PSU AGBM 102, Prof. Blandford –
Midterm Question and answers 100%
correct
Why is it difficult to reduce tariffs on Agricultural imports? - correct answer
✔Producers are able to block tariff cuts
What accounts for the largest share of the marketing costs for U.S. food and
agricultural products? - correct answer ✔Labor
What is the size of a regular supermarket in square feet up to which there are
economies of scale in food retailing? - correct answer ✔30,000
What does NOT apply to the food processing industry in Pennsylvania? -
correct answer ✔It mainly produces bulk commodities
If two goods are substitutes in consumption, when the price of one
increases...? - correct answer ✔The demand curve for the other will shift to
the right
If the demand for a product is elastic, the quantity consumed will...? - correct
answer ✔fall by more than one percent when the price increases by one
percent
Price flexibility is the percentage change in...? - correct answer ✔price given
a one percent change in the quantity supplied
The supply of apples is likely to be elastic over the longer term because
producers can respond to an increase in apple prices by:
, A. planting more apple trees
B. increasing the quantity of fertilizer and other chemicals they use
C. replace low-yielding trees by higher-yielding trees
D. all of the above - correct answer ✔D. All of the above
In the modern model of food wholesaling and distribution which of the
following does not apply? - correct answer ✔Inventories are kept at high
levels
Ice cream plants tend to be located? - correct answer ✔Close to where
consumers are
What has been important for the growing market share of
Wal-Mart in U.S. food retailing?
A. use of buying power to keep prices low
B. economies of scale
C. efficient use of information technology
D. all of the above - correct answer ✔D. All of the above
Which of the following is NOT likely to happen when the costs of marketing a
food product increase? - correct answer ✔The demand for the product will
increase
What would NOT be likely to cause a change in demand for US beef? -
correct answer ✔An increase in the cost of cattle feed
Who receives the largest share of the retail value of a loaf of bread?
A. farmer
Midterm Question and answers 100%
correct
Why is it difficult to reduce tariffs on Agricultural imports? - correct answer
✔Producers are able to block tariff cuts
What accounts for the largest share of the marketing costs for U.S. food and
agricultural products? - correct answer ✔Labor
What is the size of a regular supermarket in square feet up to which there are
economies of scale in food retailing? - correct answer ✔30,000
What does NOT apply to the food processing industry in Pennsylvania? -
correct answer ✔It mainly produces bulk commodities
If two goods are substitutes in consumption, when the price of one
increases...? - correct answer ✔The demand curve for the other will shift to
the right
If the demand for a product is elastic, the quantity consumed will...? - correct
answer ✔fall by more than one percent when the price increases by one
percent
Price flexibility is the percentage change in...? - correct answer ✔price given
a one percent change in the quantity supplied
The supply of apples is likely to be elastic over the longer term because
producers can respond to an increase in apple prices by:
, A. planting more apple trees
B. increasing the quantity of fertilizer and other chemicals they use
C. replace low-yielding trees by higher-yielding trees
D. all of the above - correct answer ✔D. All of the above
In the modern model of food wholesaling and distribution which of the
following does not apply? - correct answer ✔Inventories are kept at high
levels
Ice cream plants tend to be located? - correct answer ✔Close to where
consumers are
What has been important for the growing market share of
Wal-Mart in U.S. food retailing?
A. use of buying power to keep prices low
B. economies of scale
C. efficient use of information technology
D. all of the above - correct answer ✔D. All of the above
Which of the following is NOT likely to happen when the costs of marketing a
food product increase? - correct answer ✔The demand for the product will
increase
What would NOT be likely to cause a change in demand for US beef? -
correct answer ✔An increase in the cost of cattle feed
Who receives the largest share of the retail value of a loaf of bread?
A. farmer
