Which of the Following Is the Most Likely Explanation for the Imposition

question 68

Multiple Choice

Which of the following is the most likely explanation for the imposition of a price floor on the market for corn?

• A)Policymakers have studied the effects of the price floor carefully,and they recognize that the price floor is advantageous for society as a whole.
• B)Buyers and sellers of corn have agreed that the price floor is good for both of them and have therefore pressured policy makers into imposing the price floor.
• C)Buyers of corn,recognizing that the price floor is good for them,have pressured policymakers into imposing the price floor.
• D)Sellers of corn,recognizing that the price floor is good for them,have pressured policymakers into imposing the price floor.

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Definitions:

Equity/Debt Ratio

An economic indicator revealing the balance between shareholder equity and borrowed funds in financing company assets.

Level 3 Assets

These are financial assets and liabilities that are hard to value because they do not have a readily observable market price, often requiring significant estimation in their valuation.

Fair Value Accounting

An accounting approach where companies measure and report the values of their assets and liabilities on the basis of the actual or estimated fair market prices.

Book Value

The net value of a company's assets minus its liabilities, as recorded on its financial statements.