If the Resource Prices Faced by a Firm Rise,the Result

question 131

Multiple Choice

If the resource prices faced by a firm rise,the result is a(n)

• A) decrease in supply
• B) increase in supply
• C) decrease in demand
• D) increase in quantity demanded
• E) decrease in quantity supplied

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Definitions:

Moral Hazard

The situation where one party engages in risky behavior because it knows another party bears the consequences or risks.

Disaster Relief

Assistance provided to individuals or communities to help them recover from natural or man-made disasters.

Crop Insurance

Insurance that farmers can purchase that will pay out if crop selling prices or crop revenues fall below predetermined values.

Consumer Surplus

The disparity between the total consumers intend and can afford to pay for a good or service versus what they actually spend.