It Is Not Likely That Farm Price Supports Will Be

question 16

Multiple Choice

It is not likely that farm price supports will be replaced by direct transfer payments to farmers because _____

• A)direct transfer payments aimed at preserving the family farm raise the costs of entry.
• B)direct transfer payments would attract public attention and threaten the survival of the program.
• C)there is deadweight loss to society in the case of direct transfer payments.
• D)direct transfers would benefit only the large farmers in proportion to their volume and efficiency.
• E)prices seek the market level, which is very high in the case of direct transfer payments.

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