Developing World Countries Might Provide Food at Artificially Low Prices

question 173

Multiple Choice

Developing world countries might provide food at artificially low prices in order to make food affordable in cities.What is a consequence of this?

• A) It robs farmers of the incentive to farm.
• B) more activity at seaports
• C) a positive balance of trade for the developing world country
• D) riots when markets are open
• E) urban to rural migration

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Definitions:

Required Return

The minimum expected return an investor anticipates or requires from an investment to compensate for its risk.

Financial Break-even

Financial break-even is the point at which a company's revenues exactly cover its expenses and financial charges, resulting in neither profit nor loss.

Net Present Value

The difference between the current value of cash inflows and the current value of cash outflows over a period of time, used to assess the profitability of an investment.