Which of the following arguments for farm subsidies is most closely associated with the parity concept?

Mathematics
1

Which of the following arguments for farm subsidies is most closely associated with the parity concept?

b. Farmers sell their output in purely competitive markets, but must buy inputs from imperfectly competitive firms.

c. Farmers cannot fully insure themselves against the risks unusual to farming, such as floods, droughts, and pests.

d. The “family farm” is an American institution that should be protected and nurtured

2

Which of the following arguments for farm subsidies is most closely associated with the parity concept?

The correct answer is: Although farmers produce necessities for the rest of us, they receive low incomes that are declining in real terms, and should therefore receive price and income support.