Question 1

During the twentieth century,the U.S.farm sector experienced

Accepted Answer

During the 20th century, there were significant advancements in technology and agricultural practices, leading to large increases in the farm sector's ability to produce output. This is evidenced by the fact that a smaller percentage of the US population is engaged in agriculture now than in the past, yet the sector is still able to produce enough food to feed the country and export to other nations.

Question 2

Suppose iceberg lettuce has an income elasticity of demand of 0.35.A 10 percent increase in income causes the quantity demanded of iceberg lettuce to _______________ by ______________ percent.

Accepted Answer

If the income elasticity of demand for iceberg lettuce is 0.35, a 10% increase in income will lead to a 3.5% increase in the quantity demanded of iceberg lettuce. Therefore, the answer is A.

Question 3

If the demand curve for agricultural products is inelastic,then it would be in the best interest of farmers as a group to

Accepted Answer

C

Question 4

Suppose the price elasticity of demand of for soy beans is 0.85. When the price of soybeans rises by 20 percent,the quantity demanded of soybeans falls by approximately _____________ percent.

Accepted Answer

The answer of Suppose the price elasticity of demand of...

Question 5

Studies show that,in the United States,

Accepted Answer

The answer of Studies show that,in the United States,
...

Question 6

If the demand for a particular farm product is inelastic between price P? and P? (where P? > P?),farmers as a group would want to sell their product at the

Accepted Answer

If the demand for a product is inelastic, a change in price will result in a relatively small change in the quantity demanded. Therefore, if the price is increased from P? to P?, overall revenue for farmers as a group will increase. As a result, individual farmers would also prefer to sell their product at the higher price to earn more revenue. Thus, farmers as a group and individual farmers both would want to sell their product at the higher price.

Question 7

If we assume that the income elasticity of demand for food has been around 0.2 and that agricultural producers have become increasingly more productive,we can conclude that

Accepted Answer

The answer of If we assume that the income elasticity...

Question 8

Increased productivity in the agricultural sector during much of the twentieth century shifted the

Accepted Answer

Increased productivity in the agricultural sector shifted the supply curve of farm products rightward, meaning more goods were being produced at any given price level. This is because advancements in technology and techniques allowed for higher yields and more efficiency in production, leading to an increase in the quantity supplied.

Question 9

During much of the 20th century,agricultural product prices

Accepted Answer

Agricultural product prices fell relative to other prices during much of the 20th century due to increased productivity and technological advancements in agriculture, leading to an oversupply of crops and lower prices.

Question 10

Which of the following best describes the agricultural sector for much of the 20th century and today?

Accepted Answer

The agricultural sector has experienced high productivity due to technological advancements and increased efficiency. Additionally, the price elasticity of demand for food is typically less than 1, meaning that changes in price have a relatively small impact on demand. Income elasticity of demand for food is also typically less than 1, meaning that as incomes increase, demand for food does not increase at the same rate.

Question 11

Increased productivity in the agricultural sector is not always a benefit to farmers because it is accompanied by

Accepted Answer

The answer of Increased productivity in the agricultural sector is...

Question 12

Evidence seems to indicate that the demand for many agricultural products

Accepted Answer

Inelastic demand occurs when a change in price does not significantly affect the quantity demanded. Evidence suggests that the demand for many agricultural products (such as staple crops like rice and wheat) is relatively inelastic, meaning that even if prices increase, demand remains largely unchanged as these products are considered necessities. This is because consumers may not have easy substitutes for these products and they cannot easily reduce their consumption of them, even if prices increase.

Question 13

Studies show that as real income has been rising in the United States,the per-capita demand for food has been increasing by

Accepted Answer

The answer of Studies show that as real income has...

Question 14

If the demand curve for agricultural products is inelastic and farmers as a group become more productive,then prices of agricultural goods will __________ and total revenue earned by farmers will __________.

Accepted Answer

The answer of If the demand curve for agricultural products...

Question 15

With a price elasticity of demand of 0.45,when the price of soybeans falls by 10 percent,the quantity demanded of soybeans rises by approximately _____________ percent.

Accepted Answer

The answer of With a price elasticity of demand of...

Question 16

In 2000,farmers in the United States represented approximately what percentage of the population?

Accepted Answer

According to the United States Department of Agriculture, in 2000, farmers represented approximately 1% of the population.

Question 17

Which of the following statements is true?

Accepted Answer

The answer of Which of the following statements is true?
...

Question 18

Suppose farmers get together and decide to be less productive.They want to do this so that they can shift the supply curve of farm products leftward and raise the price.They must be assuming that the demand curve between the current price and the higher price is

Accepted Answer

If the farmers are looking to raise prices by reducing their productivity, it means they believe that the demand for their products is inelastic. If demand were elastic, then increasing the price would lead to a significant decrease in the quantity demanded, and the farmers would not be able to raise their revenue. But if demand is inelastic, then a decrease in supply would lead to a relatively smaller decrease in quantity demanded, which would allow the farmers to raise their revenue by raising the price.

Question 19

If the demand curve for agricultural products is elastic and farmers as a group become more productive,then prices of agricultural goods will __________ and total revenue earned by farmers will __________.

Accepted Answer