Given that food production is crucial to an economy, why ...

[mrsjacobs44]

Given that food production is crucial to an economy, why shouldn't governments subsidize farmers' water use?
 
  What will be an ideal response?

Question 2

In equilibrium, the real value of household income must equal
 
  A) the real value of output produced by firms.
  B) the real value of all expenditures.
  C) the sum of all goods produced in a year.
  D) net GDP.

[dmurph1496]

Answer to Question 1

The answer should look at the alternative uses of water and the discrimination against these uses. The costs and benefits of all economic activity need to be considered, including alternate sources of agricultural products.

Answer to Question 2

A

[mrsjacobs44]

Correct answers!

[dmurph1496]

Great! Please up vote