AGEC 105 - chapter 11 Exam Questions
and Answers Graded A+
the Federal Trade Commission (FTC) is responsible for.... - Correct answer-
prohibiting companies from acting together to increase market control using
deceptive trade practices
Asset Fixity refers to how.... - Correct answer-many production assets (cotton
picker or silos) have little value in other industries
changes in supply + highly inelastic demand may cause - Correct answer-
booms/busts in farm income
an approach in dealing with low returns to resources is the implementation of... -
Correct answer-commodity supply programs by the Conservation Reserve
Program(CRP)
T/F: the federal crop insurance program in a safety net for crop producers - Correct
answer-True
the farm bill (2014-2018) supplements what two options through CRP - Correct
answer-1) Price Loss Coverage - price triggered
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
, 2) Agricultural Risk Coverage - revenue triggered
T/F: the level of export demand doesn't affect the elasticity of demand - Correct
answer-False
the cotinuation of programs in which the elasticity of demand exceeds 1 may lower
farm revenue
government intervention in the farm sector is due to - Correct answer--
support/protect infant industry
- curb market power of imperfect competition
- provide national food security
- provide consumer with health/safety
- provide environmental quality
T/F: the US food and fiber industry is the least regulated industies of the economy
- Correct answer-False
it is one of the most regulated industies of the economy
record crops can lead to - Correct answer-sharp declines in farm product prices and
income levels
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
and Answers Graded A+
the Federal Trade Commission (FTC) is responsible for.... - Correct answer-
prohibiting companies from acting together to increase market control using
deceptive trade practices
Asset Fixity refers to how.... - Correct answer-many production assets (cotton
picker or silos) have little value in other industries
changes in supply + highly inelastic demand may cause - Correct answer-
booms/busts in farm income
an approach in dealing with low returns to resources is the implementation of... -
Correct answer-commodity supply programs by the Conservation Reserve
Program(CRP)
T/F: the federal crop insurance program in a safety net for crop producers - Correct
answer-True
the farm bill (2014-2018) supplements what two options through CRP - Correct
answer-1) Price Loss Coverage - price triggered
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
, 2) Agricultural Risk Coverage - revenue triggered
T/F: the level of export demand doesn't affect the elasticity of demand - Correct
answer-False
the cotinuation of programs in which the elasticity of demand exceeds 1 may lower
farm revenue
government intervention in the farm sector is due to - Correct answer--
support/protect infant industry
- curb market power of imperfect competition
- provide national food security
- provide consumer with health/safety
- provide environmental quality
T/F: the US food and fiber industry is the least regulated industies of the economy
- Correct answer-False
it is one of the most regulated industies of the economy
record crops can lead to - Correct answer-sharp declines in farm product prices and
income levels
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
