All of the Following Result from Price Floors in Agriculture

question 227

Multiple Choice

All of the following result from price floors in agriculture EXCEPT

• A) surpluses of agricultural products that have price floors.
• B) higher prices to consumers for agricultural products that have price floors.
• C) lower prices to consumers for agricultural products that have price floors.
• D) governmental bureaucracy.

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Definitions:

Selling Expense

Costs associated with the marketing and selling of a company's products or services, including advertising and sales personnel expenses.

Period Cost

Costs that are not directly tied to the production of goods and are expensed within the period they occur.

Construction Contractor

A person or company that agrees to supply services or perform work at a specified price, especially for construction projects.

Direct Materials

Direct materials are raw materials that are directly traceable to the production of specific goods or services and are a key component in determining the cost of goods sold.