The USGovernment Restricts the Production of Peanuts by Limiting Production Licenses

question 49

Multiple Choice

The U.S.government restricts the production of peanuts by limiting production licenses.By also prohibiting imports, the government maintains prices well above levels peanut farmers would obtain if supply were not restricted.Economists call this type of program a(n)

• A)price ceiling.
• B)price floor.
• C)opportunity cost.
• D)shortage.
• E)efficiency move.

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Definitions:

Culture

encompasses the shared beliefs, customs, arts, institutions, and all other products of human work and thought characteristic of a community or population.

Attitudes

A settled way of thinking or feeling about something, often reflected in a person's behavior.

Reality

Pertains to the state of things as they actually exist, as opposed to an idealistic or notional idea of them.

Production

The process of creating or manufacturing goods and services by combining various resources and inputs.