Output Constraints Have Not Been a Very Successful Means of Controlling

question 32

Multiple Choice

Output constraints have not been a very successful means of controlling government payments to farmers because:

• A) farmers take their most productive land out of production.
• B) farmers take their least productive land out of production.
• C) farmers farm their land less intensively.
• D) All of the above.

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Definitions:

Yield Curve

A curve representing the yields of bonds with the same creditworthiness but varying expiration dates, measured at a specific moment.

Term Structure

The relationship between the interest rates or yields of bonds and their respective maturities.

Federal Government Bonds

Securities issued by a national government's treasury, often considered low-risk investments.

Risk Premium

The additional return expected by an investor for taking on a higher level of risk.