Agriculture: Economics and Policy

What is the primary reason for the short-run instability of prices and incomes in agriculture?

The price elasticity of demand coefficient for agricultural products in the aggregate is estimated to be in what range?

Given the inelastic demand for farm products, what is the ironic consequence of a bumper crop for farmers as a group?

What are the two primary long-run factors that explain why agriculture has been a declining industry in the U.S.?

The income elasticity of demand for farm products in the United States is estimated to be about 0.2. What does this mean?

What was the central idea behind the parity concept established by the Agricultural Adjustment Act of 1933?

In 2007, the parity ratio stood at 0.42 (or 42 percent). What did this figure signify?

According to the economics of price supports, what is the most direct consequence of the government setting a minimum price for a farm product above the equilibrium price?

Which group is primarily harmed by farm price supports?

How do U.S. farm price supports affect international trade and other countries?

What was the main criticism economists leveled at the price-support system in terms of solving the long-run farm problem?

Why were farm price supports criticized for being 'misguided subsidies'?

According to public choice theory, the persistence of farm subsidies can be explained by the special-interest effect. What does this mean?

What was the radical change introduced by the Freedom to Farm Act of 1996?

Under the Food, Conservation, and Energy Act of 2008, what are direct payments?

What triggers a countercyclical payment (CCP) to a qualified farmer under the 2008 farm law?

In the U.S. sugar program, what is the effect of price supports and import quotas on the domestic price of sugar compared to the world price?

What is one of the secondary effects of the government's promotion of corn-based ethanol?

The 'Consider This' box on risk management mentions several private techniques farmers use to 'smooth' income. Which of the following is one of those techniques?

Why do farmers have limited control over their output from year to year?

Since 1950, what has been the long-run trend for the number of farms and the percentage of the labor force in farming in the United States?

What is the primary reason that demand for farm products in the United States has grown slowly?

What is the economic argument used to justify farm subsidies based on the market power of industries that supply farm inputs?

What is meant by the term 'agribusiness'?

What happened to the average income of U.S. farm households in 2006 compared to all U.S. households?

What is the primary flaw in using acreage allotments to restrict farm supply?

The pursuit of political support to maintain price supports, which involves farm groups spending considerable sums, is an example of what kind of activity?

What was the estimated aggregate annual cost of the U.S. sugar program to domestic consumers?

Why do economists criticize the concept of parity, which suggests a bushel of wheat should always be able to buy a shirt?

What has been a major secondary effect of high domestic sugar prices on U.S. confectionery firms?

How did the Freedom to Farm Act of 1996 attempt to ease the transition away from price supports?

What happened to agricultural subsidies in the years 1999-2002, after the passage of the Freedom to Farm Act?

What is the primary difference between farm commodities and food products as discussed in the chapter?

The long-run decline in agricultural prices and income shown in Figure 19.5 is the result of what combination of shifts in supply and demand?

Four firms (Tyson, Excel, JBS, and Smithfield) account for 82 percent of red meat produced at cattle slaughtering and meat packing plants. This is an example of what kind of market structure?

What is a key difference in how price supports were handled under the old system versus how countercyclical payments (CCPs) are handled under the 2008 law?

Why is the short-run supply of farm products relatively inelastic in response to price changes?

The demand for U.S. farm exports is highly unstable. What is one of the international political factors that contributes to this instability?

What is a primary environmental cost associated with price supports that encourage additional production?

According to Global Perspective 19.1, which of the following countries has the highest percentage of its labor force in agriculture?

In the context of farm policy, what is the food-stamp program designed to do?

What is the primary argument for why the political power of agriculture in the U.S. has been declining?

The U.S. farm program has been criticized for policy contradictions. Which of the following is an example of such a contradiction?

How many farms were there in the United States in 2006, according to the data in the textbook?

What percentage of their income do commercial farms (those with annual sales of 250,000 dollars or more) derive from farming activities on average?

What is the efficiency loss or deadweight loss of a price-support system, as represented by area bac in Figure 19.6?

What was the average amount of direct government subsidies received by American farmers each year between 2000 and 2006?

What is the primary motivation for farmers to use private risk-management techniques like futures markets and contracting with processors?

According to the 'Last Word' on the sugar program, for every one American job added by price supports in the sugar industries, how many jobs have been lost in industries buying sugar?

The physical productivity in U.S. agriculture, as measured by the index of farm output per unit of farm labor, advanced how many times as fast as that in the nonfarm economy over the last half-century?