In what ways did government subsidize agriculture over the past sixty years? What were the most important aspects of this assistance?
What will be an ideal response?
From the 1930 government has helped agriculture in a number of ways. It has: (1) provided support for farm prices, incomes and output; (2) encouraged soil and water conservation; (3) conducted agricultural research to improve farming practices and output; (4) given tax credits to farmers; (5) offered crop insurance to protect farmers from natural disasters; and, (6) subsidized the sale of agricultural products in world markets. The most important aspects of this government assistance were those that supported agricultural prices and incomes.
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Use the following supply and demand graph for product X to answer the question below. 
If there are positive externalities from the consumption of product X, then the socially optimal demand curve would be
A. an upward-sloping line. B. to the left of line D on the graph. C. at the position of line D on the graph. D. to the right of line D on the graph.
If the spot exchange rate between dollars and pounds is equal to 2 dollars for one pound and the forward exchange rate equals 2.10 dollars for one pound, then
A) the dollar is trading at a forward premium. B) the pound is trading at a forward discount. C) the pound is trading at a forward premium. D) the market presents an opportunity for arbitrage.
An internationally discriminating monopolist will maximize its profits if it sets quantity where:
a. MC = P in the home market and MC = MR in the foreign market. b. MC = MR in the home market and MC = P in the foreign market. c. MC = P in both the home and foreign markets. d. MC = MR in both the home and foreign markets.
Refer to Table 9-3. What is the value of the bank's net worth?
A) $200 million B) $2,000 million C) $2,800 million D) $3,000 million