The establishment of a government redistributive program such as price supports creates _____.
A)higher consumer consumption
B)above-normal annual profits
C)a transitional gain
D)independency among recipients

Question

Quizplus · Accepted Answer

The establishment of a government redistributive program such as price supports creates a transitional gain, which is a temporary increase in income or profits that typically occurs when a new policy or program is implemented. Price supports are typically used to artificially prop up the price of a particular commodity, which can benefit producers in the short term. However, the long-term impact of price supports is often negative, as they can lead to overproduction, higher prices for consumers, and dependence on government subsidies. Price supports do not typically result in higher consumer consumption, above-normal annual profits, or independency among recipients.

The Establishment of a Government Redistributive Program Such as Price