A Farmer Produces the Same Output in 2012 as in 2011.His

question 84

Multiple Choice

A farmer produces the same output in 2012 as in 2011.His input prices increase by 3 percent and so does his product price.Which inflation rate makes the farmer as well off in 2012 as in 2011?

• A)6 percent
• B)3 percent
• C)1 percent
• D)0 percent

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Definitions:

Dome Collapse

Dome Collapse refers to the structural failure and subsequent falling apart of a volcanic dome, often resulting in hazardous pyroclastic flows or landslides around the volcano.

Low-Viscosity

a property of liquids that denotes a low resistance to flow, characteristic of substances that pour easily at room temperature.

Intrinsic

Referring to something that is inherent or natural, often used to describe motivation or value coming from within rather than external rewards.

Extrinsic

Originating from outside rather than from within a person, often referring to external motivations or factors.