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Direct subsidies to agriculture, whether they are export subsidies or production subsides, are viewed as harmful...

Direct subsidies to agriculture, whether they are export subsidies or production subsides, are viewed as harmful because of all the following reasons EXCEPT

Group of answer choices

they lead to overproduction

they encourage overconsumption through low market prices.

they crowd out imports

they can lead to dumping of surplus production

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Answer #1

Direct subsidies to agriculture , whether they are export subsidies or production subsidies are viewed as harmful because of all of the following reasons except they encourage overconsumption through low market prices .Hence, option(B) is correct.

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