Answer the following statement true (T) or false (F)
1) Farmers typically sell their products in highly competitive markets and buy in imperfectly
competitive markets.
2) If the demand for agricultural products is inelastic, a relatively small increase in supply will
cause farm prices and incomes to decline.
3) The use of price-support programs in agriculture has hastened the exodus of resources from
agriculture.
4) The concept of parity has provided a rationale for government price supports for farm
products.
1) T
2) T
3) F
4) T
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Beginning in 1971, the Nixon administration enacted a series of price controls in hopes of reducing inflation. The first of these, known as Phase I,
a. consisted of a price freeze. b. imposed a ceiling price on meat, but left other prices unregulated. c. froze wages, but left other prices unregulated. d. applied only to oil prices.