Question 1

How do quantitative export restrictions and an equivalent export tax rate differ?

Accepted Answer

Quantitative export restrictions limit the amount of goods that can be exported from a country, which decreases the supply and increases the price of the goods domestically. This generates more revenue for domestic exporters. On the other hand, an export tax adds an additional cost to the exported goods, making them more expensive for foreign buyers. This generates revenue for the government, as they receive the tax amount, and domestic exporters receive less money. Therefore, with an export tax, money is generated for the government, and with a quantitative restriction, money is generated for domestic exporters.

Question 2

When a marketing board pays farmers an administered producer price less than the local export price (LEP)it is _____________?

Accepted Answer

When the marketing board pays farmers an administered producer price less than the local export price (LEP), it is essentially imposing a tax on the farmers. The difference between the administered price and the LEP is the implicit tax. Therefore, the correct option is D, implicitly taxing farmers.

Question 3

Pan-territorial pricing encourages a shift in the geographic distribution of export crop production from _______ to ________ remote locations and a redistribution of income from _____ remote to ______ remote producers.

Accepted Answer

Pan-territorial pricing sets a uniform price for crops regardless of location, incentivizing production in more remote areas and redistributing income to those producers.

Question 4

As a result of agricultural pricing policies prices paid by consumers may______ and the price received by producers may________.

Accepted Answer

Agricultural pricing policies can affect the prices paid by consumers and the prices received by producers in different ways. In some cases, policies may lead to higher prices for consumers while producers receive lower prices. This can occur when policies are designed to support consumers by keeping prices low, but this can come at the expense of producers who may not receive fair compensation for their products.

Question 5

When governments impose import quotas,they require______.

Accepted Answer

When governments impose import quotas, they limit the quantity of a particular good that can be imported. Importers must obtain licenses to import, and the government usually grants only a limited number of licenses. This is done to protect domestic industries and restrict competition from foreign producers. Option B is incorrect because export quotas restrict the quantity of a particular good that can be exported, and not importers. Option C and D are also incorrect because consumption and selling of goods produced abroad are not restricted by import quotas.

Question 6

When governments build up a buffer stock,they are attempting to:

Accepted Answer

When governments build up a buffer stock, they aim to stabilize prices. Buffer stocks are the amount of a certain commodity that is being held in reserve, which can be released into the market in times of shortages or bought in excess during times of surplus. This process helps to prevent extreme price fluctuations, ensuring a steady supply of the commodity and making it affordable for consumers.

Question 7

A uniform increase in the price of a good ______ the real income (and well-being)of households that are net _____ of it and ______ the real income of households that are net _______.

Accepted Answer

A uniform increase in the price of a good raises the real income of households that are net sellers because they receive more for the goods they sell, and reduces the real income of households that are net buyers because they have to spend more to purchase the same amount of goods.

Question 8

When governments tax,subsidize or regulate market transactions they are _________ in the market

Accepted Answer

When governments tax, subsidize or regulate market transactions, they are intervening in the market by altering the incentives and behaviours of market participants. This intervention can have both positive and negative effects, depending on the specific policy and context.

Question 9

Which of the following spillover effects from a price increase would be a negative?

Accepted Answer

Increased wages can reduce profits because as the cost of labor goes up, the amount of money a company retains after paying its expenses (including wages) can decrease. This is considered a negative spillover effect of a price increase if the company is unable to pass these costs onto consumers without losing sales.

Question 10

Policies that lower consumer prices relative to free-market levels are said to impart___________.

Accepted Answer

The answer of Policies that lower consumer prices relative to...

Question 11

Developing countries tend to ________ agriculture,while developed countries tend to _______ agriculture,keeping prices down and ____________ export profits of developing countries.

Accepted Answer

Developing countries often tax agriculture as a source of government revenue, while developed countries tend to subsidize agriculture to support their farmers, which can lead to lower global prices for agricultural products. This, in turn, limits the export profits of developing countries by making their agricultural exports less competitive on the international market.

Question 12

In the 1930s,1940s and 1950s many developing countries intervened in agricultural markets in order to _________.

Accepted Answer

Many developing countries intervened in agricultural markets to keep food prices down for urban workers, as this was seen as a way to maintain social stability and support industrialization by ensuring affordable food for the growing urban population.

Question 13

When governments set up a marketing board:

Accepted Answer

When governments set up a marketing board, they are intervening in a more comprehensive way by granting a state-owned entity the exclusive rights to buy and sell crops. Marketing boards are often established to manage the supply and demand of agricultural products, stabilize prices, and provide stability and security for farmers.

Question 14

A household,that is net buyer of a good,experiences an increase in the price and responds by consuming less of this and other goods shows:

Accepted Answer

The income effect describes a situation where a price increase for a good leads to a decrease in the consumer's real income, causing the consumer to buy less of that good and potentially less of other goods as well.

Question 15

Taxes that are assigned as percentages of total sales value are known as ________.

Accepted Answer

Ad valorem taxes are assigned as a percentage of the total sales value of a product or service. This means that the tax paid increases with the price or value of the item being taxed. Unit taxes are a fixed amount per unit of the product, excise taxes are applied to specific goods (such as alcohol or tobacco), and lump-sum taxes are a set amount of money to be paid regardless of income or sales.

Question 16

When explicit export taxes are imposed on exports the results is that export crop's domestic price will________.This new tax effectively ________domestic producers and ___________domestic consumers.

Accepted Answer

When explicit export taxes are imposed, the domestic price of the export crop will decrease due to a decrease in supply in the domestic market. This new tax effectively taxes domestic producers by reducing their potential revenue from exports and subsidizes domestic consumers by providing them with cheaper prices for the export crop.

Question 17

The net effect of a good's price increase on total real income in a region is to ____ total real income if the region is a net ________,implying that total production in the region exceeds total consumption.

Accepted Answer

If the price of a good increases, it means that the region is likely exporting that good. As a net exporter, the increase in price will raise total real income in the region because they are selling more than they are buying. The increase in price will result in a higher revenue for the region, which will ultimately raise its total real income.

Question 18

Policies are said to provide consumers with ________ subsidy when the costs of the consumer subsidy are borne by the marketing board.Policies are said to provide consumers with _______ subsidy when governments push some or all of the cost of the consumer subsidy onto domestic producers.

Accepted Answer

An explicit subsidy is when the costs are directly covered by the marketing board, while an implicit subsidy occurs when the costs are indirectly borne by domestic producers.

Question 19

Which of the following results of a price increase is most likely to lead to an increase in economic growth?

Accepted Answer

A significant increase in efficiency improvements can lead to increased productivity and lower costs, which can result in increased economic growth. The other options are unlikely to directly lead to increased economic growth.

Question 20

The sizes of an export tax's impacts on production,consumption,exports and the government budget depend on what primarily?

Accepted Answer

The sizes of an export tax's impacts on production, consumption, exports, and the government budget primarily depend on the elasticities of the local supply and demand schedules. The more elastic the local supply and demand, the greater the impacts of the tax. The autarky price and whether there is a world shortage or surplus for that crop can affect the initial equilibrium conditions, but the elasticities will determine the ultimate impacts of the tax. The world price may be relevant for determining the competitiveness of exports, but it is not directly related to the impacts of the export tax.

Quiz 17: Agricultural Market Interactions and Reforms

How do quantitative export restrictions and an equivalent export tax rate differ?

When a marketing board pays farmers an administered producer price less than the local export price (LEP) it is _____________?

Pan-territorial pricing encourages a shift in the geographic distribution of export crop production from _ to remote locations and a redistribution of income from _ remote to ____ remote producers.

As a result of agricultural pricing policies prices paid by consumers may and the price received by producers may__.

When governments impose import quotas,they require______.

When governments build up a buffer stock,they are attempting to:

A uniform increase in the price of a good ____ the real income (and well-being) of households that are net _ of it and the real income of households that are net ___.

When governments tax,subsidize or regulate market transactions they are _________ in the market

Which of the following spillover effects from a price increase would be a negative?

Policies that lower consumer prices relative to free-market levels are said to impart___________.

Developing countries tend to ____ agriculture,while developed countries tend to _ agriculture,keeping prices down and __________ export profits of developing countries.

In the 1930s,1940s and 1950s many developing countries intervened in agricultural markets in order to _________.

When governments set up a marketing board:

A household,that is net buyer of a good,experiences an increase in the price and responds by consuming less of this and other goods shows:

Taxes that are assigned as percentages of total sales value are known as ________.

When explicit export taxes are imposed on exports the results is that export crop's domestic price will.This new tax effectively domestic producers and ___domestic consumers.

The net effect of a good's price increase on total real income in a region is to total real income if the region is a net ____,implying that total production in the region exceeds total consumption.

Policies are said to provide consumers with __ subsidy when the costs of the consumer subsidy are borne by the marketing board.Policies are said to provide consumers with _ subsidy when governments push some or all of the cost of the consumer subsidy onto domestic producers.

Which of the following results of a price increase is most likely to lead to an increase in economic growth?

The sizes of an export tax's impacts on production,consumption,exports and the government budget depend on what primarily?

Quiz 17: Agricultural Market Interactions and Reforms

How do quantitative export restrictions and an equivalent export tax rate differ?

When a marketing board pays farmers an administered producer price less than the local export price (LEP) it is _____________?

Pan-territorial pricing encourages a shift in the geographic distribution of export crop production from _______ to ________ remote locations and a redistribution of income from _____ remote to ______ remote producers.

As a result of agricultural pricing policies prices paid by consumers may______ and the price received by producers may________.

When governments impose import quotas,they require______.

When governments build up a buffer stock,they are attempting to:

A uniform increase in the price of a good ______ the real income (and well-being) of households that are net _____ of it and ______ the real income of households that are net _______.

When governments tax,subsidize or regulate market transactions they are _________ in the market

Which of the following spillover effects from a price increase would be a negative?

Policies that lower consumer prices relative to free-market levels are said to impart___________.

Developing countries tend to ________ agriculture,while developed countries tend to _______ agriculture,keeping prices down and ____________ export profits of developing countries.

In the 1930s,1940s and 1950s many developing countries intervened in agricultural markets in order to _________.

When governments set up a marketing board:

A household,that is net buyer of a good,experiences an increase in the price and responds by consuming less of this and other goods shows:

Taxes that are assigned as percentages of total sales value are known as ________.

When explicit export taxes are imposed on exports the results is that export crop's domestic price will________.This new tax effectively ________domestic producers and ___________domestic consumers.

The net effect of a good's price increase on total real income in a region is to ____ total real income if the region is a net ________,implying that total production in the region exceeds total consumption.

Policies are said to provide consumers with ________ subsidy when the costs of the consumer subsidy are borne by the marketing board.Policies are said to provide consumers with _______ subsidy when governments push some or all of the cost of the consumer subsidy onto domestic producers.

Which of the following results of a price increase is most likely to lead to an increase in economic growth?

The sizes of an export tax's impacts on production,consumption,exports and the government budget depend on what primarily?

Pan-territorial pricing encourages a shift in the geographic distribution of export crop production from _ to remote locations and a redistribution of income from _ remote to ____ remote producers.

As a result of agricultural pricing policies prices paid by consumers may and the price received by producers may__.

A uniform increase in the price of a good ____ the real income (and well-being) of households that are net _ of it and the real income of households that are net ___.

Developing countries tend to ____ agriculture,while developed countries tend to _ agriculture,keeping prices down and __________ export profits of developing countries.

When explicit export taxes are imposed on exports the results is that export crop's domestic price will.This new tax effectively domestic producers and ___domestic consumers.

The net effect of a good's price increase on total real income in a region is to total real income if the region is a net ____,implying that total production in the region exceeds total consumption.

Policies are said to provide consumers with __ subsidy when the costs of the consumer subsidy are borne by the marketing board.Policies are said to provide consumers with _ subsidy when governments push some or all of the cost of the consumer subsidy onto domestic producers.