AGEC 333 - Ch. 6-10 - Exam 2 Questions and Answers Graded A+
True - Answers T/F: Grain utilization (direct & indirect) per capita generally rises with per capita
incomes
True - Answers T/F: In dollar terms, less than one-half of U.S. agricultural exports have typically
been animal products
False - Answers T/F: Most of our food exports receive large export subsidies
True - Answers T/F: Asia has been the largest continental market for U.S. agricultural sales
False - Answers T/F: As a nation favoring free trade, we import any agricultural commodity
without restrictions or barriers
Their volume has grown steadily during the 1990s and 2000s - Answers Which of the following
is true about U.S. agricultural exports?
A. They are about the same size as U.S. imports of farm products
B. They are composed less of crop than of livestock products
C. They find larger markets in the low-income economies than the emerging economies
D. Their volume has grown steadily during the 1990s and 2000s
E. None of the above
All of the above - Answers A domestic market can be isolated from the world market for that
commodity by which of the following?
A. A sufficiently high tariff
B. A variable levy
C. A restrictive quota
D. A combination of state trading & price controls
E. All of the above
Rising incomes in the emerging economies - Answers Which of the following is favorable to
increasing U.S. exports of feed grains?
A. A rising exchange value of the dollar
B. Higher U.S. government support prices for feed grains
C. The failure of the WTO
, D. Rising incomes in the emerging countries
E. None of the above
U.S. export embargoes - Answers Large swings in the dollar value of U.S. agricultural exports
since 1970 have probably been least affected by which of the following?
A. U.S. export embargoes
B. Changes in dollar exchange rates
C. Changes in bankers' willingness to lend to the less developed countries (LDCs)
D. Changes in U.S. farm programs
E. World recessions and booms
Both a and d - Answers Concerning U.S. agricultural exports:
A. High value items like Coca Cola comprise about half the dollar volume, although only a
fraction of the tonnage
B. Our sales to various countries are proportionate to their population - about $100 sales per
capita in each country
C. A variable levy is a tariff that is a specified percentage of the value of a commodity
D. They have been rising steadily since 1970
E. Both a and d
True - Answers T/F: Price discovery describes a situation in which all buyers and sellers are
price takers or price negotiators
False - Answers T/F: Price setting through group negotiation is extremely common, especially
with the strong cooperatives that currently assist farmers
True - Answers T/F: An electronic market is likely to be more physically efficient than an
organized, assembly market
True - Answers T/F: A production contract is somewhat similar to an employer-employee
relationship
False - Answers T/F: Most farmers would be indifferent between using a forward contract or a
futures contract
They exist in any system where buyers and sellers as individuals negotiate transactions outside
of an organized market - Answers Which of the following is true about decentralized, individual
True - Answers T/F: Grain utilization (direct & indirect) per capita generally rises with per capita
incomes
True - Answers T/F: In dollar terms, less than one-half of U.S. agricultural exports have typically
been animal products
False - Answers T/F: Most of our food exports receive large export subsidies
True - Answers T/F: Asia has been the largest continental market for U.S. agricultural sales
False - Answers T/F: As a nation favoring free trade, we import any agricultural commodity
without restrictions or barriers
Their volume has grown steadily during the 1990s and 2000s - Answers Which of the following
is true about U.S. agricultural exports?
A. They are about the same size as U.S. imports of farm products
B. They are composed less of crop than of livestock products
C. They find larger markets in the low-income economies than the emerging economies
D. Their volume has grown steadily during the 1990s and 2000s
E. None of the above
All of the above - Answers A domestic market can be isolated from the world market for that
commodity by which of the following?
A. A sufficiently high tariff
B. A variable levy
C. A restrictive quota
D. A combination of state trading & price controls
E. All of the above
Rising incomes in the emerging economies - Answers Which of the following is favorable to
increasing U.S. exports of feed grains?
A. A rising exchange value of the dollar
B. Higher U.S. government support prices for feed grains
C. The failure of the WTO
, D. Rising incomes in the emerging countries
E. None of the above
U.S. export embargoes - Answers Large swings in the dollar value of U.S. agricultural exports
since 1970 have probably been least affected by which of the following?
A. U.S. export embargoes
B. Changes in dollar exchange rates
C. Changes in bankers' willingness to lend to the less developed countries (LDCs)
D. Changes in U.S. farm programs
E. World recessions and booms
Both a and d - Answers Concerning U.S. agricultural exports:
A. High value items like Coca Cola comprise about half the dollar volume, although only a
fraction of the tonnage
B. Our sales to various countries are proportionate to their population - about $100 sales per
capita in each country
C. A variable levy is a tariff that is a specified percentage of the value of a commodity
D. They have been rising steadily since 1970
E. Both a and d
True - Answers T/F: Price discovery describes a situation in which all buyers and sellers are
price takers or price negotiators
False - Answers T/F: Price setting through group negotiation is extremely common, especially
with the strong cooperatives that currently assist farmers
True - Answers T/F: An electronic market is likely to be more physically efficient than an
organized, assembly market
True - Answers T/F: A production contract is somewhat similar to an employer-employee
relationship
False - Answers T/F: Most farmers would be indifferent between using a forward contract or a
futures contract
They exist in any system where buyers and sellers as individuals negotiate transactions outside
of an organized market - Answers Which of the following is true about decentralized, individual
