Economics: Principles, Problems, and Policies, 19th Edition

Published by McGraw-Hill Education
ISBN 10: 0073511447
ISBN 13: 978-0-07351-144-3

Chapter 19 - Agriculture: Economics and Policy - Questions - Page 408: 10b

Answer

No, this is not the best way for the U.S. to provide foreign aid. This policy would contribute to the misallocation of resources in the U.S. and prevent a more efficient solution. Farmers elsewhere in the world who might have a comparative advantage over American farms would be harmed, perhaps forcing them to leave the industry.

Work Step by Step

Conceptual Question. No work needed.
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