In an unregulated competitive market, the presence of marginal external benefit from a good or service results in overproduction

Farm programs such as those of the United States and the European Union cause a misallocation of international agricultural resources primarily because:

A. they distort domestic and world agricultural prices. B. they inhibit technological progress in agriculture. C. production and trade occur on the basis of comparative advantage. D. price supports are set below market-clearing levels.

By definition, a government-sponsored good

A) is a good that is deemed socially desirable. B) is a good that should be available only to upper-income groups. C) is always provided at a zero price. D) does not affect society's general welfare.