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Ten Farmers, in a Society with 100 People, Would Collectively

Question 98

Multiple Choice

Ten farmers, in a society with 100 people, would collectively gain $100,000 from a farm subsidy. All 100 people would pay the $300,000 cost of the subsidy program. Are the farmers willing to lobby the government in support of the subsidy?


A) No, the benefits of $100,000 are less than the cost of $300,000.
B) No, the benefits of $10,000 per farmer are less than the costs of $300,000.
C) Yes, the benefits of $10,000 per farmer exceed the costs of $3,000 per person.
D) Yes, regardless of the cost, the farmers are supportive of any subsidy with benefits.

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