Figure 6-1
illustrates the four possibilities of the distribution of costs and benefits among voters for a government project. Programs that give subsidies to a small group of producers at general taxpayer expense would be considered
a.
type A projects, and the government would be likely to undertake these projects if they were efficient and to reject them if they were inefficient.
b.
type B projects, and the government would be likely to undertake many of these projects even when they were counterproductive (inefficient).
c.
type C projects, and the government would be likely to fail to undertake many of these projects even when they were productive (efficient).
d.
type D projects, and the government would be likely to undertake these projects if they were efficient and to reject them if they were inefficient.
b
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The natural rate of unemployment in the United States
a. has consistently equaled 6 percent b. has increased as the federal budget deficit has fallen c. is similar to the natural rate in European countries d. has increased in recent years e. is now unusually high because so many women have entered the labor force
Each of the following hurt the savings and loan industry in the 1980s except
A. the recession of 1981-1982. B. falling real estate prices. C. the falling prices of junk bonds. D. falling interest rates.