One of the three major farm problems is instability of farm prices.

One of the three major farm problems is instability of farm prices.

Answer: True

Parity price means prices that will give a unit of an agricultural commodity the same purchasing power that unit had in some previous period.

Parity price means prices that will give a unit of an agricultural commodity the same purchasing power that unit had in some previous period.

Answer: True

Women, Infants and children (WIC) is an example of a demand expansion program.

Women, Infants and children (WIC) is an example of a demand expansion program.

Answer: True

Speculators in the futures market make money from the rise and fall of prices.

Speculators in the futures market make money from the rise and fall of prices.

Answer: True

There is only one way to settle a futures contract, and that is to take delivery of a commodity.

There is only one way to settle a futures contract, and that is to take delivery of a commodity.

Answer: False

The number of open contracts in the market is equal to the open interest.

The number of open contracts in the market is equal to the open interest.

Answer: True

Donuts are a example of a production activity.

Donuts are a example of a production activity.

Answer: True

There can only be positive production externalities.

There can only be positive production externalities.

Answer: False

Hedonic Pricing involves determining the value of an amenity by asking people how much they are willing to pay for it.

Hedonic Pricing involves determining the value of an amenity by asking people how much they are willing to pay for it.

Answer: False

Non market goods from the forest include wilderness, oxygen, water quantity and wood.

Non market goods from the forest include wilderness, oxygen, water quantity and wood.

Answer: False, wood is not a non market good

Market Goods from the forest include wood, homesites and oxygen.

Market Goods from the forest include wood, homesites and oxygen.

Answer: False, Oxygen is not a market good

Cows and trees would be considered a biological resource.

Cows and trees would be considered a biological resource.

Answer: True

Rangeland overgrazing diminishes the quantity and productivity of the resources.

Rangeland overgrazing diminishes the quantity and productivity of the resources.

Answer: True

Product flow from cows and trees can maintained indefinitely.

Product flow from cows and trees can maintained indefinitely.

Answer: True

Cows trees exhibit characteristics of flow and fund resources.

Cows trees exhibit characteristics of flow and fund resources.

Answer: True

A fund resource in one that has quantities fixed in their natural state.

A fund resource in one that has quantities fixed in their natural state.

Answer: True

All of the following are reasons for price risk except for:

All of the following are reasons for price risk except for:

A. Quota programs
B. Time Difference between production and marketing
C. Uncertain Nature of farm insurance
D. National and international policies

Answer: A

Common Property is considered all of the following except

Common Property is considered all of the following except

A. federal Forest
B. Air we Breath
C. Ocean and lake fisheries
D. Private Rock Quarries

Answer: D

The demand expansion programs include all of the following except:

The demand expansion programs include all of the following except:

A. School breakfast and lunch programs
B. Food Stamp Program
C. WIC
D. Capper Volstead Act

Answer: D

Speculators do all of the following except for:

Speculators do all of the following except for:

A. Provide risk capital
B. Provide volume and liquidity
C. Keep hedgers from using the market for their benefit
D. Keep markets in alignment

Answer: C