Question 1

All real-world economies are:

Accepted Answer

A)  market 
B)  command 
C)  mixed 
D)  none of the other answers

Question 2

An economic good is always:

Accepted Answer

A)  scarce 
B)  free 
C)  neither scarce nor free 
D)  both scarce and free

Question 3

A consumer is:

Accepted Answer

A)  a household 
B)  a buyer 
C)  a customer 
D)  all of the other answers

Question 4

Many claim that globalization leads to job loss for American workers. Write an essay on the strengths and weaknesses of this claim. Is globalization and trade good for agriculture? Explain your arguments carefully.

Accepted Answer

The answer of Many claim that globalization leads to job...

Question 5

Scarcity is the fundamental concept of economics because:

Accepted Answer

A)  consumption is greater than production 
B)  it forces us to choose 
C)  the Law of Diminishing Returns 
D)  necessities such as food and water are widely available

Question 6

Since World War II, US agriculture has been characterized by:

Accepted Answer

A)  massive consolidation of farms 
B)  massive substitution of machines and chemicals for workers 
C)  increasing exports of US agricultural products 
D)  all of the other answers

Question 7

Resources are:

Accepted Answer

A)  plentiful 
B)  used to produce inputs 
C)  scarce 
D)  abundant in high-income nations

Question 8

Suppose that Congress increased the minimum wage to $12.50/hour, ceteris paribus. This will:

Accepted Answer

A)  increase the number of fast food workers 
B)  decrease the number of fast food workers 
C)  result in no change in the number of fast food workers 
D)  not enough information to answer

Question 9

Total Revenues are equal to:

Accepted Answer

A)  price times quantity in terms of dollars 
B)  price times rent 
C)  net profit 
D)  the amount of costs that a business firm incurs

Question 10

The US is an example of:

Accepted Answer

A)  a market economy 
B)  a mixed economy 
C)  a command economy 
D)  none of the above

Question 11

The price of cattle assumes:

Accepted Answer

A)  different qualities of livestock 
B)  the same quality of livestock 
C)  different corn qualities used in cattle production 
D)  relative prices are held constant

Question 12

A command economy could NOT be:

Accepted Answer

A)  a dictatorship 
B)  a democracy 
C)  a market economy 
D)  a republic

Question 13

All graphs must include the following on each axis:

Accepted Answer

A)  functions and units 
B)  labels and units 
C)  functions and labels 
D)  functions, labels, and units

Question 14

Scarcity:

Accepted Answer

A)  is the fundamental principle of economics 
B)  applies to tangible goods, but not to intangible goods 
C)  does not hold for the major religions of the world 
D)  explains why we purchase ipods and trips to Florida

Question 15

The statement, "The price of soybeans is $8.21/bu" is an example of:

Accepted Answer

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

Question 16

If the price of corn increases:

Accepted Answer

A)  producers are made better off 
B)  consumers are made better off 
C)  producers and consumers are made better off 
D)  producers benefit, but consumers lose

Question 17

Briefly explain how resources are allocated in: (a) a market economy, and (b) a command economy.

Accepted Answer

The answer of Briefly explain how resources are allocated in:...

Question 18

The relationship between the price of a good and the quantity of a good consumed is:

Accepted Answer

A)  depends on the situation 
B)  inverse 
C)  direct 
D)  unknown

Question 19

North Korea is an example of a:

Accepted Answer

A)  market economy 
B)  command economy 
C)  mixed economy 
D)  an "Asian Tiger," a rapidly growing economy

Question 20

Write an essay that explains the difference between absolute and relative prices. Define and explain all terms.

Accepted Answer

The answer of Write an essay that explains the difference...

Exam 1: Introduction to the Economics of Agriculture