Increases in Farm Productivity Have Lowered the Prices of Many

question 249

Multiple Choice

Increases in farm productivity have lowered the prices of many agricultural products. Farm revenues decreased, which implies that the:

• A) demand for many agricultural products is inelastic.
• B) costs of production increased.
• C) demand for many agricultural products is elastic.
• D) costs of production stayed the same.

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Definitions:

Presentation Currency

The currency in which financial statements are presented by a company.

Management Choice

The discretion allowed to company management in selecting among various allowed accounting methods and policies in reporting financial information.

Accounting Standards

Rules and guidelines set by regulatory bodies that dictate how financial transactions and accounting practices should be recorded and reported.