The Government's Subsidized Loan Program Used with Angora Goat Farmers

question 21

Multiple Choice

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:

Wage Rate

The fixed regular payment, typically calculated on an hourly, daily, or piecework basis, made by an employer to an employee.

Productive

The ability to produce a significant amount of output or work in a specific period of time, often using resources efficiently.

MRP Curve

The Marginal Revenue Product curve, which shows the added revenue generated by increasing the employment of an additional unit of a resource, holding other factors constant.

Labor Demand Curve

Represents the relationship between the quantity of labor that employers are willing to hire and the wage rate, typically sloping downward from left to right.