The Commodity Credit Corporation (CCC) instituted several policies to improve the welfare of farmers. Which of the following best describes the programs' effects?
a. The CCC price supports mandated a one-price policy on all agricultural goods.
b. The CCC made loans to farmers, using the farmers' future crops as collateral with recourse.
c. The CCC price supports inefficiently allocated resources, which decreased welfare.
d. If the commodity price increased, according to the free market, then the CCC would command and collect "excess" profits, i.e., revenues in excess of the one-price policy, for use as loanable funds.
C. The CCC price supports inefficiently allocated resources, which decreased welfare.
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Assuming that the demand and supply of a good both increased by the same amount, the new equilibrium would represent: a. an increase in price and an increase in quantity exchanged
b. no change in price and an increase in quantity exchanged. c. a decrease in price and a decrease in quantity exchanged. d. no change in price, and an indeterminate change in quantity exchanged.
What are the key characteristics of a public good?
What will be an ideal response?