The concept of diminishing marginal utility is embedded in the utilitarian rationale for

Suppose the government does not provide an incentive payment to producers under a production quota policy, and the amount that may be produced and sold by firms is limited by law in order to raise the market price to the support price

Do producers still gain surplus value under this version of the production quota policy? A) Yes, they would always achieve a larger producer surplus under this version of the policy B) Yes, as long as the surplus value gained from consumers exceeds the amount of producer surplus lost from production quantities that are no longer produced C) No, they would always face a decrease in producer surplus without the government incentive payment D) No, the change in producer surplus is always negative due to the gains achieved by consumers

Which of the following checks issued by the government represents a transfer payment?

A) The federal government pays a defense contractor for development of a missile system. B) The federal government pays a retiree her Social Security benefits. C) The state of Oregon pays a construction firm for its work in repairing a state highway. D) The state of Illinois pays groundskeepers at the state capitol building their weekly wages.