Commodity Markets

Question 1

A Standardized contract traded on the futures exchange to buy or sell a specified quantity of a commodity at a specified price in the future is called a

Answer 1

Futures Contract

Question 2

What is Physiocracy

Answer 2

Agriculture

Question 3

Who is the “Father” of Physiocracy?

Answer 3

Quesnay

Question 4

The Morrill Act

Answer 4

Land grant act

Question 5

The Hatch Act

Answer 5

Gives farmers access to university research

Question 6

Smith-Lever Act

Answer 6

Extended School Hours for farm kids

Question 7

Verbal description for demand elasticity for food in the US.

Answer 7

Relatively Inelastic

Question 8

in the US, is food considered a luxury or necessity?

Answer 8

Necessity

Question 9

Verbal description for demand elasticity for food almost everywhere else.

Answer 9

Relatively elastic

Question 10

Outside the US, is food considered a luxury or necessity?

Answer 10

Luxury

Question 11

What is public law 480?

Answer 11

If you are non-Marxist country, we send you the surplus of food

Question 12

How do public law 480 recipients pay for the grain they receive?

Answer 12

Counterpart funds

Question 13

How does public law 480 impact the supply and demand equilibrium for agriculture?

Answer 13

Quantity demand shifts right

Question 14

Name and Define the two crop LIMITATION programs:

Answer 14

Soil Banking- Government pays farmers to not farm, conserve land- Not to Plant

Payment in Kind (PIK) Government pays farmers to not put crop on the market- Not to Pick

Question 15

large storage costs is a drawback of which crop limitation program?

Answer 15

Payment in kind

Question 16

How does soil banking and payment in kind of programs impact supply and demand equilibrium for agriculture?

Answer 16

Supply shifts left

Question 17

name and define two major price SUPPORT programs:

Answer 17

Government purchase and price differential

Question 18

which major price support program would a farmer prefer and why?

Answer 18

Government purchase because price differential would be in his mind, a government handout.

Question 19

Which major price support program would the consumer prefer?

Answer 19

Price differential

Question 20

what is the term for a payment for which there is no return good or service?

Answer 20

Unilateral transfer payment

Question 21

A unilateral transfer payment to a household is called:

Answer 21

Welfare

Question 22

A unilateral transfer payment to a business is called:

Answer 22

Subsidy