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EQ 12 Spring 2010 Answer

EQ 12 Spring 2010 Answer - government agency Commodity...

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Spring 2010 AGEC 105 April 14, 2010 EQ #12 (worth 7 Points) Which of the following does NOT describe the real roots of the farm problem? (List ALL that apply) (a)Fixity of farm assets (b)Lack of market power by agricultural producers (c)Interest sensitivity of the agricultural sector (d)Own-price elasticity of demand for farm products is elastic (e)Underproduction of farm products Answer (d), (e)
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2. The price support program through a loan rate is controlled by which
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Unformatted text preview: government agency? Commodity Credit Corporation 3. Consider the diagram for wheat on the right. (a) With a loan rate of $3/bushel, farmers will supply __ 1200 _ bushels. (b) How many bushels of wheat will the government accumulate at the loan rate of $3/bushel? ___ 300 ___ bushels (c) What is the cost to taxpayers? $_ 900 _____ (d) What is the current national loan rate for wheat? $_ 2.94 _/bushel P 3 2 900 1000 1200 Q S D...
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