In Early 1996, the Upper Midwest Suffered Record Cold, with Wind

question 230

Multiple Choice

In early 1996, the upper Midwest suffered record cold, with wind chills of 50° below zero or worse.Yet, grocery stores stocked fresh citrus fruit (which was clearly not grown locally) .Why did grocers stock the fruit?

• A)The desire for profit
• B)Concern for their neighbors
• C)The need to dispose of excess production
• D)Government orders to distribute fruit
• E)All of the responses are correct.

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Definitions:

Increasing Opportunity

In economic terms, refers to the increasing cost associated with producing additional units of a good, implying that producing more of one good requires sacrificing increasingly larger amounts of another good.

Production Possibilities

The various combinations of goods and services that can be produced by an economy given its available resources and technology, illustrating potential trade-offs and efficiency.

Comparative Advantage

An economic principle that states a country should produce and export goods for which it is more efficient at producing than other countries, and import goods that it is less efficient at producing.

Terms of Trade

The ratio of an index of a country's export prices to an index of its import prices, affecting the balance of trade.