Question

7) US per capita beef consumption is four times the world’s average.

T/F

8) In an “Oligopoly” market structure the demand curve faced by an individual producer is “horizontal.

T/F

9) In the US, chicken industry, contracting (between packing plants and farms) represents less than 90% of total plant purchasing of chickens.

T/F

10) Currently, the largest importer of US agricultural products is China. 11) The US agricultural Trade balance is negative.

T/F
12) Income is a demand shifter.

T/F
13) Five Rivers is a company belonging to JBS.

T/F

14) Most of white corn produced in the US is grown under contracts.

T/F
15) TDA checks the accuracy of supermarket scanners in Texas.

T/F
16) More of the 30% of US beef production is exported.

T/F
17) Cotton is the top agricultural commodity produced in Texas (by value) 18) US beef exporters will prefer a “stronger’ US Dollar

T/F

19) If demand cross price elasticity is positive, those products are substitutes.

T/F
20) Developed countries will represent most of the future global demand for grain products.

T/F

Answer 1

Ans 7.

True. World per capita beef consumption was 17.4 pounds in 2016 and USA per capita beef consumption was 79.3 pounds in 2016, amounting to 4 times the world per capita consumption of beef (79.3/17.4 = 4.55)

Ans 8.

False. Under perfect competition, the demand curve faced by an individual producer is horizontal, indicating perfect elasticity of demand. Firms in perfect competition are price-takers, selling at the ongoing market price.

Ans 9.

False. More than 90% of chicken raised for meat in the USA are raised by contract farmers.Chicken companies provide guidance to the farmers for raising the best possible chickens. All the required feed, water and expert guidance is provided by the company. The farmers house the chickens and look after their daily needs.

Ans 10.

False. As per trading stats, China was USA's largest market for agricultural goods for years before 2018. In 2018, Canada beat China to become the largest market. Canada was the top market for agricultural goods in 2019 as well.

Ans 11.

False. The USA Agricultural Trade Balance has stayed positive for years.

Ans 12.

True. With increase in income, the consumers have more disposable income for increasing their consumption of a commodity.

Ans 13.

True. Five Rivers is owned by JBS S.A.. The Five Rivers Cattle Feeding was however sold to Pinnacle Asset Management LP by JBS, USA in 2018.

Ans 14.

True. One half ( 50%) of white corn produced in the US is grown under contracts.

Ans 15.

True. The Texas Department of Agriculture (TDA) has a price verification program in place for checking the price scanners for accuracy.

Ans 16.

False. About 13% of meat production was exported in 2017.

Ans 17.

False. Cattle is the top agricultural commodity of Texas by value ($ 12.3 billion - 2017). Cotton is second by value ($ 2.6 billion - 2017).

Ans 18.

False. A strong dollar makes imports cheaper and exports expensive. The strengthening of the US dollar will make US goods less competitive in the global market due to high price thus, decreasing the demand for US goods. As a result, US exports will be hampered.

Ans 19.

True. If two goods are close substitutes of one another, their cross price elasticity will be positive because when the price of one will increase, the demand for the other will decrease.

Ans 20.

False. Developing countries are being seen as the major driver of global grain demand owing to increasing urbanisation, growing population and rising income levels.