Which of the Following Is True of the Agricultural Adjustment

question 43

Multiple Choice

Which of the following is true of the Agricultural Adjustment Act (AAA) ?

• A)It prevented Americans from wasting food and crops and increased the number of livestock.
• B)It allowed hundreds of thousands of tenant farmers and sharecroppers to return to the land to increase production.
• C)It froze the prices of farm products and did not require new taxes.
• D)It provided federal subsidies to farmers who cut farm production to raise crop prices for all.
• E)It lowered food prices to help unemployed Americans feed their families.

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Definitions:

Oligopolistic Industry

A market structure characterized by a small number of large firms dominating the industry, with significant barriers to entry for new competitors.

Maximize Joint Profits

A strategy where entities collaborate to enhance their combined earnings rather than competing against each other.

Incentive to Cheat

The motivation or factor that encourages individuals or entities to act dishonestly or unethically for personal gain.

Cartel

An agreement among competing firms to control prices, production, and market shares, often to maximize collective profits by reducing competition.