Why Would a Politician Find It Difficult to Remove a Binding

question 25

Multiple Choice

Why would a politician find it difficult to remove a binding price ceiling?

• A) because it greatly benefits firms,and they would spend a lot of money to lobby against the law's repeal
• B) because it greatly benefits government,which receives additional tax revenue as a result
• C) because it greatly benefits all consumers,and they are also voters
• D) because it greatly benefits some consumers who are also voters
• E) because it greatly benefits society as a whole,with all consumers able to buy as much as firms produce

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Definitions:

Isthmian Canal

Refers to the Panama Canal, a monumental engineering project that connects the Atlantic and Pacific Oceans through the Isthmus of Panama.

American

Relating to or characteristic of the United States of America, its inhabitants, or their culture.

Overseas Imperial Power

A state that extends its dominion and influence to territories beyond its borders through colonization, military conquest, or other means.

1898

A year marked by significant events including the Spanish-American War and the annexation of Hawaii by the United States.