The USDA Maintains Ethanol Has an Impact on Food Prices

question 90

Multiple Choice

The USDA maintains ethanol has an impact on food prices. "Higher ethanol production definitely and directly raises the price of corn," said USDA economist Ephraim Leibtag. In the long run in the corn market, what is true if the production of ethanol increases?

• A) Existing corn farmers will exit the market and decrease the market price.
• B) New corn farmers will enter the market and increase the market price.
• C) Existing corn farmers will exit the market and increase the market price.
• D) New corn farmers will enter the market and decrease the market price.

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Definitions:

ADLs

Activities of Daily Living; tasks that are necessary for personal care and independent living, such as eating, bathing, dressing, and mobility.

Impaired Memory

A reduction in the ability to remember or recall information, which can result from various conditions or aging processes.

Fluid

A substance that has no fixed shape and yields easily to external pressure; can be a liquid or gas.

Electrolyte Imbalances

An abnormality in the concentration of electrolytes in the body, which can disrupt normal bodily functions.