Question 1

Which of the following effects from adopting a new agricultural technology is considered a negative spillover effect?

Accepted Answer

A negative spillover effect refers to unintended negative consequences of a new technology on those who are not direct users of the technology. Choice D describes such a situation where non-adopting farms may experience a decrease in profit due to lower food prices resulting from increased food supply from adopting farms. Choices A and B both describe positive effects for adopters of the technology, while choice C describes a positive effect for consumers.

Question 2

Adoption rates of new technologies will tend to ________ for farms when output prices ___________ or when labor and fertilizer costs _______.

Accepted Answer

Adoption rates of new technologies tend to increase for farms when output prices increase, providing more revenue to invest in new technologies, or when labor and fertilizer costs decrease, making the adoption of new technologies more financially viable due to lower operating costs.

Question 3

All of the following are types of knowledge that are important to a farmer in the decision to adopt a new technology except?

Accepted Answer

All of the above types of knowledge are important for a farmer in the decision to adopt a new technology. Without knowledge of the technology, the farmer would not consider using it. Without knowing how to use it, the farmer cannot implement it effectively. And without understanding the benefits and costs, the farmer cannot make an informed decision about whether or not to adopt the technology.

Question 4

A farmer who anticipates chronic short-term liquidity constraints would,therefore,be ______ likely to adopt a technology that ___________ annual planting season input and financing requirements

Accepted Answer

A farmer facing chronic short-term liquidity constraints would be less likely to adopt a technology that increases annual planting season input and financing requirements, as this would exacerbate their liquidity issues.

Question 5

Which of the following is not considered an up-front cost of adopting a new technology?

Accepted Answer

Up-front costs of adopting a new technology typically include initial investments such as purchasing or constructing capital structures, costs associated with learning how to use the new technology, and fees for extension services. Labor costs for utilizing the new technology are considered operational costs, not up-front costs.

Question 6

Circumstantial sensitivity in agricultural research means that:

Accepted Answer

Circumstantial sensitivity means that the results of agricultural technologies vary with agro-climate conditions. It implies that a technology that performs well in one area might not have the same results in another location with different climatic conditions. Borrowing research from developed countries (option A) might not be suitable for developing countries due to varying agro-climatic conditions. Saying that a new strain of wheat doubling the yield in India will do the same in every other climate (option B) is a misconception because different climates have different soil types, temperature, and rainfall that can affect crop yield. Option D is incorrect because agricultural technologies need constant improvement to meet changing environmental conditions.

Question 7

Why does technical change in agricultural merit the concern of development economists?

Accepted Answer

Technical change in agriculture can lead to increased productivity, which can lead to increased income for farmers and reduced food prices for consumers. This can have a significant impact on poverty reduction in developing countries, making it an important concern for development economists. Option A and D are both incorrect as they discuss the inflation, which is not necessarily the main concern of development economists. Option B is also incorrect as technical change in agriculture can still be important even if a small percentage of the population are involved in agriculture.

Question 8

Adoption rates differ among males and females and development programs can ______ gender gaps by:

Accepted Answer

The answer of Adoption rates differ among males and females...

Question 9

Several studies have confirmed that as the time and effort needed to adopt new technology_________ farmers tend to ________,undertaking less experimentation of their own?

Accepted Answer

The answer of Several studies have confirmed that as the...

Question 10

When governments intervene by effectively identifying and punishing producers who use protected ideas without license,it is dealing with the problem of _______ in order to ______the profits of private firms.

Accepted Answer

Non-excludability refers to the fact that the use of protected ideas can be easily replicated or shared without any additional cost. This creates a situation where producers and consumers can benefit from the ideas without actually paying for them, which means that there is less incentive for private firms to invest in research and development. By identifying and punishing producers who use protected ideas without license, governments are effectively increasing the excludability of these ideas and therefore increasing the profits of private firms who own them. Choice C is therefore the correct answer.

Question 11

Which of the following is not a benefit to developing countries of the "Green Revolution"?

Accepted Answer

Using safer chemicals as fertilizer reduced output, which would not be considered a benefit to developing countries. The other options listed (B, C, and D) are all benefits of the Green Revolution.

Question 12

Which of the following would not be classified as an extension agent?

Accepted Answer

Agricultural researchers in developed countries may conduct research and provide information on new technologies, but they typically do not work directly with farmers to promote adoption and implementation of those technologies. Extension agents, on the other hand, are specifically trained and employed to work with farmers and provide education, training, and support for adopting new practices and technologies. Therefore, agricultural researchers in developed countries would not typically be classified as extension agents.

Question 13

Which three groups are crucial to putting technical change in agriculture into practice?

Accepted Answer

Agricultural researchers play a crucial role in developing new technologies and practices, extension agents help to disseminate these innovations to farmers, and end users (such as consumers and food processing companies) provide a market incentive for farmers to adopt new technologies. Managers, laborers, bankers, government bureaucrats, and large corporations may also play important roles in agriculture, but they are not necessarily central to the process of putting technical change into practice.

Question 14

Agricultural extension agents include any actors who:

Accepted Answer

Agricultural extension agents are individuals or organizations that provide information and support to farmers, with the aim of improving their agricultural practices and increasing their productivity and income. They may provide advice and training on a range of topics, including the use of new technologies, crop management practices, pest and disease control, and marketing strategies. While farmers who use new technology may benefit from the extension services provided by agricultural extension agents, they are not considered extension agents themselves. Agricultural researchers who develop new strains of crops are also not considered extension agents, as their focus is on developing new technologies rather than disseminating them to farmers.

Question 15

What are the costs associated with a "zero tillage" cropping system?

Accepted Answer

Zero tillage involves leaving crop residue, which can lead to increased pest pressure, requiring additional pest control measures.

Question 16

As a farm's access to crop insurance ________ the ______any additional risk will deter adoption of a new technology.

Accepted Answer

As a farm's access to crop insurance increases, the less any additional risk will deter adoption of a new technology. This is because crop insurance provides a safety net that mitigates the financial risks associated with adopting new technologies.

Question 17

Which of the following effects from adopting a new agricultural technology is considered a spillover effect?

Accepted Answer

A spillover effect is a positive or negative external effect of an action that affects third parties who did not choose to incur that effect. When a new agricultural technology leads to an increase in food supply, it tends to lower the price of food for consumers, which is a spillover effect on the rest of the economy. This is not a direct benefit for the farmers themselves, but rather an unintended benefit for the consumers. Choices A and B are direct effects on the farm and its labor, respectively, while choice D is a negative effect on the farm profit, which is not a spillover effect but rather an internal effect.

Question 18

When do agricultural research and extension agents actually introduce change into economic systems?

Accepted Answer

Agricultural research and extension agents introduce change into economic systems when farmers adopt the new technologies. It is only when farmers start using the new technologies that the changes take effect in the economic system. Adoption is the crucial factor that influences change, not the up-front cost, the introduction of new technologies, or the government's involvement.

Question 19

Let p,q,and w represent the crop price,fertilizer price and harvest-season wage.Which of the following is an expression for the expected change in profits from adopting a new technology?

Accepted Answer

The expected change in profits (Δπ) from adopting a new technology is calculated by considering the increase in revenue (p ΔY) minus the increase in costs, which include the cost of additional fertilizer (q ΔF) and labor (w ΔL).

Question 20

How can managers of agricultural research institutions influence the direction of technical change?

Accepted Answer

Managers of agricultural research institutions can influence the direction of technical change by choosing which crops to work on, selecting plant characteristics to improve, and selecting which capital goods to develop. By making these choices, they can steer research and development efforts towards certain areas, which can have a significant impact on the direction of technical change in agriculture. Therefore, the best choice is D, as it encompasses all the options mentioned in the question.

Quiz 20: Agricultural Research and Extension