EQ 1 2010 ANSWER

EQ 1 2010 ANSWER - Is this issue a microeconomic or a...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
EQ #1 – AGEC 105 Capps AGEC 105 Spring 2010 Worth 5 points. 1. An agribusiness firm may undertake three alternatives: (a) buy cane sugar and manufacture various sugars and sweets, making a profit of $12 million. (b) buy corn and produce ethanol making a profit of $11 million (c) buy wheat and produce breads, rolls, and pastries, making a profit of $14 million. The opportunity cost associated with these three choices is $__ 12 ____million. 2. Congress wishes to tax consumers who buy sugar-sweetened beverages in order to help alleviate the obesity problem in the United States.
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Is this issue a microeconomic or a macroeconomic issue? 3. What branch of economics is concerned with the effects of food safety (e.g. salmonella) on consumer demand for poultry? (i.e. what-if types of questions) positive 4. Suppose the index of prices received by farmers for 2009 was 0.92 and the base year of this index was 1996. (a) What is the value of the index for 1996? ____ 1 ______ (b) Relative to 1996, farm prices were ___ 8 ___% lower in 2009....
View Full Document

This document was uploaded on 12/13/2010.

Ask a homework question - tutors are online