Subsidized Farmers Welcome! You are encouraged to register with the site and login (for free). When you register, you support the site and your question history is saved.Domestic agriculture is struggling because agriculture from overseas is available at lower prices. Since improved agrarian technology would enable domestic farmers to produce agriculture at more competitive costs, to improve the competitiveness of domestic agriculture, the government plans to subsidize domestic farmers, because as it pays subsidies directly to these domestic farmers, the farmers will have the funds they need to invest in technology.Which of the following, if true, raises the most serious doubt regarding the effectiveness of the government's plan to improve the competitiveness of domestic agriculture? The cost benefits of investing in agrarian technology could take several years to manifest. Overseas farmers might have some competitive advantage over domestic farmers other than price competitiveness. Domestic producers of agriculture have some incentive not use the subsidies to invest in agrarian technology. The technological enhancement will be valid only for two years, after which competitors in other countries would have outpaced the capabilities of domestic agriculture. The subsidies paid to domestic farmers will come out of national tax funds that would be better spent in other ways. Review Answer