Meat at the Supermarket Has Contributed to Increase in Food

question 296

Multiple Choice

Meat at the supermarket has contributed to increase in food prices in 2010, and high feed and fuel prices mean that steak will likely cost a lot more this fall. The price of feed has increased 50 percent and hay has doubled from two years ago. Based on this information, which of the following is TRUE in the market for beef?

• A) Consumer surplus will decrease.
• B) Producer surplus will increase.
• C) Equilibrium price will decrease.
• D) Equilibrium quantity will increase.

Understand how the theory of comparative advantage underpins productivity and economic relationships.

Recognize the constraints posed by scarcity on production and consumption.

Understand the relationship between employment levels and the production possibilities frontier (PPF).

Understand the concept of production possibility frontiers (PPF) and how they illustrate opportunity costs and efficient resource allocation.

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Definitions:

Public Sector Workers

Employees who work for government entities at the federal, state, or local level, including education, emergency services, and healthcare.

Unionization

The process of forming or joining a union, where workers unite to negotiate with employers over wages, hours, benefits, and working conditions.

Craft Workers

Employees who possess specialized skills in a particular trade or craft, often requiring specific training and apprenticeships, such as carpenters, electricians, or plumbers.

Big Business

Large-scale corporate enterprises that have a significant impact on the economy and society.