Why has agriculture become a declining industry over the past half century? Explain
What will be an ideal response?
The basic reason is that the supply of agricultural products has expanded at a faster rate than the demand for them, thus driving down the prices received by farmers. On the supply-side, there has been significant technological progress in agriculture-better farming methods, new farm equipment and machinery, improved fertilizers and insecticides. In 1950 each farmer produced 14 units of farm output, but by 2009 each farmer produce 119 units of farm output. On the demand side, U.S. incomes have increased, but spending on agricultural products has not kept pace with the increase in incomes. This income-elasticity of demand for agricultural products has limited the extent of the increase in demand. Also, population growth has been relatively low, so the demand increase from this factor has been limited.
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Which of the following equations is correct?
A) assets = liabilities ? net worth B) assets = liabilities + net worth C) liabilities = assets + net worth D) net worth = liabilities + assets
Which one of the following is an example of asymmetric information?
A. A supermarket repackages packages of stale meat and sells them. B. A homeowner knowingly sells a house that has hidden electrical problems. C. A company hires an employee who has an addiction to sleeping pills. D. All of these
Opportunity cost is
A) the cost of producing all goods and services in the United States. B) the value of the next-best alternative that must be sacrificed to satisfy a want. C) the fixed cost of production. D) the value of the most useful alternative that must be sacrificed to obtain something or satisfy a want.
If a production process creates positive externalities, a competitive market produces too few positive externalities because the producer
A) does not pay all the costs of the externalities. B) does not receive compensation for the externalities. C) Both A and B. D) None of the above.