Governments Continue to Provide Public Support to Some Farmers,even in the Absence

question 9

Multiple Choice

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.

• A)The marginal social cost of providing support is equal to the marginal social benefit.
• B)Government support goes to consumers in the form of price controls,which balances the support given to farmers.
• C)All consumers are willing to pay higher prices in order to provide financial support to some farmers.
• D)Vote-maximizing governments are not rational in their response to powerful lobbying.
• 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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