Question 1

Under the Food, Conservation, and Energy Act of 2008, subsidies to farmers based on gaps between actual prices of crops and targeted prices were called

Accepted Answer

A) direct payments. 
B) price supports. 
C) countercyclical payments. 
D) price gap set-asides. 
A) direct payments. 
B) price supports. 
C) countercyclical payments. 
D) price gap set-asides.

Question 2

A bumper crop of farm products causes

Accepted Answer

A) only a slight decline in the price of farm products because the demand for farm products is income inelastic. 
B) a large decline in the price of farm products because the demand for farm products is price inelastic. 
C) only a slight decline in the price of farm products because the demand for farm products is income elastic. 
D) a large decline in the price of farm products because the demand for farm products is price elastic. 
A) only a slight decline in the price of farm products because the demand for farm products is income inelastic. 
B) a large decline in the price of farm products because the demand for farm products is price inelastic. 
C) only a slight decline in the price of farm products because the demand for farm products is income elastic. 
D) a large decline in the price of farm products because the demand for farm products is price elastic.

Question 3

Since the 1930s, the U.S.government has supported agriculture with a "farm program" that includes the following, except

Accepted Answer

A) price ceilings for farm products. 
B) agricultural research. 
C) farm crop insurance. 
D) soil and water conservation. 
A) price ceilings for farm products. 
B) agricultural research. 
C) farm crop insurance. 
D) soil and water conservation.

Question 4

Domestic farm subsidies improve world trade and contribute to greater efficiency in the international allocation of agricultural resources.

Accepted Answer

A) True 
 B)False

Question 5

The farm price-support programs hurt consumers of the farm products, and moreover, the burden tends to be disproportionately heavier on the low-income consumers.

Accepted Answer

A) True 
 B)False

Question 6

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. 
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.

Question 7

Most of the technological advances in U.S.agriculture are initiated by the following, except

Accepted Answer

A) government-sponsored agencies. 
B) farmers. 
C) colleges and universities. 
D) suppliers of farm inputs. 
A) government-sponsored agencies. 
B) farmers. 
C) colleges and universities. 
D) suppliers of farm inputs.

Question 8

Ward Planter exclusively grew soybeans from 2011 to 2013 and participated in the marketing loan program of the Food, Conservation, and Energy Act of 2008.If the "crop price" of soybeans at harvest was less than the preharvest "loan price," Planter could

Accepted Answer

A) sell his crop in the market and receive the difference between the crop price and loan price as a direct payment from the federal government. 
B) take a "crop credit" based on the difference between the crop price and the loan price and use the credit to reduce federal income taxes owed. 
C) receive an "emergency loan" that could be paid back over the following five years. 
D) forfeit the harvest to the lender and be free of the loan, thus receiving a subsidy because the proceeds from the loan exceeded the revenues from the sale of the crop in the market. 
A) sell his crop in the market and receive the difference between the crop price and loan price as a direct payment from the federal government. 
B) take a "crop credit" based on the difference between the crop price and the loan price and use the credit to reduce federal income taxes owed. 
C) receive an "emergency loan" that could be paid back over the following five years. 
D) forfeit the harvest to the lender and be free of the loan, thus receiving a subsidy because the proceeds from the loan exceeded the revenues from the sale of the crop in the market.

Question 9

The amount of capital used per farmworker increased by how much from 1930 to 1980?

Accepted Answer

A) double 
B) fivefold 
C) tenfold 
D) fifteen-fold 
A) double 
B) fivefold 
C) tenfold 
D) fifteen-fold

Question 10

Which of the following arguments is not generally made to justify farm subsidies?

Accepted Answer

A) The "family farm" is an American institution that should be protected and nurtured. 
B) Agribusiness firms need subsidies to achieve economies of scale. 
C) Farmers sell their output in purely competitive markets but must buy inputs from imperfectly competitive firms. 
D) Farmers cannot fully insure themselves against the risks unusual to farming, such as floods, droughts, and pests. 
A) The "family farm" is an American institution that should be protected and nurtured. 
B) Agribusiness firms need subsidies to achieve economies of scale. 
C) Farmers sell their output in purely competitive markets but must buy inputs from imperfectly competitive firms. 
D) Farmers cannot fully insure themselves against the risks unusual to farming, such as floods, droughts, and pests.

Question 11

The 2014 Agriculture Act aims to achieve the following, except

Accepted Answer

A) maintain or protect dairy farmersâ€™ per-unit margin from milk. 
B) reduce the risk of price and revenue variability. 
C) stabilize the incomes of farmers to counter the unpredictable nature of farming. 
D) get some resources to leave farming and move into other productive sectors. 
A) maintain or protect dairy farmersâ€™ per-unit margin from milk. 
B) reduce the risk of price and revenue variability. 
C) stabilize the incomes of farmers to counter the unpredictable nature of farming. 
D) get some resources to leave farming and move into other productive sectors.

Question 12

Overproduction of farm products in the European Community has been primarily the result of

Accepted Answer

A) low U.S.tariffs on imports of farm products. 
B) subsidies to farmers in the European Community. 
C) increasing world trade in agricultural commodities. 
D) quotas imposed by the European Community on imported products. 
A) low U.S.tariffs on imports of farm products. 
B) subsidies to farmers in the European Community. 
C) increasing world trade in agricultural commodities. 
D) quotas imposed by the European Community on imported products.

Question 13

Environmentalists generally support price supports because these subsidies motivate additional farm production.

Accepted Answer

A) True 
 B)False

Question 14

Farmers typically sell their products in highly competitive markets and buy in imperfectly competitive markets.

Accepted Answer

A) True 
 B)False

Question 15

Fixed costs faced by farmers typically include the following, except

Accepted Answer

A) family labor. 
B) fertilizer. 
C) property taxes. 
D) interest and rent payments. 
A) family labor. 
B) fertilizer. 
C) property taxes. 
D) interest and rent payments.

Question 16

The Agricultural Act of 2014 created two new crop insurance programs, agricultural risk coverage and price loss coverage.

Accepted Answer

A) True 
 B)False

Question 17

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. 
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.

Question 18

The Freedom to Farm Act of 1996 aimed to eliminate agricultural price supports and acreage allotments for many crops.

Accepted Answer

A) True 
 B)False

Question 19

Which group of farmers benefits the least from price supports in agriculture?

Accepted Answer

A) those farmers receiving the highest average farm-family income 
B) those farmers receiving the midrange average farm-family income 
C) those farmers receiving the lowest average farm-family income 
D) large corporate farms 
A) those farmers receiving the highest average farm-family income 
B) those farmers receiving the midrange average farm-family income 
C) those farmers receiving the lowest average farm-family income 
D) large corporate farms

Question 20

In which of the following countries do farmers receive the largest percentage of their incomes as government subsidies?

Accepted Answer

A) Switzerland 
B) Mexico 
C) Canada 
D) United States 
A) Switzerland 
B) Mexico 
C) Canada 
D) United States

Exam 22: Agriculture: Economics and Policy

Under the Food, Conservation, and Energy Act of 2008, subsidies to farmers based on gaps between actual prices of crops and targeted prices were called

A bumper crop of farm products causes

Since the 1930s, the U.S.government has supported agriculture with a "farm program" that includes the following, except

Domestic farm subsidies improve world trade and contribute to greater efficiency in the international allocation of agricultural resources.

The farm price-support programs hurt consumers of the farm products, and moreover, the burden tends to be disproportionately heavier on the low-income consumers.

Agricultural price supports have been criticized because they

Most of the technological advances in U.S.agriculture are initiated by the following, except

Ward Planter exclusively grew soybeans from 2011 to 2013 and participated in the marketing loan program of the Food, Conservation, and Energy Act of 2008.If the "crop price" of soybeans at harvest was less than the preharvest "loan price," Planter could

The amount of capital used per farmworker increased by how much from 1930 to 1980?

Which of the following arguments is not generally made to justify farm subsidies?

The 2014 Agriculture Act aims to achieve the following, except

Overproduction of farm products in the European Community has been primarily the result of

Environmentalists generally support price supports because these subsidies motivate additional farm production.

Farmers typically sell their products in highly competitive markets and buy in imperfectly competitive markets.

Fixed costs faced by farmers typically include the following, except

The Agricultural Act of 2014 created two new crop insurance programs, agricultural risk coverage and price loss coverage.

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?

The Freedom to Farm Act of 1996 aimed to eliminate agricultural price supports and acreage allotments for many crops.

Which group of farmers benefits the least from price supports in agriculture?

In which of the following countries do farmers receive the largest percentage of their incomes as government subsidies?

Limits, Alternatives, and Choices

The Market System and the Circular Flow

Demand, Supply, and Market Equilibrium

Market Failures: Public Goods and Externalities

Governments Role and Government Failure

Elasticity

Utility Maximization

Behavioral Economics

Businesses and the Costs of Production

Pure Competition in the Short Run

Pure Competition in the Long Run

Pure Monopoly

Monopolistic Competition

Oligopoly and Strategic Behavior

Technology, Rd, and Efficiency

The Demand for Resources

Wage Determination

Rent, Interest, and Profit

Natural Resource and Energy Economics

Public Finance: Expenditures and Taxes

Antitrust Policy and Regulation

Income Inequality, Poverty, and Discrimination

Health Care

Immigration

An Introduction to Macroeconomics

Measuring Domestic Output and National Income

Economic Growth

Business Cycles, Unemployment, and Inflation

Basic Macroeconomic Relationships

The Aggregate Expenditures Model

Aggregate Demand and Aggregate Supply

Fiscal Policy, Deficits, and Debt

Money, Banking, and Financial Institutions

Money Creation

Interest Rates and Monetary Policy

Financial Economics

Extending the Analysis of Aggregate Supply

Current Issues in Macro Theory and Policy

International Trade

The Balance of Payments, Exchange Rates, and Trade Deficits

The Economics of Developing Countries

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