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The Shortsightedness Effect Suggests That

Question 106

Multiple Choice

The shortsightedness effect suggests that


A) politicians have a strong incentive to support projects that yield immediate and easily recognized benefits, especially when the costs of the projects are difficult to identify and are observable only in the distant future.
B) politicians have a strong incentive to support projects that yield benefits in the distant future, especially when the costs of the project must be paid for in the current period.
C) voters will tend to weigh future costs and benefits more heavily than current costs and benefits.
D) legislators will be unwilling to trade votes on issues, especially when those issues benefit only special interest groups.

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