AGEC 340 EXAM 1 REVIEW
QUESTIONS & ANSWERS(RATED A+)
How does vanderwood meadow farm grow their product - ANSWERAquaponics and
or Vertical Farming
Which state has the lowest spending for local food - ANSWERTexas
How can exporting be non beneficial - ANSWERIt is risky, has uncertainties, and
competitive markets are rising
Agricultural exports - ANSWERSupports a lot of jobs
Ag Subsidies - ANSWERAre good for the US dollar
Subsidies - ANSWERa sum of money granted by the government or a public body to
assist an industry or business so that the price of a commodity or service may
remain low or competitive.
What sales channels - ANSWERFarm path grocery stores
Sustainable packaging - ANSWERA visible differentiator
Why are local farmers markets so important to local markets? - ANSWERThey are
incubators for small businesses. Encourages businesses to start in that small growth
change.
Why was aquaponics used? - ANSWERIt was chosen because of environmental
benefits and productivity in the urban environment.
Thomas Malthus (1766-1834) - ANSWERPopulations have the potential to increase
at a faster rate than resources
As a result there is intense competition among individuals
Eugenicist
Low birth rate - ANSWERComes with shortage of labor and shrinkage of markets
Malthusian theory of population growth - ANSWERThe theory that population grows
faster than food supply
How can exporting be beneficial - ANSWERExporting is a great way to grow the pie.
Bring in revenue.
Cultural diversity in markets - ANSWERLed to niche products and services to the
mass market
, Benefits for exporting for firms - ANSWERGrow the pie
Economies of scale
Global branding benefits
Reduced risk being in several markets at once
Cultural Globilization - ANSWERUrbanization is growing worldwide
Firms don't have to segment
Risks for Exporter - ANSWERrisk of non-payment
Exchange rate currency risks
Accounting can be different
Management and cultural differences
Legal differences between countries (bribery)
Changing exports - ANSWERValue to raw commodities that have been processed
Derived demand - ANSWERBusiness demand that ultimately comes from (derives
from) the demand for consumer goods.
Factors that shift the supply curve - ANSWERinput/resource prices, technology,
taxes, expectations of future prices, number of sellers
supply and demand model - ANSWERSupply goes up, price goes down
if price rises, sellers provide more products in the market
If price rises, buyers purchase less
Markets are constantly changing to search for equilibrium
opportunity cost of going to college vs working - ANSWEREight years is the break
even
Accounting cost of college - 140k
Additional earning power after graduation - 17k
Macroeconomics - ANSWERthe study of economy-wide phenomena, including
inflation, unemployment, and economic growth
Levers to keep the free market in check with tariffs and taxes
Microeconomics - ANSWERthe study of how households and firms make decisions
and how they interact in markets
Managers allocate scarce resources
Price, production, and utility
Utility - ANSWERAbility or capacity of a good or service to be useful and give
satisfaction to someone.
Why do economic profits exists - ANSWERSpecial knowledge, access to
information, patents, and copyrights
QUESTIONS & ANSWERS(RATED A+)
How does vanderwood meadow farm grow their product - ANSWERAquaponics and
or Vertical Farming
Which state has the lowest spending for local food - ANSWERTexas
How can exporting be non beneficial - ANSWERIt is risky, has uncertainties, and
competitive markets are rising
Agricultural exports - ANSWERSupports a lot of jobs
Ag Subsidies - ANSWERAre good for the US dollar
Subsidies - ANSWERa sum of money granted by the government or a public body to
assist an industry or business so that the price of a commodity or service may
remain low or competitive.
What sales channels - ANSWERFarm path grocery stores
Sustainable packaging - ANSWERA visible differentiator
Why are local farmers markets so important to local markets? - ANSWERThey are
incubators for small businesses. Encourages businesses to start in that small growth
change.
Why was aquaponics used? - ANSWERIt was chosen because of environmental
benefits and productivity in the urban environment.
Thomas Malthus (1766-1834) - ANSWERPopulations have the potential to increase
at a faster rate than resources
As a result there is intense competition among individuals
Eugenicist
Low birth rate - ANSWERComes with shortage of labor and shrinkage of markets
Malthusian theory of population growth - ANSWERThe theory that population grows
faster than food supply
How can exporting be beneficial - ANSWERExporting is a great way to grow the pie.
Bring in revenue.
Cultural diversity in markets - ANSWERLed to niche products and services to the
mass market
, Benefits for exporting for firms - ANSWERGrow the pie
Economies of scale
Global branding benefits
Reduced risk being in several markets at once
Cultural Globilization - ANSWERUrbanization is growing worldwide
Firms don't have to segment
Risks for Exporter - ANSWERrisk of non-payment
Exchange rate currency risks
Accounting can be different
Management and cultural differences
Legal differences between countries (bribery)
Changing exports - ANSWERValue to raw commodities that have been processed
Derived demand - ANSWERBusiness demand that ultimately comes from (derives
from) the demand for consumer goods.
Factors that shift the supply curve - ANSWERinput/resource prices, technology,
taxes, expectations of future prices, number of sellers
supply and demand model - ANSWERSupply goes up, price goes down
if price rises, sellers provide more products in the market
If price rises, buyers purchase less
Markets are constantly changing to search for equilibrium
opportunity cost of going to college vs working - ANSWEREight years is the break
even
Accounting cost of college - 140k
Additional earning power after graduation - 17k
Macroeconomics - ANSWERthe study of economy-wide phenomena, including
inflation, unemployment, and economic growth
Levers to keep the free market in check with tariffs and taxes
Microeconomics - ANSWERthe study of how households and firms make decisions
and how they interact in markets
Managers allocate scarce resources
Price, production, and utility
Utility - ANSWERAbility or capacity of a good or service to be useful and give
satisfaction to someone.
Why do economic profits exists - ANSWERSpecial knowledge, access to
information, patents, and copyrights
