Congresswoman Renee Ellmers Represents North Carolina's 2^nd District, Home to the U.S

question 46

Multiple Choice

Congresswoman Renee Ellmers represents North Carolina's 2^nd District, home to the U.S. Army base Fort Bragg. When Congress debated steep military funding cuts in 2010 to enhance efficiency in the federal government, Representative Ellmers fought hard against the cuts, expressing concern that the cuts could force the military to close the base located in her district. Her behavior is evidence of what type of classic problem in American government?

• A) collective action problem
• B) prisoner's dilemma
• C) principal-agent problem
• D) coordination problem
• E) cooperation problem

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Definitions:

Producer Surplus

The difference between what producers are willing to accept for a good versus what they actually receive, often due to market prices being higher.

Substitutes

Goods or services that can be used in place of each other, allowing consumers to switch if there is a change in price or availability.

Producer Surplus

The difference between the amount that producers are willing and able to sell a good for and the actual amount they receive due to market dynamics.

Equilibrium Price

The price at which the quantity of goods demanded by consumers equals the quantity of goods supplied, resulting in market balance.