CHAPTER 15 Notes
SAMPLE TEST QUESTIONS - MULTIPLE CHOICE
1. Most farmers are more likely to accept a risk if:
a. Only a small possible loss is involved
b. They have a high debt to asset ratio
c. They have high fixed cash flow obligations
d. They are prima
1. One force that has helped cause U.S. farms to become larger and fewer is:
a. Competition from foreign producers
b. Lower production costs per unit by spreading fixed investment technology over
c. More labor used in
The agricultural problems under the radiation
The agricultural business in Japan has a huge impact after the nuclear
power plant melt down since March 11. The earth quake and tsunami disaster has
cripples the agriculture productivity and market position.
Chapter 1 Homework
According to the textbook, which of the following is NOT true about farm management
decisions in the twenty-first century?
A. The broad types of decisions being made will be the same as in the past.
B. The types of information used in f
Part III- Applying Economic Principles
Chapter 7: Choosing Production Levels
- Economic principles consist of a set of rules for making a choice or decision that will result in
maximum profit. The application of these rules follow 3 steps:
1. Meeting Consumer Demands (Marketing)
Agriculture has long been characterized by the production of
o Undifferentiated- unable to tell where the product is produced.
Commodities produced by different fa
Exam 2 Material
I. The term marginal refers to incremental changes, either increases
or decreases that occur at the edge or at the margin.
II. It may help to mentally substitute extra or additional whenever
the word ma
The border between Stage I and Stage II of production exists where
Choose one answer.
a. MPP = APP
b. MPP > APP
c. MPP < APP
d. APP = 0
e. TPP < 0
The border between Stage II and Stage II of production exists w