Which of the following statements is true ?

Question

Quizplus · Accepted Answer

Government failure can occur if voters are rationally ignorant because they may not have enough knowledge or motivation to fully understand the consequences of their choices and may end up supporting policies that do not align with their own best interests. The other statements are not true: (A) is incorrect because sales, excise, and flat-rate taxes are regressive and result in a greater burden on the poor than the rich, violating the ability-to-pay principle of taxation fairness; (C) is incorrect because special-interest groups can exert political pressure to create programs that benefit them while imposing costs on others, resulting in a net negative effect on society as a whole; (D) is incorrect because majority-rule voting may not consider the costs and benefits of a project, while benefit-cost analysis requires a more thorough analysis of the potential outcomes of a project.

Which of the Following Statements Is True