Describe the purpose of the Food, Conservation and Energy Act of 2008
What will be an ideal response?
The Food, Conservation and Energy Act of 2008 is designed to provide subsidies and aid for farmers. It continues to give farmers freedom to plant and provides direct payment approaches to farm policy. It has three basic types of subsides for agricultural commodities: First, it provides constant direct payments to farmers based on past crop production levels. The payments are unaffected by current crop prices or production and they do not decline. Second, there are counter cyclical payments that cover any gap if the market price of a commodity falls below the target price. Third, there are marketing loans that can provide additional subsidies. The legislation makes it clear that agriculture will continue to receive large government subsidies in spite of the excess production and market distortion arising from these subsidies.
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Which of the following could cause nominal GDP to increase, but real GDP to decrease?
A) The price level falls and the quantity of final goods and services produced falls. B) The price level falls and the quantity of final goods and services produced rises. C) The price level rises and the quantity of final goods and services produced falls. D) The price level rises and the quantity of final goods and services produced rises.
Which of the following is true of private ownership?
a. Private ownership links responsibility with the right of control. b. Private owners have little incentive to conserve natural resources for the future. c. Private owners have little incentive to develop and use their assets in ways others value. d. Private owners can do anything they want with the things they own regardless of the damage it does to the property of others.