TRUE OR FALSE

1.Whenever the market price for crops is below the Commodity Credit Corporation (CCC) loan rate, the government will end up buying surplus crops. TrueFalse

2.The effect of Commodity Credit Corporation loan programs is to alter the quantity demanded of farm products as well as to increase the quantity supplied. TrueFalse

3.If parity prices are "fair" they will not cause a market surplus. True False

4.Today, as a result of government policies, about 25 percent of all farm output is either destroyed or stored. True False

1.An increase in fuel prices resulted in higher costs in agriculture during the 1980s. True False

A leftward shift in AS will cause a leftward shift in the Phillips curve. True False

Tax incentives that encourage saving, investment, and work will shift the AS curve to the right. True False

An increase in tax rates will yield larger tax revenues only if the absolute value of the tax elasticity of supply is less than 1.0. TrueFalse

Demand-side economists treat saving as a leakage from potential spending. True False

Investment in human capital shifts the aggregate supply curve leftward. True False

Demand-side economists treat saving as a leakage from potential spending. True False

Investment in human capital shifts the aggregate supply curve leftward. True False

An increase in tariffs on imported goods will shift the aggregate supply curve to the left and cause the level of output to decrease. TrueFalse

An improvement in the infrastructure of a country, ceteris paribus, should result in a lower price level and increased employment. TrueFalse