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Unformatted text preview: dapps A560 105 Spring 2009 Name: AG #5 UIN:
(lpt) 1. The A 679????“ VOLSTEEQ Actﬂwas the principle legislation exempting cooperatives (agricultural bargaining associations) l‘rom anti-trust laws. (lpt) 2. Name the legislative act responsible for the creation of marketing orders. the
arrangement among producers and processors 01‘ agricultural commodities in which the chief goal is to improve income. ﬂwnugmm mn/yérrﬂﬂa #éﬂmWﬁCfofw7
/ (2pts) 3. The piece of legislation that not only plugged loopholes in the Sherman
Antitrust Act of 1890, but also created the Federal Trade Commission was:
@136 Clayton Act of 1914
Q: (b) the Capper-Volstead Act of 1922
(c) the Agricultural Marketing Agreement Act of 1937
(d) the Packers and Stockyards Act of 1921 (2pts) 4. In an oligopoly, which of the following is not true?
(a) ﬁrms will match all price decreases of another, but will not match price
(b) the market demand curve is kinked
j) (e) ﬁrms will attempt to differentiate their products GE ﬁrms will match all price increases of another, but will not match price
decreases (2pts) 5. Circle all of the answers that are true.
@Monopolists will charge a higher price and produce less output than ﬁrms
engaging in perfect competition _
(b) Monopolists will charge a lower price and produce more output than ﬁrms
engaging in perfect competition-
A ’2) (c) Monopsonists will offer a higher price and buy more input than ﬁrms
l engaging in perfect competition
1 onopsonists wiil offer a lower price and buy less input than ﬁrms engaging in perfect competition I) MC
(stun It) ATC
20 18 50 55 at) "its
(2pts) 6. (a) 1n the diagram above, suppose the government imposes a price ceiling of $27. The total revenue the monopolist will accrue is 55 L / Q 30 m_ in: $32, (9-55: (W
(b) Without the price ceiling, the total revenue the monopolist will accrue is
S I 500 4,,sdﬁgdc_ﬁ______m' Fjw géhql [Par jﬁﬁ Games .4966 106 Spring 2009 (2pts) 7'. Which of the lbltowing does not describe the real roots ol‘thc farm problem?
(a) lixity of farm assets
(b) lack of" market power by agricultural producers if) interest sensitivity ol‘the agricultural sector ' own—price elasticity ol'demaud for farm products is elastic (4pts) 8. The graph to the right depicts the situation for a monopsonist. F or the inonopsonist, how much of the input
should be used, assuming prolit maximization, and how much should be paid for the $8.00
corresponding input? '
‘t S Plnput($/unit) Amount of input used: _ ft Qﬂ_____m units $6.25 Price paid for the input: $ 5:51) géii/unit $5.50 " " U d . 1. t H. ., .. . .. .. .. MVP(or MRP)
n or per cc compe 11011. 1000 1200 Q I
Amount of input used: _ 4 800 _units
Price paid for the input: $ é 25” /unit
(2pts) 9.ccording to the philosopher Thomas Malthus, the population grows at a geometric rate, but food production grows at an
Q‘ '7 ‘7 arithmetic rate. Thus, the time will eventually come when it is impossible to
feed the world. (b) the population grows at an arithmetic rate, but food production grows at a
geometric rate. Consequently, there will never come a time when it is impossible to feed the world.
(c) government intervention in the agricultural sector is politically undesirable (d) none of the above. (2pts) 10. The rationale for government intervention into the agricultural sector typically
. (a) providing for environmental quality
9 (b) providing for national food security
(c) providing for consumer health and safety
11 of the above Sign Me Aggie Madge: “On my honor, as an Aggie, I have neither given nor received (my mmul/mrized aid on
this quiz. " Signature ...
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- Spring '09
- Perfect Competition, Sherman Antitrust Act, Clayton Antitrust Act, Aggie Madge, agricultural bargaining associations