Suppose Farmers Can Use Their Land to Grow Either Wheat

question 82

Multiple Choice

Suppose farmers can use their land to grow either wheat or corn.The law of supply predicts that an increase in the market price of wheat will cause:

• A)farmers to substitute wheat for the production of corn.
• B)farmers to substitute corn for the production of wheat.
• C)farmers to lower the production of corn and wheat.
• D)farmers to raise the production of wheat and corn.

---

Definitions:

DRD

Dividends Received Deduction, a tax deduction in the United States that allows corporations to deduct dividends received from their taxable income.

Taxable Income

The amount of income used to calculate how much tax an individual owes to the government, considering all income sources and permissible deductions.

Charitable Organization

A nonprofit entity that operates for the public good, often focused on educational, religious, or humanitarian goals.

Publicly-traded Corporation

A company whose shares are openly sold and traded to the public on one or more stock exchanges.