AGB312 wint00 midterm3

AGB312 wint00 midterm3 - AGB 312-02 Winter 2000 Prof....

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Unformatted text preview: AGB 312-02 Winter 2000 Prof. MacDougall Mid-Term Exam #3 Long Answer Problem This question consists of two parts, be sure to answer both parts. Be precise in your answers; vagueness will not be rewarded. Part I You have been hired as a legislative assistant to a U.S. representative from California who sits on the House Committee on Agriculture. Your first job is to draft an outline of \ W the 2002 Farm Bill. What are the critical elements of this next farm bill? Be sure to ‘“ \‘0 w address the following issues: 0 What have been general problems of farm policy over the past thirty years that still need to be addressed and how have past farm policies failed to correct them? What have been the specific problems of the 1996 “Freedom to Farm” Bill? How will your drafi of the 2002 Farm Bill address the problems above? Part II How might a lettuce grower in Salinas, California (who has had no government support for his crop) and a long-time wheat grower in Kansas (who was accustomed to government support until the 1996 Farm Bill) react to your draft Farm Bill? Explain why they may or may not differ. OM 030900_AGB3 l2_W00__.ExamQuestion__Handout.dOC AGE 312-02 Winter 2000 Prof. MacDougall Information and Comments on AGB 312 Mid-Term #1 Average: Median: 76.8 75 Grade scale and distribution: Distribution 97-100+ At- 93-96 A } 5 90-92 A. 87-89 . B+ 83-86 B 8 80-82 B- 77-79 0+ 73-76 C } 9 70-72 c- 67-69 D+ 63456 7 J- 2 Some typical problems in the exam: Remember on T/F questions that if any part of the statement is not true, then the whole statement is false. 7. The value 6 producer surplus includes the value of the inputs used in production. T The definition of producer surplus talks about the returns above and beyond the costs of production — equivalent to profit. A policy change which does m; satisfy the Compensation Principle can satisfy the rule for a Pareto improvement. - T The Comggtsation Principle allows a loss on one party ’5‘ part if the gain of another party outweighs the loss. If the Compensation Principle is not satisfied, then there is a loss large enough to outweigh any gain h the simple existence of a loss violates the definition of a Pareto improvement ' The value T The assumption in the consumer surplus concept is that if one does not participate in the market, one cannot be made worse off by the market transaction. The existence of an externalin means that those people not participating in the market are made worse off or better of}: consumer surplus can take into account the effects of an externality. AGB312_I~’IidTenn_l_W00_Cormnents.doc I 1 ...
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This homework help was uploaded on 02/13/2008 for the course AGB 312 taught by Professor Macdougall during the Winter '99 term at Cal Poly.

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AGB312 wint00 midterm3 - AGB 312-02 Winter 2000 Prof....

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