(Consider This) the Government's Subsidized Loan Program Used with Angora

question 5

Multiple Choice

(Consider This) The government's subsidized loan program used with Angora goat farmers today

• A) has persisted well beyond its original purpose in the 1940s.
• B) is an example of the "special-interest effect."
• C) can be attributed to the principal-agent problem.
• D) is hard to stop because of the "concentrated benefit and diffuse costs" problem.
• E) All of these choices are correct.

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Definitions:

Few Competitors

A market condition where only a small number of firms operate, often leading to higher prices and reduced competition.

Oligopoly

Market structure in which relatively few sellers compete and high start-up costs form barriers to keep out new competitors.

Planned Economy

Economic system in which government controls determine business ownership, profits, and resource allocation to accomplish government goals rather than those set by individual firms.

Mixed Market Economy

features both private and public enterprise, blending elements of capitalist and socialist economic systems.