Which of the Following Explains Why the Sugar Quota Is

question 142

Multiple Choice

Which of the following explains why the sugar quota is a winning policy for politicians?

• A) The people who are harmed by the quota are rationally ignorant.
• B) The people who are harmed by the quota have strong incentive to oppose the policy.
• C) The people who benefit from the quota are rationally ignorant.
• D) The people who benefit from the quota are too small in number to influence the outcome of elections.

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Definitions:

Market Return

Market return is the profit or loss generated from investing in the stock market, typically measured as the percentage change in investment value over a specific period.

Preemptive Rights

The rights that allow existing shareholders to purchase additional shares before new shares are offered to the public, to maintain their proportionate ownership in the company.

Proportionate Ownership

The percentage of ownership in a company or property, directly correlating to the amount of shares or units an individual or entity possesses.

Efficient Market Hypothesis

A financial theory stating that asset prices fully reflect all available information, making it impossible to consistently achieve higher returns than the overall market.