Question

In: Economics

True or false? 1. If the expected profit is lower with the new technology, the farmer...

True or false?

1. If the expected profit is lower with the new technology, the farmer will never have an incentive to adopt the new technology.

2. The end of the bracero program devastated the processing tomato industry, where many bracero workers were employed.

3. The U.S. government ended the Bracero Program in 1964 partly because unions argued that Bracero workers competed with U.S.-born workers.

4. Economic research shows that farm workers in the United States are becoming less willing to engage in follow-the-crop migration

5. In an agricultural household model with perfect markets, an increase in the price of the crop will increase the amount of family labor used to produce the crop.

6. An increase in the price of the crop makes all agricultural households better off.

Solutions

Expert Solution


1. If the expected profit is lower with the new technology, the farmer
will never have an incentive to adopt the new technology: True (as
lower expected profits will make farmers shy away from adopting new
technology)

2. The end of the bracero program devastated the processing tomato
industry, where many bracero workers were employed: False

3. The U.S. government ended the Bracero Program in 1964 partly
because unions argued that Bracero workers competed with U.S.-born
workers: False (it ended because it led to lower forced wages and poor
working conditions of workers)

4. Economic research shows that farm workers in the United States are
becoming less willing to engage in follow-the-crop migration: False
(farm workers have been willing to engage in follow-the-crop
migration)

5. In an agricultural household model with perfect markets, an
increase in the price of the crop will increase the amount of family
labor used to produce the crop: True (as incentive to produce more
increases)

6. An increase in the price of the crop makes all agricultural
households better off: True (as profits of households increases)


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