Question 1

Economic decisions are made by:

Accepted Answer

A)  relative prices 
B)  absolute prices 
C)  constant-quality prices 
D)  economic prices 
A)  relative prices 
B)  absolute prices 
C)  constant-quality prices 
D)  economic prices

Question 2

The statement, "Gambling is legal in Nevada" is an example of:

Accepted Answer

A)  positive Economics 
B)  normative Economics 
C)  prescriptive Economics 
D)  microeconomics 
A)  positive Economics 
B)  normative Economics 
C)  prescriptive Economics 
D)  microeconomics

Question 3

Most farm families:

Accepted Answer

A)  rely on off-farm income 
B)  are full-time farmers 
C)  have lower levels of wealth relative to nonfarm families 
D)  have a large number of children relative to nonfarm families 
A)  rely on off-farm income 
B)  are full-time farmers 
C)  have lower levels of wealth relative to nonfarm families 
D)  have a large number of children relative to nonfarm families

Question 4

Write an essay that explains the phrase, "scarcity forces us to choose." Why is scarcity the fundamental idea behind economics? Explain thoroughly and completely.

Accepted Answer

Scarcity forces us to choose because it

Question 5

Draw a circular flow diagram of a mixed economy.

Accepted Answer

A circular flow diagram is a visual mode

Question 6

A producer is:

Accepted Answer

A)  an individual who makes a good or service 
B)  a firm that produces a product 
C)  a business firm that makes a good and sells it to maximize profits 
D)  all of the other answers 
A)  an individual who makes a good or service 
B)  a firm that produces a product 
C)  a business firm that makes a good and sells it to maximize profits 
D)  all of the other answers

Question 7

Mechanization of agriculture has:

Accepted Answer

A)  eliminated millions of agricultural jobs 
B)  been due to relative price changes 
C)  results in larger farms 
D)  all of the other answers 
A)  eliminated millions of agricultural jobs 
B)  been due to relative price changes 
C)  results in larger farms 
D)  all of the other answers

Question 8

The payment to capital is:

Accepted Answer

A)  land 
B)  profit 
C)  interest 
D)  rent 
A)  land 
B)  profit 
C)  interest 
D)  rent

Question 9

The massive consolidation of farms in the US is due to:

Accepted Answer

A)  substitution of K for L 
B)  exports 
C)  increases in the standard of living 
D)  off-farm income 
A)  substitution of K for L 
B)  exports 
C)  increases in the standard of living 
D)  off-farm income

Question 10

A phone call is an example of a:

Accepted Answer

A)  relative good 
B)  good 
C)  service 
D)  input 
A)  relative good 
B)  good 
C)  service 
D)  input

Question 11

The payment to management is:

Accepted Answer

A)  interest 
B)  profit 
C)  capital 
D)  rent 
A)  interest 
B)  profit 
C)  capital 
D)  rent

Question 12

Economics is:

Accepted Answer

A)  universally loved, since it allows us to maximize our happiness 
B)  is all about making good decisions in our careers and lives 
C)  the allocation of scarce resources among non-competitive ends 
D)  the dollar value of the national output of goods and services 
A)  universally loved, since it allows us to maximize our happiness 
B)  is all about making good decisions in our careers and lives 
C)  the allocation of scarce resources among non-competitive ends 
D)  the dollar value of the national output of goods and services

Question 13

An Iowa corn producer who has studied economics will desire to:

Accepted Answer

A)  maximize output 
B)  apply the output-maximizing level of fertilizer 
C)  use the profit-maximizing level of all inputs, including fertilizer 
D)  not use fertilizer, since the cost has increased so dramatically 
A)  maximize output 
B)  apply the output-maximizing level of fertilizer 
C)  use the profit-maximizing level of all inputs, including fertilizer 
D)  not use fertilizer, since the cost has increased so dramatically

Question 14

Garbage is an example of:

Accepted Answer

A)  an economic good 
B)  a noneconomic good 
C)  a scarce good 
D)  a mixed good 
A)  an economic good 
B)  a noneconomic good 
C)  a scarce good 
D)  a mixed good

Question 15

If the price of organic food decreases relative to food produced with chemicals, then:

Accepted Answer

A)  farmers will plant more acres to organic and conventional food 
B)  farmers will plant more acres to organic food 
C)  farmers will plant more acres to conventional food 
D)  farmers will continue to grow what they always have 
A)  farmers will plant more acres to organic and conventional food 
B)  farmers will plant more acres to organic food 
C)  farmers will plant more acres to conventional food 
D)  farmers will continue to grow what they always have

Question 16

Total revenues for a business firm in the US are equal to:

Accepted Answer

A)  PQ 
B)  P + Q 
C)  PQ + P 
D)  none of the other answers 
A)  PQ 
B)  P + Q 
C)  PQ + P 
D)  none of the other answers

Question 17

The equation of a line, y = b+mx:

Accepted Answer

A)  m is the y-intercept 
B)  b is the x-intercept 
C)  m is the slope 
D)  not enough information to know 
A)  m is the y-intercept 
B)  b is the x-intercept 
C)  m is the slope 
D)  not enough information to know

Question 18

The statement, "Michael Phelps is the greatest athlete of all times" is an example of:

Accepted Answer

A)  positive economics 
B)  normative economics 
C)  microeconomics 
D)  macroeconomics 
A)  positive economics 
B)  normative economics 
C)  microeconomics 
D)  macroeconomics

Question 19

Explain how economists use the concept of ceteris paribus.

Accepted Answer

Economists use the concept of ceteris pa

Question 20

Economics assumes that all business firms desire to:

Accepted Answer

A)  maximize TR 
B)  maximize TC 
C)  maximize profits 
D)  maximize the well-being of the firm's workers 
A)  maximize TR 
B)  maximize TC 
C)  maximize profits 
D)  maximize the well-being of the firm's workers

Economic decisions are made by:

The statement, "Gambling is legal in Nevada" is an example of:

Most farm families:

Write an essay that explains the phrase, "scarcity forces us to choose." Why is scarcity the fundamental idea behind economics? Explain thoroughly and completely.

Draw a circular flow diagram of a mixed economy.

A producer is:

Mechanization of agriculture has:

The payment to capital is:

The massive consolidation of farms in the US is due to:

A phone call is an example of a:

The payment to management is:

Economics is:

An Iowa corn producer who has studied economics will desire to:

Garbage is an example of:

If the price of organic food decreases relative to food produced with chemicals, then:

Total revenues for a business firm in the US are equal to:

The equation of a line, y = b+mx:

The statement, "Michael Phelps is the greatest athlete of all times" is an example of:

Explain how economists use the concept of ceteris paribus.

Economics assumes that all business firms desire to:

The Economics of Production

The Costs of Production

Profit Maximization

Optimal Input Selection

Optimal Output Selection

Supply

Supply

Demand

Markets

Government Policies

The Competitive Firm

Market Power

Agriculture and the Global Economy

Economics, Agriculture, and the Environment

Agribusiness Management

Filters

Exam 1: Introduction to the Economics of Agriculture

Economic decisions are made by:

The statement, "Gambling is legal in Nevada" is an example of:

Most farm families:

Write an essay that explains the phrase, "scarcity forces us to choose." Why is scarcity the fundamental idea behind economics? Explain thoroughly and completely.

Draw a circular flow diagram of a mixed economy.

A producer is:

Mechanization of agriculture has:

The payment to capital is:

The massive consolidation of farms in the US is due to:

A phone call is an example of a:

The payment to management is:

Economics is:

An Iowa corn producer who has studied economics will desire to:

Garbage is an example of:

If the price of organic food decreases relative to food produced with chemicals, then:

Total revenues for a business firm in the US are equal to:

The equation of a line, y = b+mx:

The statement, "Michael Phelps is the greatest athlete of all times" is an example of:

Explain how economists use the concept of ceteris paribus.

Economics assumes that all business firms desire to:

The Economics of Production

The Costs of Production

Profit Maximization

Optimal Input Selection

Optimal Output Selection

Supply

Supply

Demand

Markets

Government Policies

The Competitive Firm

Market Power

Agriculture and the Global Economy

Economics, Agriculture, and the Environment

Agribusiness Management

Filters