Question

Consider a specific example of the special-interest effect and the collective-action problem. In 2012, it was estimated that the total value of all corn production subsidies in the United States was about $3 billion. The population of the United States was approximately 300 million people that year.

on average how much did corn subsidies cost per person in the United States in 2012?

Answer 1

$10 per person

Step-by-step explanation:

Given; in 2012

corn production total subsidies = $3 billion

No of people = 300 million

corn subsidies cost per person (2012) = corn production total subsidies / No of people

= $3000000000/300000000

= $10 per person

Answer 2

Special-interest effect: An outcome of a political process, where a small number of individuals have large gains from the government program at the cost of many individuals who suffer a small loss.

Collective action problem: A problem generate when people would be better-off by cooperation but, could not gain due to interest conflicts.

Subsidy per person:

Subsidy per person can be calculated by using the following formula.

Subsidy per person = Total subsidy amount / Total number of people

Substitute the respective values in the above formula to calculate the subsidy per person as follows:

Subsidy per person = 3,000,000,000 / 300,000,000

Subsidy per person = 10

Hence, the subsidy per person is $10