Which of the following explains why the sugar quota is a winning policy for politicians?
The people who benefit from the quota are too small in number to influence the outcome of elections. The people who are harmed by the quota are rationally ignorant. The people who benefit from the quota are rationally ignorant. The people who are harmed by the quota have strong incentive to oppose the policy.
The statement that best explains why the sugar quota is a winning policy for politicians is:
The people who benefit from the quota are rationally ignorant.
This is because the benefits of the sugar quota are concentrated among a small group of sugar producers, who have a strong incentive to lobby for the quota and influence policy. In contrast, the costs of the quota are spread out among a large number of consumers, each of whom may not feel motivated to oppose the policy because the individual impact on them is relatively small. As a result, consumers may remain uninformed or indifferent about the quota, allowing politicians to support it without facing significant opposition.