Although the Average Farm Size Has Increased in Recent Years

question 137

Multiple Choice

Although the average farm size has increased in recent years, the majority of farmers operate as ______ businesses.

• A) small
• B) large
• C) government-owned
• D) partnerships

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Definitions:

Equilibrium Level

A condition in which the supply and demand in the market are equal, leading to stable prices.

Deadweight Loss

Deadweight loss is the loss of economic efficiency that occurs when the equilibrium outcome is not achievable or not achieved in a market.

Price Floor

A minimum price set by the government for certain goods and services, below which they cannot be sold, aimed at protecting producers.

Government Purchases

Expenditures made by the government for goods and services that affect the economy, including investments and spending on infrastructure, healthcare, and education.