Reference no: EM132496835

Part 1: Agricultural Subsidies

Question 1: Technology has been very important to agricultural markets for the United States and has made it a very large food-producing nation in the world. When looking at the money that the US government spends on agricultural markets with the subsidies that they provide, do you think there could be other options for the money spent? How can you measure the inefficiency of the subsidies that are provided in the market?

Part 2: The Impact of Corn

Question 2: Corn is a valuable commodity in our global economy. Corn can be used as multiple inputs and as a final good. One of the inputs that corn is used for is the production of ethanol, which is used in the production of gasoline. As you know, agricultural markets are very important to the United States economy. But, what is going to occur in the market for corn if more is needed for the production of ethanol rather than the other functions of corn? In your answer, evaluate the role of opportunity cost and analyze each stakeholder involved in the production of corn.