NSC Exam 2 Questions & Answers
Latest Update
What is an externality in a market? - ANS ✔ - All of the costs and benefits of production of a good are
not internalized in the price.
What is not an example of a market failure? - ANS ✔ - taxes
What is the law of demand? - ANS ✔ - When the price of a good rises, the quantity demanded will
decline.
What is the primary disadvantage of a Pigovian tax? - ANS ✔ - It reduces the quantity produced of the
agricultural good.
In a cap-and-trade system, industry groups set standards on pollution in a particular industrial
sector, which can be bought and sold. - ANS ✔ - false
What kind of tax is implemented to achieve specific environmental, social, or economic goals that are
hampered by externalities? - ANS ✔ - Pigovian tax
What is an example of a positive externality? - ANS ✔ - ecosystem services of agriculture
What term describes a market in which there are many buyers but only one seller? - ANS ✔ -
monopoly
Why have corn prices risen in recent years? - ANS ✔ - There has been a demand expansion for corn
due to quota set by ethanol industry
Policy, or institutional rules, have little influence over human behavior. - ANS ✔ - false
, Authorizing legislation - ANS ✔ - bills creating new programs or extending or repealing old ones
Appropriation bills - ANS ✔ - bills passed annually to allocate federal funds for specific programs
Entitlement programs - ANS ✔ - provide benefits to all persons who meet eligibility requirements
What is pre-emption? - ANS ✔ - Limitation by a higher level of government on what actions can be
taken by a lower level of government
What is the role of special interest groups in policy? - ANS ✔ - They are groups of people who share
the same interests, and work to influence the legislative process and other aspects of policymaking.
What is the most substantial piece of legislation that currently affects the food system? - ANS ✔ -
Farm Bill
About what percentage of imported fresh produce is inspected at the border? - ANS ✔ - less than 1%
Which of the following is not a mechanism by which food system policies affect prices? - ANS ✔ -
Privately funded research
What is the goal of supply management programs? - ANS ✔ - Keep commodity prices above price
floors and below price ceilings.
A person's beliefs about how food relates to health may not reflect current nutritional evidence.
Which of the following might influence a person's food-health beliefs? - ANS ✔ - personal and familial
experiences, social media, religious beliefs
People with similar ages and income levels tend to share similar foodways. - ANS ✔ - false
Traditionally, many religions have had something to say about how food is grown, shared, and eaten.
Over time, the spiritual significance of food has diminished for many people of faith. Name one reason
why this has occurred. - ANS ✔ - Fewer people are living on the land, so they no longer experience
the connection between food cultivation, harvesting and their creators directly
Latest Update
What is an externality in a market? - ANS ✔ - All of the costs and benefits of production of a good are
not internalized in the price.
What is not an example of a market failure? - ANS ✔ - taxes
What is the law of demand? - ANS ✔ - When the price of a good rises, the quantity demanded will
decline.
What is the primary disadvantage of a Pigovian tax? - ANS ✔ - It reduces the quantity produced of the
agricultural good.
In a cap-and-trade system, industry groups set standards on pollution in a particular industrial
sector, which can be bought and sold. - ANS ✔ - false
What kind of tax is implemented to achieve specific environmental, social, or economic goals that are
hampered by externalities? - ANS ✔ - Pigovian tax
What is an example of a positive externality? - ANS ✔ - ecosystem services of agriculture
What term describes a market in which there are many buyers but only one seller? - ANS ✔ -
monopoly
Why have corn prices risen in recent years? - ANS ✔ - There has been a demand expansion for corn
due to quota set by ethanol industry
Policy, or institutional rules, have little influence over human behavior. - ANS ✔ - false
, Authorizing legislation - ANS ✔ - bills creating new programs or extending or repealing old ones
Appropriation bills - ANS ✔ - bills passed annually to allocate federal funds for specific programs
Entitlement programs - ANS ✔ - provide benefits to all persons who meet eligibility requirements
What is pre-emption? - ANS ✔ - Limitation by a higher level of government on what actions can be
taken by a lower level of government
What is the role of special interest groups in policy? - ANS ✔ - They are groups of people who share
the same interests, and work to influence the legislative process and other aspects of policymaking.
What is the most substantial piece of legislation that currently affects the food system? - ANS ✔ -
Farm Bill
About what percentage of imported fresh produce is inspected at the border? - ANS ✔ - less than 1%
Which of the following is not a mechanism by which food system policies affect prices? - ANS ✔ -
Privately funded research
What is the goal of supply management programs? - ANS ✔ - Keep commodity prices above price
floors and below price ceilings.
A person's beliefs about how food relates to health may not reflect current nutritional evidence.
Which of the following might influence a person's food-health beliefs? - ANS ✔ - personal and familial
experiences, social media, religious beliefs
People with similar ages and income levels tend to share similar foodways. - ANS ✔ - false
Traditionally, many religions have had something to say about how food is grown, shared, and eaten.
Over time, the spiritual significance of food has diminished for many people of faith. Name one reason
why this has occurred. - ANS ✔ - Fewer people are living on the land, so they no longer experience
the connection between food cultivation, harvesting and their creators directly
