If the government created a surplus of an agricultural product due to price supports, how might they dispose of this surplus?
A) give it away to a foreign country
B) purchase it and store it away
C) have the farmer destroy the crop
D) Any of these answers might be a successful tool in disposing of agricultural surpluses.
Answer: D
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Which of the following would cause both the equilibrium price and equilibrium quantity of barley (assume that barley is an inferior good) to increase?
A) an increase in consumer income B) a drought that sharply reduces barley output C) a decrease in consumer income D) unusually good weather that results in a bumper crop of barley
Twenty-eight countries in Europe have eliminated all tariffs with each other. This group of countries is known as the
A) European Union. B) United Federation of Europe. C) Gruppo Euro. D) European Free Trade Association.