Viewed from the perspective of a U.S. beef farmer, gasoline price variability can be viewed as a source of
A. demand and supply variability, because an increase in gasoline costs drive up corn costs and corn is what farmers feed their cattle.
B. demand variability, because an increase in gasoline costs drive up corn costs and corn is what farmers feed their cattle.
C. static variability.
D. supply variability, because an increase in gasoline costs drive up corn costs and corn is what farmers feed their cattle.
Answer: D
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If actual output exceeds potential output, the short-run aggregate supply curve shifts downward over time
Indicate whether the statement is true or false
According to the text, the cost-plus-markup procedure
A) is the only sensible way to set prices. B) is a sure-fire way to ruin a business. C) is a general rule of thumb for price searchers. D) can be practiced only by price takers.
What types of international transactions are recorded in the balance of payment accounts?
What will be an ideal response?
The balance of payments:
A. can only be expanded when the government has foreign exchange reserves. B. is always zero C. with some nations is different than it is with others D. is negative when the nation runs a trade deficit