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Policy a Adversely Affects 50 Million People at a Cost

Question 71

Multiple Choice

Policy A adversely affects 50 million people at a cost of $1 per person. But Policy A also benefits 1,000 people at $30,000 per person. Which of the following statements is true?


A) Policy A will not become law because it hurts more people than it helps.
B) Policy A concentrates all the costs among a small group of people and all the benefits among a large group of people.
C) Policy A is likely to be supported by politicians even though it makes society worse off.
D) Since Policy A negatively affects many people, and so rational ignorance will not be a problem.

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