Federal subsidies to farmers can have the effect of creating a surplus in the market for certain crops.

Name: Federal subsidies to farmers can have the effect of creating a surplus in the market for certain crops.
Brand: Quizplus
Rating: 4.8 (51 reviews)

Question

Quizplus · Accepted Answer

When the government provides subsidies to farmers, it can encourage overproduction of certain crops, which leads to a surplus in the market. This surplus can drive down prices and hurt farmers who were not able to sell their crops at a profitable price.

Federal Subsidies to Farmers Can Have the Effect of Creating