AGEC 429 past test questions (100% Recommended)

A lot of attention has been focused on the forces of change in agriculture. List one of the forces discussed in class and provide an example of how it acts as a force of change in agricultural policy. correct answers Globalization- US depends on trade It was mentioned in class that Senators often have a broader perspective on policy issues than members of the House of Representatives? Why? correct answers Senators often have a broader perspective, because they have a longer term in office (6 years). They have more leeway with the public on where they stand on issues versus the House of Representatives due to their short terms (2 years). Members of the house have a short turn around before election so the public is likely to remember more of their standings versus senators. If the Price of corn in equilibrium is $4.00 per bushel and the quantity supplied equals quantity demanded at 150 bushels. WHat would happen to the quantity demanded if the price decreased by 25% to $3.00 per bushel assuming the demand elasticity is -.8? Show your work. correct answers a. E=%change in Q/ % change in P b. -.8=%Change in Q/ -.25 c. .2=%Change in Q d. 150*1.2= 180 e. Quantity demanded would increase to 180 bushels if price decreased by 25% Explain what capitalization means. What does it have to do with agricultural policy? correct answers a. Capitalization describes the process of converting income or assets into capital for a company. In terms of agricultural policy, this means taking profits and benefits of government programs and bidding them into the value of farm assets. b. From the book "The process by which excess profits earned on scarce resources get bid into the price of fixed assets." c. "the provision of capital for a company, or the conversion of income or assets into capital" - actual definition Why is it so important to understand how policy is made? correct answers In order to influence policy, you have to understand how policy is made. If you want to be able to affect it in any way, you have to know what is going on. Who is in charge of the policy process in the Federal Government? Why is having the majority in Congress so important to those working in Washington D.C.? correct answers Having the majority in Congress is extremely important because it allows for the majority party to have the most power and influence on the floor. The most powerful leadership positions are the Senate Majority Leader and the Speaker of the House, which are elected positions by the party caucus.