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

Info icon This preview shows pages 1–2. Sign up to view the full content.

Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

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 ...
View Full Document

  • Spring '99
  • MacDougall

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern