Normal Profits Are Those That Result in Rates of Return

question 44

True/False

Normal profits are those that result in rates of return that are just sufficient to attract new capital in financial markets.

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Definitions:

Agricultural Act of 2014

A United States federal law that established policies for agricultural and food programs, often referred to as the 2014 Farm Bill.

Crop Insurance

A risk management tool that protects agricultural producers against loss of their crops due to natural disasters, such as flood, hail, drought, or loss in revenue due to declines in the prices of agricultural commodities.

Price Support

A government intervention mechanism to maintain the price of a commodity at a certain level by buying excess supply or offering subsidies.

Price-Support Program

Government interventions to maintain the market price of a commodity or product above its equilibrium level to support the income of producers.