Government intervention in agriculture usually involves
A) price ceilings in order to keep food prices low.
B) price ceilings in order to subsidize U.S. exports.
C) price supports in order to keep farm incomes high.
D) price supports in order to keep agricultural imports low.

Question

Quizplus · Accepted Answer

Government intervention in agriculture usually involves price supports in order to keep farm incomes high. This is often done through subsidies or other mechanisms that artificially raise the prices of agricultural goods. This is done in part to incentivize farmers to produce more, and in part to ensure that they are able to make a reasonable living despite the fact that prices for agricultural goods can be volatile. Price ceilings, by contrast, are more commonly used in other industries to keep prices low for consumers.

Government Intervention in Agriculture Usually Involves