A Farmer Produces the Same Output in 2020 as in 2019

question 14

Multiple Choice

A farmer produces the same output in 2020 as in 2019. His input prices increase by 3 percent and so does his product price. Which inflation rate makes the farmer as well off in 2020 as in 2019?

• A) 0 percent
• B) 1 percent
• C) 3 percent
• D) 6 percent

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Definitions:

Individualism

A social theory or philosophy emphasizing the moral worth and autonomy of the individual over communal or collective interests.

Collectivism

A cultural value or ideology emphasizing the priority of group goals over individual goals and the importance of cohesion within social groups.

Uncertainty Avoidance

Uncertainty avoidance is a cultural dimension that describes the extent to which a society tolerates ambiguity and uncertainty, influencing communication patterns and behaviors.

Uncertainty Avoidance

A cultural dimension that describes the extent to which people feel threatened by ambiguous situations and try to avoid them.