It is not likely that the costly special-interest farm price supports will be replaced by more efficient direct transfer payments because
A)farming would cease
B)such a proposal would attract public attention and threaten the survival of the program
C)the private gains from price supports exceed the costs to society
D)a direct transfer program would require too much paperwork
E)consumers favor the current legislation

Question

Quizplus · Accepted Answer

Special-interest farm price supports are often very difficult to repeal or replace because they benefit a small group of powerful actors who are able to lobby for their continuation. A proposal to replace these price supports with more efficient direct transfer payments would likely attract public attention, and threaten the survival of the program, because it would be opposed by those who benefit from the current system. This is why lawmakers are often reluctant to make changes to agricultural subsidies, even if they would be more cost-effective and efficient.

It Is Not Likely That the Costly Special-Interest Farm Price