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. LO5.2 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.)

Answer 1

Answer:

The correct answer is $10

Explanation:

Taking into account that $3 billion equals $3,000,000,000 and 300 million equals 300,000,000, we can proceed to simplify the division as $3,000/300. The result is $10.

We can prove this by multiplying the amount of people, 300 million per $10, and as a result we have $3 billion.

This means that corn subsidies in 2012 cost, on average,  $10 per person in the United States.