FBLA Agribusiness Questions and Answers

FBLA Agribusiness Questions and Answers business cycle the repeated rise and fall of economic activity over time business plan a written description of a new business venture that describes all aspects of the proposed agribusi- ness; 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 a survey that a business conducts to determine the market potential for a selected business capital goods used to produce other goods and services; the investment that the owner has put into the business capital intensive having a high capital cost per unit of output; requiring greater expenditure in the form of capital than of labor capitalism an economic system where individuals own resources and have the right to use their time and resources however they choose collateral something of value deposited with a lender as a pledge to secure repayment of a loan diligence steady application; constancy in an effort to accomplish something entrepreneur 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 any business that lends money financial resources any place that a consumer or business person can acquire money free enterprise economic system that allows individu- als to organize and conduct business with a minimum of government control; individuals privately own what they produce investors one who provides money to others, usually a business, for later income or profit niche place or position in the community suitable for a person or thing rapport a harmonious or sympathetic relationship small business 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 all resources that go into production agriculture to produce farm commodities. agribusiness output sector any phase of the agribusiness sector after the commodity leaves the farm, such as sales or marketing. agriservices sector 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 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 Fuel blend that is 85 percent ethanol and 15 percent gasoline (formerly called gasohol). ecologists one who is concerned with the interrelationship of organisms and their environment. economists a specialist in economics which is the science that deals with the production, distribution, and consumption of goods and services. enterprises projects on a farm, such as the production of any crop or livestock. envrionmentalists any person who advocates or works to protect the air, water, and other natural resources. ethanol the alcohol product of fermentation that is used in alcoholic beverages and for industrial (fuel) purposes. exports shipments of commodities or products, such as agricultural commodities, to foreign countries. fermentation the process of food by means of yeast, molds, or bacteria. gasohol registered trade name for a blend of 90 percent unleaded gasoline with 10 percent fermentation ethanol. gross domestic product (GDP) measures the value of goods and services that a country produces in a year. humus organic matter in the soil that has reached an advanced stage of decomposition and has become colloidal in nature. imports shipments of commodities and products, such as agricultural commodities, from foreign countries for sale, use, or donation. industralization the process of becoming mechanized or industrialized. outstanding loans loans that have not yet been paid. private agriservices any services not included in federal, state, or local government programs; for example, the Farm Credit System. production efficiency receiving optimum output from a reasonable input. public agriservices groups at the federal, state, and local levels that provide special services to production agriculturalists and others. value-added condition of having had an operation performed that increases worth and price, such as being packaged or processed. Aggregate Total Agricultural Economics 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 The distribution or apportioning of something for a specific purpose Capital Goods used to produce other goods and services; the investment that the owner has put in the business Capitalism An economic system in which individuals own resources and have the right to use their time and resources however they choose Communism Economic system in which the government has total control of economic matters and private individuals have none Economics 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 Economic system in which productive property, though owned by individuals, is used to produce goods that reflect government or state preferences Free Markets The movement of goods and services among nations without political or economic obstruction Goods Things that have economic utility or satisfy an economic want Macroeconomics Concerned with the study of the economy on a large scale, or nationally Microeconomics Concerned with the study of the economy on a small scale Needs Things that are really crucial to daily living Normative Economics 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 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 A valuable term Scarce Deficient in quantity or number in relation to demand Scarcity Economic term describing a situation in which there are not enough resources available to satisfy people's needs or wants Services Nontangible products that cannot be held, stored, or touched. They can include benefits, activities, or satisfactions that are offered for sale. Socialism Economic system in which there is public ownership of all productive resources. The government, or the state, directs all decision making. Subsectors Parts of the economy: household sector (all consumers), business sector) all firms, and government sector (all government agencies) Subsidies Government grants of money to aid or encourage a private enterprise that serves to benefit the public Wants Things that are not crucial to daily living Define Demand The relationship between price and quantity that illustrates how much consumers are willing and able to purchase at various prices. Define Diminishing Marginal Utility When a product or service is consumed, a time comes when the utility (or pleasure or benefit) of consuming that product or service declines. Define Economic Opportunities The possible business prospects available today's global economy. Define Economic Principles The basic premises that explain the free enterprise system. Define Economics The science of allocating and utilizing scarce resources of land, labor, capital, and management in the most optimum manner among different and competing choices to satisfy human wants. Define Equilibrium Price and Quantity The point at which the supply and demand schedules intersect and at which the quantity offered for sale matches exactly the quantity that consumers are willing to purchase. Define Free Enterprise A system in which economic agents are free to won property and engage in commercial transactions. Define Government Policy United States Department of Agriculture policies that are designed to regulate agribusinesses.