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AGEC 330: Exam 1 Questions And Answers
|Latest 2025 | Guaranteed Pass
What are the 3 sectors of Agribusiness? - Answer✔input suppliers
production agriculture
food
What are the three reasons agribusiness is complex? - Answer✔demand of consumers
specialization
services
What are the distinguishing features of food/agribusiness? - Answer✔food as a product
biological nature of production agriculture
seasonal/cyclical nature of business
uncertainty of weather
types of firms
variety of market conditions
rural ties
and government involvement
What percent of the budget was spent on food in the 1970s? - Answer✔13.4%
1
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What percent of the budget is spent on food today? - Answer✔10%
In 2012, about one-third of all expenditures by US consumers for groceries by the type of
grocery retailer, was at _________________ grocery stores. - Answer✔non-traditional
In 2013, the marketing share of the marketing bill was about ______ percent of each dollar
spent on food. - Answer✔83
What percent of each dollar spent on food does the farmer get? - Answer✔17
Currently, the largest US retailer is: - Answer✔Walmart
One definition of the concentration ratio is: - Answer✔the market share of the 4 largest firms in
the industry.
Economics is: - Answer✔the study of how scare resources are allocated in a society of unlimited
wants.
What are the reasons for vertical coordination? - Answer✔changing consumer demand
increasing consolidation
increasing manufacturing mentality
more product differentiation
more "vertically coordinated" set of activities- a "value chain"
What are the Incentives for Value Chains? - Answer✔efficiency/lowering costs
managing/allocating risks
responding to consumers
2
, ©BRIGHTSTARS 2025 ALL RIGHTS RESERVED 9:46 AM A+
What is management? - Answer✔the art and science of successfully pursuing desired results
with the resources avaliable to an organization
The steps of the decision making procedure are: - Answer✔1. Identify the problem
2. determine alternative courses of action
3. analyze alternatives
4. select the best alternative
5. implement the decision
6. Follow-up
The four factors of production are: - Answer✔land, capital, labor and management
physical (land and capital)
people (labor and management)
The key TASKS of the agribusiness manager are : - Answer✔planning, organizing, directing and
controlling
What are the three types of planning? - Answer✔strategic (3-5 years)
tactical (short-term; this week; this season)
contingency (what if/Plan B)
What are the steps in the planning process? - Answer✔1. Gather facts
2. Analyze facts
3. Forecast change
4. Set goals/performance objectives
5. Develop alternatives
6. Evaluate Results
3
AGEC 330: Exam 1 Questions And Answers
|Latest 2025 | Guaranteed Pass
What are the 3 sectors of Agribusiness? - Answer✔input suppliers
production agriculture
food
What are the three reasons agribusiness is complex? - Answer✔demand of consumers
specialization
services
What are the distinguishing features of food/agribusiness? - Answer✔food as a product
biological nature of production agriculture
seasonal/cyclical nature of business
uncertainty of weather
types of firms
variety of market conditions
rural ties
and government involvement
What percent of the budget was spent on food in the 1970s? - Answer✔13.4%
1
, ©BRIGHTSTARS 2025 ALL RIGHTS RESERVED 9:46 AM A+
What percent of the budget is spent on food today? - Answer✔10%
In 2012, about one-third of all expenditures by US consumers for groceries by the type of
grocery retailer, was at _________________ grocery stores. - Answer✔non-traditional
In 2013, the marketing share of the marketing bill was about ______ percent of each dollar
spent on food. - Answer✔83
What percent of each dollar spent on food does the farmer get? - Answer✔17
Currently, the largest US retailer is: - Answer✔Walmart
One definition of the concentration ratio is: - Answer✔the market share of the 4 largest firms in
the industry.
Economics is: - Answer✔the study of how scare resources are allocated in a society of unlimited
wants.
What are the reasons for vertical coordination? - Answer✔changing consumer demand
increasing consolidation
increasing manufacturing mentality
more product differentiation
more "vertically coordinated" set of activities- a "value chain"
What are the Incentives for Value Chains? - Answer✔efficiency/lowering costs
managing/allocating risks
responding to consumers
2
, ©BRIGHTSTARS 2025 ALL RIGHTS RESERVED 9:46 AM A+
What is management? - Answer✔the art and science of successfully pursuing desired results
with the resources avaliable to an organization
The steps of the decision making procedure are: - Answer✔1. Identify the problem
2. determine alternative courses of action
3. analyze alternatives
4. select the best alternative
5. implement the decision
6. Follow-up
The four factors of production are: - Answer✔land, capital, labor and management
physical (land and capital)
people (labor and management)
The key TASKS of the agribusiness manager are : - Answer✔planning, organizing, directing and
controlling
What are the three types of planning? - Answer✔strategic (3-5 years)
tactical (short-term; this week; this season)
contingency (what if/Plan B)
What are the steps in the planning process? - Answer✔1. Gather facts
2. Analyze facts
3. Forecast change
4. Set goals/performance objectives
5. Develop alternatives
6. Evaluate Results
3
