1 for specific request mail
FFA Farm Business Management Practice Test #1
Questions and Correct Answers | Latest Update
When economists speak of scarcity, they are referring to the _______.
Ans: Condition in which peoples wants outstrip the limited resources
available to satisfy those wants.
Which of the following is NOT one of the categories of resources? Ans:
government
"Entrepreneurship" is________. Ans: the talent for organizing the use of
Assignment Expert
land, labor and capital, among other things.
Some years ago, chemists at 3m corporation were trying to create a
Guru01 - Stuvia
super-strong glue. somehow they got their molecules twisted and came
up with one of the weakest glues ever made. Rather than pouring it down
the drain, they tried coating some paper with it. Voila! The post-it note
was born. In this case, 3M was acting as.... Ans: an entrepreneur.
2026
economic profit is the difference between total revenue and_____ Ans:
©
the sum of explicit and implicit costs.
A cost of resources used in production for which no actual monetary
payment is made is a(n) __________ cost. Ans: implicit
Five months ago Wilson opened up a health club. Which of the following
is an implicit cost related to the health club? Ans: Wilson previously
worked as an accountant, earning $3,000 a month.
If a firm earns normal profit, then it has generated revenues_____ Ans:
equal in o the sum of implicit and explicit costs.
An unrecoverable cost that should be disregarded in any current or
future decision is also called a(n) __________ cost. Ans: sunk
a fixed input is an input whose quantity ____ Ans: cannot be changed as
output changes in the short run
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average fixed cost ___ Ans: Is usually greater at lower levels of output
than at higher levels and only exists in the short run.
at 200 units of output, total costs is $36,000 and total variable cost is
$20,000. What does the total fixed cost equal at 200 units? Ans: $16,000
Costs that do not change with output are called ___ costs. Ans: fixed
suppose that one fixed and one variable input are used to produce good
X. as the marginal physical product of the variable input increases, the
marginal cost ____ Ans: decreases.
Assignment Expert
one major reason for the law of demand is that ____ Ans: people
substitute relatively lower-priced goods for relatively higher-priced
goods.
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if an increase in income is results in an increase in the demand for
chicken,then chicken is _____ Ans: a normal good.
2026
which of the following is true about what the relationship between price
and quantity? Ans: there is usually a direct relationship.
©
If Max's demand for hot dogs falls as his income rises, then for Max hot
dogs are____ Ans: an inferior good
an increase in the number of buyers in an area will result in a.... Ans: a
rightward shift of the demand curve
"doubling the number of acres farmer in 10 years", is an example of a
________ Ans: long run goal.
which of the following is an example of a strategic decision? Ans:
determining what type of business/legal organization to use
which of the following is an example of a tactical decision? Ans:
balancing a livestock ration
FFA Farm Business Management Practice Test #1
Questions and Correct Answers | Latest Update
When economists speak of scarcity, they are referring to the _______.
Ans: Condition in which peoples wants outstrip the limited resources
available to satisfy those wants.
Which of the following is NOT one of the categories of resources? Ans:
government
"Entrepreneurship" is________. Ans: the talent for organizing the use of
Assignment Expert
land, labor and capital, among other things.
Some years ago, chemists at 3m corporation were trying to create a
Guru01 - Stuvia
super-strong glue. somehow they got their molecules twisted and came
up with one of the weakest glues ever made. Rather than pouring it down
the drain, they tried coating some paper with it. Voila! The post-it note
was born. In this case, 3M was acting as.... Ans: an entrepreneur.
2026
economic profit is the difference between total revenue and_____ Ans:
©
the sum of explicit and implicit costs.
A cost of resources used in production for which no actual monetary
payment is made is a(n) __________ cost. Ans: implicit
Five months ago Wilson opened up a health club. Which of the following
is an implicit cost related to the health club? Ans: Wilson previously
worked as an accountant, earning $3,000 a month.
If a firm earns normal profit, then it has generated revenues_____ Ans:
equal in o the sum of implicit and explicit costs.
An unrecoverable cost that should be disregarded in any current or
future decision is also called a(n) __________ cost. Ans: sunk
a fixed input is an input whose quantity ____ Ans: cannot be changed as
output changes in the short run
, 2 for specific request mail
average fixed cost ___ Ans: Is usually greater at lower levels of output
than at higher levels and only exists in the short run.
at 200 units of output, total costs is $36,000 and total variable cost is
$20,000. What does the total fixed cost equal at 200 units? Ans: $16,000
Costs that do not change with output are called ___ costs. Ans: fixed
suppose that one fixed and one variable input are used to produce good
X. as the marginal physical product of the variable input increases, the
marginal cost ____ Ans: decreases.
Assignment Expert
one major reason for the law of demand is that ____ Ans: people
substitute relatively lower-priced goods for relatively higher-priced
goods.
Guru01 - Stuvia
if an increase in income is results in an increase in the demand for
chicken,then chicken is _____ Ans: a normal good.
2026
which of the following is true about what the relationship between price
and quantity? Ans: there is usually a direct relationship.
©
If Max's demand for hot dogs falls as his income rises, then for Max hot
dogs are____ Ans: an inferior good
an increase in the number of buyers in an area will result in a.... Ans: a
rightward shift of the demand curve
"doubling the number of acres farmer in 10 years", is an example of a
________ Ans: long run goal.
which of the following is an example of a strategic decision? Ans:
determining what type of business/legal organization to use
which of the following is an example of a tactical decision? Ans:
balancing a livestock ration
