Legislation that offers immediate and easily recognized benefits, at the expense of uncertain costs that are in the distant future (such as financing by government debt), is often enacted even when economic inefficiency results. This can be expected because of

Question

Quizplus · Accepted Answer

The concept of immediate benefits and uncertain costs in the distant future reflects the shortsightedness effect, which is the tendency for decision-makers to prioritize short-term gains over long-term consequences. This can lead to decisions that are economically inefficient in the long run.

Legislation That Offers Immediate and Easily Recognized Benefits, at the Expense