Which of the Following Groups Would Be Most Adversely Affected

question 41

Multiple Choice

Which of the following groups would be most adversely affected by food aid?

• A)Manufacturers in the country providing aid
• B)Citizens in the country receiving aid
• C)Government in the country receiving aid
• D)Farmers in the country providing aid
• E)Farmers in the country receiving aid

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Definitions:

Inferior Good

A good or service whose consumption declines as income rises, prices held constant.

Positive

Characterized by or denoting an effect, result, or attribute that is beneficial or conducive to growth or well-being.

Constant Elasticity

A condition where the elasticity, or responsiveness, of a variable does not change regardless of the level of the variable being examined.

Linear Demand

A market demand situation where a product's price and the quantity demanded have a linear relationship.