Of the Following Groups, Which Benefits Most from a Government

question 305

Multiple Choice

Of the following groups, which benefits most from a government price support program that establishes a floor price for an agricultural product that is higher than the product's market clearing price?

• A) Consumers, who purchase more units of the product than they did before the price support program was implemented
• B) Taxpayers, who no longer must provide funds to purchase surplus units of the product once the price support program is in place
• C) Producers, who earn a higher price on the sale of each unit and also sell more units, thereby unambiguously earning higher revenues
• D) The government, which receives subsidy payments from producers that are required to sell more of the product at a higher price under the government's program

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Definitions:

India

A country in South Asia, known for its diverse culture, historical landmarks, and rapidly growing economy.

Lifestyle Entrepreneur

Person who starts a business to reduce work hours and create a more relaxed lifestyle.

Serial Entrepreneur

An individual who repeatedly starts new businesses, taking on the risks and rewards of multiple ventures.

Intrapreneur

An employee within a company who promotes innovative product development and marketing by acting as an entrepreneur.