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Under a Marketing Quota System

Question 28

Multiple Choice

Under a marketing quota system,


A) the government sets a limit on the quantity of a product that a farmer is allowed to bring to market.
B) farmers are paid to take part of their land out of cultivation.
C) farmers are given limits as to the number of acres that can be used to produce a particular product.
D) farmers are paid the difference between the market price of their product and a governmentally determined price that would maintain an established price parity.
E) the government establishes a minimum price that farmers will be paid for their product,which causes the farmers to cut back on the number of acres planted.

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