Under the Food, Conservation, and Energy Act of 2008, If

question 136

Multiple Choice

Under the Food, Conservation, and Energy Act of 2008, if the target price for a bushel of corn was $2.63 and the price of corn fell to $2.25, then a farmer would have received

• A) a marketing loan.
• B) a transition payment.
• C) an acreage allotment.
• D) a countercyclical payment.

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Definitions:

Total Product Curve

A graphical representation showing how the total quantity of output of a good or service varies with the amount of a variable input used in production.

Variable Input

Variable Input refers to any input in the production process that varies with the level of output, such as labor, raw materials, and energy, in contrast to fixed inputs which remain constant regardless of the level of production.

Fixed Inputs

Resources or factors of production that cannot be easily increased or decreased in the short term, such as buildings or machinery.

Marginal Product

The additional output resulting from a one unit increase in a particular input, holding other inputs constant.