Government Intervention in Agriculture Usually Involves

question 398

Multiple Choice

Government intervention in agriculture usually involves

• A) price ceilings in order to keep food prices low.
• B) price ceilings in order to subsidize U.S. exports.
• C) price supports in order to keep farm incomes high.
• D) price supports in order to keep agricultural imports low.

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Definitions:

Specialization

The process of concentrating on and becoming expert in a particular subject or skill within production or labor.

Comparative Advantage

The ability of an individual, firm, or country to produce a particular good or service at a lower opportunity cost than others, leading to a basis for beneficial trade.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision, effectively the value of the opportunity lost.

Import Commodities

Goods or services brought into one country from another for the purpose of trade.