Question about surplus, During the Great Depression,

Question about surplus

Reference no: EM1370144

During the Great Depression, the federal government swung into action to help farmers. In 1933, it established a system of price support for many agricultural products. Today, there are price supports for wheat, feed grains, cotton, rice, peanuts, soybeans, sorghum and other agricultural products. The nature of the support was and remains quite simple. The government simply chooses a support price for an agricultural product, and acts to ensure that the price of the product never falls below the support level.

If production exceeds the amount consumers want to buy at the support price, what happens to surplus? Quite simply, the government must buy the surplus at the support price.

What do you think could possibly happen if congress eliminated all farm subsidies?

Reference no: EM1370144

Questions Cloud

Implement direct-address table keys of stored elements : Suggest how to implement direct-address table in which keys of stored elements don't require to be distinct and elements can have satellite data.

Lobby against the import quota : Suppose you are the manager of the only company worldwide that specializes in exporting fish products to Japan. Your firm competes against a handful of Japanese firms that enjoy a significant 1st mover advantage.

Determining productivity gains : Suppose labor costs are 17.5% of revenue per vehicle for General Motors. In union negotiations throughout the late 1990s, GM attempted to cut its workforce to increase productivity.

Determine integer to divide maximum number of partial sums : Now, given sequence, can you determine the integer M (L ≤ M ≤ U) which divides maximum number of partial sums of the sequence?

Question about surplus : During the Great Depression, federal government swung into action to help farmers. In 1933, it established a system of price support for several agricultural products.

Describe some of the problems that companies are facing : Describe some of the problems that companies are likely to face when both contingent workers and core employees work in the same location

Diseconomies of scale : Describe why some firms might suffer diseconomies of scale. Do you know any examples? Could GM be an example of diseconomies of scale?

Explain while performance evaluations part of most companies : Explain While performance evaluations are part of most organizations and unions tend to disavow their usefulness

Average total cost curve : A firm sells in a competitive market in which price is $10. Its marginal cost is 2 + .5Q. Find out the profit-maximizing level of output.

User Account

All Pages