FBLA Agribusiness Exam Questions
with Correct Answers
business cycle - Answer-the repeated rise and fall of economic activity over time
business plan - Answer-a written description of a new business venture that describes
all aspects of the proposed agribusiness; it helps you focus on exactly what you want to
do, how you want to do it, and what you expect to accomplish
business survey - Answer-a survey that a business conducts to determine the market
potential for a selected business
capital - Answer-goods used to produce other goods and services; the investment that
the owner has put into the business
capital intensive - Answer-having a high capital cost per unit of output; requiring greater
expenditure in the form of capital than of labor
capitalism - Answer-an economic system where individuals own resources and have the
right to use their time and resources however they choose
collateral - Answer-something of value deposited with a lender as a pledge to secure
repayment of a loan
diligence - Answer-steady application; constancy in an effort to accomplish something
entrepreneur - Answer-person who accepts all the risks pertain- ing to forming and
operating a small business. This also entails performing all business functions
associated with a product or service and includes social responsibility and legal
requirements
financial institutions - Answer-any business that lends money
financial resources - Answer-any place that a consumer or business person can acquire
money
free enterprise - Answer-economic system that allows individu- als to organize and
conduct business with a minimum of government control; individuals privately own what
they produce
investors - Answer-one who provides money to others, usually a business, for later
income or profit
niche - Answer-place or position in the community suitable for a person or thing
,rapport - Answer-a harmonious or sympathetic relationship
small business - Answer-a business that is independently operated, is not dominant in
its field, and meets certain size standards in terms of number of employees and annual
receipts
agribusiness input sector - Answer-all resources that go into production
agriculture to produce farm commodities.
agribusiness output sector - Answer-any phase of the agribusiness sector after the
commodity leaves the farm, such as sales or marketing.
agriservices sector - Answer-the portion of the agricultural
industry concerned with researching new and better ways to produce and market food,
to protect food producers
and consumers, and to provide special, custom services to all the other phases of
agriculture.
distillation - Answer-the process of separating the components
of a mixture by differences in boiling point; the evaporation and subsequent
condensation of a liquid, as when water is boiled in a retort and the steam is condensed
in a coil receiver.
E-85 - Answer-Fuel blend that is 85 percent ethanol and 15 percent gasoline (formerly
called gasohol).
ecologists - Answer-one who is concerned with the interrelationship of organisms and
their environment.
economists - Answer-a specialist in economics which is the
science that deals with the production, distribution, and consumption of goods and
services.
enterprises - Answer-projects on a farm, such as the production
of any crop or livestock.
envrionmentalists - Answer-any person who advocates or works
to protect the air, water, and other natural resources.
ethanol - Answer-the alcohol product of fermentation that is
used in alcoholic beverages and for industrial (fuel)
purposes.
exports - Answer-shipments of commodities or products, such as agricultural
commodities, to foreign countries.
,fermentation - Answer-the process of food by means of yeast,
molds, or bacteria.
gasohol - Answer-registered trade name for a blend of
90 percent unleaded gasoline with 10 percent fermentation ethanol.
gross domestic product (GDP) - Answer-measures the value of goods and services that
a country produces in a year.
humus - Answer-organic matter in the soil that has reached
an advanced stage of decomposition and has become colloidal in nature.
imports - Answer-shipments of commodities and products, such as agricultural
commodities, from foreign countries for sale, use, or donation.
industralization - Answer-the process of becoming mechanized
or industrialized.
outstanding loans - Answer-loans that have not yet been paid.
private agriservices - Answer-any services not included in federal,
state, or local government programs; for example, the Farm Credit System.
production efficiency - Answer-receiving optimum output from a reasonable input.
public agriservices - Answer-groups at the federal, state, and
local levels that provide special services to production agriculturalists and others.
value-added - Answer-condition of having had an operation
performed that increases worth and price, such as being packaged or processed.
Aggregate - Answer-Total
Agricultural Economics - Answer-An applied social science dealing with how humans
choose to use technical knowledge and scarce productive resources such as land,
labor, capital, and management to produce food and fiber and to distribute agricultural
commodities and products for consumption to various members of society over time
Allocation - Answer-The distribution or apportioning of something for a specific purpose
Capital - Answer-Goods used to produce other goods and services; the investment that
the owner has put in the business
Capitalism - Answer-An economic system in which individuals own resources and have
the right to use their time and resources however they choose
, Communism - Answer-Economic system in which the government has total control of
economic matters and private individuals have none
Economics - Answer-Many and varied definitions; most often defined as the science of
allocating scarce resources (land, labor, capital, and management) among different and
competing choices and utilizing those resources to best satisfy human wants and needs
Fascism - Answer-Economic system in which productive property, though owned by
individuals, is used to produce goods that reflect government or state preferences
Free Markets - Answer-The movement of goods and services among nations without
political or economic obstruction
Goods - Answer-Things that have economic utility or satisfy an economic want
Macroeconomics - Answer-Concerned with the study of the economy on a large scale,
or nationally
Microeconomics - Answer-Concerned with the study of the economy on a small scale
Needs - Answer-Things that are really crucial to daily living
Normative Economics - Answer-Subjective statements about economic issues based on
opinion only, often without a basis in fact or theory; value-based, emotional statements
that focus on "what ought to be"
Positive Economics - Answer-Statements based on economic theory rather than
emotion or social philosophy; objective statements dealing with matters of fact and
questions about how things actually are
Profit - Answer-A valuable term
Scarce - Answer-Deficient in quantity or number in relation to demand
Scarcity - Answer-Economic term describing a situation in which there are not enough
resources available to satisfy people's needs or wants
Services - Answer-Nontangible products that cannot be held, stored, or touched. They
can include benefits, activities, or satisfactions that are offered for sale.
Socialism - Answer-Economic system in which there is public ownership of all
productive resources. The government, or the state, directs all decision making.
Subsectors - Answer-Parts of the economy: household sector (all consumers), business
sector) all firms, and government sector (all government agencies)
with Correct Answers
business cycle - Answer-the repeated rise and fall of economic activity over time
business plan - Answer-a written description of a new business venture that describes
all aspects of the proposed agribusiness; it helps you focus on exactly what you want to
do, how you want to do it, and what you expect to accomplish
business survey - Answer-a survey that a business conducts to determine the market
potential for a selected business
capital - Answer-goods used to produce other goods and services; the investment that
the owner has put into the business
capital intensive - Answer-having a high capital cost per unit of output; requiring greater
expenditure in the form of capital than of labor
capitalism - Answer-an economic system where individuals own resources and have the
right to use their time and resources however they choose
collateral - Answer-something of value deposited with a lender as a pledge to secure
repayment of a loan
diligence - Answer-steady application; constancy in an effort to accomplish something
entrepreneur - Answer-person who accepts all the risks pertain- ing to forming and
operating a small business. This also entails performing all business functions
associated with a product or service and includes social responsibility and legal
requirements
financial institutions - Answer-any business that lends money
financial resources - Answer-any place that a consumer or business person can acquire
money
free enterprise - Answer-economic system that allows individu- als to organize and
conduct business with a minimum of government control; individuals privately own what
they produce
investors - Answer-one who provides money to others, usually a business, for later
income or profit
niche - Answer-place or position in the community suitable for a person or thing
,rapport - Answer-a harmonious or sympathetic relationship
small business - Answer-a business that is independently operated, is not dominant in
its field, and meets certain size standards in terms of number of employees and annual
receipts
agribusiness input sector - Answer-all resources that go into production
agriculture to produce farm commodities.
agribusiness output sector - Answer-any phase of the agribusiness sector after the
commodity leaves the farm, such as sales or marketing.
agriservices sector - Answer-the portion of the agricultural
industry concerned with researching new and better ways to produce and market food,
to protect food producers
and consumers, and to provide special, custom services to all the other phases of
agriculture.
distillation - Answer-the process of separating the components
of a mixture by differences in boiling point; the evaporation and subsequent
condensation of a liquid, as when water is boiled in a retort and the steam is condensed
in a coil receiver.
E-85 - Answer-Fuel blend that is 85 percent ethanol and 15 percent gasoline (formerly
called gasohol).
ecologists - Answer-one who is concerned with the interrelationship of organisms and
their environment.
economists - Answer-a specialist in economics which is the
science that deals with the production, distribution, and consumption of goods and
services.
enterprises - Answer-projects on a farm, such as the production
of any crop or livestock.
envrionmentalists - Answer-any person who advocates or works
to protect the air, water, and other natural resources.
ethanol - Answer-the alcohol product of fermentation that is
used in alcoholic beverages and for industrial (fuel)
purposes.
exports - Answer-shipments of commodities or products, such as agricultural
commodities, to foreign countries.
,fermentation - Answer-the process of food by means of yeast,
molds, or bacteria.
gasohol - Answer-registered trade name for a blend of
90 percent unleaded gasoline with 10 percent fermentation ethanol.
gross domestic product (GDP) - Answer-measures the value of goods and services that
a country produces in a year.
humus - Answer-organic matter in the soil that has reached
an advanced stage of decomposition and has become colloidal in nature.
imports - Answer-shipments of commodities and products, such as agricultural
commodities, from foreign countries for sale, use, or donation.
industralization - Answer-the process of becoming mechanized
or industrialized.
outstanding loans - Answer-loans that have not yet been paid.
private agriservices - Answer-any services not included in federal,
state, or local government programs; for example, the Farm Credit System.
production efficiency - Answer-receiving optimum output from a reasonable input.
public agriservices - Answer-groups at the federal, state, and
local levels that provide special services to production agriculturalists and others.
value-added - Answer-condition of having had an operation
performed that increases worth and price, such as being packaged or processed.
Aggregate - Answer-Total
Agricultural Economics - Answer-An applied social science dealing with how humans
choose to use technical knowledge and scarce productive resources such as land,
labor, capital, and management to produce food and fiber and to distribute agricultural
commodities and products for consumption to various members of society over time
Allocation - Answer-The distribution or apportioning of something for a specific purpose
Capital - Answer-Goods used to produce other goods and services; the investment that
the owner has put in the business
Capitalism - Answer-An economic system in which individuals own resources and have
the right to use their time and resources however they choose
, Communism - Answer-Economic system in which the government has total control of
economic matters and private individuals have none
Economics - Answer-Many and varied definitions; most often defined as the science of
allocating scarce resources (land, labor, capital, and management) among different and
competing choices and utilizing those resources to best satisfy human wants and needs
Fascism - Answer-Economic system in which productive property, though owned by
individuals, is used to produce goods that reflect government or state preferences
Free Markets - Answer-The movement of goods and services among nations without
political or economic obstruction
Goods - Answer-Things that have economic utility or satisfy an economic want
Macroeconomics - Answer-Concerned with the study of the economy on a large scale,
or nationally
Microeconomics - Answer-Concerned with the study of the economy on a small scale
Needs - Answer-Things that are really crucial to daily living
Normative Economics - Answer-Subjective statements about economic issues based on
opinion only, often without a basis in fact or theory; value-based, emotional statements
that focus on "what ought to be"
Positive Economics - Answer-Statements based on economic theory rather than
emotion or social philosophy; objective statements dealing with matters of fact and
questions about how things actually are
Profit - Answer-A valuable term
Scarce - Answer-Deficient in quantity or number in relation to demand
Scarcity - Answer-Economic term describing a situation in which there are not enough
resources available to satisfy people's needs or wants
Services - Answer-Nontangible products that cannot be held, stored, or touched. They
can include benefits, activities, or satisfactions that are offered for sale.
Socialism - Answer-Economic system in which there is public ownership of all
productive resources. The government, or the state, directs all decision making.
Subsectors - Answer-Parts of the economy: household sector (all consumers), business
sector) all firms, and government sector (all government agencies)
