Subsidies for Silver,the Bland-Allison Act of 1878,and the Silver Purchase

question 8

Multiple Choice

Subsidies for silver,the Bland-Allison Act of 1878,and the Silver Purchase Acts of 1890 and 1933 all provide examples of government programs

• A) based on careful analysis of benefits relative to costs.
• B) designed to redistribute income from the rich to the poor.
• C) that reflect the political attractiveness of special-interest issues.
• D) that promote the general welfare.

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Definitions:

Consumer Surplus

It is the difference between the total amount that consumers are willing and able to pay for a good or service and the total amount that they actually pay.

Market Equilibrium

The state in which market supply and demand balance each other, resulting in stable prices.

Producer Surplus

The difference between the amount a producer is willing to accept for a product versus what they actually receive.

Equilibrium Price

The price at which the quantity of a good demanded by consumers equals the quantity supplied by producers.