An example of a type of policy that creates distortions in local economies is government subsidies for pesticide use by farmers. The distortion effects include
A) heavy pesticide exposure for farm workers.
B) overuse of agricultural chemicals by farmers.
C) rapid development of immunity by targeted pests.
D) All of the above.

Question

Quizplus · Accepted Answer

Government subsidies for pesticide use can lead to several distortions in local economies, including heavy pesticide exposure for farm workers, overuse of agricultural chemicals by farmers, and rapid development of immunity by targeted pests. These effects can harm the environment, endanger health, and reduce the effectiveness of pesticides over time.

An Example of a Type of Policy That Creates Distortions