AGEC EXAM 1QUESTIONS AND ANSWERS
Mixed
The U.S. economy represents what kind of economic system?
Scarcity
A finite quantity of resources that is available to meet society's needs.
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Scarce resources like land, labor, and capital can be categorized as...
-Human resources
-Manufactured resources
-natural and biological resources
-All of the above
Micro
A branch of economics that focuses on the economic actions of individuals or specific
groups of individuals.
What branch of economics is concerned with interest rates and the gross domestic
product (GDP) of the U.S. economy?
Macro
Opportunity cost
Refers to the implicit cost associated with the next best alternative in a set of choices
available to decision-makers.
Fallacy of composition
Economic reasoning that is true for one individual but not for society as a whole is
referred to as...
Specialization
Most resources are best suited for a particular use. For example, climate and other
conditions in Florida allow resources to be used in orange production instead of wheat
or potato production. What economic concept deals with this issue?
An agribusiness firm may undertake three alternatives: buy cane sugar and
manufacture various sugars and sweets, making a profit of $12 million; buy corn and
produce ethanol, making a profit of $16 million; or buy wheat and produce breads, rolls,
, and pastries, making a profit of $13 million. The opportunity cost associated with these
three choices is...
$13 million
The current U.S. Secretary of Agriculture is...
Tom Vilsack
The retail value of a gallon of milk (fat free) is $4.19. Dairy farmers receive only $1.64
for this gallon of milk. What is the dairy farmer's share of the retail food dollar
39% (amount received/retail value)
Reflects what a $1 today would have purchased in goods and services in a particular
base period.
Purchasing Power
How to find output index
Output of certain year/Output of base year
The value of food expenditures contributed by firms beyond the farm gate.
Marketing Bill
The level of output per unit of input
Productivity
The retail value of one dozen eggs is $2.89. Farmers receive $1.04 for this dozen of
eggs. What is the farmer's share of the retail dollar?
36% (Price received/retail value)
What is the value of any index for the base period?
1.000
Inflation
The term "real" as opposed to "nominal" means that economists are making
adjustments for...?
Nominal Values
refers to values for which no adjustments to inflation have been made
Real Values
refers to values for which adjustments to inflation have been made.
Marginal Utility
Mixed
The U.S. economy represents what kind of economic system?
Scarcity
A finite quantity of resources that is available to meet society's needs.
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Scarce resources like land, labor, and capital can be categorized as...
-Human resources
-Manufactured resources
-natural and biological resources
-All of the above
Micro
A branch of economics that focuses on the economic actions of individuals or specific
groups of individuals.
What branch of economics is concerned with interest rates and the gross domestic
product (GDP) of the U.S. economy?
Macro
Opportunity cost
Refers to the implicit cost associated with the next best alternative in a set of choices
available to decision-makers.
Fallacy of composition
Economic reasoning that is true for one individual but not for society as a whole is
referred to as...
Specialization
Most resources are best suited for a particular use. For example, climate and other
conditions in Florida allow resources to be used in orange production instead of wheat
or potato production. What economic concept deals with this issue?
An agribusiness firm may undertake three alternatives: buy cane sugar and
manufacture various sugars and sweets, making a profit of $12 million; buy corn and
produce ethanol, making a profit of $16 million; or buy wheat and produce breads, rolls,
, and pastries, making a profit of $13 million. The opportunity cost associated with these
three choices is...
$13 million
The current U.S. Secretary of Agriculture is...
Tom Vilsack
The retail value of a gallon of milk (fat free) is $4.19. Dairy farmers receive only $1.64
for this gallon of milk. What is the dairy farmer's share of the retail food dollar
39% (amount received/retail value)
Reflects what a $1 today would have purchased in goods and services in a particular
base period.
Purchasing Power
How to find output index
Output of certain year/Output of base year
The value of food expenditures contributed by firms beyond the farm gate.
Marketing Bill
The level of output per unit of input
Productivity
The retail value of one dozen eggs is $2.89. Farmers receive $1.04 for this dozen of
eggs. What is the farmer's share of the retail dollar?
36% (Price received/retail value)
What is the value of any index for the base period?
1.000
Inflation
The term "real" as opposed to "nominal" means that economists are making
adjustments for...?
Nominal Values
refers to values for which no adjustments to inflation have been made
Real Values
refers to values for which adjustments to inflation have been made.
Marginal Utility
