AGBM 102 EXAM 1 UPDATED QUESTIONS AND
ANSWERS
What is included in the food system? - CORRECT ANSWER✅✅✅location of production(Farm and
processing)
Location of consumption
Paths to the consumer(direct,wholesale, retail)
Elements of the food system - CORRECT ANSWER✅✅✅Products and services
value added
information
Important economic agents (generic bread) - CORRECT ANSWER✅✅✅Farmer
Elevator operator
Miller
Baker
Retailer
Trucker
Share of money to function - CORRECT ANSWER✅✅✅Farmer=around 4% for wheat
Elevator= <1%
Miller= 2%
Baker= 70%
Retailer= 18%
Trucker= 18%
Non farm ingredients= 2%
Marketing - CORRECT ANSWER✅✅✅the set of economic and behavioral activities involved in
coordinating the various stages of economic activity from production to consumption
, Marketing (simple terms) - CORRECT ANSWER✅✅✅What occurs to farm products from the time
they leave the farm gate until they reach the consumer
Marketing provides... - CORRECT ANSWER✅✅✅time, form and place utility
Utility - CORRECT ANSWER✅✅✅Economists use utility as a measurement of usefulness a consumer
gets from any good.
Functions of marketing - CORRECT ANSWER✅✅✅exchange, physical, enabling
Exchange - CORRECT ANSWER✅✅✅Markets bring buyers and sellers together to exchange product
or something of value for a product.
Physical - CORRECT ANSWER✅✅✅the parts of marketing process that deal with product or input
movement
Enabling - CORRECT ANSWER✅✅✅are those that let the food system operate smoothly but are less
obvious.
Exchange Functions - CORRECT ANSWER✅✅✅Buying
Selling
Physical functions - CORRECT ANSWER✅✅✅Storage
Transportation
Processing
Enabling Functions - CORRECT ANSWER✅✅✅Standardization
financing
Market intelligence
ANSWERS
What is included in the food system? - CORRECT ANSWER✅✅✅location of production(Farm and
processing)
Location of consumption
Paths to the consumer(direct,wholesale, retail)
Elements of the food system - CORRECT ANSWER✅✅✅Products and services
value added
information
Important economic agents (generic bread) - CORRECT ANSWER✅✅✅Farmer
Elevator operator
Miller
Baker
Retailer
Trucker
Share of money to function - CORRECT ANSWER✅✅✅Farmer=around 4% for wheat
Elevator= <1%
Miller= 2%
Baker= 70%
Retailer= 18%
Trucker= 18%
Non farm ingredients= 2%
Marketing - CORRECT ANSWER✅✅✅the set of economic and behavioral activities involved in
coordinating the various stages of economic activity from production to consumption
, Marketing (simple terms) - CORRECT ANSWER✅✅✅What occurs to farm products from the time
they leave the farm gate until they reach the consumer
Marketing provides... - CORRECT ANSWER✅✅✅time, form and place utility
Utility - CORRECT ANSWER✅✅✅Economists use utility as a measurement of usefulness a consumer
gets from any good.
Functions of marketing - CORRECT ANSWER✅✅✅exchange, physical, enabling
Exchange - CORRECT ANSWER✅✅✅Markets bring buyers and sellers together to exchange product
or something of value for a product.
Physical - CORRECT ANSWER✅✅✅the parts of marketing process that deal with product or input
movement
Enabling - CORRECT ANSWER✅✅✅are those that let the food system operate smoothly but are less
obvious.
Exchange Functions - CORRECT ANSWER✅✅✅Buying
Selling
Physical functions - CORRECT ANSWER✅✅✅Storage
Transportation
Processing
Enabling Functions - CORRECT ANSWER✅✅✅Standardization
financing
Market intelligence
