Governments continue to provide public support to some farmers,even in the absence of market failures.Choose the best explanation for this practice according to public choice theory.
A)The marginal social cost of providing support is equal to the marginal social benefit.
B)Government support goes to consumers in the form of price controls,which balances the support given to farmers.
C)All consumers are willing to pay higher prices in order to provide financial support to some farmers.
D)Vote-maximizing governments are not rational in their response to powerful lobbying.
E)The benefits of the support are concentrated among a small and vocal group of farmers and the costs are widely dispersed among millions of consumers.

Question

Quizplus · Accepted Answer

Public choice theory predicts that governments are more likely to respond to the demands of concentrated interest groups than to the diffuse interests of the general public. This means that the benefits of supporting a small group of farmers can have a disproportionate influence on government decision-making compared to the costs, which are spread out among millions of consumers. As a result, governments may continue to provide public support to some farmers even when there is no market failure or economic justification for doing so.

Governments Continue to Provide Public Support to Some Farmers,even in the Absence