The Downside to Helping Farmers Through Price Supports and Output

question 16

Multiple Choice

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.

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Definitions:

Reversing Entries

Journal entries made at the beginning of an accounting period to reverse or cancel out adjusting entries made in the previous period.

Journal Entries

The record of financial transactions in the accounting books, capturing debits and credits for each transaction to maintain accurate financial statements.

Salaries Earned

Compensation that employees have earned during a specific period but have not yet been paid.

Workweek

A fixed, recurring period used to measure a worker's or business's hours worked, often consisting of five to seven consecutive days.