Farmers Can Use Their Land to Grow Soy Beans or Corn

question 336

Multiple Choice

Farmers can use their land to grow soy beans or corn. If the price of corn rises,

• A) the supply of soybeans decreases and the soybean supply curve shifts leftward.
• B) the supply of soybeans increases.
• C) the supply of corn increases and the corn supply curve shifts rightward.
• D) the supply of corn increases.

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Definitions:

Return on Equity

A financial ratio indicating the relative profitability of a company, calculated by dividing net income by shareholder equity.

Stockholders' Equity

The ownership stake of shareholders in a corporation, calculated by subtracting liabilities from the total assets, representing the remaining interest.

Income Statement

A report indicating a business's income, outgoings, and net earnings during a defined timeframe.

Income Tax Expense

The amount of money a company or individual owes to the government based on their taxable income for a given period.