The Purpose of the Freedom to Farm Act of 1996

question 264

Multiple Choice

The purpose of the Freedom to Farm Act of 1996 was to

• A)immediately end U.S. farm subsidies.
• B)end 60 years of U.S. price supports for American grain crops.
• C)eliminate U.S. tariffs and quotas on imported farm goods.
• D)stabilize short-run crop prices.

---

Definitions:

True Values

Refers to the actual, inherent value or worth of an item, property, or financial instrument, as opposed to its market price or cost.

Just over

Slightly more than a specified amount, number, or degree.

Consumer Surplus

The discrepancy between what consumers are ready and able to spend on a good or service and the amount they end up paying.

Producer Surplus

The difference between the amount that producers are willing to accept for a good or service and the actual amount they receive.