Agriculture Economics Practice Test

Front 1

1.A finite quantity of resources that is available to meet society's needs.

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Scarcity

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2.Branch of economics that focuses on the economic actions of individuals or specific groups of individuals.

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Micro Economics

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3.A branch of economics that focuses on the broad aggregates, such as the growth of gross domestic product, the money supply, the stability of prices, and the level of employment.

Back 3

Macro Economics

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4.The economic sacrifice of not doing something else or foregoing another opportunity.

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Opportunity Cost

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5. The level of output per unit of input.

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Productivity

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6. The food and fiber industry today accounts for roughly what percent of GDP in the United States?

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12-15%

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7. The U.S. economy represents what kind of economic system?

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Mixed

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8. The GDP for the U.S. economy in the year 2007 was in the range of:

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) $12 to $15 trillion.

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9. Economic reasoning that is true for one individual but not for society as a whole is referred to as:

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Fallacy of composition.

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10.An agribusiness firm may undertake three alternatives:

1. Buy cane sugar an manufacture various sugars and sweets, making a profit of $10 million
2. Buy wheat and produce bread, rolls, and pastries, making a profit of $15 million
3. Buy corn and produce Tex-Mex foods, making a profit of $12 million
Which alternative should this agribusiness undertake?

Back 10

Buy wheat making a profit of $15 million

Front 11

1. Buy cane sugar an manufacture various sugars and sweets, making a profit of $10 million
2. Buy wheat and produce bread, rolls, and pastries, making a profit of $15 million
3. Buy corn and produce Tex-Mex foods, making a profit of $12 million

The opportunity cost associated with these three production alternatives presented in question 1 is $______________________?

Back 11

$ 12 million

Front 12

President Bush commissioned a study whose objective was to determine what the maximum tax rate on individuals and corporations should be.
Which Branch of economics?

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Normative Economics

Front 13

What branch of economics is concerned with the effects of food safety (E. coli) on consumer demand for beef? (What – If type Question)

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Positive Economics

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What branch of economics does this statement correspond? _________________________
What branch of economics is concerned with the rate of inflation and the unemployment rate?

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Macroeconomics

Front 15

What branch of economics deals with the consumption expenditures of AGEC students at Texas A&M University?

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Micro Economics

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Bill Toney, a hobby farmer from Virginia has a net worth of $ 13 million. He has assets of $ 30 million and liabilities of _________________ Million?

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$17 million

Front 17

Suppose the index of prices received by farmers for 2003 was .97 and the base year for determining this index was 1990. Then:

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Farm prices were 3% lower in 2003 than in 1990.

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If your nominal income for 2003 was $45,000 and the CPI for 2003 is 1.5, what is your real income for 2003?

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$30,000

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The portion of food expenditures associated with the activities of firms beyond the farm gate is known as:

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Marketing Bill

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Economic theories are?

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Are generalizations based upon a careful observation of facts

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28. We wouldn’t need to study economics of we could eliminate

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Scarcity

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29. A process used to direct or control a situation is called ?

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Regulation ? restriction? fuck i dont know.

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30. A type of ownership, which composes the major percent of all farms, is

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Individual proprietorship

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31. In accordance with our definitions, ____________________ is an applied social science that deals with how producers, consumers, and societies use scarce resources in the production, processing, marketing, and consumption of food and fiber products.

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Economics

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32. As of the year 2007 the total number of farms in production was

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2.1 million

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33. On average, the largest portion of a dollar spent on food goes to:

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labor

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34. Which of the following is part of the agribusiness (food and fiber) sector?

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A) wholesalers, retailers, and food service purveyors
B) farm input suppliers
C) processors and manufacturers
D) all of the above

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35. _____________ refers to an assumption that variables, which could affect a relationship, are held constant.

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Ceteris paribus