Distribution of benefits and costs The Assembly, the legislature of the fictional country of Manufa, is considering
Question:
Distribution of benefits and costs The Assembly, the legislature of the fictional country of Manufa, is considering legislation that will generate benefits of $15 million and costs of $11 million. For perspective, Manufa's population is 60 million.
Passing the legislation is (inefficient or efficient? ), and if everyone in Manufa shares equally in both its benefits and its costs, the Assembly will vote ( against or for? ) the legislation.
If the costs of the legislation are concentrated among a few people instead of widespread among the population, those who benefit will be willing to spend up_____ to lobbying the Assembly against the legislation.
a. $0 million
b. $15 million
c. $26 million
d. $11 million
e. $4 million
The less widely spread are the benefits of the legislation, the (lower or higher?) is the likelihood of lobbying for the legislation by those who will incur its benefits. Suppose that, as before, the costs of the legislation are concentrated among a small group, the benefits are very widespread, and the Assembly is responsive to lobbying. The likely amount spent on lobbying for the legislation is
a. $4 million
b. $15 million
c. $0 million
d. $26 million
e. $11 million
in which case the Assembly will likely vote the legislation.
Expert Answer:
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