Question

Which of the following best describes the main problem faced by farms in the long run?...

Which of the following best describes the main problem faced by farms in the long run?

1.

Lagging technology has decreased the productivity of farmers and therefore resulted in low farm prices and incomes.

2.

The highly inelastic nature of agricultural demand has caused small year-to-year fluctuations in farm output to result in highly unstable farm incomes.

3.

The supply of farm products has increased relative to the demand for them, and, because demand is inelastic, farm prices and incomes have therefore declined.

4.

The demand for farm products has increased relative to their supply, but the highly elastic nature of agricultural demand has caused these shifts to result in declining farm incomes.

Over the past several decades, farm employment has:

1.

grown absolutely, but declined as a percentage of total employment.

2.

declined both absolutely and as a percentage of total employment.

3.

increased both absolutely and as a percentage of total employment.

4.

declined absolutely, but increased as a percentage of total employment.

Homework Answers

Answer #1

1. Option 3.

  • The agricultural farms in long run faced the problem of demand shortage as supply of farm products exceeded the demand for those products.
  • In the long run period, the demand was inelastic and did not undergo much changes even when the price changed.
  • This led to the decline of farm price's and incomes.

2. Option 2.

  • Farm employment had been gradually decreasing from the past few decades.
  • This is because more and more people are moving out of the agricultural sector into service sector due to lack of opportunities and income.
  • Hence, farm employment has declined both absolutely and as a percentage of total employment.
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Which of the following statements about U.S. agriculture is true as it relates to the past...
Which of the following statements about U.S. agriculture is true as it relates to the past several decades? The prices of farm products have increased, minimum efficient scale has declined, and the supply of farm products has been stagnant. Minimum efficient scale has increased, the prices of farm products have declined, and the number of farms has declined. The demand for farm products has become both more income elastic and more price elastic. The demand for farm products has declined,...
On a graph of a demand curve, total consumer surplus equals:     A-the demand curve. B-the...
On a graph of a demand curve, total consumer surplus equals:     A-the demand curve. B-the area above the demand curve and beneath the market price. C-the market price. D-the area beneath the demand curve and above the market price. Total producer surplus equals:     A-the area above the supply curve and beneath the market price. B-the area beneath the supply curve and above the demand curve. C-the market price. D-the supply curve. An increase in supply refers to:    ...
Question 1 The following is the MOST PRECISE definition of the Own Price Elasticity of Demand:...
Question 1 The following is the MOST PRECISE definition of the Own Price Elasticity of Demand: Question 1 options: A. Is the measure of how sensitive is the consumer to change in prices. B. It measures the slope of the demand curve. C It measures the percentage change in quantity demanded of good x as a result of a percentage change in price per unit of good x. D. It measures the total change in quantity demanded of good x...
3.   Which of the following would be LEAST LIKELY to be considered a long-run determinant of...
3.   Which of the following would be LEAST LIKELY to be considered a long-run determinant of consumption? (a) an external shock to the financial system; (b) attitudes toward thrift; (c) the availability and cost of credit; (d) asset holdings of households and businesses. 4.   Impacts of taxes can be felt in: (a) changes in the propensity to take on risk; (b) alterations of the work-leisure tradeoff; (c) adjustments in the capital-to-labor ratio and investment; (d) all of the above. 5.  ...
Which one of the following statements is true? Select one: a. Traditional Keynesian analysis indicates that...
Which one of the following statements is true? Select one: a. Traditional Keynesian analysis indicates that increases in government purchases are a more potent tool than decreases in taxes. b. According to Keynesians, fiscal policy is the first line of defense against economic downturns. c. Advocates of sacrifice ration claim that a zero-inflation target imposes only small costs on society. d. Sacrifice ration implies that a credible commitment to reducing inflation can lower the costs of disinflation by inducing a...
1. Which is the most accurate definition of the study of economics? [1] Distributing surplus goods...
1. Which is the most accurate definition of the study of economics? [1] Distributing surplus goods to those in need. [2] Dealing with affluence in a morally bankrupt world. [3] Using scarce resources to satisfy unlimited human wants. [4] Reducing human wants to eliminate the problem of scarcity. 2. Computer software represents [1] labour. [2] land. [3] capital. [4] entrepreneurship. 3. Suppose you have graduated with a degree in accounting and are offered a job with an accounting firm. But...
1.) True or False? For all societies, resources are scarce, and technology is limited, while people’s...
1.) True or False? For all societies, resources are scarce, and technology is limited, while people’s wants and needs for goods and services seem to be unlimited. (2 points) 2.) (1 point) Adam Smith’s “invisible hand” refers to a.) the subtle and often hidden methods that businesses use to profit at consumers’ expense. b.) the ability of free markets to reach desirable outcomes, despite the self-interest of market participants. c.) the ability of government regulations to benefit consumers, even if...
What is Medicare Part C? Provides the aged with home health care Provides the aged with...
What is Medicare Part C? Provides the aged with home health care Provides the aged with prescription drugs Enables low-income aged to participate in Medicaid Provides a voluntary managed care option for the aged How is Medicaid financed? It is financed entirely by the federal government. It is financed entirely by the state. States receive the same percentage of federal support. States with lower per capita incomes receive a greater percentage of federal support If a healthcare system is "free"...
Argentina and Ecuador: Understanding the Currency Crisis While fiscal policy is never far from the mind...
Argentina and Ecuador: Understanding the Currency Crisis While fiscal policy is never far from the mind of your average Argentine, who remembers the tough times and hyperinflation of the 1980s, the events of 2001 and 2002 have brought fiscal policy back to the forefront of public concern. Though the early 1990s may have been characterized by financial optimism, Argentina has been in a recession since Brazil's 1998 monetary crisis sent shockwaves across the regional and global markets. In early 2002,...
QUESTION: Why do governments typically take an unsupportive stance on countertrade arrangements? Article Below: The Bell...
QUESTION: Why do governments typically take an unsupportive stance on countertrade arrangements? Article Below: The Bell Boeing V-22 Program, a strategic alliance between Bell Helicopter, a Textron Company, and the Boeing Company,1,2 announced the V-22 Osprey tiltrotor will be featured at the Dubai International Air Show in the United Arab Emirates (UAE) from November 13 to 17, 2011. The Air Show, held biennially, is organized in cooperation with the government of Dubai, the Department of Civil Aviation, and Dubai International...