From 1950 to 2017 the Number of People Who Lived

question 233

Multiple Choice

From 1950 to 2017 the number of people who lived on farms fell from 23 million to fewer than 3 million.Which of the following factors have contributed to this trend?

• A)increases in the cost of farming and a desire for young adults to move to urban areas
• B)rapid growth in farm production and low income and price elasticities for food products
• C)slow growth in agricultural productivity and low income elasticities for food products
• D)government policies that have increased the cost of living and working on farms

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Definitions:

Mixed Costs

Costs that have both fixed and variable components and change in total with the level of activity but not proportionately.

Relevant Range

The range of activity within which the assumptions about fixed and variable cost behaviors remain valid for a specific business.

Fixed Overhead Cost

Fixed expenditures unaffected by changes in production or sales volume, like leasing fees, employee compensation, and protection plans.

Maintenance Cost

Maintenance cost refers to the expenses incurred for the upkeep and repair of equipment, buildings, or machinery to keep them in good working condition.