Asked by mikey sanchez on Jul 14, 2024
Verified
Farmers, though a small proportion of the population, can impose a large total cost to taxpayers in the form of agricultural subsidies because the average cost imposed on each individual taxpayer is small and not given much attention by a large number of taxpayers.
Taxpayers
Individuals or entities that are required to make payments to a governmental authority, often based on income or property ownership.
- Appreciate the economic rationale behind agricultural subsidies and their societal implications.
Verified Answer
JT
Jacqueline TorresJul 16, 2024
Final Answer :
True
Explanation :
This phenomenon is known as the "concentrated benefits and diffused costs" theory in political economics, where a small, organized group (like farmers) benefits significantly from policies like subsidies, while the cost is spread thinly across a large, unorganized group (the taxpayers), making the per-person cost small and less noticeable, thus reducing opposition to the subsidies.
Learning Objectives
- Appreciate the economic rationale behind agricultural subsidies and their societal implications.
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