Which of the Following Is an Example of a Policy

question 41

Multiple Choice

Which of the following is an example of a policy whose benefits are widely distributed but whose costs are concentrated?

• A) Social Security
• B) funding for public schools
• C) air pollution controls
• D) agriculture subsidies
• E) tax policy

---

Definitions:

Consumer Preferences

The specific desires, likes, and dislikes that influence the purchasing behavior of consumers.

Economic Profit

The profit a company makes after deducting both its explicit (actual cash outflows) and implicit (opportunity) costs.

Profit Motive

The driving force behind business activities focused on achieving financial gain.

Long-Run Economic Profit

The sustainable profit a firm earns over time, assuming entry and exit in the market are possible and adjustments have been made.