HelpSave & Exit1Consider a specific example of the special-interest effect. In 2012, it was estimated that the total value of all corn-production subsidiesin the United States was about $3 billion. The population of the United States was approximately 300 million people that year.Instructions: Enter your answers as a whole number.a. On average, how much did corn subsidies cost per person in the United States in 2012? (Hint: A billion is a 1 followed by nine zeros.A million is a 1 followed by six zeros.)%2410 per personBookb. If each person in the United States is willing to spend only $0.50 to support efforts to overturn the corn subsidy, and if antisubsidyadvocates can only raise funds from 10 percent of the population, how much money will they be able to raise for their lobbying efforts?erences%2415 millionc. If the recipients of corn subsidies donate just 1 percent of the total amount that they receive in subsidies, how much could they raiseto support lobbying efforts to continue the corn subsidy?%2430 milliond. By how many dollars does the amount raised by the recipients of the corn subsidy exceed the amount raised by the opponents ofthe corn subsidy?15 millionPrev1 of 10Next >MacBook Air%24%24%24

Formula: Total corn subsidy = Total subsidy / Total population

Answered: Help Save & Exit 1 Consider a specific…

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter16: Public Goods And Public Choice

Section: Chapter Questions

Problem 14PAE

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The act of AZ legislators convincing FL legislators to support (help pay for) the Central Arizona Project (bringing water to AZ from CO) in exchange for AZ legislators supporting (helping pay for) federal subsidies of FL orange growers is an example of __________________.
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Paper cups are popular items for schools and are produced in the market. There are equations for the Supply and Inverse Demand of paper cups that model its Supply and Demand graph. These equations are (for supply), P = 2 + 3Qs, and (for Inverse Demand), P = 12 - 2Qd. Likewise, paper cups are inexpensive and not very helpful for companies trying to achieve high profits. As a result, the government placed a price support of $9. (Part I) Draw the market equilibrium with the government intervention (Q**, P**) of the price ceiling. Please label the graph for slopes, equilibrium points, price support, etc. (Part II) What is the market equilibrium with the intervention of the government (Q**, P**)? (Part III) What is the government surplus (GS**)? (Part IV) What is the Dead Weight Loss (DWL**)?
Discuss and provide two examples of how subsidies can be economically harmful.
In 2013, it was estimated that the total value of all corn-production subsidies in the United States totaled about $4.8 billion. The population of the United States was approximately 315 million people that year. a. On average, how much did corn subsidies cost per person in the United States in 2013? (Hint: A billion is a 1 followed by nine zeros. A million is a 1 followed by six zeros.) b. If each person in the United States is only willing to spend $0.50 to support efforts to overturn the corn subsidy, and if antisubsidy advocates can only raise funds from 10 percent of the population, how much money will they be able to raise for their lobbying efforts? c. If the recipients of corn subsidies donate just 1 percent of the total amount that they receive in subsidies, how much could they raise to support lobbying efforts to continue the corn subsidy? d. By how many dollars does the amount raised by the recipients of the corn subsidy exceed the amount raised by the opponents of the corn…
To determine the optimal amount of a public good to supply, the government must know Question 9Answer a. the price elasticity of demand of each buyer. b. the supply curve of the government. c. everyone's valuation for the public good. d. the revenue of selling the good.
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