Exam 22: Agriculture: Economics and Policy

In 2015, Farmer Levi grew only soybeans and received payments under the agricultural risk coverage program of the Agricultural Act of 2014. Which of the following best explains why Farmer Levi received these payments?

As applied to agriculture, the special-interest effect suggests that

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

A bumper crop of farm products causes

Historically, many aspects of U.S. farm policies had their origins in the

If turnips are an example of an inferior good, then a decrease in the demand for turnips could be brought about by a(n)

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

To get the U.S. Senate to pass a farm bill, a U.S. senator from a farm state asks for the support of a U.S. senator from an urban state. The urban-state senator agrees to support the bill, if in return the farm-state senator supports a bill for a mass transit project. This situation is an example of

The movement to eliminate agricultural subsidies in the U.S. and make farmers rely more on market forces, starting with the Farm Act of 1996, continues to this day.

Due to high fixed costs relative to variable costs in farming, farm production is quite sensitive to price changes in the short run.

Which statement is correct?

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

A source of demand volatility for agricultural products is

Incomes of U.S. farmers are adversely affected by

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

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

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

The misallocation of resources associated with price supports

The major factor contributing to lower prices for many farm products in 1998 and 1999 was

Price support programs for agricultural products tend to cause shortages of these products.