Price Supports in Agriculture Have Been Criticized Because They

question 170

Multiple Choice

Price supports in agriculture have been criticized because they

• A) have hastened the exodus of labor from agriculture.
• B) subsidize consumers at the expense of farmers.
• C) help large farmers more than small farmers.
• D) create product shortages.

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Definitions:

Price

Price is the amount of money required to purchase a good or service, determined by factors such as supply and demand, production costs, and market competition.

Surplus

Surplus refers to the situation where the quantity of a good or service supplied exceeds the quantity demanded, often leading to a decrease in prices.

Producer Surplus

Producer surplus is the difference between what producers are willing to accept for a good or service and the actual price they receive, reflecting the profit earned above production costs.

Price

The sum of money anticipated, needed, or handed over in exchange for something.