Under the target price program,
A)the government ends up buying the surplus product that results.
B)taxpayers pay the difference between the price consumers pay and the target price.
C)deficiency payments are made to both rich and poor farmers.
D)the surplus that results is sometimes dumped or otherwise wasted.
E)b and c

Question

Quizplus · Accepted Answer

The target price program involves both deficiency payments and taxpayer support, as taxpayers pay the difference between the price consumers pay and the target price, and deficiency payments are made to both rich and poor farmers. Additionally, when surplus products result, they may be dumped or otherwise wasted, which is a common problem with agricultural subsidy programs.

Under the Target Price Program