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 types of projects would government action most likely work well, undertaking only efficient projects and rejecting inefficient ones?

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 types of projects would government action most likely work well, undertaking only efficient projects and rejecting inefficient ones?

Quizplus · Accepted Answer

Government action would work well when undertaking only efficient projects and rejecting inefficient ones for types A and D, where the benefits outweigh the costs for the majority of voters. Type B has a mixed distribution of costs and benefits, where some voters benefit while others bear the costs, making it a more controversial issue for government action. Type C has a reversed distribution of costs and benefits, where the costs outweigh the benefits for the majority of voters, making it an inefficient use of government resources.

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