ABT 53 Final Exam Spring 24

First and last name

All of the following are factors of production except:

• land
• capital
• labor
• production

What are the two types of goods?

• consumer & capital
• capitalizing & producer
• consuming & capital
• producer & consumer

What does an indifference curve represent in consumer theory?

• The relationship between the quantity of a good and its price.
• The combination of two goods that provide the same level of satisfaction to a consumer.
• The total utility derived from consuming a specific quantity of a good.
• The demand curve for a particular product in the market.

What is an agricultural commodity?

What are the six agricultural commodity areas and give two examples of each.

Describe the Futures Market regarding agriculture commodities. Give at least 3-5 sentences

How does the futures market protect farmers?

According to the law of diminishing marginal utility, what does it state about the consumption of a good?

• The more you consume of a good, the higher the price becomes.
• The total satisfaction derived from consuming a good increases indefinitely.
• As a consumer consumes more of a good, the additional satisfaction derived from each additional unit decreases.
• The price of a good decreases as the quantity consumed increases.

What does the budget constraint represent?

• The total amount of money a consumer has available to spend on all goods and services.
• The maximum amount of money a consumer is willing to spend on a single item.
• The relationship between the quantity of a good and its price.
• The minimum level of income required to afford basic necessities.