Government subsidies to small and large farmers are designed in large part toMultiple Choicestabilize farm income, which would otherwise fluctuate greatly due to market and weather conditions.encourage urban development.increase tax revenue levied on farm production and exports.encourage rural development.promote farm conservation so as to preserve the productive capacity of U.S. agriculture.

Government intervention in agriculture usually involvesGroup of answer choicesPrice supports in order to keep farm incomes highPrice supports in order to keep agricultural imports lowPrice ceilings in order to subsidize U.S. exportsPrice ceilings in order to keep food prices

Over the decades, the arguments made to justify farm subsidies in the United States includeMultiple select question.farmers are responsible for the extraordinary increase in the standards of living in the United States.the "family farm" is a fundamental U.S. institution and should be protected.wage rates would fall in other industries if farms ceased to exist.farmers are subject to extraordinary hazards not faced by most other industries.

How might decoupling subsidies from production, a feature of the CAP reforms, affect the behavior of farmers and the overall agricultural market?Group of answer choicesIt leads to a decrease in the overall quality of agricultural goodsIt allows farmers to base their production decisions more on market demand rather than subsidy policiesIt encourages farmers to produce more, leading to overproductionIt discourages farmers from adopting environmentally friendly practices

Which of the following is a common argument made in support of farm subsidies in U.S. agriculture?Multiple choice question.Wage rates would fall in other industries if farms ceased to exist because of the increase in labor supply.Importing farm products from the foreign sector represents a national security hazard and a potential source of biological warfare.Farmers are responsible for the extraordinary increase in the standards of living in the United States.Farmers face imbalances between the prices at which they sell output versus the prices they must pay for the resources to produce said output.

Subsistence farmers are able to increase food supply byGroup of answer choicesswitching to livestock grazing.producing cash crops for revenue to purchase food.participating more regularly in periodic markets.intensifying production through increased labor supply and the addition of new techniques.slash and burn agriculture.