Question 1

Which of the following best describes the main problem faced by farms in the long run?

Accepted Answer

A) Lagging technology has decreased the productivity of farmers and therefore resulted in low farm prices and incomes. 
B) The highly inelastic nature of agricultural demand has caused small year-to-year fluctuations in farm output to result in highly unstable farm incomes. 
C) The supply of farm products has increased relative to the demand for them, and, because demand is inelastic, farm prices and incomes have therefore declined. 
D) The demand for farm products has increased relative to their supply, but the highly elastic nature of agricultural demand has caused these shifts to result in declining farm incomes. 
A) Lagging technology has decreased the productivity of farmers and therefore resulted in low farm prices and incomes. 
B) The highly inelastic nature of agricultural demand has caused small year-to-year fluctuations in farm output to result in highly unstable farm incomes. 
C) The supply of farm products has increased relative to the demand for them, and, because demand is inelastic, farm prices and incomes have therefore declined. 
D) The demand for farm products has increased relative to their supply, but the highly elastic nature of agricultural demand has caused these shifts to result in declining farm incomes.

Question 2

The federal government has tried to eliminate agricultural surpluses by

Accepted Answer

A) decreasing supply and demand. 
B) increasing supply and demand. 
C) decreasing supply and increasing demand. 
D) increasing supply and decreasing demand. 
A) decreasing supply and demand. 
B) increasing supply and demand. 
C) decreasing supply and increasing demand. 
D) increasing supply and decreasing demand.

Question 3

Agricultural price supports have been criticized because they

Accepted Answer

A) hasten the exodus of labor from agriculture. 
B) subsidize consumers at the expense of farmers. 
C) help large-scale farmers rather than small farmers. 
D) create product shortages. 
A) hasten the exodus of labor from agriculture. 
B) subsidize consumers at the expense of farmers. 
C) help large-scale farmers rather than small farmers. 
D) create product shortages.

Question 4

One consequence of the long-run problem faced by farms has been a

Accepted Answer

A) rapid increase in the price of farm output. 
B) massive exit of workers from agriculture to other sectors of the economy. 
C) smaller average farm size. 
D) reduction in U.S. exports of farm products. 
A) rapid increase in the price of farm output. 
B) massive exit of workers from agriculture to other sectors of the economy. 
C) smaller average farm size. 
D) reduction in U.S. exports of farm products.

Question 5

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 6

The agricultural price support program in the United States has resulted in

Accepted Answer

A) declining average farm income. 
B) surpluses of price-supported farm commodities. 
C) shortages of price-supported farm commodities. 
D) a gradual migration of people from farms to cities. 
A) declining average farm income. 
B) surpluses of price-supported farm commodities. 
C) shortages of price-supported farm commodities. 
D) a gradual migration of people from farms to cities.

Question 7

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 8

If prices received by farmers decline and prices paid by farmers increase, the parity ratio will decline.

Accepted Answer

A) True 
 B)False

Question 9

The Food, Conservation, and Energy Act of 2008 provided farm subsidies in the form of direct payments, countercyclical payments, and marketing loans to farmers.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following was a feature of farm policy present in the Food, Conservation, and Energy Act of 2008 that was not part of the Freedom to Farm Act of 1996?

Accepted Answer

A) direct payments (direct subsidies)based on crops currently grown 
B) countercyclical payments 
C) farm buyouts by government 
D) acreage allotments (restrictions on planting) 
A) direct payments (direct subsidies)based on crops currently grown 
B) countercyclical payments 
C) farm buyouts by government 
D) acreage allotments (restrictions on planting)

Question 11

The demand for agricultural products

Accepted Answer

A) has a price elasticity coefficient of about 0.20 to 0.25. 
B) is elastic with respect to income but inelastic with respect to price. 
C) has been decreasing about 8 percent per year. 
D) has been rising more rapidly than the national income. 
A) has a price elasticity coefficient of about 0.20 to 0.25. 
B) is elastic with respect to income but inelastic with respect to price. 
C) has been decreasing about 8 percent per year. 
D) has been rising more rapidly than the national income.

Question 12

The parity ratio

Accepted Answer

A) compares worker productivity in the farm and nonfarm sectors. 
B) is the ratio of per capita farm income to per capita nonfarm income. 
C) is the ratio of prices received by farmers to prices paid by farmers. 
D) is the ratio of prices paid by farmers to prices received by farmers. 
A) compares worker productivity in the farm and nonfarm sectors. 
B) is the ratio of per capita farm income to per capita nonfarm income. 
C) is the ratio of prices received by farmers to prices paid by farmers. 
D) is the ratio of prices paid by farmers to prices received by farmers.

Question 13

Which of the following is not characteristic of U.S. agriculture?

Accepted Answer

A) Productivity has been increasing more slowly in agriculture than in the rest of the economy. 
B) The demand for agricultural commodities increases less than proportionately to increases in income. 
C) Resources in agriculture are relatively immobile. 
D) Demand is inelastic with respect to price. 
A) Productivity has been increasing more slowly in agriculture than in the rest of the economy. 
B) The demand for agricultural commodities increases less than proportionately to increases in income. 
C) Resources in agriculture are relatively immobile. 
D) Demand is inelastic with respect to price.

Question 14

List the three causes of short-run instability found in agriculture.

Accepted Answer

In the short run, there is price and inc

Question 15

Farm policy in the United States over the past eight decades has been designed primarily to

Accepted Answer

A) shift resources from the farm sector to the nonfarm sector. 
B) reduce monopoly in the farm sector. 
C) enhance and stabilize farm prices and income. 
D) produce a strategic reserve of food. 
A) shift resources from the farm sector to the nonfarm sector. 
B) reduce monopoly in the farm sector. 
C) enhance and stabilize farm prices and income. 
D) produce a strategic reserve of food.

Question 16

How does the U.S. Department of Agriculture (USDA)measure the effect that technological changes have had on output? Compare 1950's index number to 2015's index number.

Accepted Answer

The USDA's simplest measure of these cha

Question 17

The U.S. price-support program, which guaranteed prices for currently grown crops

Accepted Answer

A) ended with the passage of the Freedom to Farm Act of 1996. 
B) began with the Grain Planting Act of 1914. 
C) remains the core of U.S. farm policy. 
D) was restored in full and expanded by the Food, Conservation, and Energy Act of 2008. 
A) ended with the passage of the Freedom to Farm Act of 1996. 
B) began with the Grain Planting Act of 1914. 
C) remains the core of U.S. farm policy. 
D) was restored in full and expanded by the Food, Conservation, and Energy Act of 2008.

Question 18

The three types of farm subsidies under the Food, Conservation, and Energy Act of 2008 are

Accepted Answer

A) equipment coupons, land leases, and income contributions. 
B) marketing agreements, transition payments, and interest loans. 
C) direct payments, countercyclical payments, and marketing loans. 
D) public land sales, fertilizer discounts, and farm bank loans. 
A) equipment coupons, land leases, and income contributions. 
B) marketing agreements, transition payments, and interest loans. 
C) direct payments, countercyclical payments, and marketing loans. 
D) public land sales, fertilizer discounts, and farm bank loans.

Question 19

In 1994, the world's trading nations agreed to

Accepted Answer

A) increase export subsidies to reduce world surpluses of farm products. 
B) reduce agricultural subsidies and tariffs on agricultural imports. 
C) eliminate all price supports for farm products. 
D) create an international farm price support system to replace the price support systems of individual countries. 
A) increase export subsidies to reduce world surpluses of farm products. 
B) reduce agricultural subsidies and tariffs on agricultural imports. 
C) eliminate all price supports for farm products. 
D) create an international farm price support system to replace the price support systems of individual countries.

Question 20

Measured in terms of farm employment and the number of farms, agriculture has been

Accepted Answer

A) a declining industry. 
B) an expanding industry. 
C) a stable industry. 
D) a volatile industry. 
A) a declining industry. 
B) an expanding industry. 
C) a stable industry. 
D) a volatile industry.

Exam 22: Agriculture: Economics and Policy

Which of the following best describes the main problem faced by farms in the long run?

The federal government has tried to eliminate agricultural surpluses by

Agricultural price supports have been criticized because they

One consequence of the long-run problem faced by farms has been a

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

The agricultural price support program in the United States has resulted in

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

If prices received by farmers decline and prices paid by farmers increase, the parity ratio will decline.

The Food, Conservation, and Energy Act of 2008 provided farm subsidies in the form of direct payments, countercyclical payments, and marketing loans to farmers.

Which of the following was a feature of farm policy present in the Food, Conservation, and Energy Act of 2008 that was not part of the Freedom to Farm Act of 1996?

The demand for agricultural products

The parity ratio

Which of the following is not characteristic of U.S. agriculture?

List the three causes of short-run instability found in agriculture.

Farm policy in the United States over the past eight decades has been designed primarily to

How does the U.S. Department of Agriculture (USDA)measure the effect that technological changes have had on output? Compare 1950's index number to 2015's index number.

The U.S. price-support program, which guaranteed prices for currently grown crops

The three types of farm subsidies under the Food, Conservation, and Energy Act of 2008 are

In 1994, the world's trading nations agreed to

Measured in terms of farm employment and the number of farms, agriculture has been

Limits, Alternatives, and Choices

The Market System and the Circular Flow

Demand, Supply, and Market Equilibrium

Market Failures Caused by Externalities Asymmetric Information

Public Goods, Public Choice, 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

International Trade

The Balance of Payments, Exchange Rates, and Trade Deficits

The Economics of Developing Countries

Filters

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