How do U.S. exports of agricultural products affect the demand for agricultural products?
What will be an ideal response?
U.S. exports of agricultural products have both positive and negative effects on the demand for agricultural products. On the positive side, an increase in these exports will increase the demand for agricultural production in the United States, which tends to increase domestic prices and output. On the negative side, increasing U.S. exports makes the demand for U.S. agricultural products more volatile because foreign demand tends to be unstable. The prices received for farm products and farm incomes are now more sensitive to changes in agricultural production in other nations, which in turn are influenced by weather and government policies in the other nations.
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Referring to a production possibilities curve and the goods being compared, depict the economic event. The AIDS epidemic becomes rampant in America claiming millions of lives (capital goods vs. consumer goods).
A. A movement from a point inside the curve to a point on or near the curve B. A movement from a point on or near the curve to a point inside the curve C. A shift in the entire curve to the right (outward) D. A shift in the entire curve to the left (inward)
Very few players are drafted into the NFL when they play at Division II or Division III schools whereas more players are drafted in the MLB from these schools. What can explain this?
A) Attending a Division II or Division III school sends a stronger signal of future and present quality in the NFL. B) Attending a Division II or Division III school sends a weaker signal of future and present quality in the MLB. C) A signal of future and present quality is more important in the MLB than in the NFL. D) Attending a particular school is like a screening test for life insurance.
In the short run, if price is below AC, maximizing profits really means minimizing total losses
a. True b. False Indicate whether the statement is true or false
The principle of horizontal equity is violated if two people who earn the same amount of income actually pay a different amount in taxes.
Answer the following statement true (T) or false (F)