Relating to the Economics in Practice on Page 253: Which

question 198

Multiple Choice

Relating to the Economics in Practice on page 253: Which of the following would be an expected result of increased government subsidies for ethanol, a fuel produced from corn?

• A) an increase in the price of gasoline made in part from ethanol
• B) an increase in the price of land used to farm corn
• C) decreases in the price of land used to farm grains other than corn
• D) a decrease in the production of corn relative to other grains

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Definitions:

Prospectively

Referring to or dealing with events in the future, often in the context of financial planning or forecasting.

Extraordinary Gain

A gain that arises from events or transactions that are distinct and infrequent in nature, not expected to recur regularly.

Provision For Inventories

An accounting practice where a reserve is made for potential decreases in the value of a company’s inventory.

Inventories Losses

Reductions in the amount or value of inventories due to factors such as deterioration, obsolescence, or theft, resulting in financial loss.