A New Statute Passed by the State of Vermont Prohibits

question 88

Multiple Choice

A new statute passed by the state of Vermont prohibits the sale of any maple syrup not produced in Vermont anywhere in Vermont.The legislators maintain that the statute is for the health and welfare of Vermont residents because the state of Vermont regulates producers to ensure quality and sanitation standards.The new statute is:

• A)constitutional as an exercise of the health and safety regulatory powers of the state.
• B)constitutional as a control of intrastate commerce.
• C)constitutional because it applies only to sales in the state.
• D)unconstitutional because of its excessive approach.

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Definitions:

Marginal Revenue Product

The additional revenue generated from using one more unit of a factor of production, holding other factors constant.

Marginal Resource Cost

The additional cost incurred by acquiring one more unit of a resource, such as labor or raw materials.

Input Decrease

A reduction in the amount, quality, or efficiency of any raw material, capital, or labor used in the production process.

Derived Demand

Demand for a factor of production or good that results from the demand for another related good or service.