Question 1

Which of the diagrams best describes the long-run path of real (inflation-adjusted)farm prices?

Accepted Answer

A) A 
B) B 
C) C 
D) D

Question 2

The average income of U.S. farm households in 2017 was

Accepted Answer

A) less than the average income for all households. 
B) about equal to the average income for all households. 
C) about 27 percent higher than the average income of all households. 
D) about 77 percent higher than the average income of all households.

Question 3

Which of the following countries has the smallest percentage of its labor force employed in agriculture?

Accepted Answer

A) Madagascar 
B) France 
C) Brazil 
D) United States

Question 4

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.

Question 5

Refer to the diagram. If farmers produce a bumper crop of Qᵦ , their gross income

Accepted Answer

A) will be 0 Pₚ PBQᵦ . 
B) will be 0 Pᵦ BQᵦ . 
C) will be Pᵦ × Qₙ . 
D) cannot be determined.

Exam 22: Agriculture: Economics and Policy

Which of the diagrams best describes the long-run path of real (inflation-adjusted) farm prices?

The average income of U.S. farm households in 2017 was

Which of the following countries has the smallest percentage of its labor force employed in agriculture?

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

Refer to the diagram. If farmers produce a bumper crop of Qᵦ , their gross income