Rail, truck, and barge rates are not affected by competition True False Question 2 2 pts DIN markets are: any system where buyers and sellers as individuals negotiate transactions outside of an organized market only those markets in which the actual physical commodity is on hand used only in the livestock industry None of the mentioned options Question 3 2 pts Homogeneous demand: means that buyers generally agree in their quality ranking is a sutficient condition for the existence of several grades of each agricultural commodity results in a homogeneous commodity that needs no grading means that buyers generally disagree in their quality ranking Grades of every commodity are concerned with measuring eating quality True False Question 5 Grading of agricultural commodities: None of the specified options is mandatory is chiefly for branded products was first used about 25 years ago Leadership in a market channel is not possible if channel participants have any dissimilar interests True False Question 7 2 pts A storable commodity's "carryover": none of the options is the working inventory is the amount harvested is twice the average harvest Question 8 2 pts Concerning market-pricing alternatives of grain farmers: pricing cash at harvest is the most popular method among today's farmers a farmer needing a quick payment should price pre-harvest in futures and store over winter production contracts are illegal in many states pricing after harvest requires use of options or futures Question 9 2 pts Trade barriers: are still used by nations as a means of rewarding their friends and punishing their enemies arise entirely from a failure to understand comparative advantage have been increased through GATI are totally responsible for the large fluctuations in U.S. exports in recent years Question 10 2 pts Priced differentials among grades have frequently been the communication device by which changing brands were transmitted to producers who responded by altering the nature of commodities 50ld. True False Which of the following is the best explanation for why we have grades: a third-party sorting facilitates communication and trading without inspection all quality variation is biologically inevitable to exploit the demand of the consumers the government wants to regulate everything Question 12 2 pts Secking market power is the main reason that most farmers contract True False Question 13 2 pts Which of the following is favourable to increasing U. S. exports of feed grains? rising incomes in the emerging economies a rising exchange value of $ higher U. S. government support prices for feed grains the failure of the WTO
