Exhibit 39-3 -Refer to Exhibit 39-3.If P₃ Is a Target Price,the Total

question 51

Multiple Choice

Exhibit 39-3

-Refer to Exhibit 39-3.If P₃ is a target price,the total deficiency payment that government makes to farmers is

• A) P₂ x Q₃.
• B) P₃ x Q₃.
• C) (P₃ - P₁) x Q₁.
• D) (P₃ - P₁) x Q₂.
• E) (P₃ - P₂) x Q₃.

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Definitions:

Total Fertility Rate

The average number of children per lifetime birthed by a nation’s women.

Replacement Rate

The total fertility rate necessary to offset deaths in a country and thereby keep the size of its population constant (without relying on immigration). For most countries, a total fertility rate of about 2.1 births per woman per lifetime.

Per-Capita Consumption

The average consumption of a good or service per person within a particular population or area.

Total Fertility Rate

A demographic measure that estimates the average number of children a woman will have over her childbearing years, given current birth rates.