Which of the Following Is the Most Likely Explanation for the Imposition

question 68

Multiple Choice

Which of the following is the most likely explanation for the imposition of a price floor on the market for corn?

• A)Policymakers have studied the effects of the price floor carefully,and they recognize that the price floor is advantageous for society as a whole.
• B)Buyers and sellers of corn have agreed that the price floor is good for both of them and have therefore pressured policy makers into imposing the price floor.
• C)Buyers of corn,recognizing that the price floor is good for them,have pressured policymakers into imposing the price floor.
• D)Sellers of corn,recognizing that the price floor is good for them,have pressured policymakers into imposing the price floor.

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Definitions:

Diluted Earnings Per Share

A performance metric that shows the quality of earnings per share if all convertible securities were exercised.

Complex Capital Structures

Refers to corporate financial structures that feature a mix of simple and intricate financial instruments, such as multiple classes of stock or convertible bonds.

Cash Dividend

A distribution of a company's profits to its shareholders in the form of cash.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations with its current assets.