Irving Tiller exclusively grew wheat in each of the past three years. Under the Food, Conservation, and Energy Act of 2008, Tiller:
A. must grow wheat in the current year in order to receive direct payments from the federal
government.
B. can grow whatever crop he wants to in the current year but will only receive direct
payments from the federal government if the price of wheat falls below a targeted price.
C. can grow whatever crop he wants in the current year and will still receive direct payments
from the federal government based on his previously grown wheat crops.
D. must grow something other than wheat to qualify for direct payments from the federal
government.
Answer: C
You might also like to view...
Total revenue falls as the price of a good increases if price elasticity of demand is
a. Perfectly elastic b. Inelastic c. Unitary elastic d. Elastic
When a country has a lower opportunity cost in producing a good than any other country,
A. It has favorable terms of trade in producing the good. B. It necessarily has an absolute advantage in producing the good. C. Production possibilities are no longer limited. D. Consumption possibilities will increase with specialization and trade.
Suppose a business firm dumps its used car batteries into a river.
A. The company's actions constitute an external cost. B. The company's actions constitute an external benefit. C. The company's actions would be an example of the market system efficiently allocating resources. D. The company's actions damage no one but itself.
If there is unemployment in an economy, then the
A) economy is operating at an unattainable point. B) production possibilities frontier will shift inwards. C) production possibilities frontier must be bowed inward. D) economy is producing at a point inside the production possibilities frontier. E) production possibilities frontier will shift outwards.