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In Europe, the Common Agricultural Policy

Question 5

Multiple Choice

In Europe, the Common Agricultural Policy:


A) taxes European agricultural products sold in Europe.
B) allows European farmers to sell their output at above world prices in the European market.
C) is a form of export subsidy, since prices of European farm products sold on the world market are below prices
Charged in the European market.
D) is a form of export subsidy, since it allows European farmers to sell output at above world prices in the European
Market and at world prices in the export market.

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