Agribusiness

The price of beef goes up in the grocery store due to a shortage of beef production in the country. This represents the economic concept of

• supply and demand

• inelasticity

• elasticity

• inflation

A well-known restaurant chain has an outbreak of salmonella poisoning from tomatoes. Business has declined for the restaurant chain since the report of the salmonella. The customer response to this situation represents economic

• elasticity

• inelasticity

• downturn

• instability

The country who consumes the greatest amount of pork per capita is

• Denmark

• Hong Kong

• United States

• Argentina

______ consists of real estate (land), buildings, house, and various types of improvements to real estate

• suburban property

• personal property

• agricultural property

• real property

A depreciable asset's book value will equal its salvage value

• every year of its useful life

• only at the mid-point of its useful life

• only at the end of the useful life

• only on the purchase date

A farmer increases an investment in land, building, and equipment to increase the total units of production. The cost per unit of production

• decreases

• increases

• varies with the operator

• remains the same

The most important reason for complete farm financial records should be

• for income tax reporting and to meet the requirement for reporting hired labor

• to settle insurance claims

• to inform the bank of the success of the farm business

• to combine with production records to provide information for management decision making

Marian and Sara borrow $175,000 on March 15. They expect to repay $100,000 on October 15 and the remaining balance on November 15. Calculate the total interest obligation if the interest rate is 8% and interest is charged on the daily outstanding principle balance.

• $6,904

• $8,718

• $8,666

• $7,500

Less workers are needed for farm production due to

• technology

• organic farming

• specialization

• education

One strategy to manage financial risk is

• maintaining a low debt/asset ratio

• hedging the market

• playing the futures market

• borrowing money