Question 1

Which of the following would, other things equal, reduce the demand for U.S. farm products?

Accepted Answer

A)   poorer crops abroad
B)   strong economic growth abroad
C)   improved trade relations with China and Russia
D)   appreciation of the U.S. dollarE) A) and D)
F) A) and C)

Question 2

Many members of Congress who represent urban low-income areas vote in favor of farm subsidies. In return, many representatives of agricultural areas support programs such as food stamps, which provide benefits for the urban poor. This situation would be an example of

Accepted Answer

A)   confusing symptoms with causes.
B)   misguided subsidies.
C)   rent-seeking behavior.
D)   political logrolling.E) A) and B)
F) A) and C)

Question 3

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.E) B) and C)
F) A) and B)

Question 4

Farm policy in the U.S. has been heavily criticized for the following, except

Accepted Answer

A)   being fraught with policy contradictions.
B)   directing most subsidies to the wealthier farmers.
C)   benefiting foreign farmers, rather than domestic farmers.
D)   delaying the shift of resources away from agriculture.E) A) and B)
F) A) and C)

Question 5

(Last Word)  The U.S. sugar price support program has

Accepted Answer

A)   cost U.S. consumers much more than it has benefited U.S. sugar producers.
B)   cost U.S. consumers much less than it has benefited U.S. sugar producers.
C)   reduced the price of sugar to U.S. consumers.
D)   increased sugar imports as a percentage of U.S. sugar consumption.E) A) and D)
F) None of the above

Question 6

Based on World Bank data for 2011-2014, which of the following countries has the highest percentage of its labor force still in agriculture?

Accepted Answer

A)   Russia
B)   Brazil
C)   France
D)   JapanE) C) and D)
F) B) and D)

Question 7

With a fixed level of farm production, a given shift in demand for a crop will cause a

Accepted Answer

A)   small price change if demand is quite inelastic.
B)   more dramatic price change if demand is quite elastic.
C)   more dramatic price change if demand is quite inelastic.
D)   similar amount of price change regardless of whether demand is elastic or not.E) B) and D)
F) None of the above

Question 8

Which of the following would, other things equal, increase the demand for U.S. farm products?

Accepted Answer

A)   poorer crops abroad
B)   appreciation of the U.S. dollar
C)   deteriorating trade relations with China and Russia
D)   increases in foreign tariffs on imported farm productsE) None of the above
F) All of the above

Question 9

The Food for Peace program

Accepted Answer

A)   established price supports of 100 percent of parity.
B)   restricted American exports by restricting shipments to specific communist nations.
C)   expanded American exports by permitting less-developed countries to buy American surplus products with their own currencies.
D)   provided job training to farmers and farm workers who move to urban areas seeking employment.E) C) and D)
F) A) and B)

Question 10

Which of the following statements about U.S. farm exports as a percentage of farm output is false?

Accepted Answer

A)   It has been on an upward general trend since 1950.
B)   It has been fluctuating, contributing to the instability of the demand for U.S. farm output.
C)   It has been declining since 1950.
D)   It has been hovering around 33 percent in recent years (the period 2008-2014) .E) C) and D)
F) None of the above

Question 11

Which statement best characterizes the long-run decline in the agricultural industry?

Accepted Answer

A)   The growth in the demand for farm products has exceeded the growth in the supply of such products, causing rising farm product prices and falling farm income.
B)   The growth in the supply of farm products has exceeded the growth in the demand for such products, causing falling farm product prices and falling farm income.
C)   The supply of farm products has increased while the demand for such products has decreased, causing falling farm product prices and falling farm income.
D)   The demand for farm products has increased while the supply of such products has decreased, causing rising farm product prices and rising farm income.E) B) and C)
F) A) and B)

Question 12

The Agricultural Act of 2014 created two new crop insurance programs, agricultural risk coverage and price loss coverage.

Accepted Answer

A) True 
 B)False

Question 13

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) E) All of the above
F) A) and B)

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

About 10 percent of the U.S. labor force is in agriculture.

Accepted Answer

A) True 
 B)False

Question 16

Public choice theory would suggest that the lobbying of Congress by farm organizations for legislation that would increase the appropriations from the U.S. government for agricultural programs is an example of

Accepted Answer

A)   revealed preference.
B)   rent-seeking behavior.
C)   the paradox of voting.
D)   the median voter model.E) B) and C)
F) B) and D)

Question 17

One reason for the year-to-year instability of agricultural product demand is the

Accepted Answer

A)   high price-elasticity for agricultural products.
B)   fluctuations in weather patterns.
C)   declining role of technological progress in agriculture.
D)   greater dependence on exports to foreign markets.E) All of the above
F) B) and D)

Question 18

Overproduction of farm products in the European Community has been primarily the result of

Accepted Answer

A)   low U.S. tariffs on imports of farm products.
B)   subsidies to farmers in the European Community.
C)   increasing world trade in agricultural commodities.
D)   quotas imposed by the European Community on imported products.E) A) and D)
F) A) and B)

Question 19

Since the 1930s, the U.S. government has supported agriculture with a "farm program" that includes the following, except

Accepted Answer

A)   price ceilings for farm products.
B)   agricultural research.
C)   farm crop insurance.
D)   soil and water conservation.E) A) and C)
F) A) and B)

Question 20

Through the Freedom to Farm Act of 1996, farmers were

Accepted Answer

A)   guaranteed declining annual "transition payments" through 2002.
B)   given higher price supports for a larger number of agricultural products.
C)   protected by tariffs on imported agricultural products after 2002.
D)   allowed to consolidate smaller farms with larger farms to make farming more efficient.E) A) and D)
F) All of the above

Exam 22: Agriculture: Economics and Policy

Based on World Bank data for 2011-2014, which of the following countries has the highest percentage of its labor force still in agriculture?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

One reason for the year-to-year instability of agricultural product demand is the

Correct AnswerverifiedShow Answer

Many members of Congress who represent urban low-income areas vote in favor of farm subsidies. In return, many representatives of agricultural areas support programs such as food stamps, which provide benefits for the urban poor. This situation would be an example of

Correct AnswerverifiedShow Answer

The Agricultural Act of 2014 created two new crop insurance programs, agricultural risk coverage and price loss coverage.

Correct AnswerverifiedShow Answer

Which of the following statements about U.S. farm exports as a percentage of farm output is false?

Correct AnswerverifiedShow Answer

With a fixed level of farm production, a given shift in demand for a crop will cause a

Correct AnswerverifiedShow Answer

Which statement best characterizes the long-run decline in the agricultural industry?

Correct AnswerverifiedShow Answer

Through the Freedom to Farm Act of 1996, farmers were

Correct AnswerverifiedShow Answer

Farm policy in the U.S. has been heavily criticized for the following, except

Correct AnswerverifiedShow Answer

(Last Word) The U.S. sugar price support program has

Correct AnswerverifiedShow Answer

Public choice theory would suggest that the lobbying of Congress by farm organizations for legislation that would increase the appropriations from the U.S. government for agricultural programs is an example of

Correct AnswerverifiedShow Answer

Which of the following would, other things equal, reduce the demand for U.S. farm products?

Correct AnswerverifiedShow Answer

The Food for Peace program

Correct AnswerverifiedShow Answer

About 10 percent of the U.S. labor force is in agriculture.

Correct AnswerverifiedShow Answer

Which of the following would, other things equal, increase the demand for U.S. farm products?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Since the 1930s, the U.S. government has supported agriculture with a "farm program" that includes the following, except

Correct AnswerverifiedShow Answer

Overproduction of farm products in the European Community has been primarily the result of

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified