AFRE 100 Exam 1
Approximately, what proportion of the Food Dollar is considered Farm Share?
15-20%
On average what is the approximate Farm Share of the food dollar?
15-20%
An ethanol facility in Nebraska that buys corn from local grain elevators and transports it to its facility and then grinds it to be processed into ethanol is primarily adding a. form and possession value b. place and form value c. place and time value d. place and possession value
B. place and form value
Which three countries in the world are the top exporters of soybeans?
Brazil United States Argentina
Which three countries in the world are the top importers of soybeans?
China Germany Mexico
Which country is the world's largest producer of cocoa beans?
Cote d'Ivoire
Which of the following statements would most likely be considered true? a. Most food products go through ten to twelve changes of possession before they reach the final consumer b. if the farm share of the food dollar increases, then farming is becoming more profitable c. If the farm price of a commodity doubles, then retail food products made from that commodity will also double d. Farm prices tend to be more volatile than retail food prices.
D. Farm prices tend to be more volatile than retail food prices
A change in the price of chip dip would likely cause a movement along the demand curve for its complement potato chips
False
A decrease in the price of pesticides used in tomato production will decrease the supply curve for tomatoes
False
An increase in demand means the same thing as increase in quantity demanded
False
As much as 25% of the world's surface is considered arable land and can be used for growing crops
False
Due to its northern climate, Michigan is relatively limited as to how many different types of commodities it can grow and is not very agriculturally diverse
False
HRI is a common acronym used in the agri-food system to describe hospitals, restaurants, and income
False
Increase in farm prices have been the largest driver of increasing food prices
False
Increasing ethnic diversity in the US is likely to lead to a decrease in per capita consumption of potatoes and milk
False
Large swings in farm prices lead to large impacts on the final food price.
False
Most agricultural commodities can be grown anywhere in the world
False
Per capita consumption of food has increased significantly in the past 25 years.
False
Players in the agri-food system add time value by advertising a product on television
False
Prices for apparel and transportation have risen faster than food prices in the last 5 years
False
Small scale farms account for nearly 80% of the value of farm production
False
The average American spends approximately $8,000 - $9,00 a year on food and alcohol
False
The average food product travels less than 1000 miles before it reaches the final consumer
False
The dollar value of total annual expenditures on food and alcohol in the U.S. has been decreasing over the past 25 years.
False
The farm share of the food dollar has been relatively stable since the late 1970s.
False
The iGeneration has considerable spending power and is likely to purchase food products due to their convenience.
False
Which country is the world's largest producer of bananas
India
A potential benefit to market concentration is that larger firms may be able to decrease their per unit costs of production
True
A robotic apple harvester is an example of asset specificity
True
Current real retail food prices are approximately twice as much as they were in 1988.
True
Food loss at the retail and consumer level in the US is estimated to be 30-35% of the total food (measure in pounds) available in the US
True
Large Food Retailers are likely to serve as their own wholesalers
True
Marketing is done by all players in the agri-food system
True
Since 2000, the share of income spent on food has been relatively stable.
True
The Farm Share for away-from-home food is typically smaller than food prices in the last 5 years
True
The Food Bill includes how much Americans spend on alcohol and imports in a given year.
True
The average American farmer feeds as many as 200 people
True
The role of place value is increased when commodities are geographically limited as to where they can be grown.
True
Value-added is the difference between the cost of goods purchased by a firm and the price for which the firm sells those enhanced goods
True
Wine is one of the top valued catergories for food and agricultural imports into the US
True
Which country is the world's largest producer of almonds?
United States
Which country is the world's largest producer of corn?
United States
Which of the following is most likely false? a. A primary customer of the Food Manufacturer is the Commodity Processor b. Grocery wholesalers typically do not sell to University cafeterias c. Once the product leaves the farm, processors are typically the first player to change a commodity's form d. two players in the agri-food system who typically do not add form value are the assembler and the wholesaler
a. A primary customer of the Food manufacturer is the commodity processor
Which demographic group is least likely to use services food delivery like BlueApron and HelloFresh? a. Baby Boomers b. GenX c. Millennials d. iGeneration
a. Baby Boomers
which of the following is considered one of the top countries to which the US exports agricultural and food products? a. European Union b. Russia c. Brazil d. Australia
a. European Union
These two generations are the most likely to be influenced by digital media: a. Millennials and iGeneration b. GenerationX and Baby Boomers c. Baby Boomers and Millennials d. Generation X and iGeneration
a. Millennials and iGeneration
Which of the following would most likely be considered an agricultural input supplier? Select all the correct answers a. Monsanto b. Unilever c. John Deere d. ConAgra
a. Monsanto c. John Deere
Which of the following is true regarding the tools used to measure the value-added in the agri-food system? a. The Food Bill is typically larger than the food dollar b. The Food Marketing Bill is an accurate tool to use if you wanted to determine how much U.S. consumers spend on all food and alcohol in a given year c. The Food Dollar is a useful tool for measuring all of the value-added in the agri-food systems by firms once the commodity leaves the domestic farmgate d. Imports and alcohol are included when calculating the Food Marketing Bill.
a. The Food Bill is typically larger than the Food Dollar
The US agri-food system is unique relative to the supply chains for other consumer products. Of the following items, which would not be considered an impact due to the biological uniqueness of the agri-food system? a. consumers' preferences for products often change with the seasons b. quality difference occur between commodity and food products (ie. apples are not identical) c. Many agricultural products are perishable and need to reach consumers quickly d. production lags result since agricultural products take time to produce
a. consumers' preferences for products often change with the seasons
Assume that there will be a record breaking kale crop due to ideal growing conditions and high yield. How would this bumper crop impact the kale market? a. It would cause the supply curve to shift, decreasing the price and increasing the quantity traded in the market b. It would cause the supply curve to shift, increasing the price and decreasing the quantity traded in the market. c. It would cause the demand curve to shift, increasing the price and increasing the quantity traded in the market d. None of the above would occur
a. it would cause the supply curve to shift, decreasing the price and increasing the quantity traded in the market
Which of the following is generally false? a. The US has a positive agricultural trade balance b. A CR4 above 40 shows that firms in the industry are illegally exercising market power c. A CR4 describes the percentage of total industry sales held by the largest four firms in the industry d. The US has a negative overall trade balance
b. A CR4 above 40 shows that firms in the industry are illegally exercising market power
Which of the following will not shift the demand curve for peanut butter? a. a change in the price of jelly, a complement to peanut butter b. A change in the technology available to produce peanut butter c. A change in income d. A change in the number of children with peanut allergies
b. A change in the technology available to produce peanut butter
A unique feature of the agri-food system is seasonal production and consumption. One of the likely impacts of this seasonality is: a. Decreased storage costs for commodities and food products b. Additional form value in order to extend the shelf-life of the food product. c. Food manufacturers locating in close proximity to food retailers d. Stable commodity prices throughout the year
b. Additional form value in order to extend the shelf-life of the food product
Which of the following is most likely true? a. Approximately, one-half of all meals are consumer away from home b. Approximately 50% of total food expenditures is for food purchase away-from-home c. In general, Americans have one of the largest shares of income spent on food in the world d. None of the above are true
b. Approximately 50% of total food expenditures is for food purchased away-from-home
Which of the following would most likely be considered a functional food? a. Sprite soft drink b. GT's Enlightened Kombucha c. Pillsbury Cresent Rolls d. Barilla penne pasta
b. GT's Enlightened Kombucha
In the market channel for Kellogg's Rice Krispies, which player would be responsible for taking the ingredients and making the boxed cereal? a. Ag Input Supplier b. Manufacturer c. Processor d. Food Service Retailer e. Assembler
b. Manufacturer
Which of the following would cause a shift in the demand for blueberries? a. A change in supply b. New information that reveals blueberries help reduce the risk of coronary heart disease c. A severe drought impacting the growing conditions for blueberries d. New technology that increases blueberry production
b. New information that reveals blueberries help reduce the risk of coronary heart disease
Which player is least likely to be geographically located near the farmer? a. The ag input supplier b. The manufacturer c. The processor d. The assembler
b. The Manufacturer
If coke and pepsi are substitutes and the price of coke decreases, then the likely impact on the Pepsi market will be that a. the demand for Pepsi will increase b. The demand for Pepsi will decrease c. The supply of Pepsi will decrease d. The price of Pepsi will increase
b. The demand for Pepsi will decrease
If chips and salsa are complements and the supply of chips decreases, then the likely impact on the salsa market will be that: a. The price of salsa will increase b. The demand for salsa will decrease c. The supply of salsa will increase d. The quantity traded in the salsa market will increase
b. The demand for salsa will decrease
This generation is considered to have the smallest spending power: a. Millennials b. iGeneration c. Baby Boomers d. GenerationX
b. iGeneration
Which of the following provides the best example of a firm adding time value? a. A large retail store advertising food products b. A trucking company moving grain from Michigan to Indiana c. A grain elevator storing corn after the fall harvest d. A dairy farmer milking a cow
c. A grain elevator storing corn after the fall harvest
This generation is the least likely to eat out a. Millennials b. iGeneration c. Baby Boomers d. GenerationX
c. Baby Boomers
These two generations are the largest generations: a. Millennials and iGeneration b. GenerationX and Baby Boomers c. Baby Boomers and Millennials d. GenerationX and iGeneration
c. Baby Boomers and Millennials
An agricultural input supplier would most likely sell which of the following products to the next player in the agri-food system? a. Wheat Flour b. Bread c. Fertilizer for the wheat crop d. Wheaties boxed cereal
c. Fertilizer for the wheat crop
Which of the following is most likely true? a. Increasing incomes are leading to more emphasis placed on product price and less emphasis placed on food quality attributes b. Farmers are the driving force in the agri-food system c. If there is a high degree of asset specificity in the food system, this will increase the fixed costs of firms and make production adjustments costly and slow. d. Agricultural prices tend to be relatively stable throughout the year
c. If there is a high degree of asset specificity in the food system, this will increase the fixed costs of firms and make production adjustments costly and slow
Which of the following has not been a strong force behind increasing food expenditures in the US? a. Consumer preferences for convenient, more processed food products b. The increasing trend in food consumed away from home c. increasing per capita consumption of food d. higher labor and energy costs in the agri-food system
c. Increasing per capita consumption of food
Which of the following statements is false regarding how changing dempographics will influence the future of the US agri-food system? a. Per capita rice consumption is likely to increase in the future b. Increased importance will be placed on functional foods c. Per capita egg consumption is likely to decrease in the future d. The importance of social media and digital information on consumers' food choices will increase
c. Per capita egg consumption is likely to decrease in the future
All of the following measures have been experiencing a decreasing trend over the last 50 years, except one. Which of the following has been experiencing an increasing trend? a. The Farm Share of the Food Dollar b. Share of total expenditures for food consumed at-home c. Real (inflation adjusted) retail food prices d. The share of income consumers spent of food.
c. Real ( Inflation adjusted) retail food prices
Which of the following is generally true regarding the role of the initial processor? a. Processors buy raw commodities and turn them into final food products purchased by the consumer b. There is a trend for processors to merge with food retailers c. There is a trend for processors to merge with assemblers d. all of the above
c. There is a trend for processors to merge with assemblers
On average, which number best approximates the current share of income that the U.S. consumer spends on food: a. 6-8% b. 80-85% c. 50% d. 9-10%
d. 9-10%
Which of the following would decrease the demand for corn at the farm level? a. An increase in irrigation costs for producers b. A decrease in farm labor wages c. An increase in demand for corn oil by manufacturers d. A decrease in demand for corn meal by consumers
d. A decrease in demand for corn meal by consumers
Which of the following is most likely true? a. There are approximately 1 million farms in the US b. In the 20th century, labor was the primary driver of increased agricultural productivity c. Approximately 40-50% of all agricultural production in the US is exported at the farm-level d. Farmers account for approximately 2% or less of the population
d. Farmers account for approximately 2% or less of the population
Which of the following is most likely false? a. Per capita calorie consumption in the US is approximately 3500 calories per day b. On average, Americans spend approximately 10% or less of their income on food c. Baby Boomers are less likely to eat out than their younger Americans d. In the future, the largest increase in food sales in the US will come from reaching Americans who currently do not eat enough food
d. In the future, the largest increase in food sales in the US will come from reaching Americans who currently do not eat enough food
Increased coordination in the agri-food system has led to all of the following conditions except: a. improved efficiencies in the market channel b. increased interdependence between players c. increased opportunities for independent decision-making d. Increased use of contracts, integration and cooperatives
d. Increased use of contracts, integration and cooperatives
Which of the following is most likely false? a. Approximately 3% of the farms in the US are categorized as non-family farms b. Most farms in the US are family owned and operated c. Mid-size and large scale farms account for the majority of farm production d. large-scale farms hold the majority of farm assets in the US
d. Large-scale farms hold the majority of farm assets in the US
Sprite's sponsorship of LeBron James is an example of adding what type of value in the market channel for Sprite soft drink? a. Time b. Form c. Place d. Possession
d. Possession
Which of the following has not been a general trend in production (farm-level) agriculture? a. Farm production becoming less diversified and more specialized b. Farmers facing continual pressure to reduce costs and adopt new technologies c. Increasing farm size d. increased productivity leading to decreased dependence on global markets
d. increased productivity leading to decreased dependence on global markets
The food service retailer typically does not add form value
false
