1
AGEC 325 Exam 1 Questions with Answers (100%
Correct Answers)
Improved data collection technology such as satellite or drone-based
photography will be most helpful to farm managers for: Answer:
prescribing fertility and pest control practices for smaller land units
Standardization of farm financial ratios and accounting practices will
help farm managers: Answer: compete with nonfarm businesses for
capital
Agricultural processors will probably want more uniform products in
the future in order to: Answer: make more efficient use of processing
and packaging equipment
By forming strategic alliances, small and medium-sized farmers and
ranchers can: Answer: achieve marketing advantages that larger
operations enjoy
An increase in the number of non-farmers living in rural areas will
cause: Answer: farmers to pay more attention to off-farm effects of
their production practices
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, 2
Globalization refers to the process of: Answer: reducing trade barriers
among countries
Vertical integration refers to the process by which farmers or ranchers:
Answer: enter into agreements with processors or distributors to
supply them with their products
A beef cow-calf operator who specializes in raising high-quality
breeding stock and calves for exhibiting at livestock shows would be
classified as: Answer: low-volume, high-margin producer
According to the U.S. Census of Agriculture, the largest percentage of
farms in the United States would be considered: Answer: Small, part-
time farms
Over the past 30 years the number of farm units in the United States
has: Answer: Declined gradually
"Doubling the number of acres farmed within the next 10 years" is an
example of a Answer: long-run goal
Which of the following is an example of a strategic decision? Answer:
determining what type of business/legal organization to use
© 2025 All rights reserved
AGEC 325 Exam 1 Questions with Answers (100%
Correct Answers)
Improved data collection technology such as satellite or drone-based
photography will be most helpful to farm managers for: Answer:
prescribing fertility and pest control practices for smaller land units
Standardization of farm financial ratios and accounting practices will
help farm managers: Answer: compete with nonfarm businesses for
capital
Agricultural processors will probably want more uniform products in
the future in order to: Answer: make more efficient use of processing
and packaging equipment
By forming strategic alliances, small and medium-sized farmers and
ranchers can: Answer: achieve marketing advantages that larger
operations enjoy
An increase in the number of non-farmers living in rural areas will
cause: Answer: farmers to pay more attention to off-farm effects of
their production practices
© 2025 All rights reserved
, 2
Globalization refers to the process of: Answer: reducing trade barriers
among countries
Vertical integration refers to the process by which farmers or ranchers:
Answer: enter into agreements with processors or distributors to
supply them with their products
A beef cow-calf operator who specializes in raising high-quality
breeding stock and calves for exhibiting at livestock shows would be
classified as: Answer: low-volume, high-margin producer
According to the U.S. Census of Agriculture, the largest percentage of
farms in the United States would be considered: Answer: Small, part-
time farms
Over the past 30 years the number of farm units in the United States
has: Answer: Declined gradually
"Doubling the number of acres farmed within the next 10 years" is an
example of a Answer: long-run goal
Which of the following is an example of a strategic decision? Answer:
determining what type of business/legal organization to use
© 2025 All rights reserved
