Fifty years ago, your state passed a subsidy on sugar to make sure the state never runs out. Although the state now has a huge surplus of sugar, the subsidy is never repealed because it's too difficult to organize such a large group of voters around a central cause. This is an example of A. rent - seeking behavior B. producer surplus. political corruption D. a collective action problem.

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Woody

3 June, 11:33

Fifty years ago, your state passed a subsidy on sugar to make sure the state never runs out. Although the state now has a huge surplus of sugar, the subsidy is never repealed because it's too difficult to organize such a large group of voters around a central cause. This is an example of A. rent - seeking behavior B. producer surplus. political corruption D. a collective action problem.

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Roy West · Answer 1

This is a clear example of a

d. collective action problem.

Explanation:

It is a case often observed that there is a hard time removing progressive legislation in most parts of the world because the collective action required to remove a beneficiary law that is no longer required is pretty hard.

People do not want to let go of their incentives.

They also do not want to rally under a cause until it is against a real threat.

Neither of this is the case here so the public does not seem much interested in it.