1
AGEC 440 Exam 1 Questions with Answers (100%
Correct Answers)
Agribusiness Answer: A number of interrelated subsectors which
work together formally and informally to produce goods and services
- a system!
Agribusiness is a ________ Answer: System
Consumer sovereignty Answer: the power of consumers to decide
what gets produced
Consumer sovereignty is a _____ Answer: principle
Assumption of Consumer sovereignty Answer: Consumer preferences
are well defined and have perfect knowledge
distinctive characteristics of agribusiness sector Answer: 1. Food is
intertwined with culture
2. uncertainty underlying biologic basis of crop and livestock
production
© 2025 All rights reserved
, 2
3. political intervention across sub sectors and between nations (farm
bill)
4. Ag and food tech development
5. competitive structures
6. food is necessity
Food is ________ with _________ Answer: intertwined; culture
Castle's Concern Answer: Economic theory is sacrificing relevance for
abstract rigor
Maximizing choices assumes ______ and _______ knowledge Answer:
full; complete
Goals of Agribusiness Management Answer: - Focus on the decisions
and actions of the managers within the food and agribusiness sector
- To improve the performance of the firms decision makers and success
interrelated formally and informally Answer: Agbusiness 3 terms
operating profit/invested capital Answer: ROIC Formula
© 2025 All rights reserved
AGEC 440 Exam 1 Questions with Answers (100%
Correct Answers)
Agribusiness Answer: A number of interrelated subsectors which
work together formally and informally to produce goods and services
- a system!
Agribusiness is a ________ Answer: System
Consumer sovereignty Answer: the power of consumers to decide
what gets produced
Consumer sovereignty is a _____ Answer: principle
Assumption of Consumer sovereignty Answer: Consumer preferences
are well defined and have perfect knowledge
distinctive characteristics of agribusiness sector Answer: 1. Food is
intertwined with culture
2. uncertainty underlying biologic basis of crop and livestock
production
© 2025 All rights reserved
, 2
3. political intervention across sub sectors and between nations (farm
bill)
4. Ag and food tech development
5. competitive structures
6. food is necessity
Food is ________ with _________ Answer: intertwined; culture
Castle's Concern Answer: Economic theory is sacrificing relevance for
abstract rigor
Maximizing choices assumes ______ and _______ knowledge Answer:
full; complete
Goals of Agribusiness Management Answer: - Focus on the decisions
and actions of the managers within the food and agribusiness sector
- To improve the performance of the firms decision makers and success
interrelated formally and informally Answer: Agbusiness 3 terms
operating profit/invested capital Answer: ROIC Formula
© 2025 All rights reserved
