Which of the Following Factors Is a Challenge Faced by Present-

question 25

Multiple Choice

Which of the following factors is a challenge faced by present- day farmers?

• A) the high costs of farming
• B) competition with other farmers
• C) consumers' demands for low food prices
• D) All of the answers are correct.

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Definitions:

Producer Surplus

The difference between the amount that producers are willing and able to sell a good for and the amount they actually receive (market price).

Total Surplus

The sum of consumer surplus and producer surplus, representing the total net benefit to society from a market transaction.

Deadweight Loss

The reduction of economic efficiency that happens when the free market does not achieve equilibrium for a particular good or service.

Tariff

A tax imposed by a government on goods and services imported from other countries to protect domestic industries from foreign competition.