Answered

Which of these is an objection to agricultural price supports?

A. They lead to shortages of agricultural products.
B. They lead to surpluses of agricultural products, which can harm the school lunch industry.
C. By lowering the prices of agricultural goods, they make U.S. farmers uncompetitive with farmers in other parts of the world.
D. By raising the prices of agricultural goods, they prevent developing countries from selling goods in which they have a comparative advantage, restricting gains from trade.



Answer :

GinnyAnswer

Final answer:

Agricultural price supports can lead to surpluses, harm competitiveness, and restrict international trade benefits.


Explanation:

An objection to agricultural price supports is that they lead to surpluses of agricultural products, which can harm industries like school lunches.

By artificially increasing prices through subsidies, U.S. farmers may become uncompetitive with farmers in other parts of the world, limiting gains from trade.

Moreover, price supports prevent developing countries from selling goods they have a comparative advantage in, hindering international trade benefits.


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