Government Intervention in Agriculture Usually Involves

question 398

Multiple Choice

Government intervention in agriculture usually involves

• A) price ceilings in order to keep food prices low.
• B) price ceilings in order to subsidize U.S. exports.
• C) price supports in order to keep farm incomes high.
• D) price supports in order to keep agricultural imports low.

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Definitions:

Required Return

The least amount of return expected by an investor from putting money into a certain asset, while taking its risk profile into account.

Intrinsic Value

The perceived or calculated true value of an asset, investment, or company, based on fundamentals, independent of market value.

Required Return

The minimum expected return an investor demands for investing in a particular asset, factoring in its risk.

Discount Rate

The discount rate applied in the calculation of the present value of future cash flows in a DCF analysis.