Question

Part I TRUE OR FALSE:

1) The US Domestic Market buys more than 50% of the total US agricultural production value.

T/F

2 In a “Mature” market for food (like the US) most of the increase in total food consumption comes from income growth.

T/F

3) A technological improvement in cotton production (for example a yield increase) will shift the cotton SUPPLY curve to the LEFT.

T/F

4) A demand curve is “inelastic” if the absolute value of its own-price elasticity coefficient is > 0 5) Engel’s law states that as per capita income grows the percent spent in food increases.

T/F

6) In the US, food expenditures represent less than 20% of personal disposable income.

T/F

7) US per capita beef consumption is four times the world’s average.

T/F

8) In an “Oligopoly” market structure the demand curve faced by an individual producer is “horizontal.

T/F

9) In the US, chicken industry, contracting (between packing plants and farms) represents less than 90% of total plant purchasing of chickens.

T/F

10) Currently, the largest importer of US agricultural products is China. 11) The US agricultural Trade balance is negative.

T/F
12) Income is a demand shifter.

T/F
13) Five Rivers is a company belonging to JBS.

T/F

14) Most of white corn produced in the US is grown under contracts.

T/F
15) TDA checks the accuracy of supermarket scanners in Texas.

T/F
16) More of the 30% of US beef production is exported.

T/F
17) Cotton is the top agricultural commodity produced in Texas (by value) 18) US beef exporters will prefer a “stronger’ US Dollar

T/F

19) If demand cross price elasticity is positive, those products are substitutes.

T/F
20) Developed countries will represent most of the future global demand for grain products.

T/F

Answer 1