The Common Agricultural Policy (CAP) established by the European Union

QUESTION

The Common Agricultural Policy (CAP) established by the European Union was designed to reduce prices of domestic produce and protect consumers from unfair premiums.

Indicate whether the statement is true or false.

ANSWER

FALSE
The CAP was designed to protect the jobs of Europe’s politically powerful farmers by restricting imports and guaranteeing prices. However, the higher prices that resulted from the CAP have cost Europe’s consumers dearly.