In Europe, the Common Agricultural Policy is a form of:
A)tax on domestic production of agricultural products.
B)regulation and supervision by the WTO in assuring that it is applied fairly.
C)a purchase program whereby government buys unusable products.
D)export subsidy, because farmers in the European Union can sell domestically at very high prices.

Question

Quizplus · Accepted Answer

The Common Agricultural Policy (CAP) is a form of export subsidy provided by the European Union (EU) to its farmers. It allows EU farmers to sell their products at artificially high prices, increasing their competitiveness in the international market. This support is provided through a number of measures, including direct payments and market interventions. The CAP is intended to promote rural development, to ensure food security, and to provide a fair standard of living for farmers, but it has also been criticized for its high cost and its negative impact on developing countries’ agricultural exports.

In Europe, the Common Agricultural Policy Is a Form Of