Question 1

Which of the following best describes the short-run problem faced by farms?

Accepted Answer

A)   New technology has increased the productivity of farmers and therefore resulted in declining farm prices and low farm incomes.
B)   The highly inelastic nature of agricultural demand,together with fluctuations in exports of farm goods,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,prices of farm output and farm income have therefore declined.
D)   The demand for farm products has increased relative to their supply,but the elastic nature of agricultural demand has caused these shifts to result in declining farm incomes.E) A) and B)
F) B) and C)

Question 2

Which of the following is correct?

Accepted Answer

A)   The rapid expansion of foreign incomes will reduce U.S.agricultural exports.
B)   A decrease in the international value of the dollar will reduce U.S.agricultural exports.
C)   An increase in the international value of the dollar will reduce U.S.agricultural exports.
D)   Changes in the international value of the dollar have no effect on U.S.agricultural exports.E) None of the above
F) C) and D)

Question 3

Which of the following is 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) .E) A) and D)
F) A) and C)

Question 4

The demand for agricultural products rises less rapidly than income.This means that the demand for agricultural products is:

Accepted Answer

A)   income inelastic.
B)   income elastic.
C)   price inelastic.
D)   price elastic.E) All of the above
F) B) and C)

Question 5

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

Accepted Answer

A) True 
 B)False

Exam 21: Agriculture: Economics and Policy

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

Correct Answer
verified

The demand for agricultural products rises less rapidly than income.This means that the demand for agricultural products is:

Correct Answer
verified

Which of the following is 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?

Correct Answer
verified

Which of the following is correct?

Correct Answer
verified

Which of the following best describes the short-run problem faced by farms?

Correct Answer
verified

Exam 21: Agriculture: Economics and Policy

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

Correct AnswerverifiedShow Answer

The demand for agricultural products rises less rapidly than income.This means that the demand for agricultural products is:

Correct AnswerverifiedShow Answer

Which of the following is 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?

Correct AnswerverifiedShow Answer

Which of the following is correct?

Correct AnswerverifiedShow Answer

Which of the following best describes the short-run problem faced by farms?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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