In 2010, Two Members of Congress Held a Colorful Press

question 77

Multiple Choice

In 2010, two members of Congress held a colorful press conference, with goats in tow, to announce their intention to try to end federal mohair (a fabric made from goat hair) subsidies.These subsidies, long the target of presidents and members of Congress from both parties, dated from the mid-1950s, when Congress decided to support mohair production as a precaution against wool shortages.The subsidies were cut in 1995, but reemerged a few years later.The efforts of Chaffetz and Weiner to end the estimated $750,000 in subsidies, meanwhile, failed. Why might programs such as the mohair subsidy be so difficult to end?

• A) Most longtime programs, no matter how small, have broad support from the American people.
• B) Clientele agencies lobby for their survival, on behalf of the people and industries they serve-such as, in this case, the Department of Agriculture, on mohair producers' behalf.
• C) The few who benefit from a program will intensely fight elimination, or fight to reinstate cut programs, while most taxpayers would be unlikely to care, being largely unaffected.
• D) Congress prefers an incremental approach to cutting government services, even relatively small ones.

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Definitions:

Economic Booms

Periods characterized by a significant increase in economic activity and growth, often leading to higher employment and wealth generation.

Price Ceiling

A legally established maximum price sellers can charge for a good or resource.

Demand Conditions

Demand conditions refer to the various factors that affect consumer desire for products or services, including price, income levels, and preferences.