22–94
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written consent of McGraw-Hill Education.
D.
increased support for research on farm productivity to help expand the supply of farm
products.
213.
Through the Freedom to Farm Act of 1996, farmers were
214.
The Freedom to Farm Act of 1996 was designed to encourage farmers to
215.
The ambitious plan to wean American agriculture from subsidies, as embodied in the
Freedom to Farm Act of 1996,
22–95
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written consent of McGraw-Hill Education.
A. became fully realized by 2000.
B.
unraveled in 1998 and 1999 when farm prices fell.
C.
was not approved by the president.
D.
was extended in 2002.
216.
Since 2002, agricultural policy in the United States has
217.
The Food, Conservation, and Energy Act of 2008 provided three main forms of cash
commodity subsidies, including the following, except
218.
The major factor contributing to lower prices for many farm products in 1998 and 1999
was
219.
The three types of farm subsidies under the Food, Conservation, and Energy Act of
2008 are
220.
Under the Food, Conservation, and Energy Act of 2008, if the target price for a bushel
of corn was $2.63 and the price of corn fell to $2.25, then a farmer would have received
22–97
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Difficulty: 01 Easy
Learning Objective: 22–05 List the main elements of existing federal farm policy.
Test Bank: II
To pic : Recent Farm Policies
221.
The U.S. Agriculture Act of 2014 did the following, except
222.
The 2014 Agriculture Act aims to achieve the following, except
223.
The major economic problem with recent farm policies is that they provide price and
income subsidies that
22–98
224.
Recent government policies to provide price and income subsidies in agriculture are
economically inefficient because they
225.
Which of the following is an effect of the domestic sugar program of the United States
on many of the less-developed countries that export sugar?
226.
The effect of higher prices from the domestic sugar beet program in the United States is
True / False Questions
227.
The price elasticity of demand for most agricultural products is relatively low.
228.
The increasing relative importance of agricultural exports has increased the instability
of the demand for U.S. farm products.
229.
An increase in the supply of farm products relative to the demand for them tends to
cause farm incomes to decline.
230.
Due to high fixed costs relative to variable costs in farming, farm production is quite
sensitive to price changes in the short run.
231.
Technological advances have occurred throughout the history of agriculture, resulting
in higher productivity but lower incomes to farmers.
232.
As a nation’s average household income rises, the percentage of household income that
goes to food expenditures also increases.
233.
The percentage of total employment in the U.S. that is accounted for by farms has been
declining in the last six decades or so, but the absolute number of farm employment has
actually risen slightly
over those decades.
234.
Price support programs for agricultural products tend to cause shortages of these
products.
235.
The parity concept of agricultural policy suggests that farmers should obtain a constant
ratio of the prices they receive for their farm products and the prices they pay for goods and
services in
general.
236.
The farm price-support programs hurt consumers of the farm products, and moreover,
the burden tends to be disproportionately heavier on the low-income consumers.
237.
Public policy has been ineffective in alleviating the resource misallocation problem in
American agriculture.
238.
The price and income support programs for agriculture have given the most benefit to
those farmers with the most need for the government assistance.
22-103
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written consent of McGraw-Hill Education.
Accessibility: Keyboard Navigation
Blooms: Understand
Di f ficulty : 02 Medium
Learning Objective: 22–04 Describe major criticisms of the price-support system in
agriculture.
Test Bank: II
To pic : Criticisms and Politics
239.
Farmers, though a small proportion of the population, can impose a large total cost to
taxpayers in the form of agricultural subsidies because the average cost imposed on each
individual taxpayer
is small and not given much attention by a large number of taxpayers.
240.
Agricultural price-support programs result in consumers paying lower prices for the
product.
241.
Domestic farm subsidies improve world trade and contribute to greater efficiency in the
international allocation of agricultural resources.
22-104
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Blooms: Understand
Di f ficulty : 02 Medium
Learning Objective: 22–04 Describe major criticisms of the price-support system in
agriculture.
Test Bank: II
To pic : Criticisms and Politics
242.
An example of the special interest effect is a farm program from which a large group
receives small benefits at the expense of a smaller group who individually suffer large
losses.
243.
The Freedom to Farm Act of 1996 aimed to eliminate agricultural price supports and
acreage allotments for many crops.
244.
The movement to eliminate agricultural subsidies in the U.S. and make farmers rely
more on market forces, starting with the Farm Act of 1996, continues to this day.
22-105
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written consent of McGraw-Hill Education.
Learning Objective: 22–05 List the main elements of existing federal farm policy.
Test Bank: II
To pic : Recent Farm Policies
245.
The Food, Conservation, and Energy Act of 2008 provided farm subsidies in the form
of direct payments, countercyclical payments, and marketing loans to farmers.
246.
The 2014 Agriculture Act in the U.S. eliminated farm subsidies so as to encourage
farmers to move their resources to nonfarming production activities.