Under the U.S. Food for Peace program, the availability of low-priced food from abroad hurt the farmers of developing countries because _____ in those countries.
A) industrial goods became cheaper
B) services became cheaper
C) farm prices decreased
D) the demand for farm products increased
E) the price of inputs required for agriculture increased

Question

Quizplus · Accepted Answer

The availability of low-priced food from abroad under the U.S. Food for Peace program created a surplus of food in the domestic market of developing countries. This surplus drove down the prices of locally produced food, reducing the incomes of farmers and making it harder for them to compete with imported food, ultimately decreasing farm prices.