Which of the Following Arguments Is Not Generally Made to Justify

question 92

Multiple Choice

Which of the following arguments is not generally made to justify farm subsidies?

• A)The "family farm" is an American institution that should be protected and nurtured.
• B)Agribusiness firms need subsidies to achieve economies of scale.
• C)Farmers sell their output in purely competitive markets but must buy inputs from imperfectly competitive firms.
• D)Farmers cannot fully insure themselves against the risks unusual to farming, such as floods, droughts, and pests.

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Definitions:

Marginal Utility

The change in utility an individual gains from consuming an additional unit of a good or service.

Rate Of Substitution

The rate at which a consumer can replace one good with another while maintaining the same level of utility.

Tee Shirts

A type of clothing characterized by short sleeves and a round neckline without a collar, commonly made of cotton or polyester.

Candy

A sweet food made primarily of sugar or syrup combined with flavoring, colorants, and sometimes chocolate or nuts.