To Have an Effective Price Support Program,the Government Must

question 184

Multiple Choice

To have an effective price support program,the government must
i.isolate the domestic market from the world market.
ii.pay the farmers a subsidy.
iii.introduce a price floor.

• A) i only
• B) ii only
• C) iii only
• D) ii and iii
• E) i, ii, and iii

---

Definitions:

Preferred Stock

A class of stock that carries with it the right to receive payment of dividends and/or the distribution of assets on the dissolution of the corporation before other classes of stock receive their payments.

Dividends

Net profits, or surplus, set aside for shareholders.

Dissolution

A change in the relation of partners caused by any partner ceasing to be associated in the carrying on of the business.

Limited Liability Company

A business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation.