Question

1) Which of the following are government policies:

a. NAFTA

B. Milk

C. We need to Preserve family farms

D. Canadian Wheat Board

E. a and c above

2) The following are consequences of globalization:

a. Countries are less dependent on one another

b. U.S. trade policy decisions affect other countries.

c. Farm Programs become more effective

d. It is easier for a country to protect its producers from outside competition

e. a nd c above

3) The primary contributor to unpredictable annual shifts in supply is:

a. Weather

b. Wars

c) Technology

d. Farm subsidies

e. Acreage

4) Which approach to analysis of policy strives for objectivity:

a. Scientific Method

b. Analytic

c. Evangelistic

d. Quantitative

e. Options and consequences

5) Which of the following factors influence agriculural policy

a. Food safety

b. Environment

c. Politics

d. Unforeseen events

e. All of the above

6) A 10% increase in price causes a 20% decrease in quantity demanded. The elasticity of demand is:

a. -2

b -2%

c. 0.5

d 0.5%

7) If a consumer income increases by 10% and as a result, consumers purchase 20% more of that commodity, the income elasticity of demand is:

a. -2

b. -2%

c. +2

d. 0.5%

8. Who makes the policy decision?

a. Kings

b. The kingmakers

c. The economic advisors.

d. The interaction of power clusters.

e. All of the above have influence

9. Regarding power clusters, which of the following statements are not true:

a. Decisions are made through the interaction of power clusters.

b. A power cluster can influence policy decision

c. The National Cattlemen's Beef Association (NCBA) is a power cluster

d. All of the above

10. Minority politics requires:

a. Finding allies issue by issue

b. Getting the majority party to agree.

c. Making the case based on emotion

d. Taking a bargaining position in the red zone.

e. All of the above

11. The EU:

a. Has a common agricultural policy

b. Is moving towards a multi-functionality policy

c. Employs extensive export subsidies

d. All of the above

e. and c above

12. Why does china appear to be moving faster than Russia in converting to a market economy:

a.Russia is larger

b. Russia is more diverse.

c. China has begun to allow private ownership and transfer of land while Russia has not.

d. China is self-sufficient in food.

e. All of the above

13. What is the greatest challenge facing China?

a. Competition from Russia upon entering WTO

b. Adapting its policies to WTO requirements

c. Transitioning to a market economy.

d. Competing in a world market

e. Non of the above

Answer 1

1. Option E. NAFTA is a trade agreement between USA, Mexico and Canada
Canadian Wheat Board is a marketing board for wheat and barley
2. Option c. With the globalization and free trade countries would be able to have more competition which improves efficiency
3. Option a. As in case of natural calamities, heavy rains the output decreases which would cause unpredictable shifts in the supply
4. Option a
5. Option e. Because all of the options have the potential to influence the agricultural policies
6. Option a. The elasticity value is a unit less value, Ed = -20/10 =-2
7. Option c. The income elasticity value is a unit less value, Id = 20/10 =2
8. Option e
9. Option c
10. Option e
11. Option a
12. Option c
13. Option c