Question

Professional sports teams will sometimes seek public subsidies for stadium financing projects that produce large benefits for a relatively small number of fans and impose small costs on a relatively large number of people. Sometimes these efforts to secure public funding are successful even though the decision is not efficient. This is an example of

Answer 1

Answer:

The correct response is the special-interest effect.

Explanation:

This kind of situation regarding the financing of projects with public subsidies is called the special-interest effect.  This is a complicated notion because it denotes the tendency for politicians to favor special interest groups that are easily identifiable and that appear well-organized and competent through prior interactions for example. This is because the wider voting populace tends to ignore issues or seems more apathetic. To the individual politician, it seems more efficient and logical to give funds to those interests that are more organized and active. Special interest voters make their candidates and legislators aware of their needs and the projects they promote. In this way,  politicians and legislators are led to promote the positions of special interests.