Why Have Politicians Always Favored Using Subsidies to Promote Certain

question 20

Multiple Choice

Why have politicians always favored using subsidies to promote certain economic activities?

• A) They can be treated as "benefits" that can be spread widely in response to many demands.
• B) They are generally cheaper than other forms of government support.
• C) Recipients are always required to pay back the subsidies.
• D) Congress does not have to pass legislation in order to provide subsidies.
• E) They are paid for through international tariffs rather than personal income taxes.

---

Definitions:

Consumer Price Index

An indicator of inflation that looks at the weighted average costs of a collection of consumer goods and services.

Savers

Individuals or entities that set aside funds rather than spending them, typically to accumulate wealth for future use.

Creditors

Creditors are individuals or institutions to whom money is owed by another individual or entity, typically resulting from a loan or credit extended.

Debtors

Individuals or entities that owe money to another party, typically as a result of borrowing funds.