During a parliamentary debate on agricultural subsidies, several claims are made regarding the impact of price floors on dairy farming. Which of the following claims is a positive statement?
A price floor set 15%15\%15% above the market equilibrium price will lead to a surplus of dairy products, which the government will have to store or dump.
The government has a moral obligation to protect family-owned dairy farms from volatile international market prices.
It is inequitable for consumers to pay higher retail prices for milk in order to support inefficient domestic agricultural firms.
Agricultural subsidies should be redirected towards environmental conservation programs because climate change is the greatest threat to food security.
123 exam-style questions on AQA A Level Economics 1.1 Economic methodology and the economic problem, covering 1.1.1 Economic methodology, 1.1.2 The nature and purpose of economic activity, 1.1.3 Economic resources, 1.1.4 Scarcity, choice and the allocation of resources, and 1.1.5 Production possibility diagrams. Each one has a worked solution and a mark scheme showing where the marks go.