Assume that the quota on imported sugar costs Egyptian consumers more than $2 million annually and protects very few jobs. Why does the parliament maintain a sugar quota that protects only a few thousand workers while forcing millions of people to pay higher prices for sugar products?
A) Citizens are not as involved in social and political issues as they used to be.
B) Most Egyptian citizens do not buy sugar products and want to help workers in the sugar industry.
C) The per person cost of the sugar quota is too small for many people to lobby the parliament to make their views known.
D) Voters fear that if they oppose the sugar lobby, the lobby may oppose issues that they want the parliament to support.

Question

Quizplus · Accepted Answer

The per person cost of the sugar quota is likely too small for many individuals to be motivated to lobby against it, despite the collective cost being significant. This phenomenon is related to the concept of collective action problems, where the individual incentive to act is outweighed by the perceived cost or effort required, especially when the individual benefit of action is small.

Assume That the Quota on Imported Sugar Costs Egyptian Consumers