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14 Cards in this Set
- Front
- Back
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What is the problem with market interventions |
Overproduction |
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What is the problem for the government when they are supplying a price floor |
Government went broke |
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What non-price policy was oftern created to deal with overproduction |
government bought the extra |
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What was the "famous" outcome of government buying overproduction |
Products were put in storage while new markets were being discovered |
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What "tertiary" policy was persued to deal with the "famous" outcome of buying overproduction |
Food Aid |
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What is open interest |
Number of paired contracts currently in the market
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What is market volume |
number of trades in a market per day |
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What does the lower level of open interest near the maturity date of the contract signify |
Speculators have left the market, so they do not have to actually deliver the commodity |
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You receive information that this year is going to have little corn produced, what positions should you take in July and November |
July- Take a short hoping the price would drop Nov- Take a long to offset when price is lower |
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How do you calculate basis |
CAN$/USD$ |
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How to calc adjusted basis |
Can Price = CAN$/USD$ x US Price |
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Give 2 examples of indirect ag policies still in effect |
Milk Act 1965 Nutrient Management Act |
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How does the goverment decide which policies get implemented |
Pareto Equilibrium- Policy is implemented if it makes someone better off and no one worse off |
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On what basis does the goverment rank policies |
How many disadvantages COULD be compensated by the people that are better off |
