Economics 9708 · AS & A Level · Scarcity, choice and opportunity cost

Scarcity, choice and opportunity cost — practice question

A farmer allocates his land between the cultivation of two crops – wheat and oats. If he wants to raise the output of one, he has to cut the output of the other. What would lead the farmer to raise his supply of wheat?

  • AA subsidy is given for the production of oats.
  • BA unit tax is imposed on the production of wheat.
  • CThere is an increase in wages for all farm workers.
  • DThere is improved efficiency in the harvesting of wheat.

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