The Example of Fair-Trade Coffee Illustrates the Problem of Trying

question 126

Multiple Choice

The example of fair-trade coffee illustrates the problem of trying to stabilize returns to specific factors. What is the problem?

• A) Production is inherently egalitarian-all resources get the same return.
• B) When world coffee prices rise farmers of fair-trade coffee may receive a lower price than that offered on the world market.
• C) When coffee prices fall, the farmers will sell their plots and seek employment in other industries.
• D) Fair-trade efforts are unpopular among U.S. workers, who see imports increase and their returns from coffee production fall.

---

Definitions:

Exchange Process

The exchange process is the act of giving one thing and receiving another in return, often seen in transactions, trade, or communication.

Perceived Needs

The needs that customers believe they require, which may not necessarily align with their actual needs or wants. These can be influenced by marketing, societal pressures, or personal beliefs.

Marketing Concept

A business philosophy focusing on identifying and meeting the needs and wants of customers through the development, promotion, and sale of products or services.

Customer Orientation

A business strategy that focuses on creating a positive experience for customers by understanding and meeting their needs.