Ch. 5 Reading 1: Price Supports for Farmers.

Which statement best expresses the main idea of the passage?

• Farm subsidies create abnormal market conditions.

• Farm subsidies favor producers over consumers.

• Farm subsidies help poor nations compete with rich ones.

• Farm subsidies promote the growing of necessary crops.

Which of the following can be most strongly inferred from Table 1?

• Farm subsidies are set up by governments.

• Food producers give subsidies to governments.

• Governments typically oppose farm subsidies.

• One government usually gives farm subsidies to another.

The word FICTIONAL in Paragraph 3 is closest in meaning to

• Competing

• Neighboring

• Not important

• Not real

According to Paragraph 3, which statement is true?

• Corn costs more in Alpha than in Beta.

• Corn costs more in Beta than in Alpha.

• Labor costs more in Alpha than in Beta.

• Labor costs more in Beta than in Alpha.

The author mentions dollar amounts in Paragraph 4 in order to show

• How a price support works

• The dangers of producing too much

• The ups and downs of the market

• Why many farmers are wealthy

Paragraph 4 mentions all the following as promises made by the Alpha government EXCEPT

• To buy any corn the farmer could not otherwise sell

• To keep Betan corn from being sold in Alpha

• To pay a farmer if bad weather harmed his corn crop

• To provide cheap or free farming supplies

Which statement most accurately states the essential information in the highlighted sentence in Paragraph 5? Incorrect choices change the meaning in important ways or leave out essential information.

• As a group, the subsidies became very costly to the government.

• The combined effect of the subsidies was to eliminate risk.

• The government took a great risk by offering so many subsidies.

• Some subsidies canceled the benefits provided by other subsidies.

The Alpha government’s subsidy program transformed the market for corn by

• Attracting new buyers to the corn market

• Introducing alternatives to corn

• Lowering the price of corn

• Raising the cost of corn farming

The word IT in Paragraph 6 refers to

• Alpha

• Beta

• Price

• Weapon

In the Alpha-Beta example, why did the Beta government not respond with its own subsidy program?

• It could not afford to.

• It did not know how to.

• It saw no need to act.

• It was opposed to subsidies.