A support price set above the equilibrium price ______.
A. creates a shortage, increases farmers' total revenue, and is efficient
B. creates a surplus, which the government buys and dumps on the rest of the world to keep the U.S. market price equal to the price support
C. is inefficient because farmers' marginal cost exceeds U.S consumers' marginal benefit
D. is efficient because farmers' marginal cost equals U.S. consumers' marginal benefit
Question 2
What two things does the amount of property income a household earns depend upon?
What will be an ideal response?