Of the Following Groups, Which Benefits Most from a Government

question 204

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:

Arbitrary Inference

Distortion of thinking in which a person draws a conclusion that is not based on any evidence.

Distortion

An alteration in the perception or representation of something, leading to a misinterpretation or miscommunication.

Cognitive Distortions

Irrational, flawed, or negative patterns of thinking that can contribute to feelings of depression, anxiety, and a distorted view of the world.

Aaron Beck

A psychiatrist and psychotherapist recognized for pioneering cognitive therapy, especially for his work on cognitive behavior therapy for depression.