AGEC Final UPDATED Actual Exam Questions and CORRECT Answers

AGEC Final UPDATED Actual Exam
Questions and CORRECT Answers
Which of the following is not a property of an indifference curve?


Convex to the origin
Concave to the origin
Downward sloping to the right
Cannot intersect with other indifference curves
Utility is maximized where the indifference curve is tangent to the budget line - CORRECT
ANSWER✔✔- Concave to the origin


The point where the indifference curve and the budget line are tangent is where consumers
maximize their utility given their budget constraint


True

False - CORRECT ANSWER✔✔- True


An indifference curve identifies all combinations of all goods that gives us the same level of
utility


True

False - CORRECT ANSWER✔✔- False


As we move upward to the right from the origin from one indifference curve to the next,
utility decreases


True

False - CORRECT ANSWER✔✔- False


How many farms were there in Louisiana in 2017?

,47,386
27,386
17,386
37,386

7,386 - CORRECT ANSWER✔✔- 27,386


U.S. Gross National Product refers to the total value of goods and services produced only
within the U.S. either by foreign or domestic resources


True

False - CORRECT ANSWER✔✔- False


The income approach of calculating GDP sums up the value of all purchases or expenditures
made by final consumers


True

False - CORRECT ANSWER✔✔- False


The point where the indifference curve and the budget line are tangent represents the point
where consumers maximize their utility given their budget constraint


True

False - CORRECT ANSWER✔✔- True


Cross-price elasticity of demand measures


The responsiveness of the quantity of a good demanded with changes in income


The percent change in price when there is a percent change in quantity

,The responsiveness of quantity demanded to changes in price


The percent change in the quantity demanded of good two when there is a change in the price
of good one - CORRECT ANSWER✔✔- The percent change in the quantity demanded of
good two when there is a change in the price of good one


When population increases, which of the following is true for a demand curve, ceteris
paribus?


There is no shift in the demand curve


You move upward along the demand curve


You move downward along the demand curve


The demand curve shifts to the right


The demand curve shifts to the left - CORRECT ANSWER✔✔- The demand curve shifts to
the right


In the product or commodity market which of the following is true?


Households buy inputs or resources and businesses sell them


Households sell commodities and businesses buy them


Households sell inputs or resources and businesses buy them


Households buy commodities and businesses sell them


None of these - CORRECT ANSWER✔✔- Households buy commodities and businesses sell
them

, A movement along the demand curve is referred to as a change in quantity demanded


True

False - CORRECT ANSWER✔✔- True


For a producer, the optimum level of production is reached when:


One or more unit of the variable input adds to the revenue just what it costs


One more unit of the variable input adds more revenue than what it costs


One more unit of the variable input adds less to revenue than it costs


None of these - CORRECT ANSWER✔✔- One more unit of the variable input adds to the
revenue just what it costs


The area of economics that deals with output, employment, incomes, and other activities in
the aggregate is


Econometrics
Macroeconomics
Agricultural economics
International economics

Microeconomics - CORRECT ANSWER✔✔- Microeconomics


The slope of the budget line is less than the slope of the indifference curve at the point where
a consumer maximizes their utility


True

False - CORRECT ANSWER✔✔- False