1
AGEC 105 Quiz Questions with Answers (100% Correct
Answers)
The U.S. population has increased from 154 million in 1951 to 313
million at the start of 2012, a 103% increase. To feed the nation and the
world, what is your best estimate of the percentage increase in
cropland in the U.S.? Answer: -25%
What is the slope of the line y = 5 - 0.2 x? Answer: -0.2
Which of the following would be examples of value added in
agriculture? Check all that apply. 0.33 points will be deducted from
your score for wrong answers Answer: -Your McDonalds Take out
meal
-Strawberries turned into jam
-Bison meat being sold as jerky
Agricultural economics deals with Answer: Farm supply and farms
Distributors such Ben E. Keith
Grain elevators and processors
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,2
Retailers such as Sam's Club or HEB
Which point(s) provide the largest level of utility? Answer: B and D
Calculate the marginal rate of substitution of changing consumption
from point B Answer: (3-5)/(12-8)=-2/4=-1/2
Let the black line represent the original budget constraint, which line
represents an increase in your budget? Answer: Purple
Which of the following products do you most likely have an effective
demand for in your consumption bundle? Answer: Low fat milk at
$3.79/ gallon
At what point does the consumer maximize his / her utility? Answer: 4
coke and 10 pepsi
Assume the ratio of marginal utility of texting relative to the price of
texting (air time) is greater than the marginal utility of going to the
movies relative to movie ticket prices.
What should a rational consumer do to increase their utility? Answer:
Purchase more text time and less movie tickets
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,3
Let the black line represent the original budget constraint, which line
represents an increase in the price of good A? Answer: Red
The price of designer blue jeans has increased by 25%. As a rational
consumer, you have decreased your purchases of blue jeans by two.
This decrease in purchases is a result of Answer: Income and
Substitution Effect
Which area represents the change in consumer surplus if price
decreases from 6 to 2 dollars? Answer: FCBE
Which area represents the change in consumer surplus if price
increases from 2 to 6 dollars? Answer: FCBE
Changes in consumer equilibrium brought about by price changes
were discussed. ____ effect of a price change is the change in quantity
attributed solely to the effective change in your buying power.
Answer: Income
Changes in consumer equilibrium brought about by price changes
were discussed. ____ effect of a price change is the change in quantity
attributed solely to the change in the price ratio, Pgood A / Pgood B?
Answer: Substitution
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, 4
The potato originated in the Andean region, wealthier people in this
area prefer wheat to potatoes. In Bangladesh, however, potatoes are
viewed as a expensive source of calories and a high prestige food.
What type of good are potatoes in the Andean region and in
Bangladesh, respectively? Answer: Inferior, Normal
What is the own price elasticity for the arc between points A and B?
Answer: ((12-20)/(10-6))(((10+6)/2))/((20+12)/2))) = (-8/4)(8/16) = -1
Do You Recall: Assume you have $20 to spend on hotdogs and coke.
The price of a hotdog is $2 and coke is $1. Which point is the correct
consumer equilibrium? Answer: B
When a university experiences a decrease in state funding, the
university often increases tuition and fees in an attempt to meet their
budget shortfalls. This works only if enrollment is Answer: Inelastic
The own price elasticity for Mountain Dew has been estimated to be -
4.4, whereas the own price elasticity for soft drinks has been estimated
to be -0.9. How can this be Answer: If you increase the price of
Mountain Dew you may switch to another soft drink - making
Mountain Dew more elastic relative to soft drinks in general.
© 2025 All rights reserved
AGEC 105 Quiz Questions with Answers (100% Correct
Answers)
The U.S. population has increased from 154 million in 1951 to 313
million at the start of 2012, a 103% increase. To feed the nation and the
world, what is your best estimate of the percentage increase in
cropland in the U.S.? Answer: -25%
What is the slope of the line y = 5 - 0.2 x? Answer: -0.2
Which of the following would be examples of value added in
agriculture? Check all that apply. 0.33 points will be deducted from
your score for wrong answers Answer: -Your McDonalds Take out
meal
-Strawberries turned into jam
-Bison meat being sold as jerky
Agricultural economics deals with Answer: Farm supply and farms
Distributors such Ben E. Keith
Grain elevators and processors
© 2025 All rights reserved
,2
Retailers such as Sam's Club or HEB
Which point(s) provide the largest level of utility? Answer: B and D
Calculate the marginal rate of substitution of changing consumption
from point B Answer: (3-5)/(12-8)=-2/4=-1/2
Let the black line represent the original budget constraint, which line
represents an increase in your budget? Answer: Purple
Which of the following products do you most likely have an effective
demand for in your consumption bundle? Answer: Low fat milk at
$3.79/ gallon
At what point does the consumer maximize his / her utility? Answer: 4
coke and 10 pepsi
Assume the ratio of marginal utility of texting relative to the price of
texting (air time) is greater than the marginal utility of going to the
movies relative to movie ticket prices.
What should a rational consumer do to increase their utility? Answer:
Purchase more text time and less movie tickets
© 2025 All rights reserved
,3
Let the black line represent the original budget constraint, which line
represents an increase in the price of good A? Answer: Red
The price of designer blue jeans has increased by 25%. As a rational
consumer, you have decreased your purchases of blue jeans by two.
This decrease in purchases is a result of Answer: Income and
Substitution Effect
Which area represents the change in consumer surplus if price
decreases from 6 to 2 dollars? Answer: FCBE
Which area represents the change in consumer surplus if price
increases from 2 to 6 dollars? Answer: FCBE
Changes in consumer equilibrium brought about by price changes
were discussed. ____ effect of a price change is the change in quantity
attributed solely to the effective change in your buying power.
Answer: Income
Changes in consumer equilibrium brought about by price changes
were discussed. ____ effect of a price change is the change in quantity
attributed solely to the change in the price ratio, Pgood A / Pgood B?
Answer: Substitution
© 2025 All rights reserved
, 4
The potato originated in the Andean region, wealthier people in this
area prefer wheat to potatoes. In Bangladesh, however, potatoes are
viewed as a expensive source of calories and a high prestige food.
What type of good are potatoes in the Andean region and in
Bangladesh, respectively? Answer: Inferior, Normal
What is the own price elasticity for the arc between points A and B?
Answer: ((12-20)/(10-6))(((10+6)/2))/((20+12)/2))) = (-8/4)(8/16) = -1
Do You Recall: Assume you have $20 to spend on hotdogs and coke.
The price of a hotdog is $2 and coke is $1. Which point is the correct
consumer equilibrium? Answer: B
When a university experiences a decrease in state funding, the
university often increases tuition and fees in an attempt to meet their
budget shortfalls. This works only if enrollment is Answer: Inelastic
The own price elasticity for Mountain Dew has been estimated to be -
4.4, whereas the own price elasticity for soft drinks has been estimated
to be -0.9. How can this be Answer: If you increase the price of
Mountain Dew you may switch to another soft drink - making
Mountain Dew more elastic relative to soft drinks in general.
© 2025 All rights reserved
