One Reason Why Producers Have an Incentive to Organize in Favor

question 15

Multiple Choice

One reason why producers have an incentive to organize in favor of protection is because

• A) producer gains are spread across so many firms that no one gets a large share of the benefits.
• B) producer gains are relatively concentrated.
• C) there is no real cost to the economy.
• D) producer gains outweigh consumer losses.

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Definitions:

Common Cold

A viral infectious disease of the upper respiratory tract that primarily affects the nose, throat, and sinuses.

Immune System

The body's defense mechanism against infectious organisms and other invaders, comprising various cells, tissues, and organs.

Adrenal Cortex

The outer portion of the adrenal gland that produces steroid hormones such as cortisol, which regulates metabolism and the immune response, and aldosterone, which controls blood pressure.

Cortisol

A hormone released by the adrenal glands in response to stress or low blood glucose.