Question 1

Which of the following is an effect of the domestic sugar program of the United States on many of the less-developed countries that export sugar?

Accepted Answer

A)   Export earnings and national incomes have increased.
B)   The decrease in the supply of sugar to world markets from less-developed countries has increased world prices.
C)   There has been an increase in the production of sugar in the United States and a loss of sales by less-developed countries to the United States.
D)   There has been improved efficiency in the allocation of agricultural resources.E) A) and B)
F) C) and D)

Question 2

Since 2002, agricultural policy in the United States has

Accepted Answer

A)   strengthened the free-market intent of the Freedom to Farm Act of 1996.
B)   retreated from the free-market intent of the Freedom to Farm Act of 1996.
C)   drastically reduced farm subsidies, in accordance with the WTO's Doha Round negotiations.
D)   opened up the farm-product markets in the U.S. to free trade.E) B) and D)
F) A) and D)

Question 3

Since 1950, farm productivity has

Accepted Answer

A)   advanced twice as fast as in nonfarm sectors of the economy.
B)   lagged behind productivity advances in the nonfarm economy.
C)   almost exactly matched productivity increases in the rest of the economy.
D)   doubled.E) A) and C)
F) A) and B)

Question 4

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) None of the above
F) All of the above

Question 5

Suppose the demand for good X, an agricultural product, is price-inelastic. This means that small variations in the quantity of X produced will be associated with large variations in the

Accepted Answer

A)   price of good X.
B)   incomes of consumers of good X.
C)   cost of producing good X.
D)   quantity of good X exchanged.E) B) and C)
F) A) and D)

Question 6

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) All of the above
F) A) and B)

Question 7

Which of the following statements about U.S. agriculture is true as it relates to the past several decades?

Accepted Answer

A)   The demand for farm products has declined, the supply of farm products has increased, and the price of farm products has declined.
B)   The demand for farm products has become both more income elastic and more price elastic.
C)   Minimum efficient scale has increased, the prices of farm products have declined, and the number of farms has declined.
D)   The prices of farm products have increased, minimum efficient scale has declined, and the supply of farm products has been stagnant.E) B) and C)
F) None of the above

Question 8

The parity ratio initially stood at 0.50. Then after several years, the prices received by farmers doubled while the prices they paid tripled. This will bring the parity ratio to

Accepted Answer

A)   0.25.
B)   0.33.
C)   0.75.
D)   0.80.E) B) and C)
F) C) and D)

Question 9

Government and private efforts to promote the production of "gasohol" using corn-based ethanol are an attempt to

Accepted Answer

A)   increase the supply of certain farm products.
B)   increase the demand for certain farm products.
C)   decrease the demand for certain farm products.
D)   decrease the supply of certain farm products.E) A) and B)
F) None of the above

Question 10

Agricultural risk coverage guarantees payments to farmers when the price of their crop falls below a specific value.

Accepted Answer

A) True 
 B)False

Question 11

When fixed costs are high relative to variable costs, producers will tend to

Accepted Answer

A)   continue producing in the short run even if they incur some losses.
B)   quickly shut down in the short run whenever they see losses.
C)   only produce in the short run as long as the product price is lower than their average variable costs.
D)   produce in the short run even if the product price is lower than their average fixed costs.E) All of the above
F) B) and D)

Question 12

If the demand curve for wheat is inelastic, then total farm income from wheat will be

Accepted Answer

A)   higher in years of low yields and lower in years of high yields.
B)   lower in years of low yields and higher in years of high yields.
C)   higher in years of falling prices.
D)   lower in years of rising prices.E) All of the above
F) C) and D)

Question 13

Irving Tiller received an insurance payment because his wheat crop sold for a price below an established threshold. Under the Agricultural Act of 2014, Tiller received payment under

Accepted Answer

A)   direct payment coverage.
B)   countercyclical payment coverage.
C)   price loss coverage.
D)   agricultural risk coverage.E) A) and B)
F) B) and C)

Question 14

Approximately what percentage of American consumers' total spending is on food?

Accepted Answer

A)   about 10 percent
B)   20-25 percent
C)   about 30 percent
D)   more than 40 percentE) B) and D)
F) A) and D)

Question 15

When a buyer or seller of an agricultural commodity takes action to protect against a future change in the value of the commodity, then the buyer or seller is

Accepted Answer

A)   logrolling.
B)   hedging.
C)   allotting.
D)   bolstering.E) C) and D)
F) A) and B)

Question 16

If the prices of agricultural products fall, then the quantities demanded usually

Accepted Answer

A)   do not increase by much because the price-changes are often small.
B)   do not increase by much because there are no close substitutes.
C)   increase significantly because the products satisfy basic needs.
D)   increase significantly because the products have no close substitutes and are necessities.E) A) and D)
F) All of the above

Question 17

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) All of the above
F) B) and C)

Exam 22: Agriculture: Economics and Policy

When a buyer or seller of an agricultural commodity takes action to protect against a future change in the value of the commodity, then the buyer or seller is

Correct Answer
verified

If the demand curve for wheat is inelastic, then total farm income from wheat will be

Correct Answer
verified

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

Correct Answer
verified

If the prices of agricultural products fall, then the quantities demanded usually

Correct Answer
verified

Which of the following statements about U.S. agriculture is true as it relates to the past several decades?

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

Irving Tiller received an insurance payment because his wheat crop sold for a price below an established threshold. Under the Agricultural Act of 2014, Tiller received payment under

Correct Answer
verified

Since 1950, farm productivity has

Correct Answer
verified

When fixed costs are high relative to variable costs, producers will tend to

Correct Answer
verified

Approximately what percentage of American consumers' total spending is on food?

Correct Answer
verified

The parity ratio initially stood at 0.50. Then after several years, the prices received by farmers doubled while the prices they paid tripled. This will bring the parity ratio to

Correct Answer
verified

Since 2002, agricultural policy in the United States has

Correct Answer
verified

Suppose the demand for good X, an agricultural product, is price-inelastic. This means that small variations in the quantity of X produced will be associated with large variations in the

Correct Answer
verified

Which of the following is an effect of the domestic sugar program of the United States on many of the less-developed countries that export sugar?

Correct Answer
verified

Government and private efforts to promote the production of "gasohol" using corn-based ethanol are an attempt to

Correct Answer
verified

Agricultural risk coverage guarantees payments to farmers when the price of their crop falls below a specific value.

Correct Answer
verified

Exam 22: Agriculture: Economics and Policy

When a buyer or seller of an agricultural commodity takes action to protect against a future change in the value of the commodity, then the buyer or seller is

Correct AnswerverifiedShow Answer

If the demand curve for wheat is inelastic, then total farm income from wheat will be

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

If the prices of agricultural products fall, then the quantities demanded usually

Correct AnswerverifiedShow Answer

Which of the following statements about U.S. agriculture is true as it relates to the past several decades?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Irving Tiller received an insurance payment because his wheat crop sold for a price below an established threshold. Under the Agricultural Act of 2014, Tiller received payment under

Correct AnswerverifiedShow Answer

Since 1950, farm productivity has

Correct AnswerverifiedShow Answer

When fixed costs are high relative to variable costs, producers will tend to

Correct AnswerverifiedShow Answer

Approximately what percentage of American consumers' total spending is on food?

Correct AnswerverifiedShow Answer

The parity ratio initially stood at 0.50. Then after several years, the prices received by farmers doubled while the prices they paid tripled. This will bring the parity ratio to

Correct AnswerverifiedShow Answer

Since 2002, agricultural policy in the United States has

Correct AnswerverifiedShow Answer

Suppose the demand for good X, an agricultural product, is price-inelastic. This means that small variations in the quantity of X produced will be associated with large variations in the

Correct AnswerverifiedShow Answer

Which of the following is an effect of the domestic sugar program of the United States on many of the less-developed countries that export sugar?

Correct AnswerverifiedShow Answer

Government and private efforts to promote the production of "gasohol" using corn-based ethanol are an attempt to

Correct AnswerverifiedShow Answer

Agricultural risk coverage guarantees payments to farmers when the price of their crop falls below a specific value.

Correct AnswerverifiedShow Answer

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