AGEC Exam 1 Study Guide – Practice Questions, Flashcards & Exam
Review
Introduction to Agricultural and Resource Economics - ANS ✔✔
Economics Defined - ANS ✔✔A social science that deals with how consumers, producers, and
societies choose among the alternative uses of scarce resources in the process of producing,
exchanging, and consuming goods and services.
Physical Scarcity - ANS ✔✔1. The condition or quality of being scarce; inadequate supply;
deficiency; lack.
2. Rare or uncommon
Economic Scarcity - ANS ✔✔A resource to be considered scarce must be of limited availability
and be of productive use.
Types of Scarcity - ANS ✔✔Natural and biological resources (land, crude oil, fish)
Human Resources (human capital, labor, education/entrepreneur)
Manufactured Resources (capital- factories, buildings, roads)
Choices-Decisions - ANS ✔✔Allocation of scarce resources.
Limited resources but unlimited wants.
, Consequences:
1. Utility- level of satisfaction is not infinite
2.Opportunity Cost- doing one thing requires society to give up something else (the value of the
next best alternative)
Agriculture - ANS ✔✔1. Farm Supply
2. Farms
3. First Handler
4. Processor
5. Distributor
6. Retailer
Microeconomics - ANS ✔✔Individuals or groups of individuals
Macroeconomics - ANS ✔✔Broad aggregates at economy level
Positive - ANS ✔✔What is or what would happen if
Normative - ANS ✔✔What should be
Prescriptive - ANS ✔✔How to achieve a goal
Economics of Demand or Theory of Consumer Behavior - ANS ✔✔
Market - ANS ✔✔consumers and producers interact
Review
Introduction to Agricultural and Resource Economics - ANS ✔✔
Economics Defined - ANS ✔✔A social science that deals with how consumers, producers, and
societies choose among the alternative uses of scarce resources in the process of producing,
exchanging, and consuming goods and services.
Physical Scarcity - ANS ✔✔1. The condition or quality of being scarce; inadequate supply;
deficiency; lack.
2. Rare or uncommon
Economic Scarcity - ANS ✔✔A resource to be considered scarce must be of limited availability
and be of productive use.
Types of Scarcity - ANS ✔✔Natural and biological resources (land, crude oil, fish)
Human Resources (human capital, labor, education/entrepreneur)
Manufactured Resources (capital- factories, buildings, roads)
Choices-Decisions - ANS ✔✔Allocation of scarce resources.
Limited resources but unlimited wants.
, Consequences:
1. Utility- level of satisfaction is not infinite
2.Opportunity Cost- doing one thing requires society to give up something else (the value of the
next best alternative)
Agriculture - ANS ✔✔1. Farm Supply
2. Farms
3. First Handler
4. Processor
5. Distributor
6. Retailer
Microeconomics - ANS ✔✔Individuals or groups of individuals
Macroeconomics - ANS ✔✔Broad aggregates at economy level
Positive - ANS ✔✔What is or what would happen if
Normative - ANS ✔✔What should be
Prescriptive - ANS ✔✔How to achieve a goal
Economics of Demand or Theory of Consumer Behavior - ANS ✔✔
Market - ANS ✔✔consumers and producers interact
