Subsidy Programs That Provide Benefits to Well Organized Interest Groups

question 67

Multiple Choice

Subsidy programs that provide benefits to well organized interest groups will

• A) be unattractive to elected political officials.
• B) be highly attractive to elected political officials.
• C) be attractive to elected political officials only if the subsidies reduce the cost of supplying the good.
• D) be attractive to elected political officials only if the subsidies increase the efficiency of resource use.

Familiarize with concepts of group technology and its benefits like reduced setup times and improvement in production processes.

Recognize the importance of rapid product development and strategies to achieve it, such as time-based competition.

Understand the environmental considerations in product design and the rise of environmental awareness.

Grasp the concept of system perspective in product design management and the need to view products in terms of their overall impact.

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Definitions:

Marginal Utility

The additional satisfaction or utility a consumer receives from consuming one more unit of a good or service.

Maximize Utility

The process or goal of obtaining the highest level of satisfaction or benefit from consuming goods and services, given a consumer's limitations, such as income or resources.

Income

The financial gain received by an individual or entity, typically measured over a period of time, deriving from labor, investment, or business ventures.

Marginal Utility

The additional satisfaction or benefit received by consuming one more unit of a good or service.