Exam Two Study Guide

Exam Two Study Guide - Exam Two Study Guide. AGEC 505....

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Exam Two Study Guide. AGEC 505. Agricultural Market Structures. Spring 2008. EXAM COVERS : Chapters 9 and 10. Lecture Notes, Assignments Three and Four. For each of the four policies listed below, answer the following questions: a. Explain the purpose of this policy: what is it intended to do? b. Conduct a complete welfare analysis of this policy, by computing and graphing initial and final levels of production, consumption, and price, ΔPS, ΔCS, ΔG, ΔSW, and DWL. c. Interpret the results of the welfare analysis: how well does the policy meet the stated objectives? (1) Price Ceiling (2) Price Support (a) Assume that no output is purchased by the government, and that there is no surplus. (b) Assume that no output is purchased by the government, and that there is a surplus that remains unsold. (c) Assume that the government purchases enough output to eliminate the surplus. (3) A Production Quota (4) An Import Quota Tax Incidence: Who pays for a tax and a subsidy? a. Define the terms, “specific tax,” “ad valorem tax,” and “subsidy.”
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This note was uploaded on 04/29/2008 for the course AGEC 505 taught by Professor Barkley during the Spring '08 term at Kansas State University.

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