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 fail to undertake many projects that would be considered efficient or productive (in other words, do too few 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 fail to undertake many projects that would be considered efficient or productive (in other words, do too few of them relative to economic efficiency)?

Quizplus · Accepted Answer

In type C, the project would only benefit a small group at the expense of a larger group. This is likely to result in political opposition to the project, even if it is efficient or productive from an economic standpoint. As a result, the government may be hesitant to undertake projects of this type, leading to a reduction in the overall number of efficient or productive projects.

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