Answer the following statement true (T) or false (F)
1) Farmers typically sell their products in highly competitive markets and buy in imperfectly
competitive markets.
2) If the demand for agricultural products is inelastic, a relatively small increase in supply will
cause farm prices and incomes to decline.
3) The use of price-support programs in agriculture has hastened the exodus of resources from
agriculture.
4) The concept of parity has provided a rationale for government price supports for farm
products.
1) T
2) T
3) F
4) T
You might also like to view...
What actions could the Federal Reserve take to achieve consistent growth in real GDP at 4 percent per year?
A) The Fed could follow contractionary monetary policy that would reduce the federal funds rate to zero so investment will rise consistently. B) The Fed could maintain a growth rate of the money supply of 4 percent, regardless of whether inflation was rising or falling in the economy. C) The Fed has no direct control over real GDP in the long run, so there are no actions it could take to achieve that goal. D) The Fed could increase the growth rate of the money supply by 1% each year until the inflation rate was exactly equal to 4 percent.
Empirical evidence across numerous countries indicates that changes in the ________ are associated with nearly equiproportional changes in ________
A) money supply, real GDP per year B) money supply, price level C) price level, money supply D) real GDP per year, income velocity of money
Some policy makers have suggested that mandatory health insurance coverage would:
A. help to reduce the cost of health care. B. overcome adverse selection in the market for health insurance. C. keep premiums lower than if healthy people could opt out. D. All of these statements are true.
One of the main difficulties with implementing fiscal policy is:
A. the time lag between the time the policy is chosen and the time it gets enacted. B. deciding on a policy without all the relevant information. C. the danger in overshooting or undershooting the goal of full employment. D. All of these are true.