Table 3-1 -Refer to Table 3-1.What Is the Opportunity Cost of 1

question 148

Multiple Choice

Table 3-1

-Refer to Table 3-1.What is the opportunity cost of 1 kg of meat for the rancher

• A)4 hours of labour
• B)3 hours of labour
• C)4/3 kg of potatoes
• D)3/4 kg of potatoes

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Definitions:

Price Support

Government intervention in a market to maintain the price at a certain level, usually done through the purchase of surplus stock or direct subsidies to producers.

Price Floor

A minimum price, set by law or regulation, that must be paid for a good or service; often implemented to protect producers.

Price Support

Government interventions in the market to maintain the price of a commodity at a certain level.

Demand Curve

A chart that illustrates the link between a product's price and the amount of the product that buyers are prepared and capable of buying at different price levels.