Statutory Regulation Is Likely to Create Larger Compliance Costs Than

question 9

Multiple Choice

Statutory regulation is likely to create larger compliance costs than self-regulation because:

• A)self-regulation does not involve lawyers and the courts.
• B)consumers are better able to assess risk under self-regulation.
• C)statutory regulators are often over-cautious.
• D)statutory regulation is controlled by consumers.

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Definitions:

Countercyclical Payments

Government payments to farmers that increase when market prices are low and decrease when market prices are high, to stabilize farmers' incomes.

Direct Payments

Direct payments are sums of money paid directly from one party to another, bypassing any intermediaries.

Marketing Loans

Loans provided to agricultural producers, allowing them to store their product for a later sale when market conditions may be more favorable.

Price Supports

Initiatives, often by governments, to maintain the market price of a commodity or product at a certain level by purchasing excess supply, providing subsidies, or setting minimum prices to benefit producers.