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, the government would undertake many projects that are considered inefficient or counterproductive because a small group of people receive significant benefits while the cost is spread out among many people. This leads to the government prioritizing projects that benefit a small group over projects that benefit the majority of people, resulting in an inefficient allocation of resources.

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