Ambrosia, a small country in the Mediterranean region, has an agriculture-based economy. In recent years, a decline in global trade barriers has led to a massive increase in agricultural production in Ambrosia. The government of Ambrosia has claimed that this expansion has increase the country's GDP and also improved the overall welfare of it people by increasing employment opportunities. However, critics of the government have claimed that this expansion has actually made the people of Ambrosia worse off.Which of the following if true, would support the critics' argument?A. the agricultural market in Ambrosia face limited competition from the producers in other countries.B. Increased agricultural production accounted for most of the increase in GDP.C. The prices of inputs used in the production of agricultural products have declined.D. The expansion was made possible by an expansion of pesticide use that has damaged the natural environment.E. Domestic demand for agricultural products is relatively low in comparison to worldwide demand.
This question was answered on: Sep 21, 2023
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