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      Why are FOOD PRICES rising? on QuizRevolution

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      Why are FOOD PRICES rising?
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      Why are FOOD PRICES rising?
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      In India, 50% are vegetarian but in 15 years, meat consumption has increased by how much?
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      1. In India, 50% are vegetarian but in 15 years, meat consumption has increased by how much?
        1. 20%
        2. 40%
        3. 80%
        4. 100%
        1. Fast economic growth in India, China, Brazil, and Russia mean that people have more money to spend on food and they are eating a lot more meat. The population of these countries is so large it has a major effect on the global economy.
      2. What is the combined population of India and China?
        1. About 1 billion
        2. About 3 billion
        3. About 6 billion
        4. About 12 billion
        1. The population of China and India amout to about 36% of the world population. 2007 Statistics: China - 1,321,851,000 India - 1,129,866,154
      3. Why does increasing demand for meat also increase demand for grains (wheat, rice, corn)?
        1. Because it is still cheaper than meat
        2. Because the price for grains has gone down
        3. More recipes for grains are available now
        4. Grain is used to feed livestock (chickens, pigs, cows)
        1. Because many more animals need to be raised to meet the demand for meat, a lot of the grain that people used to eat is now being eaten by chickens, pigs, and cows.
      4. Demand for what other food product has increased dramatically?
        1. Dairy products (milk, butter, cheese)
        2. Fish
        3. Cooking Oil
        4. Beans
        1. Although India is the biggest producer of dairy products, the demand in India for milk, butter, and cheese has tripled and they can't make enough to fill the supply. A low supply and a high demand has caused a sharp increase in price.
      5. What is a government SUBSIDY?
        1. A payment made to citizens to help stimulate the economy
        2. A payment by a government to help producers of some products
        3. A tax that producers have to pay to the government
        4. A tax that the government charges on foreign imports
        1. An average of over $16 billion/year is paid by the government to farmers of corn, wheat, soybean, rice, and several other farm products.
      6. When did farm subsidies begin in the US?
        1. During the Great Depression
        2. During World War I
        3. During World War II
        4. Recently, in response to the world food Crisis
        1. The Agricultural Adjustment Act (1933) restricted production by paying farmers NOT to plant more crops. Its purpose was to reduce crop surplus, so that with less supply, they would effectively raise the value of crops, and farmers would have stability again. The farmers were paid subsidies by the federal government for leaving some of their fields unused.
      7. The most recent US subsidies encourage farmers to
        1. produce more corn for biofuel (ethanol)
        2. produce more corn for exports
        3. produce less corn to keep prices high
        4. produce more organic corn
        1. George W. Bush has set a target that 15% of fuel should come from biofuel by 2017.
      8. What crop produces ethanol much more efficiently than corn?
        1. Soybean
        2. Wheat
        3. Sugar cane
        4. Barley
        1. The cheapest and most energy efficient ethanol is produced in Brazil from sugar cane. That ethanol from Brazil is kept out of the US by import tariffs of about 25%. In other words, if Brazil wants to sell ethanol in a US, it will be 25% higher than the ethanol produced in the US and no one will buy it. Why does the US government do this? Because the US farmers have a lot of political power and influence on politicians.
      9. Increased demand for ethanol and food have caused US prices to
        1. decrease
        2. remain stable
        3. increase
        4. fluctuate
        1. An increase in demand has caused an increase in production but not enough. That means that there is not enough supply to meet the demand. When this happens, prices increase. Since the US exports grain to many foreign countries, all of the countries that import from the US pay higher prices.
      10. Which environmental event has NOT cause a major disruption in the world food supply?
        1. Drought in Australia
        2. Floods in Northern Europe
        3. A heat wave in Southern Europe
        4. Hurricane Katrina in the US
        1. Although hurricane Katrina was devastating to states of Louisiana and Mississippi, they make up a very small part of US exports. The other events listed have affected crop production dramatically.
      11. Why aren't farmers happy about selling for higher prices?
        1. Land prices have increased
        2. Fertilizer prices have increased.
        3. Gas prices have increased.
        4. All of the above
        1. It may seem like high prices would be good for farmers but they are also paying more to produce their crops. All of the above factors have make it more expensive for farmers to produce food. Even though prices have increased, profits haven't.
      12. Are food prices going to keep rising?
        1. Farmers will increase the supply; the prices will drop.
        2. The demand will decrease; the prices will drop.
        3. Demand and production cost will rise and so will prices.
        1. It is not a simple question of increasing supply to meet demand and lower prices. One, rapidly growing markets like India and China will continue to increase the demand. Also increasing the demand, is the production of agriculture products for biofuels instead of for food. Three, as oil prices continue to rise, the cost of producing food also rises.
      13. Who is suffering most from the increased food prices?
        1. Low-income countries that import food
        2. Low-income countries that produce food
        3. Developed countries that import food
        4. Developed countries that produce food
        1. The countries that don't produce their own food and that don't have another source of income to buy more expensive food. In these countries more than 60% of their income goes to food. An increase in cost will have serious social and political consequences on these countries. These countries also tend to be countries that import oil so they also have the problem of high oil prices.
      14. What can governments do to help developing countries?
        1. Invest in infrastructure for agriculture production.
        2. Provide access to foreign markets
        3. Remove import tariffs.
        4. All of the above
        1. Developing countries could benefit from producing their own biofuels but they will need assistance to do it. First, they need the infrastructure for mass production (farming equipment, techniques, education, processing tools, etc.). If, in addition to producing their own food energy, they can also sell to foreign markets without having to pay high tariffs then biofuels can have a positive effect.
      Tags: lifestyle , news

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