A Market Price Support Policy for Crops Establishes a Price
A market price support policy for crops establishes a price floor, which:
A) decreases the price paid by consumers.
B) does not change the price paid by consumers.
C) increases the price received by farmers.
D) decreases the price received by farmers.
A cost that farm subsidies and price floors imposes on the rest of the economy is:
A) excessively mobile farm resources.
B) higher consumer commodity prices.
C) less government-funded agricultural research.
D) efficient farmers that leave the farming industry.
The downside to helping farmers through price supports and output restrictions has been that:
A) consumers pay higher prices for food.
B) citizens pay higher taxes to support the costs of the program.
C) most federal subsidies have historically helped the rich farmers, not the poor.
D) all of the above.
A maximum price set below the equilibrium price is a:
A) demand price.
B) supply price.
C) price floor.
D) price ceiling.