Answer the following statement true (T) or false (F)

1) If prices received by farmers decline and prices paid by farmers increase, the parity ratio will
decline.
2) The Food, Conservation, and Energy Act of 2008 provides three types of agricultural
subsidies: direct payments, countercyclical payments, and marketing loans.
3) The federal government has not paid subsidies to farmers since passage of the Freedom to
Farm Act in 1996.
4) Environmentalists generally support price supports because these subsidies motivate
additional farm production.
5) The principal beneficiaries of government agricultural aid have been the very low-income
farmers.

1) T
2) T
3) F
4) F
5) F