The USGovernment Restricts the Production of Peanuts by Limiting Production Licenses

Multiple Choice

The U.S.government restricts the production of peanuts by limiting production licenses.By also prohibiting imports, the government maintains prices well above levels peanut farmers would obtain if supply were not restricted.Economists call this type of program a(n)

A) price ceiling.
B) price floor.
C) opportunity cost.
D) shortage.
E) efficiency move.