Legislation that offers immediate and easily recognized benefits, at the expense of costs that are observable only in the distant future, is often enacted, even when economic inefficiency results. In economics this is referred to as the a. long-term effect. b. political-fallacy effect. c. shortsightedness effect. d. inefficiency effect.

Question

Business

Cornelius Wilkinson

9 July, 05:06

Legislation that offers immediate and easily recognized benefits, at the expense of costs that are observable only in the distant future, is often enacted, even when economic inefficiency results. In economics this is referred to as the a. long-term effect. b. political-fallacy effect. c. shortsightedness effect. d. inefficiency effect.

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Kalan · Answer 1

c. shortsightedness effect

Explanation:

Based on the information provided within the question it can be said that in economics this description refers to the Shortsightedness effect. This is an effect that implies that politicians tend to prefer projects that allow them to generate higher benefits but in a shorter time frame, as opposed to longer time-frames. Even though those program's total costs may exceed the overall benefit in the long run.