1
AGEC 105 - chapter 11 Questions with Answers (100%
Correct Answers)
the Federal Trade Commission (FTC) is responsible for.... Answer:
prohibiting companies from acting together to increase market control
using deceptive trade practices
Asset Fixity refers to how.... Answer: many production assets (cotton
picker or silos) have little value in other industries
changes in supply + highly inelastic demand may cause Answer:
booms/busts in farm income
an approach in dealing with low returns to resources is the
implementation of... Answer: commodity supply programs by the
Conservation Reserve Program(CRP)
T/F: the federal crop insurance program in a safety net for crop
producers Answer: True
the farm bill (2014-2018) supplements what two options through CRP
Answer: 1) Price Loss Coverage - price triggered
2) Agricultural Risk Coverage - revenue triggered
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, 2
T/F: the level of export demand doesn't affect the elasticity of demand
Answer: False
the cotinuation of programs in which the elasticity of demand exceeds
1 may lower farm revenue
government intervention in the farm sector is due to Answer: -
support/protect infant industry
- curb market power of imperfect competition
- provide national food security
- provide consumer with health/safety
- provide environmental quality
T/F: the US food and fiber industry is the least regulated industies of
the economy Answer: False
it is one of the most regulated industies of the economy
record crops can lead to Answer: sharp declines in farm product prices
and income levels
© 2025 All rights reserved
AGEC 105 - chapter 11 Questions with Answers (100%
Correct Answers)
the Federal Trade Commission (FTC) is responsible for.... Answer:
prohibiting companies from acting together to increase market control
using deceptive trade practices
Asset Fixity refers to how.... Answer: many production assets (cotton
picker or silos) have little value in other industries
changes in supply + highly inelastic demand may cause Answer:
booms/busts in farm income
an approach in dealing with low returns to resources is the
implementation of... Answer: commodity supply programs by the
Conservation Reserve Program(CRP)
T/F: the federal crop insurance program in a safety net for crop
producers Answer: True
the farm bill (2014-2018) supplements what two options through CRP
Answer: 1) Price Loss Coverage - price triggered
2) Agricultural Risk Coverage - revenue triggered
© 2025 All rights reserved
, 2
T/F: the level of export demand doesn't affect the elasticity of demand
Answer: False
the cotinuation of programs in which the elasticity of demand exceeds
1 may lower farm revenue
government intervention in the farm sector is due to Answer: -
support/protect infant industry
- curb market power of imperfect competition
- provide national food security
- provide consumer with health/safety
- provide environmental quality
T/F: the US food and fiber industry is the least regulated industies of
the economy Answer: False
it is one of the most regulated industies of the economy
record crops can lead to Answer: sharp declines in farm product prices
and income levels
© 2025 All rights reserved
