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2. What are the effects of farm subsidies such as those of the United States and the European Union on (a) domestic agricultural prices, (b)

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2. What are the effects of farm subsidies such as those of the United States and the European Union on (a) domestic agricultural prices, (b) world agricultural prices, and (c) the international allocation of agricultural resources? (d) Use public choice theory to explain the persistence of farm subsidies in the face of major criticisms of those subsidies. If the special- interest effect is so strong, what factors made it possible in 1996 for the government to end price supports and acreage allotments for several crops

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