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

---

Definitions:

Cash Discount Stores

Retail outlets offering goods for sale at lower prices due to immediate payment instead of credit purchase.

Annuals

Plants that complete their life cycle, from germination to the production of seeds, within one year, and then die.

Garden Stores

Retail outlets specializing in the sale of plants, gardening tools, outdoor furniture, and other gardening and landscaping supplies.

Hybrid Company

A business entity that combines elements of different organizational structures, such as a mix of a corporation's limited liability features with a partnership's tax efficiencies.