When the Government Establishes a Minimum Price for an Agricultural

question 244

Multiple Choice

When the government establishes a minimum price for an agricultural product above the equilibrium price, the government is creating a(n)

• A) price ceiling.
• B) elevated price.
• C) price floor.
• D) surplus price.

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Definitions:

Current Liabilities

Current liabilities are a company's liabilities that are due within one fiscal year or the operating cycle, whichever is longer, and include debts such as accounts payable and short-term loans.

Sales Taxes

Taxes imposed by governments on the sale of goods and services, usually calculated as a percentage of the sale price.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year, calculated as current assets divided by current liabilities.

Current Liability

A company's financial obligations that are due within one year or within the normal operating cycle, including accounts payable and short-term loans.