Question

According to the shortsightedness effect, politicians tend to favor projects with a. short-run benefits and short-run costs. b. short-run benefits and long-run costs. c. long-run benefits and short-run costs. d. long-run benefits and long-run costs.

Answer 1

B

Step-by-step explanation:

short-run benefits and long-run costs.

The shortsightedness effect is the fact that the politicians are geared towards the project with short-run benefits and the long-run costs. This is because the rez-election will happen in a short period of time from 2 to 6 years. Thus the politician will prefare the short and immediate benefit orograms in the economy and the cost imposed on the future generation

Answer 2

B. Short run benefits and long run costs

Step-by-step explanation:

Short sightedness effect is one of the main causes of failure in a government.

The total costs of such projects over time surpasses the total gain from the project over its lifetime. This encourages wastage and poor future planning which are catalyst for failure in a government system.