Exam 39: Agriculture: Problems, Policies, and Unintended Effects

If real income rises in the economy and,at the same time,productivity in the agriculture sector rises,too,then it follows that the demand for food will

Suppose that both the demand for and supply of agricultural products increases. If the increase in the supply of agricultural products is greater than the increase in demand,prices of agricultural products

Which of the following government agricultural policies is not aimed at restricting supply?

Evidence seems to indicate that the demand for many agricultural products

Exhibit 39-4 -Refer to Exhibit 39-4.At a target price of $4 per bushel,how much does the private sector spend on wheat?

The effect of a drought on the price of an agricultural product will be greater the more __________ the demand for the agricultural product.

Exhibit 39-3 -Refer to Exhibit 39-3.If P₃is a target price,the quantity supplied is

Explain how the combination of major changes in the weather and price inelasticity of demand for a food item can lead to wide fluctuations in a farmer's income from year to year.

Exhibit 39-1 -Refer to Exhibit 39-1.At a support price of P_T,private sector spending on this good equals

Studies shows that income elasticity of demand for food is

With a price elasticity of demand of 0.45,when the price of soybeans falls by 10 percent,the quantity demanded of soybeans rises by approximately _____________ percent.

In 2002,the federal government replaced production flexibility contract payments to farmers with fixed direct payments,which basically work the same way as the former payment system.

Exhibit 39-1 -Refer to Exhibit 39-1.Given the target price P_T,what is the quantity supplied?

An increase in productivity in the agricultural sector when the demand curve is inelastic results in __________ prices for consumers and __________ revenues for farmers

Which of the following statements is false?

Farmers can insure themselves against adverse price swings through the __________ market.

Suppose 100 bushels of X are produced at a target price of $7 per bushel,but consumers will only buy 100 bushels at $3 a bushel.What is the total deficiency payment to farmers?

Exhibit 39-4 -Refer to Exhibit 39-4.The government feels that the present level of farmers' total revenues is insufficient to support a reasonable standard of living and wants to raise it to exactly $3,000.This can be achieved by

Supply of a food item increases by more than the demand for the food item increases.One thing for certain is that

Exhibit 39-4 -Refer to Exhibit 39-4.The price support of $6 per bushel would cost the government