1
AGEC 325 Questions with Answers (100% Correct
Answers)
Managers allocate _________. Answer: Scarce resources
T/F: Future farm managers will still have to allocate scare resources in
the future, just as business managers do now. Answer: True
Future farm managers will still use: Answer: -economic principles
-budgets
-records summaries
-investment analyses
-financial statements
-other management techniques currently being used
Future farm managers will still have to decide: Answer: -input and
output levels
-enterprise combinations
-risk and returns
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-appropriate markets
-optimal farm size
Broad types of decisions will be the same but: Answer: -technology
will continue to provide new inputs
-more specialized products will be possible
-competition with nonagricultural business for use of land, labor and
capital resources will likely increase
-better managers will adapt to these changes
Changes will be driving by: Answer: -labor-saving technology
-more lucrative off-farm employment opportunities
-the desire of farm operators for higher income
-high fixed costs of some technology
Number of farms in the US is ________. Answer: decreasing
Average farm size is ______. Answer: increasing
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,3
Four general farm business strategies: Answer: -Low Volume, High
value producers
mushrooms
lavender
flower
-Specialty product and service providers
free range poultry
organic beef
aquaculture
-High volume, low margin producers
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, 4
corn
soybeans
rice
cattle
-Part-time farmers and ranchers
farmer's markets eggs and produce
Part-time Producers: Lifestyle Satisfaction Maximizers Answer: -earn
most of their income off the farm
-involved in production agriculture for the lifestyle as much as, or
even more than, the profits generated by their operation
Commercial Producers: Profit Maximizers Answer: -focused on
efficiency and cost minimization in order to generate maximum profits
What are the factors effecting farm management in the future?
Answer: -new technology
© 2025 All rights reserved
AGEC 325 Questions with Answers (100% Correct
Answers)
Managers allocate _________. Answer: Scarce resources
T/F: Future farm managers will still have to allocate scare resources in
the future, just as business managers do now. Answer: True
Future farm managers will still use: Answer: -economic principles
-budgets
-records summaries
-investment analyses
-financial statements
-other management techniques currently being used
Future farm managers will still have to decide: Answer: -input and
output levels
-enterprise combinations
-risk and returns
© 2025 All rights reserved
,2
-appropriate markets
-optimal farm size
Broad types of decisions will be the same but: Answer: -technology
will continue to provide new inputs
-more specialized products will be possible
-competition with nonagricultural business for use of land, labor and
capital resources will likely increase
-better managers will adapt to these changes
Changes will be driving by: Answer: -labor-saving technology
-more lucrative off-farm employment opportunities
-the desire of farm operators for higher income
-high fixed costs of some technology
Number of farms in the US is ________. Answer: decreasing
Average farm size is ______. Answer: increasing
© 2025 All rights reserved
,3
Four general farm business strategies: Answer: -Low Volume, High
value producers
mushrooms
lavender
flower
-Specialty product and service providers
free range poultry
organic beef
aquaculture
-High volume, low margin producers
© 2025 All rights reserved
, 4
corn
soybeans
rice
cattle
-Part-time farmers and ranchers
farmer's markets eggs and produce
Part-time Producers: Lifestyle Satisfaction Maximizers Answer: -earn
most of their income off the farm
-involved in production agriculture for the lifestyle as much as, or
even more than, the profits generated by their operation
Commercial Producers: Profit Maximizers Answer: -focused on
efficiency and cost minimization in order to generate maximum profits
What are the factors effecting farm management in the future?
Answer: -new technology
© 2025 All rights reserved
