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:

Population Regression Line

The line that best describes the relationship between an independent variable and a dependent variable for the entire population.

Population Coefficient

A parameter that quantifies a certain characteristic or attribute of a population.

Correlation

A statistical measurement of the relationship between two variables, indicating how one may predict the other.

Coefficient of Determination

Denoted as R-squared, it measures the proportion of the variance in the dependent variable that is predictable from the independent variable(s) in a regression model.