Question 1

Measured in terms of farm employment and the number of farms, agriculture has been

Accepted Answer

A)  a declining industry.
B)  an expanding industry.
C)  a stable industry.
D)  a volatile industry.E) All of the above
F) A) and B)

Question 2

Farm policy in the United States over the past eight decades has been designed primarily to

Accepted Answer

A)  shift resources from the farm sector to the nonfarm sector.
B)  reduce monopoly in the farm sector.
C)  enhance and stabilize farm prices and income.
D)  produce a strategic reserve of food.E) A) and D)
F) B) and D)

Question 3

Agricultural price supports have been criticized because they

Accepted Answer

A)  hasten the exodus of labor from agriculture.
B)  subsidize consumers at the expense of farmers.
C)  help large-scale farmers rather than small farmers.
D)  create product shortages.E) All of the above
F) B) and D)

Question 4

The three types of farm subsidies under the Food, Conservation, and Energy Act of 2008 are

Accepted Answer

A)  equipment coupons, land leases, and income contributions.
B)  marketing agreements, transition payments, and interest loans.
C)  direct payments, countercyclical payments, and marketing loans.
D)  public land sales, fertilizer discounts, and farm bank loans.E) B) and D)
F) A) and B)

Question 5

In the United States, "farm products" are generally produced in more ___________ markets, while "food products" tend to be sold in markets that are more ____________.

Accepted Answer

A)  monopolistic; competitive
B)  competitive; oligopolistic
C)  oligopolistic; competitive
D)  oligopolistic; monopolisticE) A) and B)
F) A) and C)

Question 6

In 1994, the world's trading nations agreed to

Accepted Answer

A)  increase export subsidies to reduce world surpluses of farm products.
B)  reduce agricultural subsidies and tariffs on agricultural imports.
C)  eliminate all price supports for farm products.
D)  create an international farm price support system to replace the price support systems of individual countries.E) All of the above
F) C) and D)

Question 7

One consequence of the long-run problem faced by farms has been a

Accepted Answer

A)  rapid increase in the price of farm output.
B)  massive exit of workers from agriculture to other sectors of the economy.
C)  smaller average farm size.
D)  reduction in U.S. exports of farm products.E) B) and C)
F) B) and D)

Question 8

The agricultural price support program in the United States has resulted in

Accepted Answer

A)  declining average farm income.
B)  surpluses of price-supported farm commodities.
C)  shortages of price-supported farm commodities.
D)  a gradual migration of people from farms to cities.E) All of the above
F) A) and C)

Question 9

The demand for agricultural products

Accepted Answer

A)  has a price elasticity coefficient of about 0.20 to 0.25.
B)  is elastic with respect to income but inelastic with respect to price.
C)  has been decreasing about 8 percent per year.
D)  has been rising more rapidly than the national income.E) B) and C)
F) A) and C)

Question 10

How does the U.S. Department of Agriculture (USDA)measure the effect that technological changes have had on output? Compare 1950's index number to 2015's index number.

Accepted Answer

The USDA's simplest measure of these cha...

Question 11

The Food, Conservation, and Energy Act of 2008 provided farm subsidies in the form of direct payments, countercyclical payments, and marketing loans to farmers.

Accepted Answer

A) True 
 B)False

Question 12

Facets of the U.S. government's ethanol program include the following, except

Accepted Answer

A)  tariffs on imported ethanol.
B)  mandated use of ethanol in gasoline.
C)  subsidies to oil refineries that use ethanol.
D)  a price-ceiling to reduce the price of corn needed to make ethanol.E) B) and C)
F) A) and C)

Question 13

The federal government has tried to eliminate agricultural surpluses by

Accepted Answer

A)  decreasing supply and demand.
B)  increasing supply and demand.
C)  decreasing supply and increasing demand.
D)  increasing supply and decreasing demand.E) B) and D)
F) B) and C)

Question 14

List the three causes of short-run instability found in agriculture.

Accepted Answer

In the short run, there is price and inc...

Question 15

The U.S. price-support program, which guaranteed prices for currently grown crops

Accepted Answer

A)  ended with the passage of the Freedom to Farm Act of 1996.
B)  began with the Grain Planting Act of 1914.
C)  remains the core of U.S. farm policy.
D)  was restored in full and expanded by the Food, Conservation, and Energy Act of 2008.E) None of the above
F) A) and D)

Question 16

Which of the following best describes the main problem faced by farms in the long run?

Accepted Answer

A)  Lagging technology has decreased the productivity of farmers and therefore resulted in low farm prices and incomes.
B)  The highly inelastic nature of agricultural demand has caused small year-to-year fluctuations in farm output to result in highly unstable farm incomes.
C)  The supply of farm products has increased relative to the demand for them, and, because demand is inelastic, farm prices and incomes have therefore declined.
D)  The demand for farm products has increased relative to their supply, but the highly elastic nature of agricultural demand has caused these shifts to result in declining farm incomes.E) A) and B)
F) None of the above

Question 17

The parity ratio

Accepted Answer

A)  compares worker productivity in the farm and nonfarm sectors.
B)  is the ratio of per capita farm income to per capita nonfarm income.
C)  is the ratio of prices received by farmers to prices paid by farmers.
D)  is the ratio of prices paid by farmers to prices received by farmers.E) A) and B)
F) A) and C)

Question 18

If prices received by farmers decline and prices paid by farmers increase, the parity ratio will decline.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following was a feature of farm policy present in the Food, Conservation, and Energy Act of 2008 that was not part of the Freedom to Farm Act of 1996?

Accepted Answer

A)  direct payments (direct subsidies) based on crops currently grown
B)  countercyclical payments
C)  farm buyouts by government
D)  acreage allotments (restrictions on planting) E) A) and B)
F) A) and C)

Question 20

Which of the following is not characteristic of U.S. agriculture?

Accepted Answer

A)  Productivity has been increasing more slowly in agriculture than in the rest of the economy.
B)  The demand for agricultural commodities increases less than proportionately to increases in income.
C)  Resources in agriculture are relatively immobile.
D)  Demand is inelastic with respect to price.E) B) and C)
F) All of the above

Exam 22: Agriculture: Economics and Policy

The U.S. price-support program, which guaranteed prices for currently grown crops

Correct AnswerverifiedShow Answer

The Food, Conservation, and Energy Act of 2008 provided farm subsidies in the form of direct payments, countercyclical payments, and marketing loans to farmers.

Correct AnswerverifiedShow Answer

Which of the following best describes the main problem faced by farms in the long run?

Correct AnswerverifiedShow Answer

Which of the following was a feature of farm policy present in the Food, Conservation, and Energy Act of 2008 that was not part of the Freedom to Farm Act of 1996?

Correct AnswerverifiedShow Answer

Farm policy in the United States over the past eight decades has been designed primarily to

Correct AnswerverifiedShow Answer

The demand for agricultural products

Correct AnswerverifiedShow Answer

How does the U.S. Department of Agriculture (USDA)measure the effect that technological changes have had on output? Compare 1950's index number to 2015's index number.

Correct AnswerverifiedThe USDA's simplest measure of these cha...View AnswerShow Answer

In the United States, "farm products" are generally produced in more ___________ markets, while "food products" tend to be sold in markets that are more ____________.

Correct AnswerverifiedShow Answer

Facets of the U.S. government's ethanol program include the following, except

Correct AnswerverifiedShow Answer

Agricultural price supports have been criticized because they

Correct AnswerverifiedShow Answer

Measured in terms of farm employment and the number of farms, agriculture has been

Correct AnswerverifiedShow Answer

The parity ratio

Correct AnswerverifiedShow Answer

If prices received by farmers decline and prices paid by farmers increase, the parity ratio will decline.

Correct AnswerverifiedShow Answer

The federal government has tried to eliminate agricultural surpluses by

Correct AnswerverifiedShow Answer

In 1994, the world's trading nations agreed to

Correct AnswerverifiedShow Answer

Which of the following is not characteristic of U.S. agriculture?

Correct AnswerverifiedShow Answer

The three types of farm subsidies under the Food, Conservation, and Energy Act of 2008 are

Correct AnswerverifiedShow Answer

List the three causes of short-run instability found in agriculture.

Correct AnswerverifiedIn the short run, there is price and inc...View AnswerShow Answer

One consequence of the long-run problem faced by farms has been a

Correct AnswerverifiedShow Answer

The agricultural price support program in the United States has resulted in

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The USDA's simplest measure of these cha...
View Answer

In the United States, "farm products" are generally produced in more _ markets, while "food products" tend to be sold in markets that are more __.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
In the short run, there is price and inc...
View Answer

Correct Answer
verified

Correct Answer
verified