Microeconomics 18th Edition by Campbell McConnell, Stanley Brue, Sean Flynn

Exercise 9

Distinguish the major features of direct subsidies, countercyclical payments, and marketing loan subsidies under the Food, Conservation, and Energy Act of 2002 In what ways 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