Suppose That Canada and the European Union Impose Price Floors

question 129

Multiple Choice

Suppose that Canada and the European Union impose price floors on many similar agricultural products.These price floors lead to unwanted surpluses.To deal with a surplus:

• A) the Canadian government typically pays farmers to produce as much as possible.
• B) the Canadian government in some cases has destroyed the surplus production.
• C) the European Union pays farm exporters to sell products for a profit overseas.
• D) the Canadian government holds auctions to sell the surplus to the highest bidder.

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Definitions:

Microsoft Operating Systems

Software developed by Microsoft Corporation that manages computer hardware and software resources and provides common services for computer programs.

Virus

A microscopic organism that invades living cells to replicate, often causing disease.

Corrupted

Altered from the original or intended state, often referring to data that has become unreadable or software that has been compromised, as well as ethical deterioration in individuals or systems.

Production Possibility Frontier

A curve that illustrates the maximum possible output combinations of two goods or services an economy can achieve when all resources are fully and efficiently employed.