When critics of U.S. farm policy say that it treats symptoms rather than causes, they mean that the:
A. policy attempts to bolster low farm income, while the real problem is an overallocation of
resources to agriculture.
B. policy deals with the overallocation of resources to agriculture, while the basic farm
problem is low incomes.
C. policy attempts to bolster low farm incomes, while the real problem is an underallocation of
resources to agriculture.
D. restriction of output in the short run may reduce productive capacity in agriculture in the
long run.
Answer: A
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While using an outward-oriented development strategy, the government in Taiwan did not make any attempt to stimulate exports
a. True b. False Indicate whether the statement is true or false
Because many good substitutes exist for a competitive firm's product, the demand curve that it faces is
a. unit-elastic. b. perfectly inelastic. c. perfectly elastic. d. inelastic only over a certain region.
Suppose the price level falls. The result is that the:
A. aggregate supply curve would shift to the right. B. aggregate supply curve would shift to the left. C. general price level would rise causing a movement up the aggregate demand curve. D. aggregate demand curve would slope downward because of the real balances effect.
In the In the News article "The Lure of Catfish" production of catfish has skyrocketed in the United States from 16 million pounds in 1975 to an expected 340 million pounds in 1989. The business is growing among farmers in Alabama, Arkansas, and Louisiana. Which of the following is the motive that enticed many farmers to give up the production of row crops to produce catfish?
A. Catfish is easier to produce than row crops. B. Row crops necessarily have negative economic profits. C. Catfish is relatively more profitable than row crops. D. Row crops are relatively more profitable than catfish.