AGEC 340 Exam 2 Questions With Correct Answers

AGEC 340 Exam 2 Questions With Correct
Answers
Implicit |- |CORRECT |ANSWER✔✔-Those |costs |for |which |there |is |no |cash |outlay |

• |Rent |payments |on |land |that |a |farmer |owns

• |Tax |abatements |to |processing |companies |to |attract |them |to |build |facilities |in |an |area



Explicit |- |CORRECT |ANSWER✔✔-Payments |made |to |suppliers |of |resources, |such |as |land, |labor,
|materials, |fuel, |etc.




Four |scarce |resources |(factors |of |production) |- |CORRECT |ANSWER✔✔-1. |Land |

2. |Labor

3. |Capital

4. |Management



Four |scarce |resources- |Return

1. |Land

2. |Labor |

3. |Capital |

4. |Management |- |CORRECT |ANSWER✔✔-1. |Rent |

2. |Wages

3. |Interest |

4. |Salary



Goal |of |the |agribusiness |manager |- |CORRECT |ANSWER✔✔-Maximize |the |long-run |profits |of |
the |firm |by |satisfying |customer's |needs

, Supply |relationship |- |CORRECT |ANSWER✔✔-A |Direct |relationship |between |price |and |quantity



Examples |of |Macroeconomic |events |that |impact |agribusiness |- |CORRECT |ANSWER✔✔-Inflation

Government |policies

Interest |rates

Unemployment |

Tax |rates

GDP |(Gross |Domestic |Product)



Demand |relationship |- |CORRECT |ANSWER✔✔-An |Inverse |price-quantity |relationship |to |supply



Factors |that |shift |supply |- |CORRECT |ANSWER✔✔-- |Change |in |technology |

- |Change |in |price |of |inputs |

- |Weather |

- |Changes |in |the |price |of |other |products |that |can |be |produced |

- |Subsidies |or |taxes

- |Subsidies |to |providers |

- |Number |of |suppliers



Factors |that |shift |demand |- |CORRECT |ANSWER✔✔-- |Income

- |Number |of |buyers

- |Taste |and |preferences |

- |Expectations |of |buyers |

- |Price |of |substitutes |or |compounds