Exam 32: Farm Policy

In 2013, the U.S. was supposed to be without price supports for milk and grains, but it spent

In 2008, increased gasoline prices led to increased corn prices, primarily because

When the government wishes to help producers of goods (such as farmers)by establishing the minimum price at which their good can be sold, economists call this a

-In Figure 32.1, at the supported price-quantity combination where production is limited, the money consumers pay producers is

The governmental expense of a farm price support tends to increase as the price of the good falls.

Between 2006 and 2013 prices for food commodities

The Eau Claire Rule is in place to

The primary source(s)of price variability is

-In Figure 32.1, at the market price-quantity combination, the producer surplus is

The rapid increase in farmland prices

A farm price support that includes a price floor but does not include a program for dealing with the surplus will potentially create problems for farmers than it will solve.

-In Figure 32.1, at the market equilibrium price-quantity combination, the total variable cost to producers is

-In Figure 32.1, at the supported price-quantity combination where production is unlimited, and government buys the excess, the value to consumers is

A justification for government price supports on agricultural products that economists generally accept as potentially legitimate is

A price support on agricultural products is labeled by economists as a

If the market price for a crop is $4.00 a bushel and the price support is $3.00, then raising the price support to $3.50

Viewed from the perspective of a U.S. farmer, weather variability in other exporting countries can be viewed as

If order to be relevant the price floor must be

Farm price supports require price floors.

Economists are general supporters of farm price support programs as being economically efficiency enhancing.