Question 1

With a fixed level of farm production, a given shift in demand for a crop will cause a

Accepted Answer

A) small price change if demand is quite inelastic. 
B) more dramatic price change if demand is quite elastic. 
C) more dramatic price change if demand is quite inelastic. 
D) similar amount of price change regardless of whether demand is elastic or not. 
A) small price change if demand is quite inelastic. 
B) more dramatic price change if demand is quite elastic. 
C) more dramatic price change if demand is quite inelastic. 
D) similar amount of price change regardless of whether demand is elastic or not.

Question 2

Which of the following is correct?

Accepted Answer

A) The rapid expansion of foreign incomes will reduce U.S.agricultural exports. 
B) A decrease in the international value of the dollar will reduce U.S.agricultural exports. 
C) An increase in the international value of the dollar will reduce U.S.agricultural exports. 
D) Changes in the international value of the dollar have no effect on U.S.agricultural exports. 
A) The rapid expansion of foreign incomes will reduce U.S.agricultural exports. 
B) A decrease in the international value of the dollar will reduce U.S.agricultural exports. 
C) An increase in the international value of the dollar will reduce U.S.agricultural exports. 
D) Changes in the international value of the dollar have no effect on U.S.agricultural exports.

Question 3

(Last Word) The U.S.sugar program has

Accepted Answer

A) improved the world allocation of agricultural resources. 
B) caused the world price of sugar to rise above its domestic price. 
C) increased domestic sugar production. 
D) lowered the incomes of U.S.sugar growers. 
A) improved the world allocation of agricultural resources. 
B) caused the world price of sugar to rise above its domestic price. 
C) increased domestic sugar production. 
D) lowered the incomes of U.S.sugar growers.

Question 4

Increases in incomes usually result in more than proportionate increases in the demand for agricultural products in a growing economy.

Accepted Answer

A) True 
 B)False

Question 5

Farm share of U.S.GDP has

Accepted Answer

A) declined from about 12 percent in 1950 to 1 percent today. 
B) declined from about 12 percent in 1950 to 7 percent today. 
C) declined from about 7 percent in 1950 to 1 percent today. 
D) remained relatively stable over the past 50 years. 
A) declined from about 12 percent in 1950 to 1 percent today. 
B) declined from about 12 percent in 1950 to 7 percent today. 
C) declined from about 7 percent in 1950 to 1 percent today. 
D) remained relatively stable over the past 50 years.

Question 6

Acreage allotments, which limit the number of acres planted with a particular crop, have an effect on the crop's price that is

Accepted Answer

A) consistent with a price-support program. 
B) contradictory to a price-support program. 
C) consistent with a price-ceiling for the crop. 
D) disadvantageous to the farmers of the crop. 
A) consistent with a price-support program. 
B) contradictory to a price-support program. 
C) consistent with a price-ceiling for the crop. 
D) disadvantageous to the farmers of the crop.

Question 7

If the parity ratio goes from 0.8 to 0.7, it means that the prices received by farmers had

Accepted Answer

A) fallen by 12.5 percent relative to the prices they paid. 
B) fallen by 10 percent relative to the prices they paid. 
C) risen by 12.5 percent relative to the prices they paid. 
D) risen by 10 percent relative to the prices they paid. 
A) fallen by 12.5 percent relative to the prices they paid. 
B) fallen by 10 percent relative to the prices they paid. 
C) risen by 12.5 percent relative to the prices they paid. 
D) risen by 10 percent relative to the prices they paid.

Question 8

(Consider This) Which of the following has been an effect of the U.S.government's ethanol program?

Accepted Answer

A) Prices for crops such as soybeans and sorghum have fallen dramatically. 
B) Prices for beef, pork, and chicken have risen. 
C) Water use has declined, as corn is a less water-intensive crop. 
D) All of these effects have resulted from the ethanol program. 
A) Prices for crops such as soybeans and sorghum have fallen dramatically. 
B) Prices for beef, pork, and chicken have risen. 
C) Water use has declined, as corn is a less water-intensive crop. 
D) All of these effects have resulted from the ethanol program.

Question 9

Farm employment in the United States amounted to about what percentage of the total employment in 2015?

Accepted Answer

A) less than 2 percent 
B) about 8 percent 
C) about 15 percent 
D) close to 20 percent 
A) less than 2 percent 
B) about 8 percent 
C) about 15 percent 
D) close to 20 percent

Question 10

Which of the following statements best describes the parity concept?

Accepted Answer

A) The prices of farm commodities should vary inversely with changes in the prices-paid index for farmers. 
B) Because of productivity increases, farmers are entitled to the same real income for a smaller volume of output. 
C) The money incomes of farmers should always be the same, regardless of increases or decreases in the prices of the products they buy. 
D) The production of a given real output entitles the producer to the same real income over time. 
A) The prices of farm commodities should vary inversely with changes in the prices-paid index for farmers. 
B) Because of productivity increases, farmers are entitled to the same real income for a smaller volume of output. 
C) The money incomes of farmers should always be the same, regardless of increases or decreases in the prices of the products they buy. 
D) The production of a given real output entitles the producer to the same real income over time.

Question 11

A declining parity ratio implies that the

Accepted Answer

A) prices paid by farmers rose faster than the prices that farmers received. 
B) prices received by farmers rose faster than the prices that farmers paid. 
C) productivity of farmers is declining. 
D) prices paid and received by farmers are both falling. 
A) prices paid by farmers rose faster than the prices that farmers received. 
B) prices received by farmers rose faster than the prices that farmers paid. 
C) productivity of farmers is declining. 
D) prices paid and received by farmers are both falling.

Question 12

From 2010 to 2012, Johnny Deer exclusively grew corn.Under the Food, Conservation, and Energy Act of 2008, Deer

Accepted Answer

A) was required to grow corn in the next year in order to receive direct payments from the federal government. 
B) was allowed to grow whatever crop he wanted in the next year, but would only receive direct payments from the federal government if the price of corn fell below a targeted price. 
C) was eligible to receive countercyclical payments if the price of corn fell below a targeted price, even though he did not grow corn in the next year. 
D) had to grow something other than corn the next year to qualify for direct payments from the federal government. 
A) was required to grow corn in the next year in order to receive direct payments from the federal government. 
B) was allowed to grow whatever crop he wanted in the next year, but would only receive direct payments from the federal government if the price of corn fell below a targeted price. 
C) was eligible to receive countercyclical payments if the price of corn fell below a targeted price, even though he did not grow corn in the next year. 
D) had to grow something other than corn the next year to qualify for direct payments from the federal government.

Question 13

The ambitious plan to wean American agriculture from subsidies, as embodied in the Freedom to Farm Act of 1996,

Accepted Answer

A) became fully realized by 2000. 
B) unraveled in 1998 and 1999 when farm prices fell. 
C) was not approved by the president. 
D) was extended in 2002. 
A) became fully realized by 2000. 
B) unraveled in 1998 and 1999 when farm prices fell. 
C) was not approved by the president. 
D) was extended in 2002.

Question 14

The inelastic demand for agricultural products means that

Accepted Answer

A) large changes in agricultural production result in no change in farm prices and incomes. 
B) small changes in agricultural production result in no change in farm prices and incomes. 
C) large changes in agricultural production result in relatively smaller changes in farm prices and incomes. 
D) small changes in agricultural production result in relatively larger changes in farm prices and incomes. 
A) large changes in agricultural production result in no change in farm prices and incomes. 
B) small changes in agricultural production result in no change in farm prices and incomes. 
C) large changes in agricultural production result in relatively smaller changes in farm prices and incomes. 
D) small changes in agricultural production result in relatively larger changes in farm prices and incomes.

Question 15

Farm programs such as those of the United States and the European Union

Accepted Answer

A) are consistent with free world trade in agricultural products. 
B) cause a misallocation of agricultural resources internationally. 
C) cause the United States and the European Union to underproduce, while other nations overproduce, farm products. 
D) raise productivity in developing nations. 
A) are consistent with free world trade in agricultural products. 
B) cause a misallocation of agricultural resources internationally. 
C) cause the United States and the European Union to underproduce, while other nations overproduce, farm products. 
D) raise productivity in developing nations.

Question 16

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. 
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.

Question 17

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 WTOâ€™s Doha Round negotiations. 
D) opened up the farm-product markets in the U.S.to free trade. 
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 WTOâ€™s Doha Round negotiations. 
D) opened up the farm-product markets in the U.S.to free trade.

Question 18

The demand for agricultural products is

Accepted Answer

A) relatively elastic with respect to price. 
B) relatively inelastic with respect to price. 
C) relatively elastic with respect to income. 
D) downsloping to the individual farmer but perfectly elastic to farmers as a group. 
A) relatively elastic with respect to price. 
B) relatively inelastic with respect to price. 
C) relatively elastic with respect to income. 
D) downsloping to the individual farmer but perfectly elastic to farmers as a group.

Question 19

Incomes of U.S.farmers are adversely affected by

Accepted Answer

A) very good harvests on farms abroad. 
B) economic expansion abroad. 
C) less protectionist farm policies abroad. 
D) higher prices of farm products. 
A) very good harvests on farms abroad. 
B) economic expansion abroad. 
C) less protectionist farm policies abroad. 
D) higher prices of farm products.

Question 20

A major criticism of the parity concept is that

Accepted Answer

A) it is based on relative prices from a long time ago. 
B) it is not easily and objectively measured. 
C) the index is tracked by the government, not the private sector. 
D) there is no economic rationale for the concept.Learning Objective: 22-04 Describe major criticisms of the price-support system in agriculture. 
A) it is based on relative prices from a long time ago. 
B) it is not easily and objectively measured. 
C) the index is tracked by the government, not the private sector. 
D) there is no economic rationale for the concept.Learning Objective: 22-04 Describe major criticisms of the price-support system in agriculture.

Exam 22: Agriculture: Economics and Policy

With a fixed level of farm production, a given shift in demand for a crop will cause a

Which of the following is correct?

(Last Word) The U.S.sugar program has

Increases in incomes usually result in more than proportionate increases in the demand for agricultural products in a growing economy.

Farm share of U.S.GDP has

Acreage allotments, which limit the number of acres planted with a particular crop, have an effect on the crop's price that is

If the parity ratio goes from 0.8 to 0.7, it means that the prices received by farmers had

(Consider This) Which of the following has been an effect of the U.S.government's ethanol program?

Farm employment in the United States amounted to about what percentage of the total employment in 2015?

Which of the following statements best describes the parity concept?

A declining parity ratio implies that the

From 2010 to 2012, Johnny Deer exclusively grew corn.Under the Food, Conservation, and Energy Act of 2008, Deer

The ambitious plan to wean American agriculture from subsidies, as embodied in the Freedom to Farm Act of 1996,

The inelastic demand for agricultural products means that

Farm programs such as those of the United States and the European Union

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

Since 2002, agricultural policy in the United States has

The demand for agricultural products is

Incomes of U.S.farmers are adversely affected by

A major criticism of the parity concept is that

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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