From a Standpoint of Resource Allocation, a Surplus of Corn

question 17

Multiple Choice

From a standpoint of resource allocation, a surplus of corn implies

• A) Consumers would prefer some of the resources used to produce corn be used to produce something else
• B) The market for agricultural products is failing
• C) Government should purchase the surplus to protect the farmers
• D) The price of corn is too low and should be increased
• E) The quantity demanded of corn exceeds the quantity supplied

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