AGRO350 Exam 2

Question 1

What takes away Own-Labor entitlement?

Answer 1

unemployment, forced to do labor for someone else, immigration status/visa, injury or disability, etc

Question 2

What takes away Production entitlement?

Answer 2

weather (drought/excess water), gov’t control of production, dispossession of land or animals

Question 3

What takes away Trade-Based entitlement?

Answer 3

government controlled markets, high prices, or boarder controlled (civil wars)

Question 4

What takes away Transfer or Inheritance entitlement?

Answer 4

stocks are seized, failure of obligation, gov’t control

Question 5

Who is most affected by famines?

Answer 5

Small scale farmers whose crops fail or landless agriculture workers who loose their jobs

Question 6

What affects Urban people (famine wise)?

Answer 6

High prices

Question 7

Ireland Potato Famine

Answer 7

potato blight took out all potatoes due to lack of biodiversity
1 mil died, 1 mil emigrated

Question 8

South Asian Famines

Answer 8

High prices and landless workers starve

Question 9

Ukraine Famine Holodomor

Answer 9

Agricultural disruption made worse by Soviet Union control- market controlled and forced labor

Question 10

China Great Leap Forward

Answer 10

Agricultural disruption paired with demanding communist government (everything is everyones)

Question 11

Current Famine examples

Answer 11

Somalia (2011) and South Sudan (2017)

Question 12

How many entitlement failures = famine?

Answer 12

Well sometimes 1 but usually multiple entitlements are taken away collectively make a famine

Question 13

Trade-Based entitlement

Answer 13

right to own what you obtain by trading something you own to someone else willingly
Ex: USSR policy eliminated free food markets (failure of trade-based entitlement)

Question 14

Own-Labor entitlement

Answer 14

right to own products that you produce with own labor
Ex: forced to work for collective farms or slaves

Question 15

Production entitlement

Answer 15

right to own what you produce from own resources
Idea that you can control what your workers or machinery produces
Ex: USSR confiscating machinery and land or forcing people to work for the government

Question 16

Transfer or Inheritance entitlement

Answer 16

entitled to own what is willingly given to you by another person who owns it
Ex: Gov’t seizes stored rice

Question 17

Martin Ravallion’s Famine Combat Strategies

Answer 17

better governance (can’t ignore famine), rapid response to crises, increase food availability, distribution policies, stabilization policies, economic development

Question 18

What shifts food demand curves?

Answer 18

Increase/Decrease (linear relationships) in population, popularity, or income

Question 19

What shifts food supply curve outwards?

Answer 19

Outward=increase
New technology, climate changes, irrigation, more land or labor

Question 20

What shifts food supply curve inwards?

Answer 20

Inward= decrease
Drought, crop disease, loss of labor or land

Question 21

Income elasticity of inferior good

Answer 21

Income increases= buy less
Income elasticity <0 (less than 0)

Question 22

Income elasticity of normal good

Answer 22

Income increases= Buy more of it
Income elasticity >0

Question 23

Income elasticity of luxury good

Answer 23

Income increase= buy disproportionately more (cars/caviar)
Income elasticity >1

Question 24

Engel’s Law

Answer 24

As income increases, proportion of income spent on food increases but absolute amount spent of food increases at a decreasing rate

Question 25

What does Engel's law say about food and income elasticity

Answer 25

food is income inelastic (going to buy food no matter income amount)

Question 26

Bennett's Law

Answer 26

As income increases, spend more money on better foods like animal products (meat and dairy) and produce

Question 27

How does Bennett's law explain income and diet relationship

Answer 27

Income allows for a better micronutrient diet

Question 28

What does Bennett's Law say about income elasticity of low micronutrient foods?

Answer 28

foods low in micronutrients have income elasticity of <0

Question 29

What does our growing population say about supply and demand?

Answer 29

Demand is increasing but supply can increase faster

Question 30

How do we create agricultural growth?

Answer 30

New technology, productive inputs, labor usage, land production increase, labor quality

Question 31

How does new technology change the supply curve?

Answer 31

shifts out and flattens

Question 32

What does a production function show

Answer 32

how to turn inputs into outputs?

Question 33

Where is a point on a production function if you aren't using an input?

Answer 33

Inefficient point

Question 34

Where is the economic yield compared to maximum yield

Answer 34

Economic yield is between A and B where the maximum yield is by C

Question 35

Explain the environment as input

Answer 35

land is the basic input for all ag production, water and temperature play a role when looking at delivery and timing of inputs

Question 36

Externality

Answer 36

indirect effects of an anction to others not involved in the action- negative or positive

Question 37

Examples of externalities

Answer 37

air pollution from someone's car, climate change due to individual carbon footprint, fertilizer run-off into Lake mendota by a farmer, etc

Question 38

How to mitigate negative externalities

Answer 38

taxes/fees, incentives for alternatives, or regulations

Question 39

How to respond to climate changes

Answer 39

Ind= resilience to climate shock Gov Level 1= diagnose and identify Gov Level 2= innovation and technology (research) Gov/Business= promote and diffuse innovations