From 1950 to 2011 the Number of People Who Lived

question 5

Multiple Choice

From 1950 to 2011 the number of people who lived on farms fell from 23 million to fewer than 3 million? Which of the following factors have contributed to this trend?

• A)increases in the cost of farming and a desire for young adults to move to urban areas
• B)rapid growth in farm production and low income and price elasticities for food products
• C)slow growth in agricultural productivity and low income elasticities for food products
• D)government policies that have increased the cost of living and working on farms

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Definitions:

Variable Costing

An accounting method that only includes variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product costs, excluding fixed manufacturing overhead.

Net Operating Income

Profit or loss from a company's operations after all operating expenses are subtracted from operating revenues, but before interest and taxes are deducted.

Variable Costing

Variable costing is an accounting method that only considers variable costs in the calculation of the cost of goods sold, excluding fixed costs.

Net Operating Income

Income derived from normal business operations after subtracting all operating expenses but before interest and taxes.