Which of the following best describes the main problem faced by farms in the long run?
A) Lagging technology has decreased the productivity of farmers and therefore resulted in low farm prices and incomes.
B) The highly inelastic nature of agricultural demand has caused small year-to-year fluctuations in farm output to result in highly unstable farm incomes.
C) The supply of farm products has increased relative to the demand for them, and, because demand is inelastic, farm prices and incomes have therefore declined.
D) The demand for farm products has increased relative to their supply, but the highly elastic nature of agricultural demand has caused these shifts to result in declining farm incomes.
Correct Answer:
Verified
Q12: What percentage of their spending do U.S.
Q13: The demand for most agricultural products is
A)
Q14: If the demand for an agricultural product
Q15: Which of the following would, other things
Q16: Which of the following best describes the
Q18: Farm share of U.S. GDP has
A) declined
Q19: An extraordinarily small crop of farm products
Q20: Over time, technological change has
A) reduced both
Q21: The misallocation of resources associated with price
Q22: Which of the following statements is correct?
A)
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