Economists estimate that current commodity programs reduce U.S.net income by about $5 billion annually because of
A)Misallocated resources
B)Stagnate farmland prices
C)Higher taxes
D)Increased competitiveness

Question

Quizplus · Accepted Answer

Current commodity programs often lead to misallocation of resources. This is because the government provides subsidies for certain crops, leading to an overproduction of those crops and a relative underproduction of others. This can lead to a decrease in efficiency and net income for farmers and the economy as a whole.

Economists Estimate That Current Commodity Programs Reduce U