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Drop down options and a similar version are provided below. DROP DOWN OPTIONS: 1

ID: 1214959 • Letter: D

Question

Drop down options and a similar version are provided below.

DROP DOWN OPTIONS:

1: INEFFICIENT / EFFICIENT

2: FOR / AGAINST

3: $30 MILLION / $35 MILLION / $65 MILLION / $5 MILLION / $0 MILLION

4: LOWER / HIGHER

5: $30 MILLION / $35 MILLION / $65 MILLION / $5 MILLION / $0 MILLION

6: AGAINST / FOR

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Below is a different version with explanations:

6. Distribution of benefits and costs The Senate, the legislature of the fictional country of Romange, is considering legislation that will generate benefits of $30 million and costs of $35 million. For perspective, Romange's population is 50 million. Passing the legislation is , and if everyone in Romange shares equally in both its benefits and its costs, the Senate will vote the legislation If the benefits 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 the calculations of the few who experience the benefits.) lobbying the Senate for the legislation. Note: Assume that the costs are widespread; therefore, you can ignore them in The more widely spread are the costs of the legislation, the is the likelihood of lobbying against the legislation by those who will incur its costs. Suppose that, as before, the benefits of the legislation are concentrated among a small group, but the costs of the legislation are concentrated among another small group, and the Senate is responsive to lobbying. The people who will be harmed by the legislation will be lling to spend on lobbying up to , in which case the Senate will likely vote the legislation.

Explanation / Answer

INEFFICIENT
AGAINST
30
LESS
5
FOR

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