According to the shortsightedness effect, politicians tend to ...

[Shelles]

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.

Question 2

If it costs the DuPont Chemical Company more to make the chemical flaxinate in the United States than it does to make it in Formosa, the Formosans must have:
 a. lower demand for flaxinate.
  b. tariffs on flaxinate.
  c. inefficient markets.
  d. a more favorable political environment.
  e. an absolute advantage in flaxinate production.

[smrtceo]

Answer to Question 1

b

Answer to Question 2

e