Vocabulary Section

A current asset should liquidize within ...

• 1 year

• 5 years

• 10 years

• 7 years

Farmer Kevin has multiple chicken processing operations across multiple facilities. This is referred to as...

• Vertical Integration

• Cooperative Marketing

• Diversification

• Horizontal Integration

In the short run production it is said that...

• All inputs are fixed

• At least one input is fixed

• All inputs are fixed

• At least one input is variable

As the amount of one input is increased while other inputs remain constant, the output will increase at an increasing rate, then increase at a decreasing rate, then decline. This is referred to as the...

• Hund’s Rule

• Production Decline Rule

• Law of Diminishing Returns

• Law of Maximized Input

When the Average Physical Product Curve reaches its maximum...

• It intersects the Marginal Physical Product curve.

• It intersects the Total Physical Product curve.

• Its greater than the Total Physical Product curve.

• Its equal to the Total Physical Product curve.

On which IRS income tax schedule are farm income and expenses reported?

• Schedule B

• Schedule T

• Schedule F

• Schedule W

Joe’s company consistently performs at its profit maximizing point. This is defined mathematically as?

• TR=TC

• TR=AC

• MR=AC

• MR=MC

Dyllan is scheduled to make periodic payments over the next few years. These scheduled payments are referred to as a/an?

• Annuity

• Budget

• Service Fee

• Continuity

When a lender is requesting a borrower to put up collateral for a loan, the borrower is...

• Making a larger down payment on what the loan is being used for.

• Paying a higher interest rate.

• Pledging property to obtain the loan.

• Giving the lender financial information to secure the loan

Thomas rents out his land on shares of production rather than for cash, this results in:

• Less risk for both Thomas and his tenant.

• More risk for both Thomas and his tenant.

• More risk for Thomas but less for his tenant.

• Less risk for Thomas but more for his tenant.