Multiple Choice
Which of the following exemplifies a pair of substitute goods?
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5. Consumer and Producer Surplus; Price Ceilings and Floors
Consumer Surplus and Willingness to Pay
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Which of the following actions could a consumer take to help ensure farmers are treated fairly?
A
Ignore information about how products are produced.
B
Choose products based solely on brand popularity.
C
Buy only the cheapest available products regardless of origin.
D
Purchase products that are certified as fair trade.
Verified step by step guidance1
Understand the concept of 'fair trade' which refers to a trading partnership that seeks to provide better trading conditions and promote sustainability for producers, especially farmers in developing countries.
Recognize that actions like ignoring production information, choosing products based only on brand popularity, or buying the cheapest products regardless of origin do not guarantee fair treatment of farmers.
Identify that purchasing products certified as fair trade ensures that the consumer supports farmers who receive fair wages and work under ethical conditions.
Learn to look for fair trade certification labels on products, which indicate adherence to fair trade standards.
Conclude that among the options, buying fair trade certified products is the action that helps ensure farmers are treated fairly.
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