The Effect of Higher Prices from the Domestic Sugar Beet

question 125

Multiple Choice

The effect of higher prices from the domestic sugar beet program in the United States is

• A) economically efficient because it maintains the income of sugar beet farmers and reduces potential unemployment costs.
• B) that it discourages the production of sugar beets in the United States because businesses cannot afford to use sugar beets in production.
• C) that it increases exports of sugar beets from the United States to other nations.
• D) "regressive" because low-income households spend a larger percentage of their income on food than do high-income households.

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Definitions:

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