Sovermments continue to provide public support to some farmers, he absence of market failures. Choose the best explanation for thi practice according to public choice theory. O a. The marginal social cost of providing support is equal to th marginal social benefit. All consumers are willing to payv higher prices to provide firm

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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Governments continue to provide public support to some farmers, even in
the absence of market failures. Choose the best explanation for this
practice according to public choice theory.
O a. The marginal social cost of providing support is equal to the
marginal social benefit.
O b. All consumers are willing to pay higher prices to provide financial
support to some farmers.
O c. Vote-maximising governments are irrational in their response to
powerful lobbying.
O d. Government support goes to consumers in the form of price
controls, which balances the support given to farmers.
O e. The benefits of the support are concentrated among a small and
vocal group of farmers and the costs are widely dispersed among
millions of consumers.
Transcribed Image Text:Governments continue to provide public support to some farmers, even in the absence of market failures. Choose the best explanation for this practice according to public choice theory. O a. The marginal social cost of providing support is equal to the marginal social benefit. O b. All consumers are willing to pay higher prices to provide financial support to some farmers. O c. Vote-maximising governments are irrational in their response to powerful lobbying. O d. Government support goes to consumers in the form of price controls, which balances the support given to farmers. O e. The benefits of the support are concentrated among a small and vocal group of farmers and the costs are widely dispersed among millions of consumers.
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