A market price support policy attempts to assist the farm industry by:
A) taxing the incomes of farmers.
B) directly subsidizing the incomes of farmers.
C) establishing price floors in farm output markets.
D) reducing the amount of resources used in farm production.

Question

Quizplus · Accepted Answer

A market price support policy aims to establish price floors in farm output markets, meaning that the government sets a minimum price for the product. This is intended to help farmers by ensuring they receive a certain level of income for their crops, even when market prices are low. The policy does not involve taxing or subsidizing farmers directly, nor does it reduce resources used in production.

A Market Price Support Policy Attempts to Assist the Farm