Which of the Following Is a Major Justification for Public

question 20

Multiple Choice

Which of the following is a major justification for public aid to agriculture in the United States?

• A) The demand for farm products is income elastic.
• B) Technological progress has greatly reduced the demand for farm products.
• C) Farmers sell their products in highly imperfect markets and buy resources in highly competitive markets.
• D) Farmers are subject to extraordinary hazards that are hard to insure against.

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Definitions:

Purchase

The act of buying goods, services, or property in exchange for money or other consideration.

Sale

The passing of title (evidence of ownership rights) from a seller to a buyer for a price.

Enforceable Contract

A legally binding agreement that can be upheld and enforced in a court of law.

Oral Contract

A contract wherein terms are agreed upon through spoken communication, which can be legally binding if it meets certain criteria, despite the lack of physical documentation.