The Worst Drought in Over 50 Years Has Decimated Crops

question 314

Multiple Choice

The worst drought in over 50 years has decimated crops of soy beans and corn in the United States. (Source: New York Times, August 10, 2012) . Because the production of corn has decreased, prices are expected to increase by 25 percent. These data are insufficient for calculating the elasticity of demand because we also need to know the

• A) percentage increase in income.
• B) percentage increase in quantity.
• C) percentage decrease in quantity.
• D) increase in bushels per acre.

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Definitions:

Carpe Diem

A Latin aphorism usually translated as "seize the day," encouraging individuals to make the most of the present moment without concern for the future.

Redistribution Of Income

The transfer of income from certain individuals or groups to others through mechanisms such as taxation, welfare, and government policies.

Equity

The concept of fairness and justice within the processes, distribution, and outcomes in society or specific situations.

Tax System

A tax system is the structured way in which taxes are collected by a government to fund public spending on goods and services.