Based on Economist Richard Roll's Work, the BEST Way to Predict

question 254

Multiple Choice

Based on economist Richard Roll's work, the BEST way to predict future weather in Florida, where oranges are grown, may be:

• A) to listen to meteorologists.
• B) to look at the difference between futures and spot prices of orange juice.
• C) to wait and see what the weather turns out to be.
• D) to look at past trends in orange production.

---

Definitions:

Beginning Inventory

The value of a business's inventory at the start of an accounting period.

Lower-of-Cost-or-Market

An accounting principle that values inventory at the lower of its historical cost or market value.

Lawnmowers

Mechanical devices or machines used for cutting grass to maintain a desired length or appearance of a lawn.

Snowblowers

Machines designed for removing snow from surfaces, such as driveways and sidewalks, using a rotating auger to collect and eject the snow to the side.