To Have an Effective Price Support Program, the Government Must

question 317

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

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Definitions:

Restricted Policy

A restricted policy typically involves limitations or controls set on certain actions or decisions within an organization, aiming to comply with regulations, reduce risk, or achieve specific goals.

Relaxed Policy

A financial strategy or policy that is less strict or rigid, often implying a more liberal approach to lending, investing, or managing assets.

Trade Credit

The arrangement between businesses to buy goods or services on account, paying the supplier at a later date.

Effective Annual Cost

Effective Annual Cost denotes the total cost of financing on a yearly basis, incorporating fees and interest rates to reflect the true annual cost of borrowing.