A special interest project that costs 200 million citizens $1 each, but benefits 100 citizens a total of $100 million is an inefficient use of government funds.

Question

Quizplus · Accepted Answer

This is an example of the concept of "the tragedy of the commons," where a common resource (in this case, the $200 million) is depleted due to individual self-interest. While the project benefits 100 citizens, it is not an efficient use of funds as it imposes a cost on a much larger group. Instead, the government could explore alternative funding mechanisms or find a project that benefits a larger portion of the population.

A Special Interest Project That Costs 200 Million Citizens $1