The productivity of the agriculture sector (of the economy) increases dramatically. A likely consequence is:
A) increased resources flowing into the agriculture sector.
B) an increase in the supply of foodstuffs and lower prices for foodstuffs.
C) an increase in the total revenue (farmers' receive) from selling foodstuffs, assuming the demand for their products is elastic.
D) a decrease in the total revenue (farmers' receive) from selling foodstuffs, assuming the demand for their products is inelastic.
E) none of the above
B
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Speculation during periods of inflation can result in:
A. People buying resources for resale later rather than using the resources for current production. B. A movement inside the production-possibilities curve. C. People buying gold, silver, jewelry, etc., instead of capital for production. D. People saving less of their disposable income. E. All of the above.
Explain the connection between property rights and economic growth
What will be an ideal response?