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The Effect of Higher Prices from the Domestic Sugar Beet

Question 187

Multiple Choice

The effect of higher prices from the domestic sugar beet program in the United States is


A) economically efficient because it maintains the income of sugar beet farmers and reduces potential unemployment costs.
B) that it discourages the production of sugar beets in the United States because businesses cannot afford to use sugar beets in production.
C) that it increases exports of sugar beets from the United States to other nations.
D) "regressive" because low-income households spend a larger percentage of their income on food than do high-income households.

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