Question
Asked Nov 6, 2019
188 views

Should the government subsidize farmers? Under what circumstances should the government permit
price discrimination?

check_circle

Expert Answer

Step 1

Subsidies in agriculture refers to the rebates in business to farmers given by government as incentive for increasing their productivity. This will also affect cost of farmers and supply of agricultural items in economy.

Step 2

Government should subsidize farmers because:

a) Food supply in an economy must be protected from natural calamities like drought, hurricanes etc. also, during wars and recessions, government has to provide adequate supply of goods. Providing subsidies in such items will be a great initiative for such incidents.

b) Co...

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in

Business

Economics

Related Economics Q&A

Find answers to questions asked by student like you
Show more Q&A
add
question_answer

Q: Who was the President of the United States in 2008?

A: President of the United States in 2008 is George Walker Bush. He is 43rd president of the United Sta...

question_answer

Q: How do minimum wages affect wages, employment, and unemployment?

A: Click to see the answer

question_answer

Q: Question 13 Consider a firm whose cost function when both L and K are variable is shown in the figur...

A: Total cost: It refers to the total cost incurred while producing the commodity.Average Total cost re...

question_answer

Q: Economists can do a reasonably good job of calculating GDP, GDP per capita, NDP, etc. Do you agree? ...

A: GDP refers to the Gross Domestic Product. It is the value of all the final goods and services produc...

question_answer

Q: 1. Briefly explain why the following would cause the Aggregate Demand curve to shift to the right(an...

A: The aggregate demand is the summation of all the individual demand curves in the economy. There will...

question_answer

Q: Part f and i

A: (f)In this part, the U.S. surgeon announces that hot chocolate cure acnes; therefore, knowing this p...

question_answer

Q: 4.7) Consider a national income tax that is structured as follows: Income Marginal tax rate $0-$10,0...

A: Click to see the answer

question_answer

Q: How do you complete the table?

A: In year 2003, we need to determine the LFPR (Labor Force Participation Rate) where LFPR is the ratio...

question_answer

Q: 53 In the basket of goods that is used to compute the consumer price index, the three largest catego...

A: The consumer price index (CPI), measures the average level of prices of the basket of goods and serv...