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: 6

Answer

This statement is not true. First, not all consumers of a particular good are taxpayers or vice versa. Taxpayers are forced to fund price-support programs for agricultural goods (e.g., peanuts or sugar) whether or not they choose to consume these particular items. Second, and more important, price-support programs do not allow us to subsidize through taxation what we would otherwise be spending at the checkout counter.

Work Step by Step

Conceptual Question. No Work needed.
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