many projects that would be considered inefficient or counterproductive (in other words, do too many of them relative to economic efficiency)?

Quizplus · Accepted Answer

In type B, a small group of voters receive large benefits while a large group bears a small cost. This means that the concentrated benefits outweigh the diffuse costs, making it more politically feasible for the government to undertake these projects even if they may not be economically efficient.

Use the Figure Below to Answer the Following Question(s)