Terrence and His Family Own a Farm in a Remote

question 17

Multiple Choice

Terrence and his family own a farm in a remote region of Chile.They farm only enough to produce enough food to feed the family, and pay their taxes.What are Terrence and his family engaging in?

• A)Capitalism
• B)Mercantilism
• C)Capitalistic Farming
• D)Subsistence Farming

---

Definitions:

Subsidies

Financial support extended by the government to stimulate an industry or reduce the prices of goods and services for consumers.

MBA Degree

A Master of Business Administration degree, a graduate-level education that focuses on the theoretical and practical aspects of business and management.

Externalities

Economic side effects or by-products that affect uninvolved third parties; can be negative (like pollution) or positive (like education benefits), and are not reflected in market prices.

Property Rights

Legal rights to own, use, and dispose of assets or resources, playing a critical role in determining the allocation and use of resources in an economy.