What term refers to government financial assistance intended to support farmers and stabilize food prices?

• A. Farm Subsidies
• B. Tax Incentives
• C. Crop Insurance
• D. Grants

Answer: (A)

The concept being tested is government financial support for farmers to keep farm income steady and stabilize food prices. This kind of assistance, often called farm subsidies, includes direct payments or price supports that help farmers weather market fluctuations and maintain a reliable food supply. Tax incentives are tax breaks meant to encourage certain behaviors or investments, not ongoing payments to farmers for price stability. Crop insurance is a risk-management tool that protects individual producers against losses, usually involving premiums and payouts based on risk, rather than broad price stabilization across the sector. Grants are funds given for specific projects or purposes, not general support to smooth prices or sustain farming income. So, the term that best matches the description is farm subsidies.