The table provides information about a weed control program. Two political parti

Question

The table provides information about a weed control program. Two political parties, the Conservers and the Eradicators, contest an election in which the only issue is the quantity of spraying to undertake. The Conservers want no spraying and the Eradicators want to spray 2.5 square miles a day. The voters are well-informed about the benefits and costs of the program. The outcome of the election is that the Conservers lose because their proposal results in unhappy bureaucrats the Eradicators lose because their proposal costs more than the Conservers proposal the Eradicators lose because their proposal enables bureaucrats to maximize their budgets the Conservers win because their proposal creates the smallest deadweight loss the Eradicators win because their proposal creates the smallest deadweight loss

Explanation / Answer

B) THE ERADICATORS LOSE BECAUSE THEIR PROPOSAL COSTS MORE THEN THE CONSERVERS PROPOSAL.

THE EFFICIENCY IN THIS CASE LIES AT THE POINT WHERE THE MARGINAL SOCIAL COST EQUALS THE MARGINAL SOCIAL BENEFIT, WHICH IS NOT THE CASE WITH THE ERADICATORS PROPOSAL.

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