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83 Cards in this Set
- Front
- Back
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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C) $17 million
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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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B) 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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A) $30,000
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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? |
C) 1.25
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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? |
C) $350,000
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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? |
D) $8 million
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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? |
C) .933
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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? |
C) 3% lower
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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? |
D) 7% lower
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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? |
C) 2001
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Which of the following statements is true?
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B) When total utility reaches a maximum, marginal utility is zero.
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C) The Law of Diminishing Marginal Utility states that our additional satisfaction declines as more of a good is consumed.
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true
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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.
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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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D) 12-15%
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7. The U.S. economy represents what kind of economic system?
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C) 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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C) $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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C) 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? |
B) Buy wheat making a profit of $15 million
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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 $______________________? |
C) $ 12 million
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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. |
A) Normative Economics
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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) |
D) Positive Economics
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14. What branch of economics does this statement correspond? _________________________
What branch of economics is concerned with the rate of inflation and the unemployment rate? |
C) Macroeconomics
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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? |
A) Micro Economics
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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?
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C) $17 million
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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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B) Farm prices were 3% lower in 2003 than in 1990.
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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?
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A) $30,000
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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? |
C) 1.25
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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? |
C) $350,000
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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? |
D) $8 million
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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? |
C) .933
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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? |
C) 3% lower
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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? |
D) 7% lower
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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? |
) 2001
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26. 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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27.Economic theories
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C) 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
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30. A type of ownership, which composes the major percent of all farms, is
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D) 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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D) 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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C) labor
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34. Which of the following is part of the agribusiness (food and fiber) sector?
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) wholesalers, retailers, and food service purveyors
B) farm input suppliers C) processors and manufacturers |
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35. _____________ refers to an assumption that variables, which could affect a relationship, are held constant.
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C) Ceteris paribus
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_______________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.
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) Marginal cost
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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.
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B) Price Taker
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Which of the following refers to the cost curve that remains at a constant level regardless of the amount of output produced?
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) Total fixed cost
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To maximize profits, a firm should produce so that marginal cost is:
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Equal to marginal revenue
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A firm that is a profit-maximizer will increase its output so long as:
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Its marginal revenue is increasing
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The firm’s supply curve is represented by the ____________________
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B) MC Curve above minimum AVC
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The breakeven price allows the firm to cover its _____________ costs.
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Both Fixed and Variable
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The shutdown price allows the firm to cover its ______________costs.
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variable
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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______________.
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D) $310.80
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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 ______________.
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C) $188.70
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The area beneath the MVP curve and above the marginal input cost (wage rate) curve represents ______________________.
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Cumulative Net Benefit
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The firm would maximize its profit by employing labor to the point where:
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MVP=MIC
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Own Price-elasticity of demand is determined dividing the percent change in quantity by
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Percent change in price
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The own price-elasticity of demand for this good from $5.00 to $3.00 is:
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-.50
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The own price-elasticity coefficient above indicates a ___________________ type of demand
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) Inelastic
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With regard to economic well being, the consumer will be _______ as the price decreases?
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Better off
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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? |
C) 1240
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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 _____________? |
Decrease by $290.00
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______________ is a market structure that has only one firm selling to buyers.
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monopoly
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A market structure in which there are a small number of sellers?
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oligopoly
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The Packers and Stockyards Act of 1921:
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A) reinforced antitrust laws regarding livestock marketing
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Farmers historically have organized agricultural bargaining groups called:
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Cooperatives
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_____________ refers to actions that attempt to increase the demand for a product or service by way of product differentiation.
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A) non price competition
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Which is not characteristic of imperfect competation?
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B) homogeneous products
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A market structure that has only one firm buying from sellers
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monopsonist
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_______________ is a product that is made different from others through advertising or quality variation.
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C) differentiated product
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The Capper-Volstead Act of 1922:
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C) Plugged loopholes in the Sherman Antitrust Act of 1890
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which of the following is true about oligopoly?
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E) None of these
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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 ______________________?
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B) $48.00
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As demonstrated in the graph, the combination of 6 glasses of Kool-Aid and 8 glasses of tea represent a consumer's __________________________.
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B) Equilibrium Quantity
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When interpreting the diagram above one could conclude that:
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C) Mu Kool Aid = Mu Tea
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_ ______________________ 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.
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A) Utility Schedule
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___________________ is the rate of exchange of pairs of goods or services to leave utility or satisfaction unchanged.
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D) Marginal Rate of Substitution
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___________________ is defined by the income available for consumption and the prices that consumer faces.
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D) Budget Constraint
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_______________ reflects what $1.00 today would have purchased in goods and services in comparison to a particular base period.
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B) Purchasing Power
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_____________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.
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C) Demand Curve
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