The United States and the European Union Impose Price Floors

Question 74
Multiple Choice

The United States and the European Union impose price floors on many agricultural products. These price floors lead to unwanted surpluses. To deal with a surplus: A) the U.S. government typically pays farmers to produce as much as possible. B) the U.S. government in some cases has destroyed the surplus production. C) the European Union pays farm exporters to sell products for a profit overseas. D) the U.S. government holds auctions to sell the surplus to the highest bidder.