Flooding in the Midwest Causes Much of the Farm Crop

question 15

Multiple Choice

Flooding in the Midwest causes much of the farm crop to be destroyed. As a result, the market price of corn increases. We would expect:

• A) farm income to remain unchanged.
• B) farm income to decrease.
• C) farm income to increase.
• D) quantity demanded to increase because the good is more scarce.

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Definitions:

Unemployment Rate

The percentage of the labor force that is jobless and actively seeking employment, a key economic indicator of a country's economic health.

Bowers V. Hardwick

A controversial 1986 Supreme Court decision upholding a Georgia sodomy law, later overturned by Lawrence v. Texas in 2003.

Federal Power

The authority held by the national government of a federal state, as distinguished from the powers held by state or provincial governments.

States' Rights

The principle or belief in the U.S. political framework that states have certain rights and political powers independent of the federal government, often highlighted in debates on federalism and the distribution of powers.