Which of the Following Arguments for Farm Subsidies Is Most

question 104

Multiple Choice

Which of the following arguments for farm subsidies is most closely associated with the parity concept?

• A) Although farmers produce necessities for the rest of us, they receive low incomes that are declining in real terms and should therefore receive price and income support.
• B) Farmers sell their output in purely competitive markets but must buy inputs from imperfectly competitive firms.
• C) Farmers cannot fully insure themselves against the risks unusual to farming, such as floods, droughts, and pests.
• D) The "family farm" is an American institution that should be protected and nurtured.

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Definitions:

Apparent Authority

A situation where a reasonable third party would understand that an agent had the authority to act, even if the agent did not have such authority.

Principal

The original sum of money borrowed in a loan, or the amount of the investment, excluding any interest or profit.

Torts

A body of law focusing on civil wrongs that cause harm or loss, leading to legal liability and a requirement to pay damages.

Agent

A person or entity authorized to act on behalf of another, usually in a business or legal capacity, to create a legal relationship with a third party.