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If There Are Widespread Press Reports About the Dangers of Contracting

question 30

Multiple Choice

If there are widespread press reports about the dangers of contracting "mad cow disease" by consuming beef from Canada, what is the likely economic effect on the U.S. demand curve for beef from Canada?


Definitions:

Allocative Efficiency

A state of resource allocation where it is impossible to make any one individual better off without making someone else worse off.

Private Ownership

The legal right held by individuals or corporations to have exclusive control over and use of property, assets, or commodities.

Opportunity Cost

Opportunity cost is the value of the next best alternative forgone as the result of making a decision.

Henry George

A 19th-century economist known for his belief that people should own the value they produce themselves, but that land and natural resources should belong to all (Georgism).

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