Texas A&M University (TAMU) AGEC 105 Introduction to Agricultural Economics Exam 1 Practice

These questions are part of the practice quiz. Start practicing

• Which of the following are examples of biological resources?
• A budget constraint shows all combinations of goods a consumer can buy given income and prices. This statement describes:
• Which statement best describes microeconomics?
• Capital refers to durable equipment and structures.
• Differentiate arc elasticity from point elasticity.
• When the market price falls, the consumer surplus for each buyer tends to:
• Which term describes the situation when demand exceeds supply?
• Price indices measure inflation?
• Animals, wildlife, and genetic varieties of crops are examples of which resource category?
• What does price elasticity of supply describe?
• The sum of consumer and producer surplus is equal to which concept?
• Define price elasticity of demand.
• A situation where there is more demand than supply is called?
• Total utility is maximized when marginal utility is zero.
• Which term denotes the system comprising economic activities of farms and firms that assemble, process, and transform raw agricultural commodities into final products for US and foreign consumers?
• Scarcity refers to what?
• Total revenue equals price times quantity. How does elasticity affect total revenue when price changes?
• Income elasticity of demand tells us the percentage change in quantity demanded from a one-percent change in income; which statement is true?
• On a supply-demand diagram, what is the area representing total surplus?
• If income increases with no change in prices, the budget constraint:
• Which term includes energy, chemicals, and purchased services?
• What does the term 'Total Utility' refer to in consumer theory?
• Total consumer surplus increases when price falls, all else equal. Which option expresses this idea?
• The marginal rate of substitution is the slope of which curve?
• Which description best defines Marginal Utility?
• If demand is elastic and price falls, total revenue changes how?
• What is consumer surplus?
• Which statement about consumer equilibrium is true?
• Consumer surplus is most directly measured by which of the following, when evaluating a market at a given price?
• Which of the following best describes a consumption bundle?
• Diminishing marginal product means:
• Which term refers to durable equipment and structures used in production?
• The slope of the marginal rate of substitution is always what?
• Economics is defined as which of the following?
• What does the term 'Change in Quantity Demanded' describe?
• What is the algebraic expression that allows us to rank a consumption bundle by total utility or satisfaction it provides?
• Inferior goods are characterized by what happens to consumption when income rises?
• If the absolute value of price elasticity of demand is 0.75, demand is inelastic.
• When the price of x falls, which effect is primarily responsible for the consumer choosing more of x, all else equal?
• In a perfectly competitive market, the profit-maximizing rule is to produce where ...
• What does the production function represent in economics?
• Which term describes goods that are often used together?
• What is the law of supply under ceteris paribus?
• Marginal cost is the ...
• In a perfectly competitive market, what is the profit-maximizing condition?
• How does technology affect supply in agriculture?
• What term refers to the specific combinations of goods being considered?
• For a single unit, consumer surplus is equal to which of the following?
• Which of the following is not a determinant of the supply curve?
• Why do public goods and government services matter in rural areas?
• What is deadweight loss and what causes it in markets?
• What is the implicit cost associated with making economic decisions called?
• Which statement best describes Positive Economics?
• Which component consists of hired and self-employed workers?
• Cross-price elasticity of demand measures how the quantity demanded of one good responds to a price change in another good. What does a positive sign indicate?
• Which statement describes the law of demand under ceteris paribus?
• Cotton is described as the most important textile fiber in the world.
• Which branch of economics focuses on statements about what should be?
• Which of the following are natural resources?
• In a perfectly competitive market, which statement about marginal revenue and price at the profit-maximizing output is true?
• On the Engel Curve, a rise in income causes which shift for normal goods?
• What causes the demand curve to shift?
• Name five nonprice determinants that shift the demand curve.
• What is Agricultural Economics?
• Labor consists of hired and self-employed components.
• Total cost equals fixed cost plus variable cost.
• If choke price is 12, actual price is 6, and quantity is 100, consumer surplus equals:
• Which pair illustrates a negative externality and a positive externality in agriculture?
• Explain how a price ceiling creates a shortage.
• Which statement best captures the concept of ordinal utility?
• The price consumption curve shows quantities of x and y consumed as price of x changes.
• Consumer equilibrium occurs when which condition holds?
• What is income elasticity of demand and what does it tell us?
• The slope of an indifference curve equals which economic concept?
• Which statement correctly defines average total cost, average fixed cost, and average variable cost?
• What are physiological units of satisfaction derived from consumption called?
• A situation where there is more supply than demand is called?
• Which statement best describes consumer surplus?
• If a price ceiling is non-binding, what is the outcome?
• What does Microeconomics focus on?
• Index values are used to report trends in what?
• Which statement describes arc elasticity vs point elasticity?
• Fixed cost is ...
• Which is the main contributor to growth in US agriculture?
• The MRS for hamburgers for tacos is equal to which ratio?
• Complements are best described as what?
• Which statement best describes a point on the production possibilities frontier?
• What are economies of scale and why do they matter in farming?
• Which statement best describes the market demand curve?
• If incomes rise and tastes shift toward the product, which statement describes the effect on equilibrium?
• How do scarcity and efficiency relate to the PPF?
• The budget constraint states what?
• Which statement correctly describes what happens when a price floor is set above the market equilibrium?
• Which is a typical rural public good?
• If a point lies inside the production possibilities frontier, what does it indicate about resource use?
• What causes a shift in the market equilibrium (a shift of the supply or demand curve)?
• A single purchase's consumer surplus is zero when:
• Distinguish between the short run and long run in production.
• Gasoline is typically considered which type of good when income rises?
• Which expression defines Marginal Utility for a good?
• Which statement best describes the welfare effects of a tax or tariff in agricultural markets?
• Which term refers to economic measures for which no adjustments to inflation have been made?
• Explain the principle of comparative advantage with a simple example.
• Which branch is the applied social science dealing with scarce resources in food production and consumption?
• Utility can be viewed as being measured on what scale?
• If a consumer's willingness to pay is $60 and the market price is $40, the consumer surplus is:
• What is an index?
• Total consumer surplus for all units purchased equals:
• Substitution effect occurs when the price of x declines relative to the price of y.
• How is Marginal Utility for hamburgers commonly expressed?
• What is the effect of a per-unit tax on the supply curve?
• If the market price rises, what happens to consumer surplus?
• Which statement best describes macroeconomics?
• Normal goods are characterized by what happens to consumption when income rises?
• On the Engel Curve, a rise in income causes which shift for inferior goods?
• Which term describes forces consumers and producers to make choices due to limited resources?
• Which statement best defines the concept of consumer surplus?
• Which statement best describes Normative Economics?
• What is the Role at Macroeconomic Level?
• In market analysis, consumer surplus represents the net benefit to buyers from purchasing at a given price, while producer surplus represents the net benefit to sellers. Which statement is true?
• Which measure describes the level of output per unit of input?
• If the price of burgers increases, what happens to the slope of the budget line, holding income and price of tacos constant?
• Real values are economic measures for which adjustments to inflation have been made.
• Which statement about consumer surplus and its interpretation is true?
• Which of the following is an example of an inferior good?
• Which statement best explains diminishing marginal product?
• Which expression correctly expresses producer surplus for a linear supply curve?
• Which factor determines the welfare effects of a tax or tariff?
• Which option correctly identifies an index value description?
• Economics is defined as?
• Which statement most accurately defines an indifference curve?
• Land, minerals, and water are examples of which resource category?
• Which describes the short run in production?
• Which term represents a function that assigns total satisfaction to each possible consumption bundle?
• In a linear downward-sloping demand curve, consumer surplus is:
• Which statement describes how technology affects supply in agriculture?
• Name key determinants that shift the supply curve.
• Which statement about ordinal utility is true?
• With fixed land, how is the opportunity cost of choosing corn over soybeans measured?
• Which of the following expresses Real Value as Nominal Value divided by Price Index?
• How do you compute price elasticity of demand?
• What is the formula for the budget line in two goods?
• Producer surplus is defined as...
• Which statement best describes risk aversion?
• Which statement correctly distinguishes normal and inferior goods in an agricultural context?
• Specialization leads to what concept that underpins trade?
• In economics, decisions aim to maximize what?
• Why do producers specialize and trade according to comparative advantage?
• Which statement illustrates the Law of Diminishing Marginal Utility?
• The slope of the budget line equals what expression?
• What is the Role at Microeconomic Level?
• What is the effect of a per-unit subsidy on the supply curve?
• What does the Engel Curve show?
• Which expression correctly computes consumer surplus for a linear downward-sloping demand curve?
• What does the production possibilities frontier illustrate?
• How is the market demand curve constructed?
• In the long run under perfect competition, which condition ensures zero economic profit?
• If a consumer's willingness to pay for a good is $100 and the market price is $75, the consumer surplus is:
• Willingness to pay is defined as which of the following?
• Materials include energy, chemicals, and purchased services.
• If income rises and the good is a normal good, how does the demand curve respond?
• Productivity is defined as the level of output per unit of input.
• Indifference curve is also called
• Consumer surplus is defined as...
• What is the effect on supply when input prices rise?
• If a per-unit tax on producers raises price and reduces quantity, which statement is true?
• If a per-unit subsidy lowers market price and increases quantity, what happens to consumer price and producer quantity?
• What does the demand curve illustrate about the relationship between the price of a good and the quantity demanded?
• Distinguish between movement along a demand curve and a shift of the demand curve.
• Which of the following is an inferior good in some contexts?
• What defines market equilibrium?
• Which statement best describes scarcity and opportunity cost?
• The basic economic problem is often described as scarcity. Which of the following best defines scarcity?
• Engel's Law describes what relationship between income and food expenditure share?
• Which term describes the system that includes farms and firms that assemble, process, and transform raw agricultural commodities into final products?
• Which of the following is not typically used to hedge price risk in agriculture?
• Which of the following is a nonprice determinant that shifts the demand curve?
• In marginal analysis, a producer should expand output until:
• Which statement about the law of demand is true?
• Which term is defined as a sustained rise in the general price level?