What are the major provisions of the Freedom to Farm Act of 1996?
What will be an ideal response?
The “Freedom to Farm” Act of 1996 changed sixty years of American farm policy. The law ended price supports and acreage allotments for eight agricultural commodities—wheat, corn, barley, oats, sorghum, rye, cotton, and rice. Farmers were permitted to plant as much or as little of these commodities as they wish. They were also free to switch to planting other crops if there is a better market for a particular crop. About $37 billion in income payments were made to farmers through the year 2002 to help them make the transition to a more competitive market. The payments were based on past price-support subsidies that farmers received. The changes were expected to increase agricultural output because farmers were to respond more directly to market incentives rather than the amount of price-support subsidies.
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A fall in supply is illustrated by
a. a downward shift in the supply curve. b. moving the equilibrium point down and to the left along the supply curve. c. drawing the supply curve flatter. d. shifting the supply curve to the left.
Intraindustry trade can be explained in part by
A) transportation costs within and between countries. B) problems of data aggregation and categorization. C) increasing returns to scale. D) All of the above.
An example of a unilateral transfer is
A) a gift to a relative who lives abroad. B) a check received in payment for an import. C) gold payments to foreign companies. D) SDR payments to world creditors.
All points on the long run Phillips curve that are sustainable in the long run due to economy's self correcting mechanism correspond to
a. the mature rate of unemployment. b. the natural rate of unemployment. c. the seasonal rate of unemployment. d. the cyclical rate of unemployment.