AGBM 102 Final Exam PSU Question
and answers rated A+
The Farm Bill is stalled in Congress. It contains a type of dairy production
quota that will make it more difficult for farmers to expand. This will probably:
A. keep struggling dairy farmers in business
B. make it more difficult for dairy farmers to respond to changing conditions
C. cause lower milk prices for consumes
D. make U.S. dairy products more competitive in world markets - correct
answer ✔B. make it more difficult for dairy farmers to respond to changing
conditions
Processed vegetable processors often contract for their raw materials
because:
A. the plant can be used more efficiently
B. they want to extend the production season
C. they want to ensure that the farmers use good practices
D. all the above - correct answer ✔D. all the above
Most corn farmers watch the Chicago Board of Trade corn prices:
A. because their local prices are very hard to get
B. because they want to see how Cargill and the big grain merchants are
manipulating the market
C. because all corn markets are linked together by the Law of One Price and
so their local price will follow the Chicago price
, D. is not discussed much in our antitrust laws - correct answer ✔C. because
all corn markets are linked together by the Law of One Price and so their local
price will follow the Chicago price
Monopoly power
A. allows the seller to charge his customers whatever price he chooses
B. is a common problem for farmers because their output markets are so
concentrated
C. can be a problem for farmers because their output markets are so
concentrated
D. is not discussed much in our antitrust laws - correct answer ✔A. allows
the seller to charge his customers whatever price he chooses
Most futures contracts
A. end in delivery of the commodity
B. create no economic benefit because they only encourage speculation
C. help provide a forecast for prices at some future time
D. are of little help to farmers because the delivery locations are inconvenient
- correct answer ✔C. help provide a forecast for prices at some future time
The broker demands margin money from corn producers hedging their crop
because
A. the fact that the farmer will have the corn doesn't give the broker any
security
B. hedging is so risky
C. most people trading futures lose money
and answers rated A+
The Farm Bill is stalled in Congress. It contains a type of dairy production
quota that will make it more difficult for farmers to expand. This will probably:
A. keep struggling dairy farmers in business
B. make it more difficult for dairy farmers to respond to changing conditions
C. cause lower milk prices for consumes
D. make U.S. dairy products more competitive in world markets - correct
answer ✔B. make it more difficult for dairy farmers to respond to changing
conditions
Processed vegetable processors often contract for their raw materials
because:
A. the plant can be used more efficiently
B. they want to extend the production season
C. they want to ensure that the farmers use good practices
D. all the above - correct answer ✔D. all the above
Most corn farmers watch the Chicago Board of Trade corn prices:
A. because their local prices are very hard to get
B. because they want to see how Cargill and the big grain merchants are
manipulating the market
C. because all corn markets are linked together by the Law of One Price and
so their local price will follow the Chicago price
, D. is not discussed much in our antitrust laws - correct answer ✔C. because
all corn markets are linked together by the Law of One Price and so their local
price will follow the Chicago price
Monopoly power
A. allows the seller to charge his customers whatever price he chooses
B. is a common problem for farmers because their output markets are so
concentrated
C. can be a problem for farmers because their output markets are so
concentrated
D. is not discussed much in our antitrust laws - correct answer ✔A. allows
the seller to charge his customers whatever price he chooses
Most futures contracts
A. end in delivery of the commodity
B. create no economic benefit because they only encourage speculation
C. help provide a forecast for prices at some future time
D. are of little help to farmers because the delivery locations are inconvenient
- correct answer ✔C. help provide a forecast for prices at some future time
The broker demands margin money from corn producers hedging their crop
because
A. the fact that the farmer will have the corn doesn't give the broker any
security
B. hedging is so risky
C. most people trading futures lose money
