Many Governments Around the World Attempt to Improve the Incomes

question 79

Multiple Choice

Many governments around the world attempt to improve the incomes of commodity producers by taking steps to increase the commodity price in the domestic market. Although this may reduce quantity demanded for the product, the action may be effective because:

• A) commodity supply tends to be inelastic, so quantity does not decline by much.
• B) commodity supply tends to be elastic, so producer income increases as a result of the higher prices and quantities.
• C) commodity demand tends to be inelastic, so higher prices generate higher sales revenue.
• D) commodity supply tends to be elastic, so producer income increases as a result of the higher prices and quantities

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Definitions:

Internal Conflicts

Psychological struggles that arise from opposing desires, impulses, or feelings within a person.

Self-actualizing

The process of realizing and expressing one's own capabilities and creativity, often considered the pinnacle of psychological development in Maslow's hierarchy of needs.

Maslow

An American psychologist best known for creating Maslow's hierarchy of needs, a theory of psychological health predicated on fulfilling innate human needs in priority, culminating in self-actualization.

Construal

The way an individual makes sense of the world around him.