Question

25. Farm program benefits tend to become capitalized into: (a) perpetual payments to large producers. (b) the bank accounts of farmers. (c) taxpayer costs. (d) the value of inputs that are the most inelastic in supply. (e) government budget deficits. 26. The Agricultural Risk Coverage Program (ARC) program is all of the following EXCEPT: (a) A farm revenue stabilization program. (b) Revenue payments to producers based on yields and price levels. (c) A counter-cyclical payment program. (d) A farm program that transfers income from taxpayers to producers. (e) A decoupled revenue support program, 27. Which of the following is a method of mandatory supply control? (a) Purchasing the crops at the guaranteed support price of only those who reduce acres. (b) Paying farmers to reduce supply (paid diversion) (c) Cross-compliance. (d) All of the above are methods of mandatory supply control. (e) None of the above are methods of mandatory supply control.

Answer 1

Dear student,

25)

For question 25 the answer is 'a'.

Let me explain,

perpetual payments to large producers leads to increase in wealth of farmers, by this capitalization of farm program benefits tends into the value of farmland.

26)

For question 26 the answer is 'd'.

27)

For question 27 the answer is 'd'.

Because above all options are methods of supply control.

Hope you understand my answers, thank you.