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Acreage Limitations Are Used by the Government Because

Question 1

Multiple Choice

Acreage limitations are used by the government because


A) they induce less deadweight loss than cash transfers to farmers.
B) they raise the market price of an agricultural product without the surpluses associated with price supports.
C) the government wishes to lower agricultural prices.
D) they are an effective way to feed poor people.

Correct Answer:

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