Agec 315 Exam 1 Hendricks Already Rated A+
Increases supply by shifting supply
An increase in crop yields due to the development of higher yielding crop varieties affects world supply
and demand for food in which of the following ways?
II and III
Which of the following represents a shift ...
An increase in crop yields due to the development of higher yielding crop varieties affects world supply
and demand for food in which of the following ways?
II and III
Which of the following represents a shift in the demand curve?
I. Consumers buy less beef because beef prices have increased.
II. Consumers buy more beef as income increase.
III. Consumer buy more Cheerios because Cheerios removed all GMO ingredients.
An increase in production by shifting the supply curve.
Food prices have been decreasing over the past year. Which of the following is consistent with a
decrease in food prices?
I only
Which of the following represents a shift in the demand for corn tortillas?
I. An increase in incomes increases demand for corn tortillas.
II. A new production technology increases corn production.
III. The price of corn tortillas decreases.
I and IV
Which of the following represents a shift in the supply curve?
I. A chemical that kills weeds is less effective and crop production decreases.
II. Ranchers increase production of cattle because cattle prices increase.
III. China buys fewer U.S. soybeans because they learn how to use fewer soybeans.
IV. A drought decreases crop production.
II only
Which of the following represents a shift in the supply curve?
I .Farmers are expected to plant more cotton this year because the price of cotton is high relative to the
price of corn.
II. Drought conditions have eased in California and food production is expected to increase as a result.
III. K-State lowers the price of tickets for shows in McCain and ticket purchases increase.
I only
Which of the following represents a shift in the demand curve?
I. An advertisement with an adorable little boy promoting hot cocoa results in an increase in hot cocoa
,sales.
II. The price of apples increases causing people to buy fewer apples.
III. The amount of cocoa decreases due to adverse weather in cocoa producing regions.
False
Demand is relatively inelastic if small changes in prices cause relatively large changes in consumption.
True
Food prices tend to be highly volatile because food supply and demand are highly inelastic.
True
Supply is relatively elastic if small changes in prices cause relatively large changes in production.
True
When supply is more inelastic, the price of corn increases more from an increase in corn demand due to
an increase in ethanol production. (Hint: Draw a very inelastic supply curve and a shift in demand. Next
draw a very elastic supply curve and a shift in demand. For which case does the price of corn increase
more due to the demand shift?)
False
From 1960-2006, the general trend in real (deflated) prices of major grains was increasing at an
increasing rate.
False
The increase in yields in the Green Revolution occurred primarily through genetic engineering.
True
One critique of the Green Revolution is that wealthy commercial farmers got access to seeds first
resulting in greater rural inequality.
True
The Green Revolution occurred primarily in Asia and Latin America.
II and III
Which of the following represents the views of critics of the Green Revolution?
I. Greater irrigation and chemical use harmed the environment.
II. Higher crop prices resulted in greater deforestation and harmed the environment.
III. Wealthy commercial farmers got access to seeds first resulting in greater rural inequality
True
Norman Borlaug is often referred to as the "father of the Green Revolution."
True
, William and Paul Paddock predicted a massive famine would occur in India by 1975 due to
overpopulation and recommended that the United States not provide India with food aid.
False
The ideas of Malthus have not been influential for the past 100 years.
False
Malthus is famous for predicting famines in the late 1960s and early 1970s due to population growth
exceeding food production.
I and II
Why has Malthus been wrong so far?
I. Population growth has slowed as incomes have increased.
II. Agricultural production increased dramatically.
III. Massive famines have slowed population growth.
False
The U.S. government followed the advice of William and Paul Paddock to not provide food aid to India.
Norman Borlaug
It is said that __________ was the man who saved a billion lives.
-44.0
Scenario 1: Assume that demand increases as projected by the FAO. This would lead to a 60% increase
in demand from 2010 to 2050. Another conventional assumption is that land area used for crops will
increase by roughly 11% during the period and yields will increase by 1.25% per year leading to a 64%
total increase in yields. In total, this implies an 82% increase in supply from 2010 to 2050.
Assume that the elasticity of demand is -0.15 and the elasticity of supply is 0.35.Using these parameters,
what is the percent change in the price of food from 2010 to 2050?
Note: Enter your answer in percentage form rounding to 1 decimal place and use positive numbers to
indicate an increase in price and negative numbers to indicate a decrease in price. For example, if
price decreases by 5.137%, then enter -5.1 as your answer.
63.3
Scenario 2: Assume that demand increases 60% as before. But now instead assume that yields only
increase at an annual rate of 0.5% and land used for food does not change. This implies a total increase
in supply of 22% from 2010 to 2050. Yields may grow slower due to climate change, soil erosion,
decreased research expenditures, or lack of irrigation water. Land used for food may not increase
because land expansion is restricted to mitigate climate change or because some land is lost from soil
degradation.
Assume that the elasticity of demand is -0.2 and the elasticity of supply is 0.4.Using these parameters,
what is the percent change in the price of food from 2010 to 2050?
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