Which of the following summarizes the economics of price supports?Multiple choice question.Variable pricing above equilibrium prices on farm products aids in achieving parity between prices received and paid by farmers for farm products.Fixed pricing above equilibrium prices on farm products aids in achieving parity between prices received and paid by farmers for farm products.Fixed pricing at equilibrium prices on farm products aids in achieving parity between prices received and paid by farmers for farm products.Fixed pricing below equilibrium prices on farm products aids in achieving parity between prices received and paid by farmers for farm products.

Multiple Choice QuestionWhich of the following suggests that farmers should obtain a constant ratio of the prices they receive for their farm products and the prices they pay for goods and services in general?Multiple choice question.An annual farm subsidyThe price-support systemThe parity conceptAn imposed price floor

Why are price supports helpful for farmers?Multiple choice question.Price supports help keep market prices low so consumers can afford to buy more farm output.Price supports help keep the price received by farmers from being too low.Price supports prevent farmers from having surplus output.Price supports depress the prices that farmers pay for inputs.

Multiple Choice QuestionThe price-support strategy exacerbated which of the following problems?Multiple choice question.The presence of too many farmers in the marketThe hazardous conditions faced by agricultural workersThe low prices farmers received for their outputThe inability of consumers to afford agricultural products

Multiple Select QuestionSelect all that applyHow did the price-support strategy in agriculture treat the symptoms and not the causes of the farm problem?Multiple select question.Price and income supports slowed the reallocation of resources from farming to nonfarm occupations.The price-support strategy hastened the reallocation of resources necessary to resolve the long-run farm problem of too many farms.Price and income supports encouraged people to stay in farming rather than move to nonfarm occupations.Price and income supports allocate too few resources to the farming sector.

Multiple Choice QuestionMarketing loans, direct payments, and countercyclical payments are various forms of farm subsidies provided by ______.Multiple choice question.the Agricultural Price Support System enacted 60 years agothe Freedom to Farm Act of 1996the Freedom to Farm Act of 2008the Food, Conservation, and Energy Act of 2008