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
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
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa9f1deb9-8154-4352-8bcd-6e341ad1a924%2F391b4013-2503-4e90-924f-6079c4036a96%2Fn1w19js_processed.jpeg&w=3840&q=75)
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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