ABE 204 Practice Exam 1 The Agriculture Sector, Ch. 0, and Chapters 1, 2, 3 and 4 i have an exam on elementary logic for philosophy i need answer for my questions .

Name ABE 204 Practice Exam 1 The Agriculture Sector, Ch. 0, and Chapters 1, 2, 3 and 4 Multiple Choice Identify the letter of the Choice that best completes the statement or answers the question. 1. The current Secretary of Agriculture and head of USDA is: a. Tom Vilsack b. Mickey Latour 0. Randy J. Dunn (1. Henry A. Wallace 2. What do you call the market arrangement in which no individual buyer or seller is able to inuence the price? a. monopoly b. hegemony c. nirvana d. perfect competition 3. Which of the following U.S. agricultural sectors is the largest in terms of the value of total output? a. Farming b. Input supply and service 0. Marketing, processing, and distribution 4. Of the agribusiness sectors discussed, the \"farm service sector\" includes which of the following? a. implement dealers and chemical sales b. farmers and ranchers c. manufacturers and bottlers d. distributors and retailers e. USDA 5. What percentage of total US GDP (contribution to total output) is provided by the food industry? a. 5 .l b. 12.8 c. 27.6 d. 53.4 6. How many farms (according to USDA's denition of a farm) are there in the US? a. 2,000 b. 200,000 c. 2,000,000 (1. 20,000,000 7. What characteristics distinguish the agriculture industry? a. small scale production b. cyclical production and price instability c. licensing requirements d. EPA involvement _ 8. Total employment in farming has been: a. increasing since the 195 Os b. steadily decreasing since at least 1910 0. increasing recently because of the growth in ethanol production d. there are no statistics available on the trend 9. Which of the following trends is increasing in the farm sector? a. the number of farmer-owned cooperatives b. the number of medium sized farms 0. the amount of product sold through some form of vertical coordination d. the amount of inputs produced on the farm rather than purchased 10. Economics deals primarily with the concept of a. scarcity. b. poverty. 0. change. d. power. 1 1. The word "margin" means a. edge, or next b. distance. c. space. d. measure. 12. Agricultural economics can be described as: a. a discipline, but not a science b. a physical science that deals with physical relationships c. a social science dealing with choices 13. Which statement best describes economic models such as the circular ow diagram? a. an exact representation of the national economy. b. an economic laboratory in which people can be experimented on. c. a mathematical representation of the future. d. a simplified representation of an economic reality. 14. The production possibilities frontier shows... a. The movement of goods and services and the revenues from their sale. b. The possible tradeoff between two goods when all resources are employed efciently. c. The relationship between price and the quantities people are willing to purchase. d. The price and quantity at which supply and demand are both satised. 15. Which of the following refers to the study of economy wide variables such as GDP growth and unemployment? a. Macroeconomics. b. Microeconomics. c. Mezoeconomics. d. All of the above. 16. Assume that the following data represent the supply and demand for ice cream in southern Illinois. Further assume that the market is competitive. Construct a market supply and demand curve in the gure below. $6.00 $5.00 W $4.00 W $3.00 W $2.00 W $1.00 W $0.00 11:111111111111: 11111111111i1 0 5101520253035 17. 18. 19. 20. 21. What situation would result if the initial market price was 1? A shortage of 16 ice creams A surplus of 16 ice creams equilibrium A shortage of 8 ice creams A surplus of 8 ice creams 9999'? What situation would result if the initial market price was 3? A shortage of 16 ice creams A surplus of 16 ice creams equilibrium A shortage of 8 ice creams A surplus of 8 ice creams 9999'? What situation would result if the initial market price was 4? A shortage of 16 ice creams A surplus of 16 ice creams equilibrium A shortage of 8 ice creams A surplus of 8 ice creams 9;.qu People generally choose to depend upon others for goods and services. Economists view this interdependence as a. a good thing, since it fosters friendships and bonds that otherwise would never develop. b. a good thing, since it allows people to consume more goods and services than they would otherwise be able to consume. c. a bad thing, since self-sufciency may become necessary in the future. d. a bad thing, since interdependence reduces people's self-esteem and causes various social problems. Specialization and trade are closely linked to a. absolute advantage. b. comparative advantage. c. gains to some traders that exactly offset losses to other traders. d. shrinkage of the economic pie. 22. The forces that make market economies work are 23. a. work and leisure. b. demand and supply. c. regulation and restraint. (1. taxes and government spending. The term market always refers to a. an arrangement in which buyers and sellers meet at a specic time and place. b. an arrangement in which an auctioneer plays at least a limited role in setting prices. c. a group of buyers and sellers of a particular good or service. (1. All of the above are correct. 24. If an increase in income increases the demand for a good, then the good is a. a substitute good. b. a complement good. c. a normal good. (1. an inferior good. . When constructing a demand curve, a. demand is on the vertical axis and quantity is on the horizontal axis. b. price is on the horizontal axis and quantity is on the vertical axis. c. price is on the vertical axis and demand is on the horizontal axis. d. price is on the vertical axis and quantity demanded is on the horizontal axis. . The market demand is a. the sum of all individual demands. b. the demand for every product in an industry. c. the average quantity demanded by individual demanders at each price. (1. positively related to the price of the product in question. . The market supply curve shows a. the total quantity supplied at all possible prices. b. the average quantity supplied by producers at all possible prices. 0. a ratio between price and quantity supplied for the market. d. buyers' responses, in terms of the amounts they will purchase. . In a market economy, supply and demand determine a. both the quantity of each good produced and the price at which it is sold. b. the quantity of each good produced, but not the price at which it is sold. c. the price at which each good is sold, but not the quantity of each good produced. d. neither the quantity of each good produced nor the price at which it is sold. . Assume the market for pork is perfectly competitive. If new reports convince people that pork is unhealthy then, a. the price of pork increases. b. the price of pork decreases. c. the price of pork does not change. d. there is no longer a market for pork. . A leftward shift of a demand curve is called a. an increase in demand. b. a decrease in demand. c. a decrease in quantity demanded. d. an increase in quantity demanded. A movement along the demand curve might be caused by a change in a. income. b. the prices of substitutes or complements. c. expectations about future prices. d. the price of the good or service that is being demanded. You lose your job and, as a result, you buy fewer pizzas. This shows that you consider pizza to be a(n) a. luxury good. b. inferior good. c. normal good. d. complementary good. \"Other things equal, when the price of a good rises, the quantity supplied of the good also rises, and when the price falls, the quantity supplied falls as well.\" This relationship between price and quantity supplied is referred to as the law of supply. applies only to a few goods in the economy. is represented by a downward-sloping supply curve. All of the above are correct. 9.057?" 34. Which of the following would not shift the supply curve for mp3 players? a. an increase in the price of mp3 players b. a decrease in the number of sellers of mp3 players c. an increase in the price of plastic, an input into the production of mp3 players d. an improvement in the technology used to produce mp3 players 35. The dictionary denes equilibrium as a situation in which forces a. are in balance. b. are the same. c. clash. (1. remain constant. 36. If the supply of a product decreases, then we would expect a. equilibrium price to increase and equilibrium quantity to decrease. b. equilibrium price to decrease and equilibrium quantity to increase. c. equilibrium price and equilibrium quantity both to increase. (1. equilibrium price and equilibrium quantity both to decrease. 37. Suppose there is an earthquake that destroys several corn canneries. Which of the following would not be a direct result of this event? a. Sellers would not be able to produce and sell as much as before at each relevant price. b. The supply would decrease. c. Buyers would not be willing to buy as much as before at each relevant price. d. The equilibrium price would rise. People generally choose to depend upon others for goods and services. Economists view this interdependence as a. a good thing, since it fosters friendships and bonds that otherwise would never develop. b. a good thing, since it allows people to consume more goods and services than they would otherwise be able to consume. c. a bad thing, since self-sufciency may become necessary in the future. d. a bad thing, since interdependence reduces people's self-esteem and causes various social problems. Specialization and trade are closely linked to a. absolute advantage. b. comparative advantage. c. gains to some traders that exactly offset losses to other traders. d. shrinkage of the economic pie. Which of the following is true with respect to international trade since the 19505? a. the dollar value of goods traded in the world is declining b. agricultural products have become the largest part of international trade. c. the dollar value of internationally traded goods is increasing d. most nations have switched to a barter system to avoid the need for foreign exchange. What do you call the process of increasing connectivity and interdependence of the world's markets and businesses? a. trilateralism b. new world order c. globalization d. communism 10. 11. Suppose a gardener produces both green beans and corn in her garden. If she must give up 14 bushels of corn to get 5 bushels of green beans, then her opportunity cost of 1 bushel of green beans is a. 0.36 bushel of corn. b. 2.4 bushels of corn. c. 2.8 bushels of corn. d. 70 bushels of corn. Absolute advantage is found by comparing different producers' a. opportunity costs. b. payments to land, labor, and capital. c. input requirements per unit of output. d. locational and logistical circumstances. Economists generally support a. trade restrictions. b. government management of trade. c. export subsidies. d. free international trade. Use the accompanying table to answer the following questions: Labor hours needed to make one unit of Amount roduced in 40 hours Table 3-6 Refer to Table 3-6. The opportunity cost of 1 unit of bread in England is a. 4 units of cheese. b. 2 units of cheese. c. 1 unit of cheese. d. 1/2 unit of cheese. Refer to Table 3-6. England has an absolute advantage in bread and Spain has an absolute advantage in cheese. cheese and Spain has an absolute advantage in bread. neither good and Spain has an absolute advantage in both goods. both goods and Spain has an absolute advantage in neither good. 9-9.0"? Refer to Table 36. England has a comparative advantage in bread and Spain has a comparative advantage in cheese. bread and Spain has a comparative advantage in neither good. cheese and Spain has a comparative advantage in both goods. both goods and Spain has a comparative advantage in cheese. 9-957.\" Refer to Table 36. If England and Spain specialize and trade based on the principle of comparative advantage, England will export which product to Spain? a. cheese b. bread c. both cheese and bread d. England cannot benet from trade with Spain