(11) All of the following statements are correct except,

a) Farm production costs are affected by climate, technology, farm size, and individual managerial skills.

b) Despite the annual and seasonal variation in the quality of farm products, some control over quality is possible through the control of the breeds, spraying, etc.

c) Each region in the US specializes in the production of commodities for which its resource base is best suited.

d) Farmers decreasing dependence on off-farm inputs has tied their economic welfare less directly to the nonfarm economy.

(12) When demand for a product rises less than proportionally in response to an

income increase, then income elasticity of demand is:

a) elastic

b) inelastic

c) unitary elastic

d) infinitely elastic

Farmers marketing problems are caused by all of the following, except:

a) difficulty to control the supply of farm commodities, given the large number of producers, as well as the effects of disease, weather, etc.

b) decreasing concentration and consolidation in the food processing sector

c) difficulty to organize farm producers

d) homogeneity and fungibility of farm commodities

If the demand for a good increases by 10% following a 25% decrease in income what is the income elasticity of demand?

-0.25

-2.5

0.4

-0.4

All of the following statement are incorrect except:

(A) Farm output varies from one year to another because farm commodities

are highly seasonal.

b) Physiological needs are part of the psychological needs.

c) Engels law states that as income in the US continues to rise, the share of income spent on food remains constant at 6%.

d) Functional and physiological food values reflect the contribution of food to consumer health and well-being.