Question 1

When increases in the supply of an agricultural product are much greater than the increases in demand for it over time, then the price

Accepted Answer

A) and quantity of agricultural products will increase. 
B) and quantity of agricultural products will decrease. 
C) of agricultural products will increase, but the quantity will decrease. 
D) of agricultural products will decrease, but the quantity will increase. 
A) and quantity of agricultural products will increase. 
B) and quantity of agricultural products will decrease. 
C) of agricultural products will increase, but the quantity will decrease. 
D) of agricultural products will decrease, but the quantity will increase.

Question 2

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; monopolistic 
A) monopolistic; competitive 
B) competitive; oligopolistic 
C) oligopolistic; competitive 
D) oligopolistic; monopolistic

Question 3

A major feature of the "Freedom to Farm" Act of 1996 was the

Accepted Answer

A) elimination of price supports and acreage allotments for many agricultural crops. 
B) expansion of government price supports for many agricultural crops. 
C) bolstering of the foreign demand for U.S.agricultural products. 
D) increased support for research on farm productivity to help expand the supply of farm products. 
A) elimination of price supports and acreage allotments for many agricultural crops. 
B) expansion of government price supports for many agricultural crops. 
C) bolstering of the foreign demand for U.S.agricultural products. 
D) increased support for research on farm productivity to help expand the supply of farm products.

Question 4

Federal food distribution programs, such as the food stamp program, represent efforts to

Accepted Answer

A) increase supplies of agricultural commodities. 
B) increase demand for agricultural commodities. 
C) decrease the value of farming to the nation. 
D) facilitate the movement of people from farms to cities. 
A) increase supplies of agricultural commodities. 
B) increase demand for agricultural commodities. 
C) decrease the value of farming to the nation. 
D) facilitate the movement of people from farms to cities.

Question 5

An example of the special interest effect is a farm program from which a large group receives small benefits at the expense of a smaller group who individually suffer large losses.

Accepted Answer

A) True 
 B)False

Question 6

The inelastic demand for agricultural products means that a(n)

Accepted Answer

A) decrease in price will increase farm incomes. 
B) increase in price will decrease farm incomes. 
C) decrease in price will decrease farm incomes. 
D) increase in price will not change farm incomes. 
A) decrease in price will increase farm incomes. 
B) increase in price will decrease farm incomes. 
C) decrease in price will decrease farm incomes. 
D) increase in price will not change farm incomes.

Question 7

The short-run instability in the prices of agricultural products arises from the following factors, except

Accepted Answer

A) inelastic demand for the products. 
B) fluctuations in farm outputs. 
C) fluctuations in demand for the products. 
D) fluctuations in incomes of the farmers. 
A) inelastic demand for the products. 
B) fluctuations in farm outputs. 
C) fluctuations in demand for the products. 
D) fluctuations in incomes of the farmers.

Question 8

The effect of higher prices from the domestic sugar beet program in the United States is

Accepted Answer

A) economically efficient because it maintains the income of sugar beet farmers and reduces potential unemployment costs. 
B) that it discourages the production of sugar beets in the United States because businesses cannot afford to use sugar beets in production. 
C) that it increases exports of sugar beets from the United States to other nations. 
D) "regressive" because low-income households spend a larger percentage of their income on food than do high-income households. 
A) economically efficient because it maintains the income of sugar beet farmers and reduces potential unemployment costs. 
B) that it discourages the production of sugar beets in the United States because businesses cannot afford to use sugar beets in production. 
C) that it increases exports of sugar beets from the United States to other nations. 
D) "regressive" because low-income households spend a larger percentage of their income on food than do high-income households.

Question 9

The growing importance of export demand for American agriculture has

Accepted Answer

A) reduced the international value of the dollar. 
B) had no significant effect on the stability of the demand for farm products. 
C) destabilized the total demand for farm products. 
D) stabilized the total demand for farm products. 
A) reduced the international value of the dollar. 
B) had no significant effect on the stability of the demand for farm products. 
C) destabilized the total demand for farm products. 
D) stabilized the total demand for farm products.

Question 10

Many members of Congress who represent urban low-income areas vote in favor of farm subsidies.In return, many representatives of agricultural areas support programs such as food stamps, which provide benefits for the urban poor.This situation would be an example of

Accepted Answer

A) confusing symptoms with causes. 
B) misguided subsidies. 
C) rent-seeking behavior. 
D) political logrolling. 
A) confusing symptoms with causes. 
B) misguided subsidies. 
C) rent-seeking behavior. 
D) political logrolling.

Question 11

Import quotas on sugar may cost consumers $2 billion per year.But this quota goes unchallenged because the $10 average annual cost per person is so small that probably not one voter in 200 knows the quota exists.This statement describes

Accepted Answer

A) the voting paradox. 
B) the special-interest effect. 
C) the median-voter model. 
D) free-rider problem. 
A) the voting paradox. 
B) the special-interest effect. 
C) the median-voter model. 
D) free-rider problem.

Question 12

The average income of U.S.farm households in 2014 was

Accepted Answer

A) less than the average income for all households. 
B) about equal to the average income for all households. 
C) about 60 percent higher than the average income of all households. 
D) about 20 percent higher than the average income of all households. 
A) less than the average income for all households. 
B) about equal to the average income for all households. 
C) about 60 percent higher than the average income of all households. 
D) about 20 percent higher than the average income of all households.

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

Question 14

Under the Food, Conservation, and Energy Act of 2008, if the target price for a bushel of corn was $2.63 and the price of corn fell to $2.25, then a farmer would have received

Accepted Answer

A) a marketing loan. 
B) a transition payment. 
C) an acreage allotment. 
D) a countercyclical payment. 
A) a marketing loan. 
B) a transition payment. 
C) an acreage allotment. 
D) a countercyclical payment.

Question 15

In 2015, farm employment constituted about

Accepted Answer

A) 15.8 percent of total employment. 
B) 1.1 percent of total employment. 
C) 1.5 percent of total employment. 
D) 2.4 percent of total employment. 
A) 15.8 percent of total employment. 
B) 1.1 percent of total employment. 
C) 1.5 percent of total employment. 
D) 2.4 percent of total employment.

Question 16

If price supports are established and producers are producing more than consumers want to buy at that price, to maintain producers' income the government will have to

Accepted Answer

A) reduce price supports. 
B) increase price supports. 
C) buy the surplus. 
D) restrict output. 
A) reduce price supports. 
B) increase price supports. 
C) buy the surplus. 
D) restrict output.

Question 17

Farm outputs' share of U.S.GDP from 1950 to the present has

Accepted Answer

A) stayed roughly constant at about 10 percent. 
B) dropped from about 30 percent to 10 percent. 
C) stayed roughly constant at about 30 percent. 
D) dropped from about 7 percent to 1 percent. 
A) stayed roughly constant at about 10 percent. 
B) dropped from about 30 percent to 10 percent. 
C) stayed roughly constant at about 30 percent. 
D) dropped from about 7 percent to 1 percent.

Question 18

The principal beneficiaries of government agricultural aid have been the very low-income farmers.

Accepted Answer

A) True 
 B)False

Question 19

The U.S.Agriculture Act of 2014 did the following, except

Accepted Answer

A) ending the so-called countercyclical payments to farmers. 
B) extending the direct payments to farmers, which were independent of their crop production. 
C) creating an insurance program, called price loss coverage, which pays farmers if the price of their crop falls below a specified level. 
D) introducing a countywide insurance program called agricultural risk coverage. 
A) ending the so-called countercyclical payments to farmers. 
B) extending the direct payments to farmers, which were independent of their crop production. 
C) creating an insurance program, called price loss coverage, which pays farmers if the price of their crop falls below a specified level. 
D) introducing a countywide insurance program called agricultural risk coverage.

Question 20

The purpose of the Freedom to Farm Act of 1996 was to

Accepted Answer

A) immediately end U.S.farm subsidies. 
B) end 60 years of U.S.price supports for American grain crops. 
C) eliminate U.S.tariffs and quotas on imported farm goods. 
D) stabilize short-run crop prices. 
A) immediately end U.S.farm subsidies. 
B) end 60 years of U.S.price supports for American grain crops. 
C) eliminate U.S.tariffs and quotas on imported farm goods. 
D) stabilize short-run crop prices.

Exam 22: Agriculture: Economics and Policy

When increases in the supply of an agricultural product are much greater than the increases in demand for it over time, then the price

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

A major feature of the "Freedom to Farm" Act of 1996 was the

Federal food distribution programs, such as the food stamp program, represent efforts to

An example of the special interest effect is a farm program from which a large group receives small benefits at the expense of a smaller group who individually suffer large losses.

The inelastic demand for agricultural products means that a(n)

The short-run instability in the prices of agricultural products arises from the following factors, except

The effect of higher prices from the domestic sugar beet program in the United States is

The growing importance of export demand for American agriculture has

Many members of Congress who represent urban low-income areas vote in favor of farm subsidies.In return, many representatives of agricultural areas support programs such as food stamps, which provide benefits for the urban poor.This situation would be an example of

Import quotas on sugar may cost consumers $2 billion per year.But this quota goes unchallenged because the $10 average annual cost per person is so small that probably not one voter in 200 knows the quota exists.This statement describes

The average income of U.S.farm households in 2014 was

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

Under the Food, Conservation, and Energy Act of 2008, if the target price for a bushel of corn was $2.63 and the price of corn fell to $2.25, then a farmer would have received

In 2015, farm employment constituted about

If price supports are established and producers are producing more than consumers want to buy at that price, to maintain producers' income the government will have to

Farm outputs' share of U.S.GDP from 1950 to the present has

The principal beneficiaries of government agricultural aid have been the very low-income farmers.

The U.S.Agriculture Act of 2014 did the following, except

The purpose of the Freedom to Farm Act of 1996 was to

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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