A cost that farm subsidies and price floors imposes on the rest of the economy is:
A) excessively mobile farm resources.
B) higher consumer commodity prices.
C) less government-funded agricultural research.
D) efficient farmers that leave the farming industry.

Question

Quizplus · Accepted Answer

Farm subsidies and price floors artificially increase the price of agricultural products, resulting in higher consumer commodity prices for everyone else in the economy who purchases these products. This can lead to inflationary pressures on the overall economy and reduced consumer purchasing power.

A Cost That Farm Subsidies and Price Floors Imposes on the Rest