Question:
What Problems erupted from the CAP?
Author: eric_galvaoAnswer:
-A Minimum Price encouraged Greater Output, which led to environmental damages as Farmers embarked on Intensive Farmer's Methods + Chemical Fertilisers -Oversupply of Agricultural Products meant Governments had to Buy and Store - Opportunity Cost? Stocks were sold at Low Prices outside the EU, affecting Farmers outside the EU who couldn't Compete with such Prices -Large Waste Foods Products, as they are Perishable -Increased Food Prices hurt the Poorest in Society, who had spent a Large % on Food. The Welfare Gain to Farmers was Less than Welfare Loss to Consumers -Cost to the Taxpayer for Getting Rid of Excess Agricultural Products. The EU was essentially making a Huge Loss -CAP led to Distorting in Agricultural Markets, Oversupply and a Net Welfare Loss to Society
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