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:

Federal Court System

The judicial system of the United States, composed of the Supreme Court, appellate courts, and district courts, handling legal disputes under federal law and the Constitution.

District Court

A type of court found in many jurisdictions, often involved in the trial of minor offenses and preliminary hearings for more serious ones, or as the first level of the judiciary in a federal system.

Court Of Appeals

A higher court that reviews the decisions of lower courts to ensure the law was applied correctly.

State Systems

The organizational framework of a state, including its political, legal, and administrative structures.