Which two electoral incentives lead to inefficiencies in public spending? Question 3Select more than one:a.Pressure from special interest groupsb.Vote maximisationc.Increased information d.Efficiency maximisation
Question
Which two electoral incentives lead to inefficiencies in public spending? Question 3Select more than one:a.Pressure from special interest groupsb.Vote maximisationc.Increased information d.Efficiency maximisation
Solution
The two electoral incentives that lead to inefficiencies in public spending are:
a. Pressure from special interest groups b. Vote maximisation
These two factors can lead to inefficiencies as politicians may cater to the demands of special interest groups or make decisions aimed at gaining the most votes, rather than focusing on the most efficient and effective use of public funds.
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