Author Question: Suppose, in the United States, each farmer is given a federal agricultural subsidy worth 30,000 . ... (Read 79 times)

tfester · **on:** Jun 30, 2018

Suppose, in the United States, each farmer is given a federal agricultural subsidy worth 30,000 . What will be the effect of such subsidy?
a. They discourage domestic agricultural production.
b. They allow U.S. farmers to sell their products for lower prices in foreign markets.
c. They give foreign producers an unfair cost advantage.
d. They increase the amount of agricultural imports into the United States.
e. The price of the primary products decline in the U.S. market.

Question 2

Government expenditures as a percentage of GDP in the U.S. increased from 1950 to 1975 but decreased sharply during the recession that began in 2008.
a. True
b. False
Indicate whether the statement is true or false