If the Federal Government Began Granting a Subsidy of 10

question 200

Multiple Choice

If the federal government began granting a subsidy of 10 cents per apple to apple growers and as a result the price of apples to consumers falls by 8 cents,

• A) the actual benefit of this subsidy goes mostly to consumers.
• B) the actual benefit of this subsidy goes mostly to producers.
• C) the actual benefit of this subsidy would be shared equally by producers and consumers.
• D) nobody would benefit from the subsidy.

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Definitions:

AFL-CIO

The American Federation of Labor and Congress of Industrial Organizations, a national trade union center that represents the interests of member labor unions.

Winner-Take-All Principle

An electoral system where the candidate with the most votes wins the entire election, often used in US presidential state primaries.

Electoral College

A body of electors established by the Constitution in the United States, which formally elects the President and Vice-President based on the popular vote in each state.

President

The elected head of a republican state, responsible for executing national laws and overseeing the government's administration.