The Methods That Governments Use to Support Farmers Vary,but They

question 7

Multiple Choice

The methods that governments use to support farmers vary,but they almost always involve some or all the following methods EXCEPT

• A) pay farmers a subsidy.
• B) introduce a price floor.
• C) isolate the domestic market from global competition.
• D) tax farmers.
• E) use price supports.

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Definitions:

Annual Sales

The total revenue a company generates from its business activities over the course of a year.

Perfectly Competitive Market

A market structure characterized by many buyers and sellers, free entry and exit, and a homogeneous product.

Market Price

The current price at which a good or service can be bought or sold in a marketplace, determined by supply and demand.

Cartel

A formal agreement among competing firms to control prices or exclude entry of a new competitor in the market.