Farm programs that pay farmers not to plant crops on all their land
A)hurt farmers by lowering their total revenue, and hurt consumers by causing shortages of some food items.
B)help farmers by cutting costs, which helps consumers by lowering food prices.
C)help farmers by increasing total revenue in the market, but hurt consumers by raising prices.
D)help farmers directly since they receive government payments, but has no real effect on consumers.

Question

Quizplus · Accepted Answer

By paying farmers not to plant on all their land, the supply of crops is reduced, which can lead to higher market prices. This increases farmers' total revenue but can hurt consumers due to higher food prices.

Farm Programs That Pay Farmers Not to Plant Crops on All