The fundamental cause of agricultural price and income instability in the United States has been a(n)

A) lack of foreign demand for U.S. agricultural products.
B) lack of efficiency in the farm sector of the American economy.
C) underallocation of resources to the farm sector of the economy relative to that of the nonfarm sector.
D) overallocation of resources to the farm sector of the economy relative to that of the nonfarm sector.

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marcc tommy · Accepted Answer

Final Answer : D, Explanation :  The fundamental cause of agricultural price and income instability in the United States has been the overallocation of resources to the farm sector of the economy relative to that of the nonfarm sector. This overallocation leads to overproduction, which in turn causes prices and incomes to fluctuate more significantly.

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