Which of the following is not an advantage of direct income support to farmers?
A) Farm incomes increase without market surpluses.
B) In the absence of other government intervention and externalities, marginal cost pricing is practiced.
C) In the absence of other government intervention and externalities, technical efficiency is achieved.
D) Market prices and total farm income increase.

Question

Quizplus · Accepted Answer

Direct income support to farmers typically aims to increase their incomes without necessarily affecting market prices directly. It does not inherently lead to an increase in market prices or total farm income through market mechanisms. Instead, it provides financial assistance directly to farmers, which can help stabilize their income independent of market fluctuations.

Which of the Following Is Not an Advantage of Direct