Reference no: EM131510370
1. Relative to free trade, a tariff on imports of wine into the United States would result in
a. an increased quantity of U.S. wine production
b. a decreased quantity of U.S. imports of wine
c. a decreased quantity of wine consumption in the United States
d. all of the above
2. A successful buffer-stock scheme
a. was operated by the Australian wool industry in the 1980s and 1990s
b. benefits producers at the expense of consumers
c. benefits both producers and consumers at the expense of taxpayers
d. relies on buying when prices are low and selling when prices are high
3. Prior to 2004, U.S. tobacco policy benefited U.S. tobacco quota owners at the expense of
a. U.S. taxpayers
b. foreign tobacco growers
c. U.S. tobacco growers who do not own quota
d. the U.S. economy as a whole
e. none of the above
4. U.S. sugar policy has benefited
a. both U.S. sugar producers and U.S. sugar consumers
b. both U.S. sugar producers and Australian sugar producers
c. both U.S. sugar producers and U.S. sugar importers
d. both U.S. sugar producers and U.S. high fructose corn syrup producers
e. none of the above
5. During the period 1985-1995
a. both EU consumers and EU producers benefited from EU wheat policy
b. U.S. sugar policy lowered both the world price and U.S. domestic price of sugar
c. U.S. tobacco quota owners benefited from U.S. tobacco policy at the expense of U.S. consumers and taxpayers
d. EU producers benefited from EU wheat policy at the expense of EU consumers, taxpayers and foreign producers
e. none of the above is true
6. Wheat export subsidies in the European Union
a. caused the European Union to become a net exporter
b. were one of the reasons behind the U.S. wheat export subsidies
c. added to the budget cost of U.S. wheat policies
d. all of the above are true
e. none of the above is true
7. The U.S. government subsidizes crop insurance because
a. moral hazard reduces profitability for insurance companies
b. adverse selection reduces profitability for insurance companies
c. it is expensive for insurance companies to reinsure agricultural price and yield risks
d. all of the above are true
e. none of the above is true
8. Government subsidies for crop insurance
a. pay about 60% percent of the fair premium (that would cover expected liabilities)
b. pay for administrative costs incurred by insurance companies
c. benefit insurance companies as well as farmers who buy insurance
d. are the most important form of U.S. farm subsidies
e. all of the above are true
f. none of the above is true
9. The California dairy policy
a. benefits producers at the expense of taxpayers
b. uses an output quota to control production
c. uses pooling to redistribute benefits from price discrimination
d. all of the above are true
e. none of the above is true
10. Assume Canada has a comparative advantage in production of durum wheat (used to make pasta) relative to the United States. Which of the following do not benefit from freer trade in durum wheat between the United States and Canada?
a. Canadian durum wheat growers
b. U.S. durum wheat growers
c. Flour millers and pasta consumers in the United States
d. none of the above (i.e., all of the above benefit)
e. all of the above (i.e., none of the above benefit)