AQ 5 2009 Answers

AQ 5 2009 Answers - dapps A560 105 Spring 2009 Name AG#5...

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Unformatted text preview: dapps A560 105 Spring 2009 Name: AG #5 UIN: 0% I932 (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 increases - (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 30 AVG 27 25 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 Input (units) 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 includes: . (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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AQ 5 2009 Answers - dapps A560 105 Spring 2009 Name AG#5...

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