Consider the two attached case studies and answer the following questions"
1. "Subsidizing the price of milk or other agricultural products is not very expensive considering how many consumers there are in the United States. Therefore there is little harmful effect from such subsidies." Evaluate this statement.
2. Subsidy programs are likely to have a number of secondary effects in addition to the direct effect on airy prices. What impact do you suppose farm subsidies are likely to have on the following:
a. Housing prices
b. Technological change in the dairy industry
c. The price of dairy product substitutes
Campaign Finance Reform
1. The motivation behind campaign finance reform was to limit the influence of special interests. In what sense could that legislation have the opposite effect?© BrainMass Inc. brainmass.com October 17, 2018, 12:29 pm ad1c9bdddf
On question: the harmful effect on the subsidy. You should argue on the harmful effect to the economy at large. Use the idea of consumer surplus, producer surplus and deadweight loss. From the graph, the triangle above the price of $2.50 is the consumer surplus after subsidy/price floor. It is smaller than before price floor, ie the triangle above $1.50. Therefore consumers are worse off than before.
Who benefited from that? Some go to producers/farmers, ie the rectangle between $1.50 and ...
Farm subsidy is a welfare loss. Farmers are not getting maximum benefit and consumers have to pay more. Resources are not efficiently allocated in the economy. The country is also not able to gain from trade.
India's policies impacting the issue of Globalization
Globalization has a huge impact and issue on cultural, social, monetary, political, economic and communal life of countries. Please explain in 1-2 page answering the three questions below:
1. Summarize what existing literature says about any one of the selected issue or challenge listed above and India's policies impacting the issue.
2. Suggest two (2) policy options that the India government could follow in order to resolve the issue or challenge.
3. Recommend one (1) policy action based on your analysis of a set of alternatives. Provide a rationale for your recommendation.
4. Provide at least three (3) reliable, relevant, peer-reviewed references (no more than one  used previously), published within the last five (5) years that support the paper's claims.