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FNG 628
Midterm Exam
TRUE/FALSE (5pts, 1pt per question). Directions: Circle the correct answer.
1.
SNAP is a form of discretionary spending which makes up the largest portion of the FARM Bill. a.
False
2.
Policies should be enacted when a monopoly occurs as a market failure but does not need to when there is an oligopoly.
a.
False
3.
Where crops are grown can shift in response to market conditions but depends more on soil and climate conditions. a.
True
4.
Implementing a policy that adds a new supermarket is the most ideal course of action for food deserts.
a.
False
5.
The governmental grant of patents in the seed industry has allow for a monopoly to occur.
a.
True
MULTIPLE CHOICE QUESTIONS (10pts, 1pt per questions)
Directions: Circle the correct answer.
6.
What committees have the greatest influence over the Farm Bill?
a.
The agriculture committees in the House and Senate
b.
The agriculture subcommittees of the appropriations committees in the House and Senate
c.
The Republican party committees d.
None of the above
7.
In the USDA farm typology, what range of farm revenue corresponds to “midsize family farms”?
a.
Under $100,000
b.
$100,000 to $200,000
c.
$200,000 to $350,000
d.
$350,000 to $999,000
8.
What federal government department or agency is most
responsible for enforcing environmental laws?
a.
Environmental Protection Agency
b.
United States Department of Agriculture
c.
Federal Environmental Enforcement Agency (a department of the EPA)
d.
All of the above
FNG 628
Midterm Exam
Use the above figure for question 4 and 5.
9.
Deficiency payments and countercyclical payments fell drastically from 2005 to 2008. This may be because: a.
Higher commodity prices in 2008 b.
Lower commodity prices in 2008
c.
Good weather in 2008
d.
Increased competition from trading partners in 2008
10.
Direct payments fell drastically from 2014 to 2015. This was mainly because of:
a.
A policy change
b.
Higher commodity prices in 2015
c.
Lower commodity prices in 2015
d.
Increased competition from trading partners in 2015
11.
What manufacturing industry is most vertically integrated?
a.
Corn ethanol b.
Frozen pizza c.
Chicken d.
Tomatoes
12.
What is the potential harm of a high concentration ratio? a.
Overproduction, leading to environmental damage b.
High prices for consumers c.
Low prices for unhealthy food products d.
Mental exhaustion, from too much concentration
13.
Susan recommends that American’s consume less meat to help with climate change issues. This is an
example of..
a.
Adaption
b.
Consumption
c.
Mitigation d.
Both mitigation and adaption
14.
The branch of government that implements policies is the..
a.
Executive branch
b.
Legislative branch
c.
Judicial branch
d.
All of the above
15.
Which of the following is not a problem regarding genetic diversity of plants?
FNG 628
Midterm Exam
a.
Farmers are planting less variety
b.
GMOs are replacing traditional varieties c.
Maintain carbon balance
d.
Habitat destruction is destroying wild relatives of major food crops FILL IN THE BLANK (5pts, 1pt per questions)
Directions: Write the correct answer and the blank line(s).
16.
The 4 topics of the FARM Bill that receive the most funding are ______, _______, ______, and _________. a.
Nutrition
b.
Crop insurance
c.
Commodity Policy d.
Conservation
17.
Two cereal firms want to merge their companies to have a larger share of the market. This may be a violation of the _________. a.
Clayton Antitrust Act of 1914
18.
Carol is a farmworker who came to America to harvest zucchini on a family farm in Washington. The farm owners utilized the _______ program to bring Carol to America legally due to lack of native farmworkers. a.
H-2A
19.
The six things that make a good message are the message being... a.
Concise
b.
Simple
c.
Relevant
d.
Credible
e.
Memorable
f.
Compelling
20.
Theo engages in less than desirable farming practices because he knows he has crop insurance. Theo’s behavior is an example of _______. a.
moral hazard
SHORT ANSWER (130pts, pts vary based on required answers) Directions: In legible/clear writing with complete sentences, correct punctuation, spelling and in logical progressive thought, complete the answers.
21.
The energy title of the Farm Bill generally encourages and subsidizes biofuels production from corn in the United States. What interest groups might oppose these policies and why? (10pts)
a.
Some environmental organizations oppose corn-based biofuels as net energy losers and poor for climate change. (Other organizations do support biofuels, but mostly second-
generation, non-corn-stock biofuels, which are not the main focus of the energy title of the Farm Bill.)
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Related Questions
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A) moral hazard
B) adverse selection
C) asymmetric information
D) economic irrationality
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B) moral hazard.
C) information disparity.
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Related Questions
- Suppose that gunk has marginal benefits of reduction equal to 20 − 2x and marginal costs of reduction equal to 5 + x − 2, where x is the tons of gunk reduced. Graph the MB and MC curves to find the efficient level of gunk reduction.As a result of imperfect information, regulators are considering two inefficient policies: a tax 10 percent below the efficient tax level and a marketable permit system with the number of permits to be issued 10 percent below the efficient reduction level. Use your graph to show the monetary loss to society as a whole of the different policies. Which is more efficient?Suppose that regulators did not know exactly where the MB curve lay, but did know that gunk was a threshold pollutant. Should they use a tax or permit system if they are interested in efficient regulation? Why?arrow_forwardAdam Smith proposed taxing ‘Sugar, rum and tobacco’ because they are: “nowhere necessaries of life” “objects of almost universal consumption” In consumer theory economics, what is the difference between a necessity and a luxury good. What is the likely difference in the tax revenue obtained from a tax imposed on a necessity versus a luxury good? Explain and illustrate with appropriate figures. Question Requirements: Identify the difference between a necessity and luxury and provide an example. Highlight ability to identify the link of this definition to tax revenue. Highlight ability to encapsulate this concept precisely using correctly drawn figure.arrow_forwardHow does politics impact the issue of cost benefit analysis from a regulatory perspective? How does this issue impact the ability of a government intervention to achieve parato efficiency? Explain fully with examples? Does it matter if we are talking about a democracy versus a non-democratic government with differing market institutions? Explain.arrow_forward
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- Suppose a political candidate criticizes a government pollution permit policy that she says lets corporations buy and sell the right to pollute. She argues that our right to breathe and the future of our planet require real regulation instead of this type of government policy. Which of the following describes why most economists would disagree with her statement? 1. A corrective tax would result in a more efficient outcome than either tradable permits or government regulation would. 2.A free market in tradable pollution permits is typically more efficient than government regulation. 3.Clean air is a fundamental right, and government regulation will allow too much pollution. 4.The environment is so important that it should be protected as much as possible, regardless of the cost.arrow_forwardSuppose when he took office in January 2009, President Obama wanted to reduce the level of spending by the DEA during fiscal year 2009. What budget procedure would have allowed him to do that? A. He could have requested executive transfers out of the Drug Enforcement Administration to the Department of Treasury impoundment fund. B. Congress could have approved a recession. C. He could have requested a financial audit of the DEA. D. He could have created a new governing policy or federal law.arrow_forward(1) the goverment wants to to regulate helth insurance companies requairing them to provide insurance coverage not just for future health problems , but also for pre-exiting conditions. such a policyto succeed , it is important to make purchase of helth insurance compulsory for individual . it this true or false?explain your answerarrow_forward
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SEE MORE QUESTIONS
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Recommended textbooks for you
- Managerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning