AGBM 102 EXAM 1 UPDATED QUESTIONS AND ANSWERS

AGBM 102 EXAM 1 UPDATED QUESTIONS AND
ANSWERS
What is included in the food system? - CORRECT ANSWER✅✅✅location of production(Farm and
processing)

Location of consumption

Paths to the consumer(direct,wholesale, retail)



Elements of the food system - CORRECT ANSWER✅✅✅Products and services

value added

information



Important economic agents (generic bread) - CORRECT ANSWER✅✅✅Farmer

Elevator operator

Miller

Baker

Retailer

Trucker



Share of money to function - CORRECT ANSWER✅✅✅Farmer=around 4% for wheat

Elevator= <1%

Miller= 2%

Baker= 70%

Retailer= 18%

Trucker= 18%

Non farm ingredients= 2%



Marketing - CORRECT ANSWER✅✅✅the set of economic and behavioral activities involved in
coordinating the various stages of economic activity from production to consumption

, Marketing (simple terms) - CORRECT ANSWER✅✅✅What occurs to farm products from the time
they leave the farm gate until they reach the consumer



Marketing provides... - CORRECT ANSWER✅✅✅time, form and place utility



Utility - CORRECT ANSWER✅✅✅Economists use utility as a measurement of usefulness a consumer
gets from any good.



Functions of marketing - CORRECT ANSWER✅✅✅exchange, physical, enabling



Exchange - CORRECT ANSWER✅✅✅Markets bring buyers and sellers together to exchange product
or something of value for a product.



Physical - CORRECT ANSWER✅✅✅the parts of marketing process that deal with product or input
movement



Enabling - CORRECT ANSWER✅✅✅are those that let the food system operate smoothly but are less
obvious.



Exchange Functions - CORRECT ANSWER✅✅✅Buying

Selling



Physical functions - CORRECT ANSWER✅✅✅Storage

Transportation

Processing



Enabling Functions - CORRECT ANSWER✅✅✅Standardization

financing

Market intelligence