Question 1

The 1996 Farm Act did all of the following except

Accepted Answer

The 1996 Farm Act aimed to decrease government regulations on farming, not increase them. It sought to move towards a more market-oriented approach and reduce government intervention in the agricultural sector. Therefore, D is the correct answer as it is the only option that does not align with the objective of the 1996 Farm Act. A, B, and C are all accurate statements about the changes made by the Act.

Question 2

Select the letter of the diagram in Figure 28.1 that best represents the effect of each event on the United States wheat market,ceteris paribus: Transport costs for farm products increase.(See Figure 29.4. )

Accepted Answer

The answer of  Select the letter of the diagram...

Question 3

Select the letter of the diagram in Figure 28.1 that best represents the effect of each event on the United States wheat market,ceteris paribus: The European Union tightens restrictions on the agricultural products that can be imported from the United States.(See Figure 29.4. )

Accepted Answer

The answer of  Select the letter of the diagram...

Question 4

One World View article titled "EU Farm Subsidies" reports about the European Union,"… the subsidy for every cow is greater than the personal income of half the people in the world." Which of the following programs is involved?

Accepted Answer

Price supports are government interventions that maintain the market price of a commodity at a certain level, often leading to subsidies for producers, such as farmers, which can result in high subsidies per cow.

Question 5

Farming profits fell between 1979 and 1983 because of all of the following except

Accepted Answer

The passage states that farming profits fell between 1979 and 1983 due to declining land values, rising interest rates, and rising fuel prices. The answer is NOT increasing exports, as this would have potentially boosted profits rather than causing a decline.

Question 6

Agriculture industries are notorious for having barriers to entry.

Accepted Answer

The answer of Agriculture industries are notorious for having barriers...

Question 7

Select the letter of the diagram in Figure 28.1 that best represents the effect of each event on the United States wheat market,ceteris paribus: A bumper wheat crop in the midwest.(See Figure 29.4. )

Accepted Answer

Diagram b in Figure 28.1 represents a rightward shift in the supply curve due to a bumper crop, resulting in lower prices and higher quantity supplied. This matches the effect of a bumper wheat crop in the midwest on the US wheat market.

Question 8

Select the letter of the diagram in Figure 28.1 that best represents the effect of each event on the United States wheat market,ceteris paribus: The federal government restricts the amount of agricultural products that can be imported.(See Figure 29.4. )

Accepted Answer

The answer of  Select the letter of the diagram...

Question 9

In 2001 the U.S.Congress did all of the following except

Accepted Answer

In 2001, the U.S. Congress increased existing subsidies paid to farmers, created new subsidy programs, and increased loan deficiency payments, but it did not reduce acreage set-asides. Acreage set-asides are programs that pay farmers to not plant part of their land, aiming to reduce crop surplus and stabilize market prices.

Question 10

The "Asian crisis" was responsible for all of the following effects on U.S.agriculture beginning in 1998 except

Accepted Answer

The Asian crisis did not have any effect on the regulation of farmers in the US. However, it did lead to a decrease in farm exports to Asia, which impacted grain prices and employment in the US farm equipment industry.

Question 11

An increase in the value of the U.S.dollar internationally,ceteris paribus,would result in

Accepted Answer

An increase in the value of the U.S. dollar internationally would make U.S. goods more expensive for foreign buyers, reducing the demand for U.S. agricultural products and lowering revenues for U.S. farmers.

Question 12

The 1996 Farm Act

Accepted Answer

The 1996 Farm Act further deregulated the farming industry, reducing subsidies and emphasizing free market principles. It also introduced the concept of "decoupling," which meant that farmers would receive payments based on historical production rather than current planting decisions.

Question 13

Ceteris paribus,a weaker U.S.dollar does all of the following except

Accepted Answer

A weaker U.S. dollar makes imports more expensive, not cheaper. Therefore, it would not reduce the prices paid by U.S. consumers for foreign-grown farm products; instead, it would increase them. Choices A, B, and C are effects of a weaker dollar that increase costs for imports, raise the value of domestic assets due to increased foreign demand, and generate profits for domestic producers due to increased competitiveness abroad, respectively.

Question 14

Select the letter of the diagram in Figure 28.1 that best represents the effect of each event on the United States wheat market,ceteris paribus: The dollar increases in value in the foreign exchange markets.(See Figure 29.4. )

Accepted Answer

Option C shows a leftward shift in the demand curve for wheat due to an increase in the value of the dollar in foreign exchange markets. This is because an increase in the value of the dollar makes US wheat more expensive for foreign buyers, thus reducing the quantity demanded. Ceteris paribus, this would lead to a lower equilibrium price and quantity of wheat in the US market.

Question 15

The 1996 Farm Act

Accepted Answer

The 1996 Farm Act, also known as the Federal Agriculture Improvement and Reform Act, aimed to phase out farm subsidies by introducing "market transition payments" to help farmers transition to a market-oriented agricultural economy.

Question 16

The principal cause of a third farm depression beginning in 1997 was

Accepted Answer

The Asian economic crisis significantly impacted global markets, including agriculture, leading to decreased demand for exports from U.S. farmers, which in turn contributed to the farm depression starting in 1997.

Question 17

One World View article titled "EU Farm Subsidies" reports,"… France,Germany,and Switzerland all shield their farmers from international competition while subsidizing their exports." Which of the following shifts for agricultural products in international markets shows the effect of export subsidies?

Accepted Answer

Export subsidies decrease the cost of production for domestic producers which leads to an increase in supply. As a result, the supply curve shifts to the right, representing an increase in the quantity supplied at each price level.

Question 18

Select the letter of the diagram in Figure 28.1 that best represents the effect of each event on the United States wheat market,ceteris paribus: Relaxed immigration laws lead to lower labor costs.(See Figure 29.4. )

Accepted Answer

The answer of  Select the letter of the diagram...

Question 19

Select the letter of the diagram in Figure 28.1 that best represents the effect of each event on the United States wheat market,ceteris paribus: The federal government decides to no longer purchase wheat from farmers.(See Figure 29.4. )

Accepted Answer

The answer of  Select the letter of the diagram...

Question 20

Because there are 2 million farms in the United States,individual farmers have some market power.

Accepted Answer

Despite the large number of farms, individual farmers typically have little market power due to the highly competitive and consolidated nature of agricultural markets, where a few large entities often dominate.

Quiz 29: The Farm Problem

The 1996 Farm Act did all of the following except

Select the letter of the diagram in Figure 28.1 that best represents the effect of each event on the United States wheat market,ceteris paribus: Transport costs for farm products increase.(See Figure 29.4. )

Select the letter of the diagram in Figure 28.1 that best represents the effect of each event on the United States wheat market,ceteris paribus: The European Union tightens restrictions on the agricultural products that can be imported from the United States.(See Figure 29.4. )

One World View article titled "EU Farm Subsidies" reports about the European Union,"… the subsidy for every cow is greater than the personal income of half the people in the world." Which of the following programs is involved?

Farming profits fell between 1979 and 1983 because of all of the following except

Agriculture industries are notorious for having barriers to entry.

Select the letter of the diagram in Figure 28.1 that best represents the effect of each event on the United States wheat market,ceteris paribus: A bumper wheat crop in the midwest.(See Figure 29.4. )

Select the letter of the diagram in Figure 28.1 that best represents the effect of each event on the United States wheat market,ceteris paribus: The federal government restricts the amount of agricultural products that can be imported.(See Figure 29.4. )

In 2001 the U.S.Congress did all of the following except

The "Asian crisis" was responsible for all of the following effects on U.S.agriculture beginning in 1998 except

An increase in the value of the U.S.dollar internationally,ceteris paribus,would result in

The 1996 Farm Act

Ceteris paribus,a weaker U.S.dollar does all of the following except

Select the letter of the diagram in Figure 28.1 that best represents the effect of each event on the United States wheat market,ceteris paribus: The dollar increases in value in the foreign exchange markets.(See Figure 29.4. )

The 1996 Farm Act

The principal cause of a third farm depression beginning in 1997 was

Select the letter of the diagram in Figure 28.1 that best represents the effect of each event on the United States wheat market,ceteris paribus: Relaxed immigration laws lead to lower labor costs.(See Figure 29.4. )

Select the letter of the diagram in Figure 28.1 that best represents the effect of each event on the United States wheat market,ceteris paribus: The federal government decides to no longer purchase wheat from farmers.(See Figure 29.4. )

Because there are 2 million farms in the United States,individual farmers have some market power.