Question

Agricultural subsidies _________________.

a. Are no longer used by the U.S. government.
b. Are often achieved without spending money.
c. Distort the true market value of the agricultural products being subsidized.
d. Provide family farmers the opportunity earn living wages from their farms.
e. All of the above

Answer 1

C) Distort the true market value of the agricultural products being subsidized

Step-by-step explanation:

A subsidy is like a negative tax. Instead of increasing the price of a good from its original market value, it decreases the price. Because the price is decreased, both supply and demand for the product increase to a point different from the original market equilibrum. This distorts the economy.