Which of the Following Provides the Most Reasonable Explanation for Why

question 26

Multiple Choice

Which of the following provides the most reasonable explanation for why agricultural interests lobby for higher farm subsidies and price supports?

• A) Without the farm subsidies, food shortages would result.
• B) Subsidies promote the efficient use of agricultural resources.
• C) Agricultural interests seek a redistribution of income favoring themselves.
• D) The price support programs reduce food costs, which helps the poor.

---

Definitions:

New York Stock Exchange

A leading global financial exchange where stocks and other securities are bought and sold.

Secondary Market

A market where investors buy and sell securities or assets from other investors, rather than from the issuing entities.

Borrower's Ability

The capacity of an individual or organization to repay borrowed funds.

Loan Applications

The process by which an individual, business, or organization requests to borrow money from a financial institution.