Question 1

Price supports

Accepted Answer

A)  decrease pollution because participants must practice organic farming.
B)  neither increase nor decrease environmental pollution.
C)  increase pollution because supports encourage the cultivation of marginal land and the use of more pesticides and fertilizers.
D)  discourage rent-seeking activity.E) B) and D)
F) A) and B)

Question 2

The price elasticity of demand for food tends to be

Accepted Answer

A)  higher in richer nations.
B)  lower in richer nations.
C)  the same in rich and poor nations.
D)  unrelated to per capita wealth.E) B) and C)
F) None of the above

Question 3

Because the demand for agricultural products is price-inelastic, price support programs tend to

Accepted Answer

A)  increase farm income.
B)  decrease farm income.
C)  have no effect upon farm income.
D)  cause farm incomes to fluctuate more than they would without such programs.E) A) and B)
F) B) and C)

Question 4

Which of the following statements describes how a price-change in a purely competitive market would eliminate the surplus of an agricultural commodity?

Accepted Answer

A)  As the price increases, the quantity demanded increases while the quantity supplied decreases.
B)  As the price increases, the quantity demanded decreases while the quantity supplied increases.
C)  As the price decreases, the quantity demanded increases while the quantity supplied decreases.
D)  As the price decreases, the quantity demanded decreases while the quantity supplied increases.E) A) and D)
F) None of the above

Question 5

The relative price inelasticity of demand for agricultural products has resulted in

Accepted Answer

A)  prices fluctuating more in agriculture than in other industries.
B)  prices fluctuating less in agriculture than in other industries.
C)  higher prices for agricultural products.
D)  lower prices for agricultural products.E) None of the above
F) A) and D)

Question 6

An increase in the supply of farm products relative to the demand for them tends to cause farm incomes to decline.

Accepted Answer

A) True 
 B)False

Question 7

The price parity concept, which is a cornerstone of U.S.agricultural policy, was established by the

Accepted Answer

A)  Agricultural Income Act of 1914.
B)  Agricultural Adjustment Act of 1933.
C)  Obama administration.
D)  Reagan administration.E) A) and D)
F) C) and D)

Question 8

What is the reason why large, short-run declines in farm prices do not significantly reduce farm production in the short run?

Accepted Answer

A)  Farmers' variable costs are high compared with their fixed costs.
B)  Farmers' fixed costs are high compared with their variable costs.
C)  Farmers' prices received are greater than prices paid for agricultural products.
D)  Farmers' prices paid are greater than prices received for agricultural products.E) A) and D)
F) All of the above

Question 9

The government's promotion of greater production and use of corn-based ethanol was intended to

Accepted Answer

A)  reduce the price of ethanol-blended gasoline.
B)  bolster the demand for corn.
C)  reduce the surplus supply of corn.
D)  increase the importation of ethanol.E) B) and D)
F) B) and C)

Question 10

Over time, technological change has

Accepted Answer

A)  reduced both the price elasticity and income elasticity of the demand for farm products.
B)  reduced the minimum efficient scale of production in agriculture and increased the prices of farm products.
C)  increased both price elasticity and income elasticity of the demand for farm products.
D)  increased the minimum efficient scale of production in agriculture and reduced the prices of farm products.E) A) and B)
F) A) and C)

Exam 22: Agriculture: Economics and Policy

An increase in the supply of farm products relative to the demand for them tends to cause farm incomes to decline.

Correct Answer
verified

Price supports

Correct Answer
verified

The price parity concept, which is a cornerstone of U.S.agricultural policy, was established by the

Correct Answer
verified

Because the demand for agricultural products is price-inelastic, price support programs tend to

Correct Answer
verified

What is the reason why large, short-run declines in farm prices do not significantly reduce farm production in the short run?

Correct Answer
verified

Which of the following statements describes how a price-change in a purely competitive market would eliminate the surplus of an agricultural commodity?

Correct Answer
verified

The relative price inelasticity of demand for agricultural products has resulted in

Correct Answer
verified

Over time, technological change has

Correct Answer
verified

The government's promotion of greater production and use of corn-based ethanol was intended to

Correct Answer
verified

The price elasticity of demand for food tends to be

Correct Answer
verified

Exam 22: Agriculture: Economics and Policy

An increase in the supply of farm products relative to the demand for them tends to cause farm incomes to decline.

Correct AnswerverifiedShow Answer

Price supports

Correct AnswerverifiedShow Answer

The price parity concept, which is a cornerstone of U.S.agricultural policy, was established by the

Correct AnswerverifiedShow Answer

Because the demand for agricultural products is price-inelastic, price support programs tend to

Correct AnswerverifiedShow Answer

What is the reason why large, short-run declines in farm prices do not significantly reduce farm production in the short run?

Correct AnswerverifiedShow Answer

Which of the following statements describes how a price-change in a purely competitive market would eliminate the surplus of an agricultural commodity?

Correct AnswerverifiedShow Answer

The relative price inelasticity of demand for agricultural products has resulted in

Correct AnswerverifiedShow Answer

Over time, technological change has

Correct AnswerverifiedShow Answer

The government's promotion of greater production and use of corn-based ethanol was intended to

Correct AnswerverifiedShow Answer

The price elasticity of demand for food tends to be

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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