Kulap, a Soybean Farmer, Acts to Prevent Crop Failure

question 78

Multiple Choice

Kulap, a soybean farmer, acts to prevent crop failure. The marginal benefit is represented by MB = 80 - A, where A is the number of precautions. The marginal cost of these precautions (e.g., soil preparation and pesticide and fertilizer use) is MC = 20 - 0.5A. Suppose the government offers Kulap crop insurance, which changes the marginal benefit of taking precautions to MB = 65 - 2A. The number of precautions Kulap takes _____ from _____ without insurance to _____ with insurance.

• A) falls; 20; 3
• B) falls; 40; 20
• C) falls; 120; 30
• D) rise; 60; 120

Understand the criteria for engaging in international trade based on comparative advantage.

Evaluate the impact of productivity differences between countries on trade opportunities.

Recognize the impact of trade policies and agreements on domestic industries and workers.

Understand the principles of specialization and comparative advantage in international trade.

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Definitions:

Peer Review Technique

A method used to evaluate work or performance by one's equals (peers) to ensure quality, accuracy, or compliance with standards.

Hot-Stove Rule

A management principle suggesting that discipline should be immediate, clear, consistent, and impartial, similar to touching a hot stove.

Discipline Principle

A concept in management that emphasizes the importance of enforcing rules and maintaining order within an organization.

Alternative Hypotheses

Hypotheses that suggest there is a statistically significant difference between groups or variables, as opposed to the null hypothesis.