Que-3 Based on the arguments of this chapter, do the incentives of U.S. senators
ID: 1252962 • Letter: Q
Question
Que-3 Based on the arguments of this chapter, do the incentives of U.S. senators (who serve six years terms) differ from those of the members of the House of Representives (who serve two-year terms) when it comes to engaging in long term planning of construction andmaintenance projects ? Would the imposition of term limits, which constrain politicians in the number of years they can serve, improve or impair their longterm incentives?
Que-3 Chapt-2 Why do you suppose the federal goverment gives special treatment to owners of fertile farmland rather than ,say automobile mechanics?
Que-4 Chpt-2 Use the theory of rational ignorance to explain why the ethanol subsidy is only 51 cents per gallon rather than say$5 per gallon.
Please give clear and separate answer
thanks
Explanation / Answer
Senators have a lower incentive since they come up only every 6 years whereas House Representatives go up every two years. (since turnover rate is so fast, House Representatives have only a short amount of time to prove their worth to their constituents)
Federal Government gives more incentives to say fertile farmers because (they need to subsidize crops to ensure that people in the USA have enough food to eat and not only that, but enough food ( and affordable food to eat). Auto mechanics are not subsidized because automobiles are not a necessity but a luxury
$5 dollar a gallon subsidy for ethanol would be absurb because despite the fact it needs to be subsidized, $5 would still be too high of price for the government. (If the government can buy gas for cheaper per gallon, why subsidize for more)