AGEC 333 Final Actual Exam Questions
and CORRECT Answers
A price taker is one who has little say over establishing an asking price - CORRECT
ANSWER✔✔- True
Storage, transportation, and financing are facilitating functions of marketing - CORRECT
ANSWER✔✔- False
Farmer's marketing programs are typically not as strong as the procurement programs of their
buyers - CORRECT ANSWER✔✔- True
In terms of the market models covered in chapter 2, the fast food industry is most like perfect
competition - CORRECT ANSWER✔✔- False
Micro marketing is more complex for the manager of a firm in perfect competition rather
than oligopolistic competition - CORRECT ANSWER✔✔- False
Agribusiness handling commodities generally engage in less price competition than those
merchandising differentiated products because firms handling commodities are not able to do
much about fixing prices - CORRECT ANSWER✔✔- False
Convenience yield pertains to the storage of commodities, even though the market is not
signaling storage opportunities - CORRECT ANSWER✔✔- True
If the price of a farm commodity such as lettuce falls abruptly, you can be confident that
lettuce production costs have fallen - CORRECT ANSWER✔✔- False
Whereas price cycles refer to price patterns within a year, seasonality refers to patterns that
may occur over longer periods - CORRECT ANSWER✔✔- False
Engle's law states that low incomes increase, the proportion spent on food ordinarily
increases - CORRECT ANSWER✔✔- False
, The cause of change in consumption is always a shift in the demand curve - CORRECT
ANSWER✔✔- False
Own-price elasticities of demand vary between zero and negative infinity - CORRECT
ANSWER✔✔- True
Grain utilization per capita generally rises with per capita incomes - CORRECT
ANSWER✔✔- True
In dollar terms, less than one-half of US annual agricultural exports have typically been
animal products - CORRECT ANSWER✔✔- True
Asia has been the largest continental market for US agricultural exports - CORRECT
ANSWER✔✔- True
As a nation favoring free trade, the US imports nearly any agricultural commodity without
restrictions or barriers - CORRECT ANSWER✔✔- False
Most farmers would be indifferent between using a forward contract or a future contract -
CORRECT ANSWER✔✔- False
Grades are useless unless they conform to differences in demand - CORRECT
ANSWER✔✔- True
The process by which a retailer attempts to serve his customers by putting together a line of
different products is called assorting - CORRECT ANSWER✔✔- True
Interest is usually an insignificant cost of storage - CORRECT ANSWER✔✔- False
Most shipping is done by sellers, not buyers - CORRECT ANSWER✔✔- True
and CORRECT Answers
A price taker is one who has little say over establishing an asking price - CORRECT
ANSWER✔✔- True
Storage, transportation, and financing are facilitating functions of marketing - CORRECT
ANSWER✔✔- False
Farmer's marketing programs are typically not as strong as the procurement programs of their
buyers - CORRECT ANSWER✔✔- True
In terms of the market models covered in chapter 2, the fast food industry is most like perfect
competition - CORRECT ANSWER✔✔- False
Micro marketing is more complex for the manager of a firm in perfect competition rather
than oligopolistic competition - CORRECT ANSWER✔✔- False
Agribusiness handling commodities generally engage in less price competition than those
merchandising differentiated products because firms handling commodities are not able to do
much about fixing prices - CORRECT ANSWER✔✔- False
Convenience yield pertains to the storage of commodities, even though the market is not
signaling storage opportunities - CORRECT ANSWER✔✔- True
If the price of a farm commodity such as lettuce falls abruptly, you can be confident that
lettuce production costs have fallen - CORRECT ANSWER✔✔- False
Whereas price cycles refer to price patterns within a year, seasonality refers to patterns that
may occur over longer periods - CORRECT ANSWER✔✔- False
Engle's law states that low incomes increase, the proportion spent on food ordinarily
increases - CORRECT ANSWER✔✔- False
, The cause of change in consumption is always a shift in the demand curve - CORRECT
ANSWER✔✔- False
Own-price elasticities of demand vary between zero and negative infinity - CORRECT
ANSWER✔✔- True
Grain utilization per capita generally rises with per capita incomes - CORRECT
ANSWER✔✔- True
In dollar terms, less than one-half of US annual agricultural exports have typically been
animal products - CORRECT ANSWER✔✔- True
Asia has been the largest continental market for US agricultural exports - CORRECT
ANSWER✔✔- True
As a nation favoring free trade, the US imports nearly any agricultural commodity without
restrictions or barriers - CORRECT ANSWER✔✔- False
Most farmers would be indifferent between using a forward contract or a future contract -
CORRECT ANSWER✔✔- False
Grades are useless unless they conform to differences in demand - CORRECT
ANSWER✔✔- True
The process by which a retailer attempts to serve his customers by putting together a line of
different products is called assorting - CORRECT ANSWER✔✔- True
Interest is usually an insignificant cost of storage - CORRECT ANSWER✔✔- False
Most shipping is done by sellers, not buyers - CORRECT ANSWER✔✔- True
