Which of the Following Arguments Is Not Generally Made to Justify

question 81

Multiple Choice

Which of the following arguments is not generally made to justify farm subsidies?

• A) The "family farm" is an American institution that should be protected and nurtured.
• B) Agribusiness firms need subsidies to achieve economies of scale.
• C) Farmers sell their output in purely competitive markets but must buy inputs from imperfectly competitive firms.
• D) Farmers cannot fully insure themselves against the risks unusual to farming, such as floods, droughts, and pests.

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