Why study the economics of agriculture in the United States? Give five reasons
What will be an ideal response?
Agriculture is an important industry for several reasons: (a) It is one of the nation’s largest industries, accounting for about $291 billion in gross farm income and for about 13% of consumer expenditures; (b) Agriculture, without its government farm programs, is a real world example of pure competition; (c) Farm products provide evidence of both the intended and unintended effects of government policies that interfere with supply and demand; (d) Agricultural policies offer good examples of the special-interest effect and rent-seeking behavior; and (e) Agriculture reflects the increasing globalization of markets, both in terms of the volatility of commodity prices and the difficulties of achieving free trade.
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According to the Coase theorem, under which conditions can private parties solve the problem of externalities?
a) if the cost of bargaining is small b) if the initial distribution of rights favours the person being adversely affected by the externality c) if the number of parties involved is sufficiently large d) if the number of parties involved is sufficiently small
Martha quits a minimum-wage part-time job for a salaried full-time job. The BLS will count Martha as
A) originally unemployed but now employed. B) originally employed and continuing to be employed. C) originally a discouraged worker but now happily employed. D) any of the above.