Which of the following statements is TRUE?
I. Sugar consumers pay higher prices because of sugar quotas, a sufficient incentive for them to campaign against politicians that favor quotas.
II. Sugar producers know more about sugar quotas than do sugar consumers because the quota system has a large effect on sugar industry profits.
III. When it comes to sugar trade policy, sugar producers are rationally informed and sugar consumers are rationally ignorant.

Question

Quizplus · Accepted Answer

Sugar producers have a strong incentive to be informed about quotas as it affects their profits, while consumers have less incentive to be informed due to the relatively small impact on individual prices, making them rationally ignorant.

Which of the Following Statements Is TRUE