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

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

If the percentage change in quantity demanded is equal to the percentage change in price, demand is:

The fewer the number of substitutes for a good, the:

Which of the following is NOT an assumption of the theory of perfect competition?

A monopoly may exit because:

The profit maximizing quantity of output is where:

Pete’s Burgers has fixed costs of $100. When Pete’s Burgers makes 500 hamburgers, their variable costs are $100. When Pete’s makes 600 hamburgers, their variable costs are $200. What is the average total cost when they are making 600 hamburgers and what is the marginal cost for the range between 500 and 600 hamburgers?

Grocery stores do not often advertise sales prices on table salt because:

In a market, the price where the demand curve and the supply curve intersect is known as this price:

Which of the following causes a movement along a given market demand curve for pork chops but does NOT shift the curve?

Costs that do NOT change in the short run regardless of the output level for a firm are called:

The incremental cost to a wheat farmer of producing one more bushel of wheat is this type of cost:

A governmental price that is a minimum price that must be paid to sellers is called:

Average fixed cost is total fixed cost:

Five months ago, Wilson opened up a health club. Which of the following is an implicit cost related to the health club?

At 200 units of output, total cost is $40,000 and total variable cost is $18,000. What does total fixed cost equal at 200 units?

The value of the US dollar can have a significant impact on the world market and impact the competitiveness of US grain exports. If the US dollar decreases in value relative to other currencies, what would be the expected impact on US corn and soybean prices in the world market?

The accounting method that records cash receipts when they are received and cash expenses when they are paid is known as:

The law of diminishing returns (or diminishing marginal product) states which of the following will eventually decrease if a corn farmer keeps putting more fertilizer on a given acre of corn ground?

What is the management term used to describe an annual period of time used by a business to record income and expenses if that annual period does NOT correspond to a normal calendar year?

What is the future value in five years of $100 today if the annual interest rate is 6%?

A governmental tax on imports is also called

Which of the following are equal if a firm is at a breakeven level of production?

What is the equilibrium price for fertilizer under the original demand (D) and supply (S) curves?

Which of the following would cause the supply curve to shift from the original curve (S) to the new curve (S1)?

What happens to the equilibrium quantity of fertilizer with the shift of the supply curve from S to S1?

Which of the following would occur at a market price of $550?

At any point in time, a farm business has a positive net worth if:

The annual rate of return earned by a farmer on his/her assets was 5%. Net earnings for the year were $30,000. This implies:

Which of the following would be the best value to use for the cost of feeding homegrown (non-purchased) corn to beef cattle?

A farmer recently sold a depreciable asset for $1500. The farmer had claimed $700 of depreciation between the times of purchasing and selling the asset. If the farmer reported a taxable realized gain of $200, at what price had the farmer originally purchased the asset?

Suppose a farmer’s electricity expenses this year were $4,400 while the same costs last year were $4,000. What is the percentage increase in the cost of the electricity this year versus last year?

Which of the following farm firm decisions is more likely to impact the firm’s total costs, rather than the firm’s total revenues?

Which of the following would most likely be considered a fixed cost?

Which of the following has happened for a farm firm whose current assets have increased more than current liabilities?

If a producer’s debt-to-asset ratio decreases, the producer’s

A grain farmer who rents land and does so with a crop-share lease agreement agrees to pay the land owner which of the following?

A rice farmer is going to apply 28 ounces of a herbicide that costs $128.00 per gallon. If the custom application cost is $6.50 per acre, what is the producer’s total cost of making this application?

A cattle producer can sell his calves that weigh 500 pounds now for $1.40 per pound or can hold them until they weigh 700 pounds and sell them for $1.20 per pound. If the cost of gain is estimated at $0.85 per pound, which of the following statements is true if the producer sells his calves at 700 pounds?

Assume a marginal income tax rate of 10% on the first $15,000 of income and 15% on the next $10,000 of income for Jim. How much income tax would Jim owe if he made $25,000 in income?

A producer has total production expenses for his cattle operation of $530 per adult cow. If the producer has an average weaning weight of 550 pounds and a 70 percent weaning percentage, what is his breakeven selling price for his calves?

A farmer is considering purchasing a half section of land. How many acres would that be?

A producer applies 200 pounds per acre of Triple Super Phosphate fertilizer to his crop. If the fertilizer has an analysis of 0%N, 46% P, and costs $500 per ton, what was the producer’s cost per acre and per pound of phosphorous applied?

How many bushels are contained in one futures contract for soybeans?

If a cotton producer is expected to harvest in late October or early November and wants to hedge his crop, which contract would he use assuming he wants to sell the cotton shortly after harvest?

The current futures price for a December 2019 corn contract is $4.20 per bushel. Which of the following December 2019 corn put option strike prices would be considered “Out-of-the-Money”?

If the local cash price for corn is $4.30 per bushel while the nearby corn futures contract price is $4.10 per bushel, what is the basis?

A producer wants to hedge his soybean crop and sells a November 2019 soybean contract for $9.00 bushel in July 2019. The producer harvests the soybean and sells it at the local elevator in September 2019 for $8.50 per bushel and, at the same time, offsets his futures position. The November 2019 soybean contract was trading at $8.25 per bushel when the producer offset his futures position. How much did the producer gain or lose on his futures position?