Microeconomics: Principles, Applications, and Tools (8th Edition)

Published by Prentice Hall
ISBN 10: 0-13294-886-9
ISBN 13: 978-0-13294-886-9

Chapter 15 - Public Goods and Public Choice - Exercises - 15.3 Public Choice and the Median Voter - Page 354: 3.3

Answer

large small

Work Step by Step

Special interest projects have costs paid by large numbers of citizens, but have benefits for only a few. So we have: The special-interest theory of government suggests a government will approve an inefficient project if the costs of the project are paid by a $\textbf{large}$ number of citizens and the benefits go to a $\textbf{small}$ number of citizens.
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