ECON 202--Introduction to

Microeconomic Principles
FARMING PROJECT OUTLINE
INSTRUCTOR: Mrs. Jennifer Joyner

26 March 2020

Respond to the questions on the next page with proper application of economic theory in a

minimum of three substantive paragraphs per question, and your answers to all of the

questions in total should include a minimum of 1,500 words. To check your word count,

select

the text for each answer you provide. Microsoft Word will give a word count for the

selected text.

I. The most common example of a market with perfect competition is agriculture. How
could farm subsidies distort a model of perfect competition? Explain.
A. Visit the articles on farm subsidies and evaluate chapter 23
B. Explain what subsidies are and the importance
1. Look for interesting facts
2. Note important statistics
3. Note change in years and technology aide

2. American corn farmers receive billions of dollars in taxpayer subsidies each year. These
subsidies allow them to sell their grain at prices below what it costs to produce it, particularly for

1
export markets. How do U.S. corn subsidies hurt Mexican farmers? What could be done to
address this problem, and why would the solution be effective?

I. How do U.S. corn subsidies hurt Mexican farmers?

A. Support with evidence, stories and data
B. Visits articles and textbook
II. What could be done to address this problem?
A. Add my point of view
B. Research what has helped
III. Why would the solution be effective?
A. Based on research and data
B. What are the alternatives

3. Summarize the arguments both in favor of and against eliminating farm subsidies. After

your evaluation, where do you stand on this issue and why?

● Write personal statement

● Support with given evidence
● Include important personal details