Ag econ exam 1
scarcity
- forces us to choose -reflects limited resources and unlimited desires - affects religious persons
All of the following are typical variable costs for a small business except:
Rental payment
For a firm with typical cost curves:
The ATC decrease then increase
An example of a decreasing cost firm is:
a beef packing plant
an industry is
a group of firms that all produce and sell the same product
the United States is an example of:
a mixed economy
Economics is
a social science
in a situation of negative economic profits:
accounting profits could be positive or negative
the relationship between average and marginal is:
average chases marginal
If average productivity is 20 bu/acre, and marginal productivity is 30 bu/acre, then:
average productivity is increasing
Total variable cost divided by output equal:
average variable costs
the study of growth in Mexico's level of living is an example of
macroeconomics
the study of how a single beef producer uses growth hormones is an example of
microeconomics
When too much of an input is used, and output decreases, the production process results in:
negative returns
The production function is a(n):
physical relationship
the statement "The market price of soybeans is USD 4.50 per bushel" is an example of
positive economics
The payment to management is:
profit
When economic profits equal zero:
resources are earning exactly what they are worth
If all inputs are variable except land for a wheat producer, then:
the firm is in the short run
a producer is
the seller of a product
economic profits are:
total revenue minus accounting costs and opportunity costs
profits are equal to:
total revenue minus total costs
a variable input is one that:
varies with the level of output
in the following production function, Y= f(L| K,A,M):
labor is allowed to vary
Since World War II, US agriculture has been characterized by:
-massive consolidation of farms -massive substitution of machines and chemicals for workers -increasing exports of US agricultural products
What is the MPP of using the 4th unit of input?
5 APP= y/x MPP= change in Y
A North Dakota wheat farmer is an example of a
A consumer and a producer
if MC> ATC, then:
ATC are increasing
for an increasing cost firm
MC>AC
In the short run:
both fixed and variable costs are present
Corn producers interested in maximizing profits should:
consider both costs and revenue
In decreasing returns, an additional unit of input added to a production process:
increases output, but at a decreasing rate
A coal mining company is a(n):
increasing cost firm
Suppose the Congress increased the minimum wage to $12.50/hour, ceteris paribus. This will:
decrease the number of fast food workers
A public utility such as an electricity provider is a(n):
decreasing cost firm
the long run is defined as:
depends on the situation
scarcity affects:
everyone
if the price of corn increases relative to the price of other crops, ceteris paribus:
farmers will plant more corn
The term ceteris paribus, in economics means
holding all else constant
Accounting costs include all of the following except:
how much money the operator could earn as a plumber
The Law of Diminishing Marginal Returns states that:
if more input is used in a firm, holding all other inputs constant, the additional product will eventually decline.
opportunity costs are
implicit costs
Variable costs
increase with the level of output