Holding Other Factors Constant, If Food Prices Decline Relative to the Prices

question 12

Multiple Choice

Holding other factors constant, if food prices decline relative to the prices of other products, then the real wages of agricultural workers will ________ and employment of agricultural workers will ________.

• A)increase; increase
• B)increase; decrease
• C)decrease; not change
• D)decrease; decrease

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Definitions:

Insurance Policy

A contract between an insurer and policyholder specifying the claims the insurer is legally required to pay.

Co-insurance Clause

A provision in an insurance policy stating that the insurer and the insured will share losses covered by the policy in a specified ratio.

Fireproof

A property of material or construction that provides resistance to fire, preventing or delaying the spread of fire.

Insured

The individual or entity covered by an insurance policy, who is entitled to benefits in case of a covered loss.