Which of the following arguments is not generally made to justify farm subsidies?
A. The "family farm" is an American institution that should be protected and nurtured.
B. Agribusiness firms need subsidies to achieve economies of scale.
C. Farmers sell their output in purely competitive markets but must buy inputs from
imperfectly competitive firms.
D. Farmers cannot fully insure themselves against the risks unusual to farming, such as
floods, droughts, and pests.
Answer: B
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Over the past 100 years, in the United States the average growth rate of ________ grew at a faster rate than ________
A) real GDP; nominal GDP B) the population; real GDP C) real GDP; the population D) inflation; real GDP
If the demand curve for money were horizontal at some interest rate, an increase in the money supply
A) would lower the interest rate. B) would increase the rate of inflation. C) would be highly effective in reducing inflation. D) would not change the interest rate