Microeconomics 20th Edition by McConnell, Sean Flynn, Stanley Brue

Exercise 13

Distinguish the major features of direct subsidies, countercyclical payments, and marketing loan subsidies under the Food, Conservation, and Energy Act of 2008. In what way do countercyclical payments and marketing loans help reduce the volatility of farm income In what way do direct subsidies perpetuate the long-run farm problem of too many resources in agriculture