The Major Difference Between a Price Support Program and a Target

question 137

Multiple Choice

The major difference between a price support program and a target price program is that:

• A) price supports do not produce an excess supply.
• B) target prices produce an excess demand.
• C) target prices subsidize foreign buyers while price supports subsidize domestic buyers.
• D) target prices subsidize domestic and foreign buyers.

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Definitions:

Cameras

Devices used to capture images, either as photographs on film or as digital images through electronic sensors.

Absolute Advantage

The capability of a country, firm, or individual to produce a good or service at a lower cost per unit than competitors.

Germany

A country in Central Europe known for its rich history, diverse culture, and significant contributions to art, science, and economy.

Production

The process of creating goods and services through the combination of labor, capital, and resources.