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AG ECON FINAL

question
Microeconomics concerns:
a. decisions of individual firms and households
b. unemployment and inflation
c. international trade relationships
d. national economic growth
answer
a. decisions of individual firms and households
question
Which of the following statements does not apply to a market economy?
a. Government policies are the primary forces that guide the decisions of firms and households.
b. The "invisible hand" usually maximizes the income of society as a whole.
c. Firms decide whom to hire and what to produce.
d. Households decide which firms to work for and what to buy with their incomes
answer
a. Government policies are the primary forces that guide the decisions of firms and households.
question
The "invisible hand" refers to
a. the control that large firms have over the economy.
b. government regulations without which the economy would be less efficient.
c. how the decisions of households and firms lead to desirable market outcomes.
d. how central planners made economic decisions.
answer
c. how the decisions of households and firms lead to desirable market outcomes.
question
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
a. $16 million.
b. $13 million.
c. $3 million.
d.$4 million.
answer
b. $13 million
question
Given the following data:
Cash receipts from farm marketing$750,000
Receipts of government payments$150,000
Other income from farm sources$100,000
Production expenses$400,000
Value of real estate assets$10 million
Value of non-real estate assets$2 million
Financial assets$4 million
Liabilities$9 million
Net farm income for this operation is
a. $1 million.
b. $600,000.
c. $25 million.
d. $7 million.
answer
b. $600,000.
question
The term "real" as opposed to "nominal" means that economists are making adjustments for
a. opportunity cost.
b. inflation.
c. None of these.
d. resource scarcity.
answer
b. inflation.
question
Suppose your nominal income in 1990 was $24,000. Suppose too that the consumer price index for 2012 was 1.5, and the base year for this index was 1990. How much nominal income would you need in 2012 in order to match the spending power of your $24,000 in 1990?
a. $36,000
b. $48,000
c. $24,000
d. $16,000
answer
a. $36,000
question
Which of the following is (are) part of the agribusiness (food and fiber) sector?
a. All of these
b. Processors and manufacturers
c. Wholesalers, retailers, and food service purveyors
d. Farm input suppliers
answer
a. All of these
question
The shift in the budget line in the graph below is due to
a. a rise in income.
b. a fall in income.
c. an increase in the price of hamburgers.
d. an increase in the price of tacos.
answer
b. a fall in income.
question
Given the indifference curves in this graph, which combination of wings and hamburgers yields the highest level of satisfaction?
a. 7 wings, 1 hamburger
b. 7 wings, 4 hamburgers
c. 2 wings, 7 hamburgers
d. 5 wings, 5 hamburgers
answer
d. 5 wings, 5 hamburgers
question
The mathematical representation of the satisfaction a consumer derives from a bundle of goods is called the
a. Engel curve.
b. Demand curve.
c. Utility function.
d. Indifference curve.
answer
d. Indifference curve. changed to c. Utility function.
question
Given the following diagram, the reason that the budget line rotated counterclockwise is due to the fact that the prices of Subway sandwiches fell.
a. True
b. False
answer
False
question
The following graph depicts
a. a budget line.
b. an Engel curve.
c. a perfectly elastic demand curve.
d. a perfectly inelastic demand curve.
answer
a. a budget line. change to c. a perfectly elastic demand curve.
question
Suppose that Robin budgets $12/week for Wings 'N' Suds. The price of buffalo wings is $0.50 while the price of Coca-Cola is $1.50. What is the maximum number of buffalo wings that Robin may buy?
a. 12
b. 24
c. 28
d. 4
answer
b. 24
question
As a consumer's income rises, the proportion of income spent on food falls. This assertion is known as
a. Law of Demand.
b. None of these
c. Engel's Law.
d. Law of Diminishing Marginal Utility.
answer
c. Engel's Law.
question
According to this diagram, Monterey Jack cheese is what kind of good?
a. Inferior
b. Can't tell; insufficient information.
c. Luxury
d. Necessity
answer
c. Luxury
question
The own-price elasticity of demand for shrimp between points A and B is
a. -1/10.
b. -0.538.
c. -1.857.
d. -10.
answer
c. -1.857.
question
In a recent article in USA Today, the price of gasoline rose over the past year from $3.50 to $4.00, a price hike of about 14.29 percent. Gasoline consumption over the past year declined by 10 percent. So, on the basis of this article, we can conclude that
a. The own-price elasticity for gasoline is -1.
b. The own-price elasticity for gasoline is roughly -1.43.
c. Can't tell; insufficient information.
d. The own-price elasticity for gasoline is nearly -0.70
answer
d. The own-price elasticity for gasoline is nearly -0.70
question
Which of the following is true?
a. If the cross-price elasticity of demand between two goods is negative, then the two goods are complements.
b. If the income elasticity of demand f is greater than 0, then the good is labeled as inferior.
c. The law of demand states that as the price of a commodity rises, the changes in consumer surplus is negative.
d. The law of diminishing marginal utility states that utility declines as more of a good is consumed.
answer
a. If the cross-price elasticity of demand between two goods is negative, then the two goods are complements
question
The stage of production where the total physical product curve begins to decline corresponds to
a. Stage 1
b. Stage 3.
c. Stage 2
d. There is no stage at which production is negative
answer
b. Stage 3.
question
The marginal physical product of labor is
a. The output which labor could produce without other factors of production.
b. The amount of extra output that is produced when one worker is added and other factors of production are increased proportionally.
c. The amount of extra output that is produced when one extra worker is added and other factors of production are held constant.
d. The additional revenue received by the firm by selling the out of one additional worker.
answer
c. The amount of extra output that is produced when one extra worker is added and other factors of production are held constant.
question
What is the value of W in the table below?
a. None of these
b. 100
c. 1,000
d. 200
answer
d. 200
question
Given the graph below, the firm would maximize its profit by employing labor to the point where ________ equals ________.
a. Marginal Cost, Wage rate
b. Value of Marginal Product, wage rate
c. Marginal Cost, Marginal Revenue
d. Marginal Revenue, Average Total Cost
answer
b. Value of Marginal Product, wage rate
question
Refer to Figure 2-3. Suppose this economy is producing at point D. Which of the following statements would best explain this situation?
a. The economy is experiencing economic growth.
b. The economy's available technology prevents it from producing at a more desirable point.
c. There is underuse of resources in the economy.
d. The economy has insufficient resources to produce at a more desirable point.
answer
c. There is underuse of resources in the economy.
question
The point of tangency between the iso-cost and the isoquant indicates
a. The maximum revenue from using two inputs
b. The optimal combination of two inputs in order to obtain the minimum cost for a given level of output.
c. How much profit a firm can make using these two inputs.
d. How much of two inputs a firm should use to maximize cost
answer
b. The optimal combination of two inputs in order to obtain the minimum cost for a given level of output.
question
The marginal rate of technical substitution between labor and capital is equal to
a. The ratio of the change in output to the ratio of two input prices.
b. The ratio of the level of capital to the level of labor.
c. The ratio of the change in capital to the change in labor.
d. The ratio of the change in capital to the marginal physical product of capital.
answer
c. The ratio of the change in capital to the change in labor.
question
The doubling of a firm's feedlot capacity which results in a doubling of production is characteristic of
a. A shift in the iso-revenue line.
b. Increasing returns to scale.
c. Constant returns to scale.
d. A shift in the iso-cost line.
answer
b. Increasing returns to scale.
question
The break-even level out output occurs for a business when
a. Average revenue equals average variable cost.
b. Marginal cost equals marginal revenue.
c. Average revenue equals marginal revenue.
d. Marginal revenue equals average total cost.
answer
d. Marginal revenue equals average total cost.
question
The firm's supply curve in the short run is given by
a. None of these.
b. The segment of the marginal cost curve above average variable cost.
c. The segment of the marginal cost curve above average total cost.
d. The segment of the marginal cost curve above the break-even price.
answer
b. The segment of the marginal cost curve above average variable cost.
question
Consumer surplus is represented by
a. The area above the supply curve and below the market equilibrium price.
b. None of these.
c. The area below the demand curve and above the market equilibrium price.
d. The area below the demand curve and above the supply curve.
answer
c. The area below the demand curve and above the market equilibrium price.
question
Firm's under conditions of perfect competition will
a. Will face barriers to exit
b. Will face a few other competitors in the market.
c. Have no disproportionate influence on price.
d. Will face barriers to entry.
answer
c. Have no disproportionate influence on price.
question
Which form of market is associated with the domestic airline and car industries?
a. monopoly
b. perfect competition
c. oligopoly
d. monopolistic competition
answer
c. oligopoly
question
Which of the following are common barriers to entry?
a. All of these
b. economies of scale
c. absolute unit-cost advantages
d. capital access and costs
answer
a. All of these
question
When firms cannot alter the price they face in the market, they are said to be price takers.
a. true
b. false
answer
a. true
question
Non-price competition refers to actions that attempt to increase the demand for a product or service via product differentiation, specially when oligopolies compete with each other.
a. true
b. false
answer
a. true
question
he graph below presents a standard _________________ externality, where each unit of production creates additional costs of Ex.
a. negative demand
b. positive supply
c. negative supply
d. positive demand
answer
a. negative demand
question
Which of the following is not one of the three critical characteristics of efficient property rights?
a. Enforceability
b. Externality
c. Transferability
d. Exclusivity
answer
b. Externality
question
Which of the following statements is a correct summary of the relationship between the agricultural sector and air pollution?
a. Agriculture is a leading cause of many air pollutants, but is not affected by air pollution problems.
b. Agriculture is neither a source of any air pollutants, nor is it directly affected by air pollution problems
c. Agriculture has no direct effect on air pollution, but is affected by air pollution problems.
d. Agriculture is a cause of some air pollutants, but is also affected by some air pollution problems.
answer
d. Agriculture is a cause of some air pollutants, but is also affected by some air pollution problems.
question
The prior appropriation doctrine is a system in which individuals have rights to specific quantities of water and these right can be sold to others.
a. true
b. false
answer
a. true
question
What is the current tax (in percentage) imposed to beverages with sugar concentration lower than 6.25 g/100 ml?
a. 10%
b. 18%
c. 14%
d. 13%
answer
a. 10%
question
The Chilean Law of Food Labeling and Advertising Law 20.606 requires food companies to display black warning logos in the shape of a stop sign on items for high content of sugar, sodium, calories or fat.
a. true
b. false
answer
a. true
question
2/3 of the population is overweight or obese in Chile (according to 2018 reports)
a. true
b. false
answer
b. false
question
Energy economics studies the application of economics to energy issues such as
a. regulations to energy sources
b. forces motivating consumers to change their use of electricity
c. all of the three options.
d. environmental consequences of energy utilization
answer
d. environmental consequences of energy utilization
question
Energy production and use accounts for _____ of global greenhouse emissions
a. 1/2
b. 4/5
c. 3/4
d. 2/3
answer
c. 3/4
question
Online shopping and e-Grocery have increased substantially due to the pandemic and become a new habit
a. true
b. false
answer
a. true
question
People who can afford expensive meal kits pay a lot of attention to the serviceoffered by these companies during the pandemic and are also more likely to give lower ratings when their experiences with the service are positive.
a. true
b. false
answer
b. false
question
___________ could be malnourished by 2030 if nothing is done to decrease malnutrition.
a. 1 out of 2
b. 2 out of 3
c. 2 out of 5
d. 1 out of 3
answer
a. 1 out of 2
question
Which of the following region has the highest BMI (at all ages/year)
a. Canada & US
b. China
c. South Asia
d. Italy
answer
a. Canada & US
question
In 2013, which region had the largest uneaten calories?
a. China
b. High developed economies
c. Low income economies
d. Middle income economies (excluding China)
answer
c. Low income economies changed to b. High developed economies
1 of 49
question
Microeconomics concerns:
a. decisions of individual firms and households
b. unemployment and inflation
c. international trade relationships
d. national economic growth
answer
a. decisions of individual firms and households
question
Which of the following statements does not apply to a market economy?
a. Government policies are the primary forces that guide the decisions of firms and households.
b. The "invisible hand" usually maximizes the income of society as a whole.
c. Firms decide whom to hire and what to produce.
d. Households decide which firms to work for and what to buy with their incomes
answer
a. Government policies are the primary forces that guide the decisions of firms and households.
question
The "invisible hand" refers to
a. the control that large firms have over the economy.
b. government regulations without which the economy would be less efficient.
c. how the decisions of households and firms lead to desirable market outcomes.
d. how central planners made economic decisions.
answer
c. how the decisions of households and firms lead to desirable market outcomes.
question
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
a. $16 million.
b. $13 million.
c. $3 million.
d.$4 million.
answer
b. $13 million
question
Given the following data:
Cash receipts from farm marketing$750,000
Receipts of government payments$150,000
Other income from farm sources$100,000
Production expenses$400,000
Value of real estate assets$10 million
Value of non-real estate assets$2 million
Financial assets$4 million
Liabilities$9 million
Net farm income for this operation is
a. $1 million.
b. $600,000.
c. $25 million.
d. $7 million.
answer
b. $600,000.
question
The term "real" as opposed to "nominal" means that economists are making adjustments for
a. opportunity cost.
b. inflation.
c. None of these.
d. resource scarcity.
answer
b. inflation.
question
Suppose your nominal income in 1990 was $24,000. Suppose too that the consumer price index for 2012 was 1.5, and the base year for this index was 1990. How much nominal income would you need in 2012 in order to match the spending power of your $24,000 in 1990?
a. $36,000
b. $48,000
c. $24,000
d. $16,000
answer
a. $36,000
question
Which of the following is (are) part of the agribusiness (food and fiber) sector?
a. All of these
b. Processors and manufacturers
c. Wholesalers, retailers, and food service purveyors
d. Farm input suppliers
answer
a. All of these
question
The shift in the budget line in the graph below is due to
a. a rise in income.
b. a fall in income.
c. an increase in the price of hamburgers.
d. an increase in the price of tacos.
answer
b. a fall in income.
question
Given the indifference curves in this graph, which combination of wings and hamburgers yields the highest level of satisfaction?
a. 7 wings, 1 hamburger
b. 7 wings, 4 hamburgers
c. 2 wings, 7 hamburgers
d. 5 wings, 5 hamburgers
answer
d. 5 wings, 5 hamburgers
question
The mathematical representation of the satisfaction a consumer derives from a bundle of goods is called the
a. Engel curve.
b. Demand curve.
c. Utility function.
d. Indifference curve.
answer
d. Indifference curve. changed to c. Utility function.
question
Given the following diagram, the reason that the budget line rotated counterclockwise is due to the fact that the prices of Subway sandwiches fell.
a. True
b. False
answer
False
question
The following graph depicts
a. a budget line.
b. an Engel curve.
c. a perfectly elastic demand curve.
d. a perfectly inelastic demand curve.
answer
a. a budget line. change to c. a perfectly elastic demand curve.
question
Suppose that Robin budgets $12/week for Wings 'N' Suds. The price of buffalo wings is $0.50 while the price of Coca-Cola is $1.50. What is the maximum number of buffalo wings that Robin may buy?
a. 12
b. 24
c. 28
d. 4
answer
b. 24
question
As a consumer's income rises, the proportion of income spent on food falls. This assertion is known as
a. Law of Demand.
b. None of these
c. Engel's Law.
d. Law of Diminishing Marginal Utility.
answer
c. Engel's Law.
question
According to this diagram, Monterey Jack cheese is what kind of good?
a. Inferior
b. Can't tell; insufficient information.
c. Luxury
d. Necessity
answer
c. Luxury
question
The own-price elasticity of demand for shrimp between points A and B is
a. -1/10.
b. -0.538.
c. -1.857.
d. -10.
answer
c. -1.857.
question
In a recent article in USA Today, the price of gasoline rose over the past year from $3.50 to $4.00, a price hike of about 14.29 percent. Gasoline consumption over the past year declined by 10 percent. So, on the basis of this article, we can conclude that
a. The own-price elasticity for gasoline is -1.
b. The own-price elasticity for gasoline is roughly -1.43.
c. Can't tell; insufficient information.
d. The own-price elasticity for gasoline is nearly -0.70
answer
d. The own-price elasticity for gasoline is nearly -0.70
question
Which of the following is true?
a. If the cross-price elasticity of demand between two goods is negative, then the two goods are complements.
b. If the income elasticity of demand f is greater than 0, then the good is labeled as inferior.
c. The law of demand states that as the price of a commodity rises, the changes in consumer surplus is negative.
d. The law of diminishing marginal utility states that utility declines as more of a good is consumed.
answer
a. If the cross-price elasticity of demand between two goods is negative, then the two goods are complements
question
The stage of production where the total physical product curve begins to decline corresponds to
a. Stage 1
b. Stage 3.
c. Stage 2
d. There is no stage at which production is negative
answer
b. Stage 3.
question
The marginal physical product of labor is
a. The output which labor could produce without other factors of production.
b. The amount of extra output that is produced when one worker is added and other factors of production are increased proportionally.
c. The amount of extra output that is produced when one extra worker is added and other factors of production are held constant.
d. The additional revenue received by the firm by selling the out of one additional worker.
answer
c. The amount of extra output that is produced when one extra worker is added and other factors of production are held constant.
question
What is the value of W in the table below?
a. None of these
b. 100
c. 1,000
d. 200
answer
d. 200
question
Given the graph below, the firm would maximize its profit by employing labor to the point where ________ equals ________.
a. Marginal Cost, Wage rate
b. Value of Marginal Product, wage rate
c. Marginal Cost, Marginal Revenue
d. Marginal Revenue, Average Total Cost
answer
b. Value of Marginal Product, wage rate
question
Refer to Figure 2-3. Suppose this economy is producing at point D. Which of the following statements would best explain this situation?
a. The economy is experiencing economic growth.
b. The economy's available technology prevents it from producing at a more desirable point.
c. There is underuse of resources in the economy.
d. The economy has insufficient resources to produce at a more desirable point.
answer
c. There is underuse of resources in the economy.
question
The point of tangency between the iso-cost and the isoquant indicates
a. The maximum revenue from using two inputs
b. The optimal combination of two inputs in order to obtain the minimum cost for a given level of output.
c. How much profit a firm can make using these two inputs.
d. How much of two inputs a firm should use to maximize cost
answer
b. The optimal combination of two inputs in order to obtain the minimum cost for a given level of output.
question
The marginal rate of technical substitution between labor and capital is equal to
a. The ratio of the change in output to the ratio of two input prices.
b. The ratio of the level of capital to the level of labor.
c. The ratio of the change in capital to the change in labor.
d. The ratio of the change in capital to the marginal physical product of capital.
answer
c. The ratio of the change in capital to the change in labor.
question
The doubling of a firm's feedlot capacity which results in a doubling of production is characteristic of
a. A shift in the iso-revenue line.
b. Increasing returns to scale.
c. Constant returns to scale.
d. A shift in the iso-cost line.
answer
b. Increasing returns to scale.
question
The break-even level out output occurs for a business when
a. Average revenue equals average variable cost.
b. Marginal cost equals marginal revenue.
c. Average revenue equals marginal revenue.
d. Marginal revenue equals average total cost.
answer
d. Marginal revenue equals average total cost.
question
The firm's supply curve in the short run is given by
a. None of these.
b. The segment of the marginal cost curve above average variable cost.
c. The segment of the marginal cost curve above average total cost.
d. The segment of the marginal cost curve above the break-even price.
answer
b. The segment of the marginal cost curve above average variable cost.
question
Consumer surplus is represented by
a. The area above the supply curve and below the market equilibrium price.
b. None of these.
c. The area below the demand curve and above the market equilibrium price.
d. The area below the demand curve and above the supply curve.
answer
c. The area below the demand curve and above the market equilibrium price.
question
Firm's under conditions of perfect competition will
a. Will face barriers to exit
b. Will face a few other competitors in the market.
c. Have no disproportionate influence on price.
d. Will face barriers to entry.
answer
c. Have no disproportionate influence on price.
question
Which form of market is associated with the domestic airline and car industries?
a. monopoly
b. perfect competition
c. oligopoly
d. monopolistic competition
answer
c. oligopoly
question
Which of the following are common barriers to entry?
a. All of these
b. economies of scale
c. absolute unit-cost advantages
d. capital access and costs
answer
a. All of these
question
When firms cannot alter the price they face in the market, they are said to be price takers.
a. true
b. false
answer
a. true
question
Non-price competition refers to actions that attempt to increase the demand for a product or service via product differentiation, specially when oligopolies compete with each other.
a. true
b. false
answer
a. true
question
he graph below presents a standard _________________ externality, where each unit of production creates additional costs of Ex.
a. negative demand
b. positive supply
c. negative supply
d. positive demand
answer
a. negative demand
question
Which of the following is not one of the three critical characteristics of efficient property rights?
a. Enforceability
b. Externality
c. Transferability
d. Exclusivity
answer
b. Externality
question
Which of the following statements is a correct summary of the relationship between the agricultural sector and air pollution?
a. Agriculture is a leading cause of many air pollutants, but is not affected by air pollution problems.
b. Agriculture is neither a source of any air pollutants, nor is it directly affected by air pollution problems
c. Agriculture has no direct effect on air pollution, but is affected by air pollution problems.
d. Agriculture is a cause of some air pollutants, but is also affected by some air pollution problems.
answer
d. Agriculture is a cause of some air pollutants, but is also affected by some air pollution problems.
question
The prior appropriation doctrine is a system in which individuals have rights to specific quantities of water and these right can be sold to others.
a. true
b. false
answer
a. true
question
What is the current tax (in percentage) imposed to beverages with sugar concentration lower than 6.25 g/100 ml?
a. 10%
b. 18%
c. 14%
d. 13%
answer
a. 10%
question
The Chilean Law of Food Labeling and Advertising Law 20.606 requires food companies to display black warning logos in the shape of a stop sign on items for high content of sugar, sodium, calories or fat.
a. true
b. false
answer
a. true
question
2/3 of the population is overweight or obese in Chile (according to 2018 reports)
a. true
b. false
answer
b. false
question
Energy economics studies the application of economics to energy issues such as
a. regulations to energy sources
b. forces motivating consumers to change their use of electricity
c. all of the three options.
d. environmental consequences of energy utilization
answer
d. environmental consequences of energy utilization
question
Energy production and use accounts for _____ of global greenhouse emissions
a. 1/2
b. 4/5
c. 3/4
d. 2/3
answer
c. 3/4
question
Online shopping and e-Grocery have increased substantially due to the pandemic and become a new habit
a. true
b. false
answer
a. true
question
People who can afford expensive meal kits pay a lot of attention to the serviceoffered by these companies during the pandemic and are also more likely to give lower ratings when their experiences with the service are positive.
a. true
b. false
answer
b. false
question
___________ could be malnourished by 2030 if nothing is done to decrease malnutrition.
a. 1 out of 2
b. 2 out of 3
c. 2 out of 5
d. 1 out of 3
answer
a. 1 out of 2
question
Which of the following region has the highest BMI (at all ages/year)
a. Canada & US
b. China
c. South Asia
d. Italy
answer
a. Canada & US
question
In 2013, which region had the largest uneaten calories?
a. China
b. High developed economies
c. Low income economies
d. Middle income economies (excluding China)
answer
c. Low income economies changed to b. High developed economies
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