Ag Econ Test 1-3

  1. When American farm operators were asked to identify their primary occupation, the most common response was?

    D. Non-farm employment
  2. According to the U.S. Department of agriculture, a farm is any establishment that

    D. Has sales (or expected sales) of agricultural commodities of at least $1000
  3. A commodity processor would sell

    C. Soybean meal
  4. The market for beef in the U.S. Is an example of allocation using the ___ system

    A. Price
  5. An observer notes that an increase in the price of Pepsi caused the consumption of Pepsi to decline. This observer is 

    B. Guilty of the causation versus correlation fallacy
  6. The study of the behavior of an individual firm is part of

    A. Microeconomics
  7. The concept of diminishing returns stipulates that eventually the returns to an economic activity 

    A. Increase at a decreasing rate
  8. If I eat less it won't hurt the economy, therefore, if everyone eats less it won't hurt the economy. This statement is an example of

    C. The fallacy of composition
  9. To be certain that there is "a chicken in every pot," we would need

    E. A command system
  10. The demand-water paradox illustrates the principle of 

    E. Scarcity
  11. Economics, as the science of allocation, does NOT depend on

    D. Money
  12. In order to establish a market, which of the following are essential? 

    1. A marketplace or location 
    2. Potential buyers
    3. An auctioneer
    4. Potential sellers

    D. 2 and 4
  13. What creates the need for an allocation system? 

    E. Scarcity
  14. Recently Joe bought a used car from Jane. Joe thought he got a very good deal. Therefore, Jane must have gotten a very bad deal. This is an example of

    D. The zero-sum fallacy
  15. The economic term used to describe the earnings forgone by attending college is

    E. Opportunity cost
  16. The statement "A decrease in the price of pizza caused the quantity demanded of pizza to increase" is an example of

    C. Fallacy of correlation versus causation
  17. To an economist, the term "efficiency" refers to 

    D. Prices
  18. In the United States, higher education is an example of 

    C. Allocation using a mixed system
  19. Macroeconomics would NOT deal with

    B. A family farm
  20. Four events are observed: 
    1. Price of tires goes down.
    2. Price of gasoline goes up.
    3. Demand for tires shifts.
    4. Quantity of tires purchased goes down.
    What is the correct causation?

    D. None of the above
  21. Which of the following is not a demand shifter?

    E. None of the above
  22. Which of the following would NOT cause a change in the demand for corn?

    C. A change in the price of corn
  23. Movement along the demand curve for fish would be cause by a 

    A. Shift in fish supply
  24. Which of the following is NOT a characteristic of perfect competition? 

    C. Sellers are price makers
  25. A shift in demand, ceteris paribus, will NOT cause 

    C. A change in supply
  26. Which of the following would shift the supply of wheat?

    D. A change in the price of fertilizer
  27. On Tuesday the price of lettuce was $0.29 and a store sold 245 heads. On Wednesday the price was $0.45 and the store sold 260. What must have happened? 

    A. Demand shifted outward
  28. Which of the following is NOT a supply shifter for corn? 

    C. A change in the demand for corn
  29. If the government imposed a price above the equilibrium price, what would happen? 

    D. A surplus would occur
  30. At the equilibrium price in a market 

    A. The quantity demanded is equal to the quantity supplied
  31. The market supply of pork would shift as a result of a change in 

    D. The price of corn
  32. At prices above the equilibrium price

    A. Surplus exists
  33. An outward shift of a supply curve, ceteris paribus, will cause 

    B. A movement along the demand curve
  34. Which of the following
Card Set
Ag Econ Test 1-3