Country X Imports Rice from the World Market

question 40

Multiple Choice

Country X imports rice from the world market. Which of the following policy instruments, if adopted by its government, may result in a switch from rice being imported to being exported?

• A)Agricultural price ceiling that includes the government selling any excess production to foreign buyers
• B)Division of land holdings
• C)Taxing import of agricultural inputs
• D)Agricultural price support that includes the government selling any excess production to foreign buyers

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Definitions:

Income Summary

An account used in the closing process that summarizes the revenue and expenses of an accounting period to determine the net income or loss.

Capital Account

An account showing the net worth of a business at a specific point, calculated as assets minus liabilities and preferred stock.

Revenues

The total income generated from normal business operations, often from the sale of goods and services.

Expenses

Expenses that a company incurs while generating income.