Economics

Economics The U.S. government passed a bill back in the 1855 which is generally referred to as the "Land Grant College Act". By that act, each state was granted federal government property to be used by each state to establish a college whose primary purpose was to research agricultural. These land grant colleges have created a safe, productive food supply for the country - a seemingly noble - non-political cause. But have also led to huge over-production and falling wages for farmers. To combat the resulting falling farm incomes and deal with over-production, the government has started a second set of programs designed to address these problems. Pick one of these programs and describe how the economics you've just learned would predict the success or failure of these programs. Programs: 1) Agricultural Price Supports: gaurantees farmers a set minimum price for their output 2) The Food Stamp Program: distributes excess food to people who can not afford to purchase enough food 3) The Set-Aside Program: pays farmers to not farm on a portion of their land The intent is not for you to "be right" but to learn what U.S. economic policy has done and test whether you understand economic theory.</p>