An advantage of set-aside programs over price support programs is that they
A)Reduce the price of agricultural goods.
B)Transfer more income to farmers.
C)Raise the price of agricultural production but do not lead to a surplus of output.
D)Affect the demand side as well as the supply side of the farm problem.

Question

Quizplus · Accepted Answer

Set-aside programs raise the price of agricultural production by reducing the supply, but they do not lead to a surplus of output as price support programs often do. This means that producers can earn higher prices without creating an oversupply of goods on the market. However, set-aside programs do not necessarily transfer more income to farmers, nor do they directly address the demand side of the farm problem.

An Advantage of Set-Aside Programs Over Price Support Programs Is