In addition to setting prices, the government has attempted to help farmers by:
A) restricting output.
B) essentially paying them not to produce.
C) creating some surpluses, buying them, and also restricting output.
D) doing all of the above.

Question

Quizplus · Accepted Answer

The government has used all of these tactics to try to support farmers. By setting prices, they can ensure that farmers receive a certain amount of income for their crops. By restricting output, the government can help to control oversupply and maintain prices. However, this can also lead to inefficient use of resources. Paying farmers not to produce can help to reduce surpluses and support prices, but this can be costly for taxpayers. Finally, the government sometimes creates surpluses by buying crops from farmers, which can also help to support prices.

In Addition to Setting Prices, the Government Has Attempted to Help