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.

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Definitions:

Owner's Capital

The amount of equity in a company that belongs to the owner, including initial investment plus any retained earnings.

Salaries Expense

Represents the total amount paid to employees for services rendered during a particular period.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board that is globally accepted for financial reporting.

GAAP

Generally Accepted Accounting Principles (GAAP) are a set of accounting standards used to prepare and report financial statements.