Discuss the benefits and opportunity costs of government farm subsidies.
Because farm prices are subject to such swings from high to low, our government, like many other countries, has tried to stabilize farm prices and thus farm incomes. These supports come at a price: consumers pay higher prices, government must store farm surpluses, and farm subsidies are a point of trade friction in international trade. In addition, these policies change the mix of output and waste scarce resources that could be used to produce other goods.

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The Answer of Discuss the benefits and opportunity costs of government farm subsidies.
Because farm prices are subject to such swings from high to low, our government, like many other countries, has tried to stabilize farm prices and thus farm incomes. These supports come at a price: consumers pay higher prices, government must store farm surpluses, and farm subsidies are a point of trade friction in international trade. In addition, these policies change the mix of output and waste scarce resources that could be used to produce other goods.

Discuss the Benefits and Opportunity Costs of Government Farm Subsidies