In Canada We Have Government Intervention in the Dairy Market

question 61

Multiple Choice

In Canada we have government intervention in the dairy market in the form of quotas on milk production.What are two predicted economic effects of this policy?

• A)a redistribution of income from consumers of dairy products to dairy farmers; and a reduction in the total amount of economic surplus in the dairy market
• B)a redistribution of income from consumers of dairy products to dairy farmers; and a reduction in deadweight loss in the dairy market
• C)a redistribution of income from dairy farmers to consumers of dairy products; a reduction in the total amount of economic surplus in the dairy market
• D)a redistribution of income from dairy farmers to consumers of dairy products; and an increase in the total amount of economic surplus in the dairy market
• E)an equitable distribution of income between dairy farmers and consumers of dairy products; and a reduction in the total amount of economic surplus in the dairy market

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Definitions:

Behavioral Approaches

Psychological methods focusing on understanding and changing human behavior through reinforcement, punishment, and observational learning.

Systems Theories

A holistic approach to analysis that focuses on the way that a system's constituent parts interrelate and how systems work over time within the context of larger systems.

Cognitive Approaches

Psychological theories focusing on how people process information, think, learn, and remember, influencing behavior and emotional responses.

Biological Models

These are frameworks used to explain behaviors and mental states through biological factors, such as genetic, neurological, and physiological processes.