Farm Management Exam 3 Questions with Correct Answers Latest Update 2025/2026
In whole farm planning it is assumed that when _____ is maximized, total profit is maximized. -
Answers total gross margin
the purpose of completing a whole farm budget is to: - Answers estimate the net income from
all enterprises combined
when developing a whole farm plan and no more enterprises can be added because one
resource is exhausted, it may still be possible to increase gross margin by replacing one
enterprise with another enterprise that has a higher gross margin per: - Answers unit of limiting
resource
sensitivity analysis looks at the change in total profit caused by a change in: - Answers selling
prices, in yields, in the price of a key input
a whole farm budget contains: - Answers costs, returns, and resource needs for a specific set of
enterprises
If an acre of alfalfa requires $75 of operating capital and 5 hours of labor, and a farm has 70
acres of land, 400 hours of labor, and $4,500 of operating capital available, the maximum acres
of alfalfa that can be grown is: - Answers 60
If an acre of alfalfa requires $75 of operating capital and 5 hours of labor, and a farm has 70
acres of land, 400 hours of labor, and $4,500 of operating capital available, what is the limiting
factor - Answers operating capital
an advantage of linear programming is it: - Answers can quickly analyze many activities and
resources
when comparing several long-range whole farm budgets with different quantities of major fixed
resources such as owned land or permanent labor, the prices used to estimate gross income
should be : - Answers expected average prices over the next several years
"technical coefficients" for whole-farm planning refer to the: - Answers quantities of resources
needed to produce one unit of each enterprise being considered
in linear programming to maximize farm profits, "shadow price" tells you the amount profit
would: - Answers increase if the operator had one more unit of a limited resource
in linear programming to maximize farm profits, "reduced cost" tells you the amount profit
would: - Answers decrease if the operator produces a unit of an enterprise not currently in the
solution
the basic information used to build a whole farm budget can come from: - Answers one or more
enterprise budgets
In whole farm planning it is assumed that when _____ is maximized, total profit is maximized. -
Answers total gross margin
the purpose of completing a whole farm budget is to: - Answers estimate the net income from
all enterprises combined
when developing a whole farm plan and no more enterprises can be added because one
resource is exhausted, it may still be possible to increase gross margin by replacing one
enterprise with another enterprise that has a higher gross margin per: - Answers unit of limiting
resource
sensitivity analysis looks at the change in total profit caused by a change in: - Answers selling
prices, in yields, in the price of a key input
a whole farm budget contains: - Answers costs, returns, and resource needs for a specific set of
enterprises
If an acre of alfalfa requires $75 of operating capital and 5 hours of labor, and a farm has 70
acres of land, 400 hours of labor, and $4,500 of operating capital available, the maximum acres
of alfalfa that can be grown is: - Answers 60
If an acre of alfalfa requires $75 of operating capital and 5 hours of labor, and a farm has 70
acres of land, 400 hours of labor, and $4,500 of operating capital available, what is the limiting
factor - Answers operating capital
an advantage of linear programming is it: - Answers can quickly analyze many activities and
resources
when comparing several long-range whole farm budgets with different quantities of major fixed
resources such as owned land or permanent labor, the prices used to estimate gross income
should be : - Answers expected average prices over the next several years
"technical coefficients" for whole-farm planning refer to the: - Answers quantities of resources
needed to produce one unit of each enterprise being considered
in linear programming to maximize farm profits, "shadow price" tells you the amount profit
would: - Answers increase if the operator had one more unit of a limited resource
in linear programming to maximize farm profits, "reduced cost" tells you the amount profit
would: - Answers decrease if the operator produces a unit of an enterprise not currently in the
solution
the basic information used to build a whole farm budget can come from: - Answers one or more
enterprise budgets
