A Farmer Is Deciding Whether or Not to Add Fertilizer

question 92

Multiple Choice

A farmer is deciding whether or not to add fertilizer to his or her crops. If the farmer adds 1 pound of fertilizer per acre, the value of the resulting crops rises from $80 to $100 per acre. According to marginal analysis, the farmer should add fertilizer if it costs less than:

• A) $12.50 per pound.
• B) $20 per pound.
• C) $80 per pound.
• D) $100 per pound.

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Definitions:

In-Kind Transfers

Non-cash benefits provided to individuals, often in the form of goods or services, such as food stamps or housing assistance.

Poverty Rate

The proportion of the population living below the poverty line, indicating the level of economic hardship in a society.

Public Assistance

Government programs designed to provide financial aid or services to individuals or families in need.

Social Insurance

A government-sponsored program designed to provide financial support to individuals in events such as unemployment, disability, or retirement.