MID1~2006

MID1~2006 - University of California, Davis Department of...

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University of California, Davis Department of Agricultural and Resource Economics ARE 120 Spring 2006 Julian Alston FIRST MIDTERM EXAMINATION April 27, 2006 Name:_________________________________________ Discussion Section:______________________________ Student Identification Number:__________________________ Section Points Score I 60 II 50 III 80 VI 60 Total 250 THE TOTAL POINTS FOR THIS EXAM ARE 250 ABOUT 3 POINTS PER MINUTE.
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1 I. Multiple Choice Section (60 points). For each question circle the letter for only one answer. If you think more than one answer might be correct, choose the best one. Each correct answer is worth 6 points. 1. The 1996 Farm Bill (the FAIR Act) a. shifted the emphasis from government purchases to deficiency payments b. replaced deficiency payments with decoupled transfers c. eliminated loan rates d. all of the above e. none of the above 2. The 2002 Farm Bill (the FSRI Act) a. shifted the emphasis from government purchases to deficiency payments b. replaced deficiency payments with decoupled transfers c. eliminated loan rates d. all of the above e. none of the above 3. The dynamics of supply response means that, in response to the introduction of a target price above the market price, supported by deficiency payments a. output will become progressively greater over time b. the budgetary cost of deficiency payments will progressively increase over time c. the deadweight costs of the policy will progressively increase over time d. all of the above e. none of the above 4. If an input quota has the same effect on quantity produced as an output quota a. the input quota is more efficient than the output quota b. the input quota is less efficient than the output quota c. the input quota may be more or less efficient than the output quota d. the two quotas are equally efficient 5. Replacing a deficiency payments program that generates producer benefits of $1 billion with a decoupled transfer to producers of $1 billion would benefit a. producers alone b. consumers alone c. taxpayers and consumers d. producers, consumers and society as a whole e. taxpayers and society as a whole
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2 I. Multiple Choice Section (continued). 6. Relative to a target price with deficiency payments, if an alternative policy instrument could be used to give the same producer surplus benefit to wheat growers a. wheat growers would strongly prefer a quota b. flour millers would prefer a support price with government purchases c. taxpayers would always prefer government purchases d. bread consumers would prefer neither a quota nor government purchases
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MID1~2006 - University of California, Davis Department of...

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