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FFA Farm Buisness Management

Total questions: 30

Worksheet time: 20mins

Name
Class
Date
1.

Selling through a farmers' market or roadside market is known as ________.

a)

Equilibrium

b)

Call Option

c)

Direct Marketing

d)

Demand

2.

The relationship between quantity purchased and price is known as ____________.

a)

Demand

b)

Supply

c)

Call Option

d)

Equilibrium

3.

The relationship between quantity supplied and price is known as _________________.

a)

Demand Curve

b)

Deprived demand

c)

Supply Curve

d)

Direct Marketing

4.

Price movement across months within the year is ______________ variability.

a)

Seasonal

b)

Short

c)

Deprived Demand

d)

Bull

5.

A demand for a product at the farm level is a(n) _____________.

a)

Equilibrium

b)

Demand Curve

c)

Supply Curve

d)

Deprived Demand

6.

The price where demand and supply intersect is known as ____________________.

a)

Deprived Demand

b)

Equilibrium

c)

Supply Curve

d)

Demand Curve

7.

The primary purpose of the production function is to determine _________________.

a)

Whether or not to operate in the long run

b)

How to Accolade resources throughout a business

c)

How much to produce

d)

ALL of the above

8.

What does stage two in production function graph determine?

a)

The beginning point of increasing returns

b)

The stage where you should not produce

c)

The lowest point in increasing marginal returns

d)

The amount of variable input to use

9.

The point on a production function graph where marginal cost equals marginal revenue is where ________.

a)

Losses are the greatest

b)

Profits will be greatest

c)

Costs are minimized

d)

Production is maximized

10.

An agriculture producer learns what from the production function?

a)

Output responses to an input

b)

Whether or not to operate in the long run

c)

How to accolate resources throughout an enterprise

d)

ALL of the above

11.

On a production function graph MC=MR

a)

Where losses will be the least

b)

Where change in cost and chage in revenue are the same

c)

Where the profits are the greatest

d)

ALLof the above

12.

What is stage II (2) of the production function?

a)

Thw lowest point

b)

The highest point

c)

The point of demolishing returns

d)

The decision making stage

13.

Any time a consumer will take more only at lower prices is called _____________.

a)

Margin

b)

Supply

c)

Discovery

d)

Demand

14.

The dynamic process of searching for the equilibrium or market - clearing prices is called _________.

a)

Margin

b)

Supply

c)

Discovery

d)

Demand

15.

On a chart, a line that connects all the high points as the markets move higher forms a trend line. When projected out, it forms points of

a)

Support

b)

Interest

c)

Resistance

d)

Understanding

16.

When a market has huge swings on a daily basis, it is described as...?

a)

Stable

b)

Comfortable

c)

Volatile

d)

Variable

17.

What does the Production Function indicate for an agricultural producer?

a)

How to allocate resources throughout a business

b)

How output responds to inputs

c)

Whether to operate in the long run

d)

ALL of the above

18.

The point where Marginal Costs = Marginal Revenue is ______________

a)

Where production reaches maximum point

b)

Where all of your resources are used

c)

Where profits are at a maximum

d)

ALL of the above

19.

What does marginal cost measure?

a)

a. The change in cost from one enterprise to another

b)

b. The output cost from production at the level of inputs

c)

c. The change in the cost by adding another unit of input

d)

d. The change in cost by producing another unit of output

20.

Suppose that the supply curve shifts right. What is the most likely effect on price and quantity?

a)

a. Price will increase and quantity may change

b)

b. Price will decrease and quantity may decrease

c)

C. Price will decrease and quantity will increase

d)

d. Price will increase and quantity will increase

21.

When an increase in the level of production of one enterprise causes a reduction in the level of production in another enterprise, these two enterprises are said to be

a)

Independent

b)

Supplementary

c)

Competitive

d)

Complimentary

22.

At a price of $15, Marta buys 3 CD's per month. When the price increases to $20, Marta buys 2 CD's per month. Luz says that Marta's demand for CD's has decreased. Is Luz correct?

a)

Yes

b)

No her demand increased

c)

No, Luz is incorrect. Marta's quantity demanded has decreased, but her demand has stayed the

same.

d)

No, Luz is incorrect. Marta's quantity demanded has increased, but her demand has stayed the

23.

The ____________

is King in the market place

a)

Farmer

b)

Adviser

c)

Consumer

d)

Processer

24.

An increase in the number of buyers in an area will result in a

a)

Movement up the demand curve

b)

Movement down the demand curve

c)

Leftward shift in the demand curve

d)

Rightward shift in the demand curve

25.

The middlemen in the marketing system operate on

a)

Turst

b)

Loans

c)

Price

d)

Margin

26.

If an increase in income results in an increase in the demand for chicken, then chicken is

a)

a. A neutral good

b)

b. A luxury good

c)

c. A normal good

d)

d. An inferior good

27.

The operator knows that the value of the dollar on the world market can have an impact on grain markets. If the dollar increases in value related to other currencies, it will impact U.S. corn and wheat prices in what way?

a)

a. Make corn and wheat prices higher on world market

b)

b. Make corn and wheat prices lower on world market

c)

C. Make no difference on world market

d)

d. Make rest of world prices higher

28.

Which of the following is true about the relationship between price and quantity supplied?

a)

a. There is always a direct relationship

b)

b. There is always an inverse relationship

c)

c. There is usually a direct relationship

d)

d. There is usually an inverse relationship

29.

Comparing the retail price to the farm price for an agricultural commodity allows you to determine the portion of each dollar spent at the retail level that farmers receive for their commodities. The difference between retail value and the farm value is

a)

Profit

b)

b. Net farm revenue

c)

c. Farm to city transportation cost

d)

d. Marketing margin

30.

If Max's demand for hot dogs falls as his income rises, then hot dogs are

a)

A bad good

b)

An inferior good

c)

A normal good

d)

A preferable good