A Cost Imposed on People Other Than the Consumers of a Good

question 42

Multiple Choice

A cost imposed on people other than the consumers of a good or service is a:

• A) price floor.
• B) negative externality.
• C) positive externality.
• D) price externality.

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Definitions:

Marketing Loans

Loans provided to agricultural producers, allowing them to store their product for a later sale when market conditions may be more favorable.

Price Supports

Initiatives, often by governments, to maintain the market price of a commodity or product at a certain level by purchasing excess supply, providing subsidies, or setting minimum prices to benefit producers.

Environmentalists

Individuals or groups who advocate for the protection of the environment and promote awareness of environmental issues and sustainability.

Freedom To Farm Act

The Freedom to Farm Act, officially known as the Federal Agriculture Improvement and Reform Act of 1996, aimed to reduce government control over farming operations and crop production decisions in the United States.