The Price of Milk Increases

question 95

Multiple Choice

The price of milk increases. Which of the following is NOT part of the likely chain of events that follows from this price change?

• A)Some milk consumers reduce their consumption of milk.
• B)Milk producers increase their production of milk.
• C)The producers of feed for dairy cows increase production.
• D)The manufacturers of milking machines lay off some workers.

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Definitions:

Capital Gain Yield

Capital gain yield refers to the price appreciation component of the total return on an investment, expressed as a percentage increase from the asset's purchase price.

Dividend Yield

A financial index that reveals the proportion of yearly dividends paid out by a company to its stock price.

Annual Percentage Rate

The annual rate charged for borrowing or earned through an investment, accounting for any fees or additional costs associated with the transaction, expressed as a percentage.

Treasury Bill

Short-term, government-issued debt securities that mature in one year or less.