Finale Done Ag

Front 1

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

Back 1

C) $17 million

Front 2

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

Back 2

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

Front 3

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

Back 3

A) $30,000

Front 4

Production data for the Nouveau Cattle Slaughtering Plant. Base year is 2003.
Year Pounds of Cattle Slaughtered
2001 180,000

2002 250,000 
2003 200,000
What is the output index for 2002?

Back 4

C) 1.25

Front 5

5.
The following information relates to a farming operation in the Rio Grande Valley.
Cash receipts from farm products $500,000
Receipts from Government payments $100,000
Other income from farm sources $50,000
Production Expenses $300,000
Value of real estate assets $10,000,000
Value of non-real estate assets $1,000,000
Financial assets $5,000,000
Liabilities $8,000,000
What is the net farm income for this operation?

Back 5

C) $350,000

Front 6

The following information relates to a farming operation in the Rio Grande Valley.
Cash receipts from farm products $500,000
Receipts from Government payments $100,000
Other income from farm sources $50,000
Production Expenses $300,000
Value of real estate assets $10,000,000
Value of non-real estate assets $1,000,000
Financial assets $5,000,000
Liabilities $8,000,000
What is the Equity for the firm listed above?

Back 6

D) $8 million

Front 7

7.

The output and price information of a farmer for production of bushels of wheat over the last three years is presented in the following chart.
Year Output Price CPI Production Expense
2001 70,000 $3.20 1.10 $120,000 
2002 75,000 $2.90 1.20 $140,000 
2003 80,000 $2.80 1.15 $135,000
Base year is 2002.
What was the output index for 2001?

Back 7

C) .933

Front 8

8.
The output and price information of a farmer for production of bushels of wheat over the last three years is presented in the following chart.
Year Output Price CPI Production Expense
2001 70,000 $3.20 1.10 $120,000 
2002 75,000 $2.90 1.20 $140,000 
2003 80,000 $2.80 1.15 $135,000
Base year is 2002.
The price in 2003 was ______% _____________ (higher or lower) than in 2002?

Back 8

C) 3% lower

Front 9

9.
The output and price information of a farmer for production of bushels of wheat over the last three years is presented in the following chart.
Year Output Price CPI Production Expense
2001 70,000 $3.20 1.10 $120,000 
2002 75,000 $2.90 1.20 $140,000 
2003 80,000 $2.80 1.15 $135,000
Base year is 2002.
The output level in 2001 was _____% ____________ (more or less) than in 2002?

Back 9

D) 7% lower

Front 10

10.
The output and price information of a farmer for production of bushels of wheat over the last three years is presented in the following chart.
Year Output Price CPI Production Expense
2001 70,000 $3.20 1.10 $120,000 
2002 75,000 $2.90 1.20 $140,000 
2003 80,000 $2.80 1.15 $135,000
Base year is 2002.
Assume that the production of wheat was the only source of Income for this farmer.
What is the best year in terms of real net income?

Back 10

C) 2001

Front 11

Which of the following statements is true?

Back 11

B) When total utility reaches a maximum, marginal utility is zero.

Front 12

C) The Law of Diminishing Marginal Utility states that our additional satisfaction declines as more of a good is consumed.

Back 12

true

Front 13

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

Back 13

Scarcity

Front 14

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

Back 14

Micro Economics

Front 15

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 15

Macro Economics

Front 16

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

Back 16

Opportunity Cost

Front 17

5. The level of output per unit of input.

Back 17

Productivity

Front 18

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

Back 18

D) 12-15%

Front 19

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

Back 19

C) Mixed

Front 20

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

Back 20

C) $12 to $15 trillion.

Front 21

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

Back 21

C) Fallacy of composition.

Front 22

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 22

B) Buy wheat making a profit of $15 million

Front 23

11. 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

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

Back 23

C) $ 12 million

Front 24

12. What branch of economics does this statement correspond? ___________
President Bush commissioned a study whose objective was to determine what the maximum tax rate on individuals and corporations should be.

Back 24

A) Normative Economics

Front 25

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

Back 25

D) Positive Economics

Front 26

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

Back 26

C) Macroeconomics

Front 27

15. What branch of economics does this statement correspond? _______________
What branch of economics deals with the consumption expenditures of AGEC students at Texas A&M University?

Back 27

A) Micro Economics

Front 28

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

Back 28

C) $17 million

Front 29

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

Back 29

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

Front 30

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

Back 30

A) $30,000

Front 31

19.Production data for the Nouveau Cattle Slaughtering Plant. Base year is 2003.
Year Pounds of Cattle Slaughtered
2001 180,000
2002 250,000
2003 200,000
What is the output index for 2002?

Back 31

C) 1.25

Front 32

20. The following information relates to a farming operation in the Rio Grande Valley.

Cash receipts from farm products $500,000
Receipts from Government payments $100,000
Other income from farm sources $50,000

Production Expenses $300,000

Value of real estate assets $10,000,000
Value of non-real estate assets $1,000,000
Financial assets $5,000,000

Liabilities $8,000,000
What is the net farm income for this operation?

Back 32

C) $350,000

Front 33

21. The following information relates to a farming operation in the Rio Grande Valley.

Cash receipts from farm products $500,000
Receipts from Government payments $100,000
Other income from farm sources $50,000

Production Expenses $300,000

Value of real estate assets $10,000,000
Value of non-real estate assets $1,000,000
Financial assets $5,000,000

Liabilities $8,000,000

What is the Equity for the firm listed above?

Back 33

D) $8 million

Front 34

22. The output and price information of a farmer for production of bushels of wheat over the last three years is presented in the following chart.

Year Output Price CPI Production Expense

2001 70,000 $3.20 1.10 $120,000
2002 75,000 $2.90 1.20 $140,000
2003 80,000 $2.80 1.15 $135,000

Base year is 2002.

What was the output index for 2001?

Back 34

C) .933

Front 35

23. The output and price information of a farmer for production of bushels of wheat over the last three years is presented in the following chart.

Year Output Price CPI Production Expense

2001 70,000 $3.20 1.10 $120,000
2002 75,000 $2.90 1.20 $140,000
2003 80,000 $2.80 1.15 $135,000

Base year is 2002.

The price in 2003 was ______% _____________ (higher or lower) than in 2002?

Back 35

C) 3% lower

Front 36

24. The output and price information of a farmer for production of bushels of wheat over the last three years is presented in the following chart.

Year Output Price CPI Production Expense

2001 70,000 $3.20 1.10 $120,000
2002 75,000 $2.90 1.20 $140,000
2003 80,000 $2.80 1.15 $135,000

Base year is 2002.

The output level in 2001 was _____% ____________ (more or less) than in 2002?

Back 36

D) 7% lower

Front 37

25. The output and price information of a farmer for production of bushels of wheat over the last three years is presented in the following chart.
Year Output Price CPI Production Expense

2001 70,000 $3.20 1.10 $120,000
2002 75,000 $2.90 1.20 $140,000
2003 80,000 $2.80 1.15 $135,000

Base year is 2002.

Assume that the production of wheat was the only source of Income for this farmer.

What is the best year in terms of real net income?

Back 37

) 2001

Front 38

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

Back 38

Marketing Bill

Front 39

27.Economic theories

Back 39

C) Are generalizations based upon a careful observation of facts

Front 40

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

Back 40

scarcity

Front 41

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

Back 41

regulation restriction

Front 42

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

Back 42

D) Individual proprietorship

Front 43

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.

Back 43

Economics

Front 44

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

Back 44

D) 2.1 million

Front 45

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

Back 45

C) labor

Front 46

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

Back 46

) wholesalers, retailers, and food service purveyors
B) farm input suppliers
C) processors and manufacturers

Front 47

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

Back 47

C) Ceteris paribus

Front 48

_______________can be defined as the addition to total cost that results from producing one more unit of output, for both price takers and price searchers.

Back 48

) Marginal cost

Front 49

A ________________ is a type of firm that has no influence on the market or market price, and has only the power to alter the quantity of a good it produces for the market.

Back 49

B) Price Taker

Front 50

Which of the following refers to the cost curve that remains at a constant level regardless of the amount of output produced?

Back 50

) Total fixed cost

Front 51

To maximize profits, a firm should produce so that marginal cost is:

Back 51

Equal to marginal revenue

Front 52

A firm that is a profit-maximizer will increase its output so long as:

Back 52

Its marginal revenue is increasing

Front 53

The firm’s supply curve is represented by the ____________________

Back 53

B) MC Curve above minimum AVC

Front 54

The breakeven price allows the firm to cover its _____________ costs.

Back 54

Both Fixed and Variable

Front 55

The shutdown price allows the firm to cover its ______________costs.

Back 55

variable

Front 56

If the price of the product is $45, the firm’s breakeven price is $28, and quantity where MC = MR is 11.1 units, the firm’s total costs are______________.

Back 56

D) $310.80

Front 57

If the price of the product is $45, the firm’s breakeven price is $28, and quantity where MC = MR is 11.1 units, the firm’s economic profit is ______________.

Back 57

C) $188.70

Front 58

The area beneath the MVP curve and above the marginal input cost (wage rate) curve represents ______________________.

Back 58

Cumulative Net Benefit

Front 59

The firm would maximize its profit by employing labor to the point where:

Back 59

MVP=MIC

Front 60

Own Price-elasticity of demand is determined dividing the percent change in quantity by

Back 60

Percent change in price

Front 61

The own price-elasticity of demand for this good from $5.00 to $3.00 is:

Back 61

-.50

Front 62

The own price-elasticity coefficient above indicates a ___________________ type of demand

Back 62

) Inelastic

Front 63

With regard to economic well being, the consumer will be _______ as the price decreases?

Back 63

Better off

Front 64

The Dixie Chicken sells 1,500 Freddie Burger platters per month at $3.50 each. The own price elasticity for this platter is estimated to be –1.30. If the Chicken increases the price of the platter by 50 cents:
9.
How many platters will the Dixie chicken sell?

Back 64

C) 1240

Front 65

The Dixie Chicken sells 1,500 Freddie Burger platters per month at $3.50 each. The own price elasticity for this platter is estimated to be –1.30. If the Chicken increases the price of the platter by 50 cents:
9.
The Dixie Chicken's revenue will _____________?

Back 65

Decrease by $290.00

Front 66

______________ is a market structure that has only one firm selling to buyers.

Back 66

monopoly

Front 67

A market structure in which there are a small number of sellers?

Back 67

oligopoly

Front 68

The Packers and Stockyards Act of 1921:

Back 68

A) reinforced antitrust laws regarding livestock marketing

Front 69

Farmers historically have organized agricultural bargaining groups called:

Back 69

Cooperatives

Front 70

_____________ refers to actions that attempt to increase the demand for a product or service by way of product differentiation.

Back 70

A) non price competition

Front 71

Which is not characteristic of imperfect competation?

Back 71

B) homogeneous products

Front 72

A market structure that has only one firm buying from sellers

Back 72

monopsonist

Front 73

_______________ is a product that is made different from others through advertising or quality variation.

Back 73

C) differentiated product

Front 74

The Capper-Volstead Act of 1922:

Back 74

C) Plugged loopholes in the Sherman Antitrust Act of 1890

Front 75

which of the following is true about oligopoly?

Back 75

E) None of these

Front 76

If the price per glass of Tea is $3.00 and the price per glass of Kool-Aid is $4.00, then the budget for this consumer is ______________________?

Back 76

B) $48.00

Front 77

As demonstrated in the graph, the combination of 6 glasses of Kool-Aid and 8 glasses of tea represent a consumer's __________________________.

Back 77

B) Equilibrium Quantity

Front 78

When interpreting the diagram above one could conclude that:

Back 78

C) Mu Kool Aid = Mu Tea

Front 79

_ ______________________ is the schedule that shows how many units of a good a consumer will purchase at different income levels, with all other factors held constant or equal.

Back 79

A) Utility Schedule

Front 80

___________________ is the rate of exchange of pairs of goods or services to leave utility or satisfaction unchanged.

Back 80

D) Marginal Rate of Substitution

Front 81

___________________ is defined by the income available for consumption and the prices that consumer faces.

Back 81

D) Budget Constraint

Front 82

_______________ reflects what $1.00 today would have purchased in goods and services in comparison to a particular base period.

Back 82

B) Purchasing Power

Front 83

_____________is a schedule that shows how many units of a good the consumer will purchase at different prices for that good during some specified time in a specified market, all other factors held constant or equal.

Back 83

C) Demand Curve