Quiz Bowl (all)
How many square miles are in 640 acres?
1
When quoting interest rates, what is used to denote 1/100 of a percent?
Basis Point
What is the state capital of Alabama?
Birmingham
What is a CAFO?
Confined animal feeding operation
______ is the difference between a buyer's willingness to pay and the market price.
Consumer Surplus
What is an agreement between two or more parties that both parties are both legally obligated to fulfill?
Contract
What form of business is owned by its customers?
Cooperative
What is the largest component of the money supply (M1)?
Demand Deposits
The demand for an input derived from the demand for the product that the input is used to produce.
Derived Demand
What is the study of the allocation of limited resources the produces goods and services to satisfy unlimited wants?
Economics
What graphic device is most frequently used to illustrate the contract curve in anexchange economy?
Edgeworth Box
In a linear programming model, a local optimum is also a ________optimum.
Global
The category of intangible asset that represents the excess paid over book value for acquisitions?
Goodwill
What does OPEC stand for?
Organization of Petroleum Exporting Countries
_____ numbers are numbers grater than zero?
Positive
The likelihood or chance that a particular event will occur is called:
Probability
What input is "proved by nature", modified using technology, to produce goods and services?
Resource
What U.S. state produces the most cotton?
Texas
Who is the current U.S. Secretary of Agriculture?
Tom Vilsack (2009)
When would marginal revenue be greater than demand?
When the demand curve has a positive slope
Riparian Rights and Prior Appropriation are examples of:
doctrines used for water rights
What is the second derivative of f(x)=5x
zero
What type of market deals in long-term debt and corporate stocks?
Capital Market
What is the largest oilseed crop in the US?
Soybeans
What utility is created when a farmer puts grain into a silo to sell at a later time?
Time
A coverage ratio measure, defined as earnings before interest and taxes divided by interest expense is called?
Times interest earned
The level of significance refers to the probability of committing what kind of error?
Type I
What country is the largest exporter of rice in the world?
United States
The Engel Curve will slope ______ if th egood is normal over the range.
Upward (positive slope)
What term refers to the specific cost of hiring one worker for one hour?
Wage
What is the most appropriate situation to use the cost approach for appraising the value of a barn?
When the barn is new (or close to it)
An increase in production costs due to poor management is better known as what?
X-inefficiency
Hedging barley using a corn futures contract is called:
cross hedging
The acronym CAPM stands for _______.
Capital Asset Pricing Model
Who is the oldest living First Lady?
Barbara Bush
What does EPS stand for?
Earnings per share
Until 1971, the U.S. used what type of exchange rate system?
Fixed
What country has the largest muslim population in the world?
Indonesia
The acronym IMF stands for?
International monteary fund
What market structure has a few independent sellers?
Oligopoly
How do we classify a plant that exists in whole or in part from year to year?
Perennial
The idea that supply creates its own demand is known as?
Say's Law (for Jean-Baptiste Say)
Total Physical Product is declining in production stage(s) ______
Stage III
The "compensated" demand curve shows only what effect of a price change?
Substitution effect only
The additional cost incurred in producing an additional unit of output is:
marginal cost
What is the net weight of a bale of cotton using the International Cotton Advisory Committee standard?
478 lbs.
In the Wall Street Journal a bond is trading at par. What is the asked price?
$100
What is disinflation?
A reduction in the rate at which prices are rising
The price of one nation's currency in terms of the currencies of other nations.
Foreign Exchange Rate
What language is "Ceters Paribus"?
Latin
The stated or face value of an investment.
Par value
A fund established by periodic contributions that a firm typically establishes to replace major assets or retire a major debt is called?
a sinking fund
A direct reduction in the amount of taxes owed is called:
a tax credit
The volume of water that would cover one acre of land (43560 square feet) to a depth of twelve inches, equivalent to 325851 gallons of water.
acre foot
Aggregate demand for goodsand services which is backed up with the resources to obtain them is called:
effective demand
What does i.i.d. stand for in statistics?
independently and identically distributed
A sustained rise in the general price level is called:
inflation
What does 1 minus the confidence level equal?
level of significance
What does the acronym SWOT analysis stand for?
strengths, weaknesses, opportunities, and threats
How many cubic feet of irrigation water equals one acre-foot?
43,560 cu. ft. of water
How many members are in the U.S. Congress?
435
Given the integrand f(x)=4, what is the indefinite integral?
4x+C, where C is an arbitrary yet fixed constant
If the MPC=0.20, what is the simple multiplier?
5
The agency within the FDA responsible for regulating the food processing industry. Acronym is CFSAN
Center for Food Safety and Applied Nutrition
What is a guaranteed amount of money that a decision maker would trade for an uncertain cash flow?
Certainty Equivalent
A rule for determining the derivative of a function of the form y=f(g(x)), where f and g are functions.
Chain rule
Why would a manager/owner generally prefer to operate as an oligopolist rather than an atomistic competitor?
Chances for long run profits
What specific grain accounts for the largest share of the world's production of coarse grains?
Corn
Organisms that live or are actively only in the presence of oxygen, and an exercise that increase the heart rate are both called:
Aerobic
What term is used for firms that produce and sell goods for use in farm production, or firms that buy, store, and process farm commodities and distribute them?
Agribusinesses
Historically, many aspects of our farm policies had their origins in what piece of legislation?
Agricultural Adjustment Act
The ________ _________ Act (AAA) of 19__ was the New Deal initiative to assist the farm sector during the Great Depression. This was the first comprehensive effort to raise and stabiize farm prices and income.
Agricultural Adjustment of 1933
A pungent Alkaline gas, a compound of nitrogen and hydrogen (NH3).
Ammonia
Which U.S. state produces the most rice?
Arkansas
Any substance that produces or promotes cancer.
Carcinogen
What are the 3 functions of money?
Exchange, Accounting, Storage of Value
What is the main component of milk?
Water
What is the Food ofr Peace program designed to do?
Facilitate the distribution of US farm products in the LDC's
What nation is the world's largest producer of ethanol?
Brazil
How is the basis calculated in the Futures Market?
Cash Price less the Futures Price or Futures Price less the Cash Price
What is the most widely used algebraic procedure for solving LP problems?
Simplex Method
When the owner of a Roth IRA reaches the age to withdraw funds without penalty, what will be the tax treatment of the withdrawn funds?
Tax Free
If total cost equals 120+3Q, what is marginal cost of the tenth unit produced?
Three
Specific to these two phases, how do we refer to apeak or trough in the business cycle?
Turning Point
How many US Presidents' fathers were also US Presidents?
Two (Adams and Bush)
What does the product-packaging acronym VIEW sand for?
Visibility, information, emotional (impact), workability
What is the term used to describe the failure of wages to adjust so tht the supply of labor equals demand?
Wage rigidity
The largest retailing firm in the world is:
Wal-Mart
What large US grocery retailing firm is also number 4 on the Fortune Global 500?
Wal-Mart Stores
Nicknamed "the Oracle of Omaha" and the second-richest person in the world, who made the largest charitable donation in US history ($31 billion) in 2006?
Warren Buffet
What is the term for a banking system whereby banks hold reserves equal to only a fraction of their deposits?
Fractional reserve banking
When banks are allowed to keep less than 100 percent of their deposits on reserve, what is this system known as?
Fractional reserve banking
A system of banking, like in the US, where onlly a portion of deposits are help in reserves. The rest is returned to the public as loans, thereby increasing the money supply and stimulating economic growth.
Fractional reserve banking system
Unrestricted grain stocks typically held by agricultural producers rather than some public agency are listed on the grain balance sheet as:
Free Stocks
What type of unemployment is associated with normal turnover?
Frictional
_____ unemployment results from the time needed for workers to search for jobs that match their skills and interests.
Frictional
Unemployment that exists as a natural consequence of market activity where individuals are in- between jobs:
Frictional Unemployment
What is unemployment associated with normal turnover in the labor market?
Frictional Unemployment
What type of unempolyment is associated with normal turnover?
Frictional Unemployment
What does FCOJ stand for?
Frozen Concentrate Orange Juice
What do we use to measure the proportional change in output resulting from a proportional unit change in all inputs?
Function coefficient or (Total) Elasticity of Production
Hedging involves offsetting a position in the cash market with an opposite position in what market?
Futures Market
what is a traceable, legal agreement whereby parties will either make or take delivery of a commodity at a time and price specified?
Futures contract (or forward delivery contract)
Corporations that have eliminated both hierarchy and functional/departmental boundaries are called __________ corporations.
Horizontal
A situation in which competing sellers in the same market form a single firm.
Horizontal Merger
How are individual demand curves for a commodity summed to derive the market demand curve?
Horizontally
What country is the second greatest producer of rice in the world?
India
What type of good is purchased for resale and for further processing or manufacturing?
Intermediate goods
Under Michael Porter's Five Forces model __________ rivalry describes the competition for market share by incumbent firms within a market.
Internal
An investment's net present value is equal to zero at what discount rate?
Internal rate of return (IRR)
What is the discount rate at which an investment's net present value is zero?
Internal rate of return (IRR)
Which capital budgeting technique calculates an exact rate of return on the original investment?
Internal rate of return (IRR)
Who doctrine of utilitarianism resembled the Greek philosophy of hedonism, only with the end goal of happiness?
Jeremy Benthem
Who wrote the booke, The New Undustrial State?
John Kenneth Galbrath
Name the person who ran against George W Bush in the 2004 US presidential election
John Kerry
What economist is famous for the statement, "In the long run, we are all dead."?
John Maynard Keynes
Who wrote, "The General Theory of Employment, Interest and Money"?
John Maynard Keynes
As price decreases, the quantity demanded increases. What economic principle does this represent?
Law of Demand
What law states that as the amount of a good consumed increases, the marginal utility of that good tends to diminish.
Law of Diminishing Marginal Utility
What basic economic tenet says that the same good cannot sell for different prices in different places at the same time?
Law of one Price
What law states that under competitive market conditions all prices within a market are uniform after accounting for costs of place, time, and form utility?
Law of one price
Who was the first president on a coin?
Lincoln
If the price that a competitive firm gets for its product does not change as output does, the firm's demand curve is also which other curve?
Marginal Revenue
Mathematically, the slope of a consumer indifference curve for two goods is the ratio of the ____ _______ for those two goods.
Marginal Utilities
The ratio of what measure to price must be constant to maximize total utility within a budget constraint.
Marginal Utility
A firm often seeks to increase the percentage of total market sales that it controls. This percentage defines ______.
Market Share
Name two functions of money.
Medium of exchange, store of value, unit of account/value
The period of time that is so short that no change in production can take place is known as _____ _____.
Momentary run
A central bank's actions to influence short-term interest rates and the supply of money and credit, as a means of helping to promote national economic goals.
Monetary Policy
What type of policy involves changing the money supply to move the economy toward full employment with increased economic output?
Monetary Policy
Statements involving a value judgment are called?
Normative statements
What budget shows changes in costs and returns associated with a change in a particular aspect of a firm's busines activities?
Partial budget
What term is used for an unincorporated firm owned and operated by two or more people?
Partnership
What is the method by which cooperatives return "profits" back to their members?
Patronage Refund
If a person prefers Coke to Sprite and Sprite to Dr. Pepper, and if they are indifferent between Coke and Pepsi, what is their preference between Pepsi and Dr. Pepper?
Pepsi is preferred to Dr. Pepper
What is the term describing an action taken by management to make a firm unattractive to potential buyers to avoid a hostile takeover?
Poison Pill
What distribution (named after a French mathematician) provides good approximations of binomial probabilities?
Poisson distribution
If farm state legislators support the food-stamp program to aid the urban poor and urban state legislators in turn support farm subsidies, this is an example of?
Political Log-Rolling
What is the term that gives a firm's relative mix of investments or market share of products?
Portfolio Mix or Portfolio Analysis
The income elasticity of demand for normal goods has what sign?
Positive
What sign is the slope of an indifference cuve where less is preferred to more?
Positively sloped
What is the official currency of the UK?
Pound Sterling
Under what principle does the borrower have greater risk of losing equity capital as the debt to equity ratio increases?
Principle of Increasing Risk
What law states that as an additional unit of variable of input is used, the input's marginal physical product will eventually decline, ceteris paribus?
Principle of Increasing Risk
What is the projected financial statement based on a set of assumed conditions for a specified period of time?
Pro forma statement
What is the name of the financial ratio that shows the adequacy of cash, accounts receivable, and marketable securities to cover current liabilities?
Quick or current ratio; or acid test
Who wrote the book, "Silent Spring" that helped spark the environmental movement in the 1960's?
Rachel Carson
If the demand curve were perfectly elastic and supply increased, what would happen to the equilibrium price?
Remain Unchanged
"Rent is that portion of the produce of the earth which is paid to the landlord for the use of the original and indestructible properties of the soil." Who is this author of this quote.
Ricardo
Name two instruments of monetary policy used by the Central Bank.
Rewerve requirement, discount rate, open market operations, moral suasion (or jawboning)
What is the term describing the unique blend of product, distribution (place), promotion, and pricing strategies designed to produce mutually satisfying exchanges with a target market?
marketing mix
The statistical name for an average?
mean
A school of thought that held a country's economic prosperity and political power came from its stocks of precious metals was known as?
mercantilism
A market for a food product that has a much narrower and targeted market segment than most food product is called a _______ market.
niche
What statistical techniques are sometimes called "distribution-free" statistics?
nonparametric statistics
In farm planning, what is used to estimate the changes in income and expenses that would result from carrying out a proposed change in the current farm plan?
partial budget
Changing the basis in the solution of a linear programming model is called what?
pivoting
A tax is considered regressive if:
the average tax rate falls as income rises or the average tax rate rises as income falls
The lowest 25% of the observations in a study are called?
the bottom or lower quartile
How are "net exports" determined?
total exports minus total imports
Give the computational formula for average product or average physical product.
total produce divided by amount of input
The primary motive for consumers to hold money is for:
transaction purposes
In regression analysis, what is the sum of residuals equal to?
zero
What type of product marketing strategy is characterized by marketing an innovation to a new target audience?
diversification
The C component of GDP is made of what three categories?
durable goods, non-durable goods, and services
What is the right to use another's land for some specific purpose?
easement
Price discrimination may be advantageous if the seller can sell the same product in two or more markets with different _________.
elasticities
What are numbers in a matrix refer to as?
elements (or components or entries)
The percentage of industry sales achieved by a single company or are attributable to an individual product is known as?
market share
Who is the chairman of the federal reserve?
Janet Yellen
Who is considered by many to be the first social scientist?
Plato
Who was Socrates' most famous pupil?
Plato
What phrase describes the reduction in investment that results from higher interest rates caused by increased government purchases?
"crowding out"
What does the Latin phrase "caveat venditor" mean?
"let the seller beware"
In Keynesian economics, long-term wage contracts lead to what phenomenon?
"sticky wages"
Given: loan amount= $1000, term= 1 year, discount method, interest rate= 7%. What is the amount to be repaid after the one year loan period?
$1,000
Characterize the marginal propensity to consume numerical constrains.
0<mpc<1
When rolling a pair of standard dice what is the probability of rolling a three?
2/36 or 1/18
The standard for presenting percent daily value (%DV) is based on what daily caloric intake?
2000
How many pounds are there in a "short ton?"
2000 lbs.
In what year was the EURO made the common currency of the European Union?
2002
What is the marginal product of labor given a production function of L^2K
2LK
The market demand for oranges is given by Q = 12- P. Supply is specified as Q = 3P. What is the equilibrium price?
3
How many square miles are in 1280 acres?
2
Other things being equal, would obtaining equity capital: 1) increase, 2) decrease, 3) have no impact on a firm's financial leverage?
2) decrease
How many acres are in 10,000 square meters of land?
2,471 acres (1 hectare, so close is good enough)
How many pounds are in a kilogram (to one decimal)?
2.2 lbs.
What is the probability of rolling two sixes with a two sided dice?
1/36 or 2.78%
When flipping a fair coin, what is the probability of flipping three heads in a row?
1/8 or 12.5%
What is the derivative of the natural log of x?
1/x (one over x)
How many members make up the U.S. Senate?
100
Extensive form is another name for what graphical representation in game theory?
A game tree
What characterizes a risk lover?
A person will always take a "fair bet" (i.e. one where the expected value of gain equals the expected value of the loss)
What is the matrix composed of a single row or single column called?
A vector
In the classical model, what does the long run aggregate supply curve look like?
A vertical line (or perfectly inelastic)
For income tax purposes the reduction in the value of a long lived intangible asset:
Amortization (not depreciation)
In regression analysis, if the error term in one time period is correlated with the error term in any other time period, what problem exists?
Autocorrelation or serial correlation
Current consumption divided by disposable income is defined as ______.
Average Propensity to Consume
A barrow is created by surgically neutering a ____?
Boar (swine)
What legislative act amended federal law to permit the establishment and guide the operations of ag. Co-ops?
Capper Volstead Act of 1922
It gave "associations" of persons producing agricultural products certain exemptions froantitrust laws.
Capper-Volstead Act
What is an appraisal by a recognized financial organization of the soundness of a bond as an investment?
Bond Rating
Name an example of a stone fruit?
Any fruit with a large pit
How would the earnings to sales ratio be claculated?
net income divided by sales
A tight monetary policy in the US is most likely to _____ the international value of the dollar and ____ US net exports.
Appreciate, Decrease
What blight has attacked chickpea production in Canada?
Ascochya
Most barley is grown for what use?
Brewing
In marketing, what does the Latin phrase, "caveat emptor" mean?
Buyer Beware
The ability of individual customers to negotiate purchases prices that extract profits from sellers is called?
Buyer Power
Under reclamation law, ________ land is defined as irrigable land within a particular agricultural economic setting that is productive enough to yield the highest level of suitability for continuous, successful irrigation farming.
Class 1 land
What famous impressionist painter was involved in agriculture by being particulary fond of his garden in France?
Claude Monet
Which one of the following would not be considered an asset: cash, accounts receivable, cost of goods sold, or merchandise inventory?
Cost of goods sold
What does CIF stand for with respect to international transactions?
Cost, insurance, and freight
If an increase in the world oil prices leads to an increase in the overall price level, this would be an example of what type of inflation?
Cost-push inflation
Nominal GDP is GDP measured at _____ prices.
Current
What 19th century economist was particularly concerned with the concept of economic rent?
David Ricardo
Importance, frequency, imminence, revocability, and available alternatives are charastics of ___________.
Decisions
Curable depreciation could also be called:
Deferred Maintenance
A relationship without an error term is described as what type of relationship?
Deterministic
What term is used for the decline in value of a domestic currency relative to foreign currencies?
Devaluation
Typically, which of the four main functions of management takes up the largest amount of the manager's time?
Directing
The interest rate the Federal Reserve charges to banks when it makes loans is known as the?
Discount Rate
Growth in real GDP for one fiscal quarter or more.
Economic Expansion
In the area of inventory control what is EOQ?
Economic Order Quantity
What does EOQ stand for?
Economic Order Quantity
A(n) _____ budget shows the projected costs and returns for a unit of one crop or livestock activity.
Enterprise
At what level of GDP is domestic output equal to aggregate expenditures?
Equilibrium
Name the four phases of the business cycle in order.
Expansion, Peak, Recession, Trough
What sector includes all firms that grow crops and raise livestock, usually for sale?
Farm sector
What term refers to the joint activities of firms in an industry with regard to the establishment of prices, quantities, advertising, and other economic decisions?
Firm Conduct
A monopolist that charges each and every customer a different price is engaging in what kind of price discrimination?
First Degree
What home run king was born in Mobile in 1934?
Hank Aaron
What is the management system that many food manufactures follow to prevent food contamination?
Hazard Analysis Critical Control Points (HACCP)
Any market that has a separate Demand Curve and a separate Marginal Revenue Curve is an example of ______ competition.
Imperfect
Rising from the 1944 Breton Woods Agreement, what organization is designed to manage the global monetary system?
International Monetary Fund (IMF)
The _______ is the banker of last resort for countries experiencing foreign exchange deficiencies. And, it monitors currency exchange relationships among nations.
International Monetary Fund (IMF)
What is the specialized agency of the United Nations established to encourage international monetary cooperation?
International Monetary Fund (IMF)
The four stages in the product life cycle are:
Introduction, Growth, Maturity and Decline
Which line shows the different combinations of two outputs that yield the same amount of total revenue for the firm?
Iso-Revenue
What is a bond rated below investment grade called?
Junk Bond
What type of management technique is concerned with reducing inventory levels and delivering raw materials just when they are needed for production
Just-in-time
Which 18th century moral philosopher recommended social security and child labor laws?
Karl Marx
New orders for goods and materials and new building permits issued are among the variables reported by the US bureau of Economic Analysis each month in its index of?
Leading economic Indidcators
A method of estimating the parameters of a linear regression equation by finding the line that minimizes the sum of the squared distances from each sample data point to the sample regression line.
Least Squares
What is the general term for plants that can make nitrogen from the atmosphere?
Legumes
In what type of market is low-quality products predominate because consumers cannot distinguish them from high quality products?
Lemon market
If current assets of the firm are greater than current liabilities, then the firm is characterized as _________.
Liquid
The current ratio and working capital are good financial measures for _________?
Liquidity
What type of ratios provides a measure as to the firm's repayment ability on short-term creditor claims?
Liquidity
______ refers to the ability of the business to meet its cash obligations as they come due.
Liquidity
What type of ratios provide a measure as to the firm's repayment ability on short-term liabilities?
Liquidity Ratios
What is it called when an increase in the money
Liquidity Trap
What type of econometric model often represents growth functions?
Logistic
If the dependant variable in a regression analysis were a dummy or binary or zero-one variable, the econometrician would opt for a _______ model.
Logit or probit
If the dependent variable in a regression analysis were a dummy or binary or zero-one variable, the econometrician would opt for a ________ model.
Logit, or Probit
What is the world's "capital" for currency trading?
London
What world-leading social science institution is abbreviated LSE?
London School of Economics
In production theory with one variable input, the decision rule for profit maximization is stated as _____.
MVP= Input Price per unit, MVP = Px, MVP=MFC (marginal factor cost)
What theme park within Disney World is Cinderella's castle located
Magic Kingdom
One of the costs of inflation is the cost of price adjustments, such as printing and distributing a new merchandise catalog. What type of cost is this?
Menu Cost
What term was coined by Adam Smith to describe the loose system of economic ideas dominating the 16th century?
Mercantilism
Prior to Adam Smith's "Wealth of Nations", the _____ thought that a nation's wealth depended primarily on the amount of gold it could accumulate.
Mercantilist
What do we call a wholesale middleman who physically handles and takes title to products?
Merchant Wholesaler
What business activity involves the combining of two or more firms into one operating unit?
Merger
What state is known as the "Show me" state?
Missouri
What type of antibodies, single cell antibodies that can be produced by cloning, are used for passive immunization, detection of food poisoning, and killing cancer cells?
Monoclonal
A market with many sellers of a highly differentiated product is called:
Monopolistic Competition
The internal rate of return exceeds the firm's cost of capital. Characterize NPV and the benefit-cost ratio.
NPV>0 and BCR>1
Velocity of money is defined as V= _______?
Nominal GDP divided by M or (Prices x Output) divided by M
"Going Public" is a phrase used to describe what happens when a private company first does what?
Offers shares of stock for sale to the public
According to ____ ____, increases in unemployment tend to be associated with decreases in GDP?
Okun's Law
Who's law states that there is a regular negative relationship between the output ratio and the difference between the actual and natural rates of unemployment?
Okun's Law
Characterize the market in which there are only a few buyers of a good.
Oligopsony
What is the degree of homogeneity for a production function exhibiting constant returns to scale?
One
In hypothesis testing, the researcher wished to test whether the parameter estimate was greater that the hypothesized value. What type of t-test would he use?
One tailed test
What is a deterministic relationship?
One without an error term
The total number of open positions in a specific futures contract is called:
Open Interest
What type of utility cannot be quantified but only measured through rankings of preferences?
Ordinal Utility
Where does fertilizaiton occur in a cow?
Oviduct
What measures the sensitivity of the quantity of a commodity supplied to a change in its price?
Own price elasticity of supply
If a foreign currency's exchange rate to the US dollar is above its free market equilibrium rate, it is considered to be ________.
Over-valued
What are the 4 functions of management?
Planning, Organizing, Controlling, Directing
Inputs hat substitute for one another in production at a constant rate are referred to be what term?
Perfect Substitutes
A pricing strategy in which a larger more established firm attempts to drive out a new entrant or smaller firm is called ___________ ___________.
Predatory Pricing
What subsector of the economy buys commodities from the farm sector and transforms them into forms more suitable for consumption?
Processing/ Value-added
What is the amount by which a firms revenue exeeds total costs?
Profit
What impact would Just-in-Time (JIT) production practices have on the number of firms supplying inputs to a manufacturing firm?
Quantity of firms supplying should decrease since JIT production encourages single sourcing
The Philips Curve shows the relationship between the unemployment rate and ________.
Rate of Inflation
The Philips Curve shows the relationship between the unemployment rate and what other economic factor?
Rate of Inflation
What is the analysis of financial statements by means of ratios?
Ratio Analysis
What is the unit of currency in the world's most populous nation?
Renminbi
As an alternative to dividends for paying cash to shareholders, a firm can _____.
Repurchase its stock
A pricing practice that allows manufacturers to dictate the retail prices for their products. This is called?
Resale Price Maintenance
Diversifying to reduce revenue variability is an example of:
Risk Management Strategy
Who emphasized innovative functions of large corporations?
Schumpeter
Who is the president-elect of AAEA?
Scott Swinton
When computing the internal rate of return, the annual net returns are assumed to be re-invested at what discount rate?
The calculated internal rate of return
What school of economic thought favors a balanced budget?
The classical
What economic concept can be described as the percent change in price divided by the percent change in quantity demanded?
The concept of price flexibility
How do you calculate the adjusted basis of an asset for tax purposes?
The cost basis less depreciation
You suspect that goods A and B are somplimentary goods. What information do you need to be sure?
The cross price elasticity of demand must be negative
A freeze in Florida results in significant loss in orange production; however, total revenues for oranges increases. What does this indicate about the elasticity of demand for oranges?
The demand is inelastic
If the NPV equals zero, what must IRR be equal to?
The interest rate
An approach to land appraisal based on what a property would bring if it was sold.
The market approach to property appraisal
The asset demand for money is downsloping because?
The opportunity cost of holding money increases as the interest rate rises
What is the economic meaning of the slope of the budget line?
The rate at which the market is willing to trade one good for another
The reciprocal of the slope of the saving schedule is equal to?
The size of the multiplier
What is the most important motive for holding money?
The transaction motive
How do currency speculators aid international trade?
They absorb the exchange rate risk that others do not want to bear
If for two nominal goods A and B, the partial derivative of the demand for A with respect to the price of B is >0, what is the relationship, if any, between A and B?
They are substitutes
What are 'yellow-dog' contacts?
They force workers to agree not to join unions as a condition of employment
In 2006, what did the CEO's of PepsiCo, Archer Daniels Midland, Kraft Foods anf Sara Lee have in common?
They were all women
Name the 19th century political economist who made the famous prediction that population would outrun food supply, leading to decrease in food per person.
Thomas Malthus
Who was one of the earliest (1766-1834) contributors to modern environmental thought and depicted an unhappy world with growing population and declining food supplies?
Thomas Malthus
What is the term for an ad placed by major financial publications advertising issues of new securities?
Tombstone Ad
Typically, what do economists assume motivates consumer behavior?
Utility Maximization
What are the bar codes that appear on virtually all products called?
UPC (uniform product codes)
Export supply curves are _____; import demand curves are _______.
Upsloping, downsloping
The total value of Yellowstone National Park is a composite of valuation components. Name Two
Use Value, Option Value, and Existence Value
A general set of laws that place limits on how high money rates of interest can go up.
Usury
WACC stands for?
Weighted average cost of capital
The British "Corn Laws" prohibited import of what commodity to England?
Wheat
A group of consumers who respond in a similar way to a given set of market stimuli is called:
a merket segment
The family name of a group of organic chemical compounds that includes methanol, ethanol, isopropyl alcohol, and others.
alcohol
Ceteris Paribus means?
all other things held equal or constant
An industry that experiences higher resources costs as output expands is called:
an increasing cost industry
An underground geological formation, or group of formations, containing usable amounts of groundwater that can supply wells or springs for domestic, industrial, and irrigation uses.
aquifer
Buying a commodity in one market and then selling it in another market at a higher rice is an example of:
arbitrage
When a meat packer purchases a feedlot, this is an example of _________?
backward vertical integration
The difference between imports and exports.
balance of trade
Between the time a hedge position is established and the time that it is lifted, this is the risk associated with an unexpected widening or narrowing of the difference between the cash and futures prices.
basis risk
Total supply on a grain balance sheet includes current production, imports, and what else?
carryover (beginning stocks)
Oligopoly can approach monopoly if cooperation is close among the sellers. The most extreme form of cooperation is a _______.
cartel
A product (usually in the maturity stage) that provides large revenues and large profit margin is called?
cash cow
In the futures market, which entity acts as a third party to every trade (i.e., acts as a seller to every buyer and as a buyer to every seller)
clearinghouse
The release of carbon dioxide in the atmosphere is thought to be contributing to what environmental change?
climate change or global warming
Making a sales call on a client without an appointment is known as?
cold calling
What is over cooperation among the firms in an industry to set prices and output levels called?
collusion
The quick (or acid test) ratio is calculated by
current assets less inventory divided by current liabilities
Name 3 economic factors that influence U.S. currency value.
foreign currency, interest rates, inflation, monetary/fiscal policy, and monetary reserves, balance of payments
What are the four types of utility created by the food marketing system?
form, time, place, and possession (ownership)
A point on a graph where a function crosses its tangent line and changes from concave to convex or vice versa is known as a(n) ______ __________.
inflection point
Slopes of isoquants represent the marginate of ______
input substitution
A measure of the weight of a tail in a skewed distribution is called____.
kurtosis
What is the meaning of the expression
let the buyer beware
Cooperatives that sell shares to members and require members to deliver product are commonly called:
limited membership cooperatives
What is the formula for determining the degrees of freedom for a t-statistic?
n-k , where n is # of observations and k is the number of parameters
If you were to representing the 4 seasons of the year with dummy variables, how many variables would you add to your regression?
n-1 or 3 variables
What was the business of WebVan Group, Inc.?
on-line grocery sales
In a linear programming model with a 2000 acre land constraint, the 2000 is defined in the model as a ____.
right hand side
A(n) ______ _____ investor requires compensation for taking for risks.
risk adverse
If the supply curve is perfectly elastic and demand increases, what happens to the equilibrium price?
supply falls to reduce interest rates and stimulate aggregate demand?
The major change in the Russian agricultural industry since 1990 has been what change in farm structure?
the move towards privatization of state and collective farms
The idea that an autonomous change in aggregate expenditure results in a larger change in national income, is meassured by [1/(1-MPC)] and called:
the multiplier
What does the square root of the variance equal?
the standard deviation
The t-statistic is the ratio of the parameter estimate divided by____
the standard error
In linear programming, the term _____ is used to describe whether a resource constraint is a minimum constraint, a maximum constraint, or an equality.
type
Under what specific circumstances would an increase in demand raise the equilibrium price but not change the equilibrium quantity?
when supply is perfectly inelastic
A method of statistical analysis where prior information is formally combined with current sample data to produce quantitative estimates is known as:
Bayesian Analysis
To be eligible for a FSA loan, the borrower must operate a smaller farm or ranch, receive a substantial portion of family income from farming, and _____.
Be unable to obtain conventional financing
What animal describes a trader who thinks prices will fall?
Bear
A conservation practice or combination of practices designed to maintain agricultural productivity while reducing point and nonpoint source water pollution.
Best Management Practices
What is a measure of a stock's votality relative to that of an average stock?
Beta
What name is generally assigned to the group of traders who think prices are going to increase?
Bulls
What types of assets are used in the business, other than land or permanent attachments to the land?
Business Personal Property
What happens when a firm's net worth or equity falls below zero on the balance sheet?
Business is Insolvent
How do banks create money?
By making loans with excess reserves
The following terms refer to which statistical test or technique: (1) observed minus expected; (2) goodness of fit; and (3) contingency tables.
Chi-Square
What does the marketing term CME Group stand for?
Chicago Mercantile Exchange and the Chicago Board of Trade
In what country did soybeans originate?
China
Kiwi fruit is native to what country?
China
The renminbi or yuan is the official currency of what country?
China
What country is the largest consumer of grain?
China
What country is the number one producer and consumer of fresh pork?
China
Name two countries with a population greater than 1 billion?
China and India
What Act of Congress prohbits a member of the Board of Directors of Ford also serving as a member of the Board of Directors of GM?
Clayton Act of 1914
The primary federal law governing efforts to control air pollution.
Clean Air Act
what is the pairing of two brand names of two manufactures on one good?
Co-branding
Suppose that a large tree on Shawn's property is blocking Sam's view of the lake below. Shawn accepts Sam's offer to pay Shawn for $100 for the right to cut down the tree. This situation describes?
Coase Theorem
What is a production function that is specified as the product of power functions of the inputs x, with powers are positive and sum to one?
Cobb-Douglas
What economic theory is used to illustrate cyclical prices?
Cobweb Theory
What is a model of cyclical supply and emand that depicts a lag between the response of producers to a change in price?
Cobweb model
What pesky field weed inspired the invention of field weed?
Cockle bur
If France can produce a good at a lower opportunity cost than Canada, then France is said to have a(n) _______ advantage in the production of that good.
Comparative
The growth of a sum of money over time through the reinvestment of interest earned to earn more interest is:
Compounding
The process of accumulating interest in an investment over time in order to earn more interest is called ______.
Compounding
What is a ratio that indicates the relative size of firms in relation to their industry as a whole?
Concentration Ratio
A sale in which a foreign buyer is allowed payment terms that are more favorable than those of obtainable in the commercial market.
Concessional (export) sale
A firm operating plants that produce many different kinds of goods and services.
Conglomerate
A firm that produces a wide variety of largely unrelated goods and services is known as?
Conglomerate
What term is used for a business that controls a group of businesses?
Conglomerate
A merger between firms that sell dissimilar products would be what type?
Conglomerate merger
This is a water management methods usually used to describe the practice of storing surface water in a ground water basin in wet years and withdrawing it in the basin in dry years.
Conjunctive use
Acquisition of rights and interest to a property to protect identified conservation or resource values, using a reserved interest deed.
Conservation Easement
What can be said about returns to scale with a linearly homogeneous production function?
Constant returns to scale
What measure gives the average price of a market basket of goods and services to permit comparisons of over time?
Consumer Price Index (CPI)
______ ______ is equal to the maximum amount a consumer is willing and able to pay for a particular good less the amount he or she actually pays for it.
Consumer Surplus
What type of movement is it when consumers refuse to purchases a product in an attempt to influence price or other market conditions?
Consumer boycott
What is the largest expenditure category in the GDP calculator?
Consumption
In the Uses-of-National-Income Approach formula (GDP= C+S+T), C, S and T represent _______.
Consumption, Savings, and taxes
What are the 3 components of aggregate expenditure in an economy practicing autarky?
Consumption, investment, and government
What do we call a market in which entry and exit are absolutely free?
Contestable
When average product is falling, marginal product is ________.
Falling
What is the name for the system of federally-chartered but privately-owned banks and associations that lend primarily to agricultural producers and their cooperatives?
Farm Credit System (FCS)
What action will a farmer take at maturity of a price-support loan if the market price is below the loan rate?
Farmer will default on the loan
What is the interest rate that banks charge each other for short-term loans of reserves?
Federal (Fed) funds rate
The interest rate at which banks borrow surplus reserves and other immediately available funds. This rate is the shortest short-term interest rate, with maturities concentrated in overnight or one-day transactions.
Federal Funds Rate
The short-term interest rate at which banks make loans to each other is known as the?
Federal Funds Rate
Other things equal, the stockof capital inherited by future generations is likely to be smaller when government spending is?
Financed by borrowing
In contrast to a real, or tangible, asset a legal claim to future cash payments is?
Financial Asset
What is a measure of the dollar value of final goods and services produced by an economy in a given period of time?
GDP (gross domestic product)
What is the ratio of nominal GDP to real GDP?
GDP Deflator
If taxes increase by $100 million, what is the next effect on GDP? Does it increase, decrease, or stay the same?
GDP increases
What index is used to remove the effects of inflation or deflation when determining changes in real GDP over time?
GDP price deflator index
Based on the "quantity equation of exchange" what ratio defines the velocity of money?
GDP/M
What is the difference between Gross National Product and Gross Domestic Product?
GDP: All foreign or domestically owned goods, and services produced on US soil, GNP: All goods and services produced by US firms regardless of location
A monetary system in which nations "fix" the rate of exchange between their currencies and gold, which effectively "fixes" exchange rates between nations.
Gold Standard
How is the quick or acid test ratio calculated?
Current assets less inventory divided by current liabilities
Workers who have lost their jobs due to a downtown in the business cycle represent _________ unemployment?
Cyclical
Classify the unemplyment that occurs when output is below its full-employment level.
Cyclical unemployment
If government expenditures exceed tax revenue in a fiscal year, the government has a budget _______.
Deficit
What Greek letter is commonly used to denote a difference between two numbers or a change in the numbers value?
Delta
Which way would the demand curve for gasoline shift if there was a large increase in the price of public transportation?
Demand shifts to the right
What is the newest Cabinet department of the US government, established in 2002?
Department of Homeland Security
What fortune 500 candy company had no marketing department until 1969?
Hersey
What problem arises if a regression model's disturbance terms have increasing variance?
Heteroskedasity
Assuming no currency drains, when the Federal Reserve Banks purchase government securities the reserves of commercial banks are?
Increased by the amount of the purchase
Given a price elasticity of demand of -1.5 and price decreases, what will happen to total revenue?
Increases
When larger firms are driving out smaller ones since the larger firms can produce more output per bundle of inputs, the firm managers are facing __________ Return to Scale.
Increasing
What do we call an industry where output expansion results in cost increasing externalities, resulting in upward shifts of cost curves?
Increasing cost industry
If the MP=0.8, and disposable income increases by 100 dollars, what happens to consumption?
Incrwase by 80 dollars
The compensation received by a firm for qualifying losses paid under an insurance program is called:
Indemnity
I f two random variables have a covariance of zero, they are referred to as what type of variable?
Independent
If two random variables have a covariance of zero, they are referred to as what type of variable?
Independent
If supply increases and demand decreases, what happens to the quantity sold?
Indeterminent (depends on magnitude of both shifts)
A curve showing all bundles of goods yielding the same level of utility is called a(n)________?
Indifference curve
Which curve shows different combinations of two goods that give a consumer the same utility?
Indifference curve
In the theory of comparative advantage, a good should be produced in that nation where?
Its cost is least, in terms of alternative goods that might otherwise be produced
Who are the members of a federated cooperative?
Its patrons
Who wrote "The General Theory of Employment, Interest and Money"?
John Maynard Keynes
Name the most recently retired member of the Supreme Court.
John Paul Stevens
Who is the current chief justice on the supreme court?
John Roberts
Sum of the year's digits is a method of calculating what?
Depreciation
The decline in market value of an asset that occurs over time that reflects the "consumption" of the asset due to wear and tear, obsolescence, etc. is called _______.
Depreciation
What is subtracted from gross national product (GNP) to obtain net national product (NNP)?
Depreciation
What is the difference between NNP and GNP?
Depreciation
Which of the following are not typically cash outflows? Tax payments, family living withdrawals, or depreciation?
Depreciation
What term describes the gain on the sale of personal depreciable property that is taxed as ordinary income?
Depreciation Cost
The demand for an input is called a ____ demand?
Derived
What term refers to the sale of a division of a corporation to another firm?
Divestiture
What is the term for corporate payments to stockholders?
Dividends
_______ monetary policy is policy that tends to reduce interest rates and raise income.
Expansionary
What do we call consumers' and firms' beliefs of what economic conditions will be in the future?
Expectations
For a decision alternative, what is the term for the probability weighted average of the payoffs?
Expected value
Which costs are the normal "out of pocket" costs of the inputs purchased for use in producing a product?
Explicit
Foreign aid to Russia has been primarily in the form of?
Export Credits
A farmer pays $100 to pump an extra acre inch of water. The additional water produces an extra 100 melons. Assume melons sell for $1.50 each. What is the value of the marginal product of water?
$150 (MVP = MP X Price)
Given the following: CPI=175 (based on 1982-84=100) in 2004 and Poverty Income level in 1983=$10,000. What is the estimate of the poverty income level in 2004?
$17,500
Equilibrium income in the economy equals $5000 and the income multiplier is equal to 2. What are autonomous expenditures equal to?
$2,500
If the MPC=0.25, what is the simple multiplier?
4
The demand function of a monopolist is P = 40-0.25Q. What is the marginal revenue function?
40-.5Q (MR for a monopolist is always 2x the slope of the demand curve)
A business with project earning of $100,000 sells for $2 million. What is the indicated capitalization rate?
5%
If the GDP deflator was 315 in 1999, and was 300 in 1998, what is the implied annual inflation rate?
5%
How many justices sit on the Supreme Court?
9 (currently 8)
How much raw milk does it take to make one pound of butter?
9 quarts (36 cups)
Under what system of depreciation does the rate of depreciation depend on the class of property, such as 5-year property?
Accelerated Cost Recovery System
What type of profit consists of total revenue exceeding the payment of explicit costs?
Accounting Profit
The routine steps in processing accounting data during an accounting period are known as the _____ _____.
Accounting cycle
Cash owed by a firm to its suppliers for purchases made on credit is?
Accounts payable
Changes in accounts receivable, accounts payable, inventory values, and prepaid expenses are examples of _____ adjustments on an income statement.
Accrual
Which income reporting method requires a farmer to count an increase in farm product inventory as a receipt?
Accrual Method
What is the accounting method that recognizes income when earned and expenses when incurred?
Accrual accounting
What two types of current liabilities are related to taxes?
Accrued Tax Liabilities, Contingent Income Taxes
Lending Institutions within the Farm Credit System that provide credit to agricultural cooperatives and rural utility cooperatives nationwide.
Banks for Cooperatives
What type of association is an organization of firms whose objectives is favorable economic conditions for member firms?
Bargaining
Cinnamon Sticks are made from what part of the cinnamon tree?
Bark
Cinnamon sticks are made from what part of the cinnamon tree?
Bark
"Double coincidence of wants" is a prerequisite for what economic activity?
Barter
A form of counter trade in which goods having offsetting values are exchanged under a single contract, within a specified period of time, and without any flow of money taking place,
Barter
The process of exchanging goods or services for goods or services
Barter
By hedging, a farmer has eliminated price risk by taking on _______ risk?
Basic
What is the name of the musician who was the first to be inducted into both the Country and Rock Music Hall of Fame?
Johnny Cash
A business association of two or more firms or persons that work together on a single project but is limited in either scope or duration or both, is called a(n)?
Joint Venture
What former chairmen and CEO of Enron Corp. passed away in 2006 while awaiting sentencing for fraud and conspiracy?
Kenneth Lay
The quantity theory of money assumes which tow variables in the equation (M)(V) = (P)(Q) are not constant?
Keynesian Region
A noncollusive oligopolist faces what type of demand curve for its output based on the assumption that rivals will follow a price decrease but not a price increase?
Kinked
In what type of business form does one partner have full liability while the others are liable only for their investment?
Limited Partnership
What type of business form is basically a hybrid between a partnership and a corporation?
Limited liability company (LLC)
The Permanent Income hypothesis suggests that household consumption is strongly driven by what?
Long-run Income Expectations
What type of assets are those that support production and are not normally sold during normal business operations?
Long-term Assets
What is the rate of additional savings from an increase in disposable income?
Marginal propensity to save
What is the slope of an isoquant called?
Marginal rate of technical substitution (MRTS). If they say marginal rate of substitution, ask them to expand or be more explicit
If a demand curve is linear and downward sloping, what is the relationship between marginal revenue and price?
Marginal revenue is less than price
If you multiplied the number of outstanding shares of Deere and Co. by the price per share, you would have Deere and Co.'s ________.
Market capitalization
The percentage of the total sales of an industry made by the four largest firms (or some other number) in the industry indicates the degree of _____.
Market concentration
What is a phrase used for the inability of a system of private markets to provide certain goods in sufficient quantities or not at all?
Market failure
What is the ability to advantageously influence markets, market behavior, or market results?
Market power
What type of risks is defined as that part of a security's risk that cannot be eliminated by diversification (also referred to as systematic risk)?
Market risk
_________ cooperatives assemble, pack, process, and sell members' products in both domestic and foreign markets.
Marketing
What term is used for a compulsory marketing organization set up under government legislation to perform specific marketing functions?
Marketing Board
What is a measure of the dominance of large firms in the market; usually measured to appeal to different consumer classes?
Marketing Concentration
What policy tool provides a means by which producers may initiate programs to regulate the marketing of their commodity through unified action?
Marketing Orders
What do we call the systematic procedure for providing marketers with actionable decision-making information?
Marketing Research
According to the quantity equation of money, if V= 10, M= $200, and Y= 50, P equals?
Nominal exchange rate and GDP
What 2 variables are determined by the Mundell-Fleming Model?
Nominal exchange rate and GDP
An income statement is a snapshotof a firms _____ and _________?
Operating reciepts and Operating expenses
What measure of a good or service is based on the calue of the next best alternative use of that good or service?
Opportunity Cost
In perfectly competitive markets, what is the elasticity of the demand curve that each firm faces?
Perfectly elastic (infinity)
Generally speaking, what shows that increases in unemployment are associated with decreases in inflation?
Philips Curve (for A.W. Philips)
What curve suggests a tradeoff between low unemployment and low inflation?
Philips Curve (for A.W. Philips)
What graphically describes the general notion that full-employment aggregate demand may also produce inflation?
Philips Curve (for A.W. Philips)
What is the process that plants use to convert sunlight, water, and carbon dioxide to oxygen and carbohydrates?
Photosynthesis
What type of exonomics deals with questions that do NOT involve a value judgment?
Positive
What type of trade balance exists in a country that sells more tangible goods than it buys?
Positive Merchandise
What is the easiest marketing mix activity for the competition to imitate?
Price
What is the primary signal in the short run that links society's needs and the producing firms?
Price
In the short run, the minimum quantity that a firm will produce is determined by the equality of what two factors?
Price and average variable cost
What is the name for the process by which broad forces of supply and demand establish a market clearing, equilibrium price for a commodity?
Price determination
A number that cannot be factored into any other number than itself and one is called_____?
Prime Number
What is a rate of interest that large banks charge their best customers?
Prime Rate
What is the original, or face amount of a loan?
Principal
What 4 factors are considered when examining the cost of interest?
Principal, time, interst rate, and payment amount
What term is used for the original amount deposited, borrowed, or lent?
Principle
A famous example of a non-zero sum game in which rational self interest hurts players (the equilibrium is Pareto Suboptimal) is the ______ _______
Prisoner's Dilemma
Assuming air travel and rental cars are complements, describe the demand for rental cars if ticket prices fall?
The demand will increase
What do we call the laws, enacted in 1947, that made it illegal to require union membership?
Right to Work laws
What was the location of the 1992 global environmental conference known as the earth summit?
Rio De Janerio, Brazil
If marginal product is falling, marginal cost is ______.
Rising
What type of person will always take a "fair bet", that is one where the expected of game equals the expected value of loss?
Risk lover
What attitude toward risk do people have if their marginal utility of income is constant?
Risk neutral
Name 3 factors that affect the interest rate of a government bond.
Risk, Term, Inflation, Taxes
What 3 R's of credit provide basic criteria as to the credit worthiness of a borrower?
Risk, returns, repayment ability
What type of data is a likely candidate for the problem of autocorrelation?
Time Series Data
The statement "a dollar today is worth more than a dollar tomorrow" reflects the principle behind what financial concept?
Time value of money
The debt/asset ratio is defined as _____ divided by _____?
Total liabilities, total assets
What does the acronym TQM stand for?
Total quality management
What do we call a contract between two countries regarding the quantity of commodity traded within a specific time period?
Trade Agreement
What exists when a group of nations allow free trade among member nations but retricts imports form nonmember nations via tariffs and quotas?
Trade block
The demand for money can be divided into two components. What are they?
Transactions demand and asset (speculative) demand
If Penny prefers A to B and she prefers B to C, then she must prefer A to C according to what axiom of rational choice?
Transitivity
If Scott prefers A to B and he prefers B to C, then he must also prefer A to C according to what axiom of choice?
Transitivity
What do we call a copy of a matrix where the rows and columns are interchanged?
Transpose
Shares of stock that have been repurchased by the company but not retired are generally called:
Treasury Stock
What fund is established for accumulating funds to meet some future debt or payment?
Sinking Fund
What is a fund of cash set aside for the payment of a future obligation?
Sinking Fund
What is the name of the mathematical representation of the substitution and income effects, illustrating how utility maximization is affected by a change in price?
Slutsky equation
In terms of dollar expenditures, the tow largest Federal entitlement programs are?
Social Security and Medicare
What is the business organizational form in which the farm manager is personally liable for all business decisions?
Sole Proprietorship
What is the term for the condition of a company in which all debt obligations can be paid when due?
Solvency
What is the term used to describe companies who are able to pay all debt obligations when they are due?
Solvency
______ refers to the total value of assets relative to the amount of liabilities owned by the business.
Solvency
What is the term for a long run shift or movement in the time series, observable over several periods of time?
Trend
What financial statement presents the cash reciepts and cash payments over a specified time period?
Statement of cash flows (NOT cash flow budget)
The monetarist aggregate supply curve is relatively _____, while the Keynesian aggregate supply curve is relatively _____.
Steep, flat
During any given year, if the amount of revenue exceeds the amount of spending, then the government is said to have run of ___________.
Surplus
What type of tax is imposed on a tax base in addition to a so-called normal tax?
Surtax
Who was the 2002/2003 president of the AAEA?
Susan Offutt
What provision of the Farm Bill places restricions on the draining of natural wetlands for crop production?
Swampbuster
Of Switzerland, Luxembourg, and Greece, which is not a member of the EU?
Switzerland
What is the term for a cash outlay that has already been incurred and cannot be recovered regardless of whether a project is accepted or rejected?
Sunk Cost
What type of costs are irrevocable and should not be used to influence current decisions?
Sunk Costs
What do you call different enterprises of the same business that have no effect on each other?
Supplemental Enterprises
What production term describes two goods whose cross-price elasticity of supply is negative?
Supplementary
Decreases in the price of inputs normally causes the supply curve to shift which direction?
Supply shifts right
What phrase describes a group of macroeconomic policies that attempted to achieve economic growth by increasing productivitiy and shifting aggregate supply?
Supply-side economics
In OLS, what is the common "student" test to determine if an individual coefficient estimate is significantly different from zero?
T-test (only answer due to "student" hint)
Assume a total cost function given by TC= 25+4.5Q. What happens to total cost when output increase by 10 units?
TC increases by $45
Average fixed costs may be evaluated by ____ or _____ (either one).
TFC/TPP or ATC-AVC
What utility is created by firms that store products for future use?
TIme
Rejecting the null hypothesis when it is true is called?
Type 1 error
Not rejecting the null hypothesis when it is false is called what?
Type 2 error
A personality type that tends to be aggressive, hostile, impatient, and given to use of explosive or accelerated speech patterns.
Type A
Concluding that the null hypothesis is false when in fact it is true is known as what?
Type I Error
If GDP rises, the unemployment rate does what, ceterus paribus?
Unemployment rate falls (decreases)
A single delived price that a seller quotes for all buyers and in which the seller absorbs any freight charges itself. This is called?
Uniform Delivered Pricing
What large multinational company recently acquired Best Foods?
Unilever
What institution has had more faculty, researchers, and students receive the Nobel Prize in Economics than any other?
University of Chicago
What is Canada's top agriculture export?
Unprocessed grains including wheat (canola and oilseed crops are 2nd)
Long run economic profits of a firm in a perfectly competitive market equal ______.
Zero
What is the value of marginal revenue when total revenue is maximized?
Zero
In a net present value analysis, if the internal rate of return (IRR) was used as the discount rate, the net present value would be ________?
Zero (0)
What is the difference between the long-run average varibale cost and the long-run average total cost?
Zero (everything is variable in the LR)
What is a solicitation made to shareholders of a company to buy their shares at a specified price, which is often used to acquire control of a company?
a tender offer
Central banks and governments attempting influence market participants by providing information rather than taking formal actions is known as?
moral suasion
What term is used to describe the discounted sum of a future earnings stream?
net present value
What two conditions are normally necessary for lack markets to occur?
product shortages and ceiling prices (of government prohibition)
What is measured by the vertical distance between the total cost and total revenue curves?
profit
A production possibilities frontier is generally represented by what functional form?
quadratic
Subtracting inflation form the nominal interest rate results in the?
real interest rate
What is the term for the difference between the nominal interest rate and the rate of inflation (deflation)?
real interest rate
Usually refers to crops covered by marketing orders that generally are not fruits or vegetables. Often include are almonds, filberts, walnuts, spearmint oil, hops, dates, raisins, and prunes
specialty crops
What does the term "stagflation" describe?
stagnant economic growth coupled with a high rate of inflation
Under a normal curve, equal segments from the mean are known as what?
standard deviations
When there is sufficient evidence from the sample to indicate that the true value of a regression coefficient is not zero, the coefficient is said to be _______.
statistically significant
A call option gives the buyer the right, but not the obligation, to purchase the underlying futures contract at a stipulated price. This price is called the?
strike price
How does GDP account for goods and services whose values are not established by market transactions?
they are generally ignored (not part of GDP)
If the government outlawed sticky wages, what would likely happen to employment levels?
they would rise
What is the term for a trading day where the closing value is outside of the trading range for the previous day?
thrust day
What are the three types of utility normally discussed in the study of agricultural marketing?
time, place, and form
What is the focus of the income approach to property appraisal?
to capitalize the income earning potential of the property
What are payments from the government to individuals that are not in exchange for goods and services, such as Social Security payments?
transfer payments
What organization publishes Choices magazine?
AAEA (Am. Ag. Econ. Assn.)
When borrowing money, what does APR stand for?
Annual Percentage Rate
A level stream of cash flows for a limited number of years is called?
Annuity
A series of equal periodic payments is called a(n) ________.
Annuity
A(n) ______ is a series of fixed payments paid at regular intervals over a specified period, which are received after a previous period of investments.
Annuity
An annuity in which the cash flows occur at the beginning of the period is called a(n) _______.
Annuity Due
Who is the current secretary-general of the United Nations (as of Jan. 1, 2007)?
Ban Ki-Moon
The currency banks hold in their vaults plus their deposits at the Federal Reserve is called ______?
Bank Reserves
Which president created the Environmental Protection Agency?
Richard Nixon
A football pool has an expeted payout of $100, and the probability of winning is 0.01. A risk neutral person would pay how much for a spot in the pool?
$1.00
If autonomous expenditures equal $100 and the marginal propensity to consume equals .75, what is the level of equilibrium income in the economy?
$100/ (1-mpc) = $400
Assume the total cost equation is given by TC = 100 + 10Q. If total output is 100 units, what is the breakeven price?
$11 per unit
A mortgage of $100,000 for 20 years at 6% and amortized with equal principal payments would have a payment (P+I) in year one of $___________?
$11,000
What did economist John Maynard Keynes call the spontaneous waves of optimism and pessimism that potentially influence the level of investment in the economy?
"Animal Spirits"
A __________ business structure involves reducing or eliminating hierarchical command systems within a business in order to empower employees with decision making authority.
"Flat"
Given a 30 year mortgage with the following: principal= $100,000, interest rate= 6%, amortized with equal total annual payment of $7,265. What is the interest payment in year one?
$6,000
What's the net worth of a firm with $22,000 in assets and $150,000 in liabilities?
$70,000 (=$220,000-$150,000)
An asset has a purchase price of $10,000 and 10 year life. Using the double declining balance method of depreciation, book value at the end of the year one would be:
$8,000
If the reserve ratio is 25%, what amount of excess reserves does a bank acquire when a business deposits a $12,000 check drawn on another bank?
$9,000
Agribusinesses may be structured in four major forms. These are:
(1) Individual Proprietorship, (2) Corporation, (3) Partnership, (4) Cooperative
The Herfindahl Index for a monopolist equals?
(1)(1)=1 or in percentage form (100)(100)=10,000
A ratio defined as accounts receivable divided by credit sales per day is?
(Average) Collection Period
What is the index commonly used to deflate the National income accounts?
(GDP) Implicit Price Deflator
In a closed economy, domestic savings minus domestic investment must equal what?
0
The demand elasticity of a perfectly inelastic demand is equal to:
0
The internal rate of return is equal to the firm's cost of capital for a proect. The projects NPV is?
0
What's the value of the mean of a standard normal distribution?
0
Would the first derivative of a negative constant be: negative, positive, or zero?
0
A farmer purchased a machine for $20,000, claimed $15,000 of accumulated depreciation over time and sold the machine for $10,000. How much capital gains would be recognized?
0 because all the gain is recaptured
What is the range of values for the coefficient of determination (R^2) calculated in regression analysis?
0 to 1 inclusive
What is the intrinsic value of a call with a 350 cent strike price when the underlying futures contract is trading at 360 cents?
10 cents
Assuming a discount rate of 10%, the present value of a stream of annual $1000 payments made in perpetuity is equl to:
10,000
On a farm inventory, the value of livestock held for sale shows $50,000 on 12/31/2002 and $60,000 on 12/31/2003. What is the entry for market livestock inventory on the 12/31/2003 income statement?
10,000
For an index number series, what is the value for the base year?
100
The base year in the consumer price index is always equal to _______.
100
What is the value of the GDP deflator in the base year?
100 (or 1)
How many kilograms are in a metric ton?
1000
How many districts are included in the Federal Reserve System?
12
If an investment earned 6% annually, approximately how long would it take the investment funds to double.
12
The number of Federal Reserve districts in the U.S.
12
A business that earns $100,000 per year sells for $1.5 million. What is the indicated capitalization rate?
15% (100,000/1,500,000)
The addition of two identity matrix's of order 1x1 results in a scalar equal to______.
2
What is the mean of the disturbance of the Durbin-Watson test statistic?
2
What is the minimal number of points required to draw a straight line?
2
How long is the life of a biennial plant?
2 years
Presently, the percentage of the US population living on farms is about: 33%, 25%, 10%, 5%, 2% or 1%?
2%
If you receive a bill from a supplier that states, "2/10 net 30", what does it mean?
2% discount if pd in 10 days, entire amount due in 30 days
f(x)=exp(2x+3). What is the first derivative of the function with respect to x?
2(exp(2x+3))
How many acres are in an hectare? ( identify to one decimal place)
2.4 or 2.5 (2.47 exactly)
For a normally distributed population, testing the hypothesis with a 5% level of significance suggests that the upper end of the rejection region contains _____ of the total area at each end of the distribution.
2.50%
Fix =ln(2x+3). What is the first derivative of the function with respect to x?
2/(2x+3)
Given a monopolist demand curve of P=100-2Q and a short run total cost curve of TC=640-20Q, what is the profit maximizing quantity Q?
20
Inverse industry demand is given by P = 20- 5Q. Marginal revenue equals?
20 - 10Q
What si the maximum distance of an Exclusive Economic Zone?
200 miles
A distributor buys Talon for $200 per gallon and sells it for $600 per gallon. What is the % margin with respect to cost?
200%
What is 4!
24
Suppose you are conducting regression analysis on a data set from 4 different states. If you want to include dummy variables for states, what is the maximum number of dummy variables you can use?
3 (k-1 dummies)
Given a deck of 52 cards, what is the probability of not picking a heart?
3/4 or .75
How many companies are combined to form the Dow Jones Industrials Average?
30
About how many stocks make up the Nasdaq composite index: 30, 300, or 3,000?
3000
How many stocks are in the standard and poor's composite index?
500
How many bushels in a corn-futures contact on the Chicago Board of Trade?
5000
Approximately how many years would be required for an investment at 12% interest to double?
6 (rule of 72)
If a 1000 pound steer "dresses out" at 62% how much does the carcass weigh?
620 lbs.
With a nominal interst rate of 10% and inflation of 2.5% the real interst rate is about:
7.5 percent
The percentage of land owned by farmers and ranchers in the US is about: 90%, 75%, 50%, 25% or 10%?
75%
What's the composition of fuel designated as "E85"
85% ethanol, 15% gasoline
For a standard normal distribution, what percent of the values should be between -3 and +3?
99% within 3 standard deviations of the mean
The highest financial strength bond rating is?
AAA (triple A)
What is a common name for a female deer?
A Doe
A ______ loan is a loan amortization method in which a large portion of th eprincipal is due with later payments or the final payment.
A balloon loan
What is a durable good?
A good that is consumed over a period of several years
What do usury laws establish?
A legal ceiling on interest rates
What is the mechanism that coordinates actions of consumers and producers to establish equilibrium prices and quantities?
A market
What is a prerequisite for industrial specialization?
A medium of exchange
In data analysis, what do we call the tendency for time series data to move upward or downward over many time periods?
A trend
An agreement in which countries voluntarily restrict their exports is called?
A voluntary restraint agreement
In game theory, a game where a gain for one participant is always at the expense of another is known as?
A zero sum game
A farmer/rancher has 5 years remaining on a term loan (maturity in 2009) used to purchase machinery. Annual payments are due in October of each year. Describe the entries for this loan under current liabilities on the 12/31/2004 balance sheet.
Accured interest from Oct-Dec 2004,Principal payment due in Oct 2005
What is the term commonly used to describe precipitation that hinders growth in ecosystems?
Acid Rain
What business activity includes the purchase of one firm by another firm?
Acquisition
What famous economist is credited with saying the market works like an "invisible hand"?
Adam Smith
A USDA agency employing federal scientists to conduct basic, applied, and developmental research in the following fields: livestock, soil, water and ait quality, energy, food safety and quality, nutrition, food processing, storage and distribution.
Agricultural Research Service (ARS)
What science is the application of soil and plant sciences to soil management and crop production?
Agronomy
Contamination of the atmosphere by substances that, directly or indirectly, adversely affect human health or welfare.
Air Pollution
Who used the phrase "irrational exhuberance" to describe the overvalued stock market of the mid-1990's?
Alan Greenspan
Who is the early economist generally credited with the idea that demand and supply simultaneously operate to determine prices?
Alfred Marshall
From an employment stadpoint, what is meant by a "closed shop"?
All workers hired must be union members in good standing at the time they are hired
What is the right to use another's land for some specific purpose?
An easement
What planning document describes a listing of all income and expenses associated with growing an acre of a particular crop?
An enterprise budget
What is a progressive income tax?
An income tax that takes in increasing proportion of income as income increase
What is the primary cause of the U.S. "agricultural boom" of the early 1970's
An increase in foreign demand for American farm products ( the Russian wheat deal)
What measure assumes that one animal unit is equivalent to the feed requirement for a 1000 lb mature beef cow?
Animal Unit
From an employment standpoint, what is a "union shop"?
Any non-union worker hired must join the union within 30 days or forfiet his/her job
What is said to exist when a firm knows less about the productivity of its workers than the workers themselves?
Asymmetric Information
In regression analysis, even if the error term is not normally distributed, the distributions of the parameter estimates may approach normality as the sample size increases. What type of normality is this?
Asymptotic
The expression used to characterize the situation when the option strike price and the underlying futures price are equal:
At the money
The city where the federal reserve district bank is located that serves the southeastern US (states of FL,TN, AL, and GA).
Atlanta
What are China's "special economic zones" designed to do?
Attract foreign companies along with their advanced technologies and business expertise
What economist's name appears on a model of duopoly markets?
Augustin Cournot
What is the currency used in Australia?
Australian Dollar
If upon graphing the value of the error terms over time, a pattern emerges; what problem do you suspect?
Autocorrelation
If a firm's cost of capital increases due to increases in interest rates, what will be the impact on benefit cost ratios of planned projects?
BCR will decline
What is the name of the bacterium produced by Bt Corn?
Bacillus thuringiensis
The financial statement that provides a "snapshot" of the firm's financial condition at a given point in time is the ______.
Balance Sheet
What is the summary of economic transactions between 2 countries during a given period of time?
Balance of Payments
The omission of an economically relevant variable in an OLS equation lead to what specific problem?
Biased parameter estimates
What is the alternative fuel that can be made from numerous materials, but is primarily made from soybeans?
Biodiesel
Which index is used to calcualte the inflation rate?
CPI (Consumer Price Index)
What does CAPM stand for?
Capital Asset Pricing Model
What can a manager use to summarize how money projected for investments in plant and equipment is to be allocated among the various divisions or activities within a business?
Capital Expenditure Budget
What term describes a reduction in the value of an asset?
Capital Loss
What method of reasoning begins with a hypothesis that is tested against real-world facts?
Deductive method (Scientific method)
What action will a farmer take at maturity of a price-support loan if the market price is below the loan rate?
Default on the Loan**********
In dairy herd management, what does DHIA stand for?
Dairy Herd Improvement Association
Name one of the only two corporations whose headquarters are based in Orlando.
Darden Restarants or Hughes Supply Inc (not Disney)
The concept of economic rent is generally considered to have been developed by what English economist?
David Ricardo
A strategy in game theory that earns a player a larger payoff than any other strategy, regardless of what any other players do, is known as a(n)_______ strategy.
Dominant Strategy
In game theory, an action is a ______ _______ if that action is a players best action regardless of the action taken by the other player.
Dominant Strategy
In game theory, a strategy that is the best decision for a firm no matter what the decision of its competition makes, is called what?
Dominant strategy
What type of accounting system requires both a credit and debit entry for each transaction?
Double Entry
Inefficiency can exist in a vertical relationship in which upstream and downstream firms both equate marginal benefit to marginal cost, but would be better off by equating combined marginal revenue to combined marginal cost. This is called?
Double Marginalization
What is the term used to describe the situation in which two individuals each have precisely the good that the other wants?
Double coincidence of wants
Commonly used term for animals that are disabled due to illness or injury.
Downer
What term measures the relationship between hot carcass weight to live weight?
Dressing Weight
Every primal linear programming problem has a corresponding ________linear programming problem.
Dual
What term is used for the change in an LP's optimal solution resulting from a per-unit increase in the value of the right-hand side variable of a constraint
Dual Price
When a firm sells a product for less than it cost the firm to produce it, this action is generally known as?
Dumping
What is the name of the market structure in which two producers of a commodity are competing with one another?
Duopoly
What market structure can be illustrated by the Bertrand, Cournot and Stackelber models?
Duopoly
What type of good is consumed over a period of several years?
Durable
A bacterium that lives harmlessly in the intestines of animals. However, in humans the bacterium, which can be transmitted through foods, can cause bloody diarrhea, and also lead to hemolytic uremic syndrome (HUS), a life threatening disease.
E-coli
The theory of monopolistic competition was developed by what economist?
E. H. Chamberlain
What is left after subtracting both explicit and implicit costs from total revenues?
Economic profits
What field of study is sometimes referred to "the dismal science"?
Economics
Why are most managers more concerned with economies of size rather than economies of scale?
Economies of Scale assume all inputs increase proportionately which rarely happens
What term refers to the reduction in the total cost per unit of output resulting from increases in total size of the business?
Economies of size
A functioning commodity of nature that includes fauna and flora together with the chemical and physical environment in which they interact.
Ecosystem
What are wages set at a higher-than-market clearing for such purposes as encouraging employee loyalty and discouraging shirking?
Efficiency Wages
What does ECR stand for in food retailing?
Efficient consumer response
Monetary and fiscal policies that lead to greater economic growth of the economy are said to be what type of policies?
Expansionary
__________ ___________ is the right reserved by the government to take private property for public use and compensate owners at fair market value.
Eminent Domain
Why is the economic concept of effective demand important in economic analyses?
Emphasizes the importance of assessing both willingness and ability to pay
What theoretical distribution is used to study population variance and most widely applied to ANOVA?
F-Distribution
What is the term for the sum of squares due to the regression divided by the error sum of squares?
F-stat or F-value (F-test)
What is the term for the sum of squares due to the regression divided by the error of squares?
F-statistic, F-value, or F-test
What is the term for a price quotation that does not include shipping charges?
F.O.B. (Free on Board)
Which government agencyis responsible for safe-guarding all bank deposits?
FDIC (Federal Deposit insurance Company)
How do you calculate the present value of a future payment made in time period t-value?
FV/ (1+discount rate) to the t power
The legal process of taking and selling property in order to enforce a lien against the property is known as?
Foreclosure
What is the term for the rate at which one county's currency exchanges for another country's currency?
Foreign Exchange Rate
Expenditures made by a government, firm, or individual to purchase assets in another country is known by what term?
Foreign Investment
What are two factors that shift aggregate demand?
Foreign income, expectations, exchange rates, distribution of income, monetary and fiscal policy
Name 2 types of unemployment.
Frictional, structural, cyclical, and seasonal
GAMS is a computer program used to solve optimization problems. What does GAMS stand for?
General Algebraic Modeling System
What does GAAP stand for?
Generally Accepted Accounting Principles
Which U.S. state produces the most peanuts?
Georgia
What term refers to the sorting of unlike lots of products into uniform categories, according to quality standards?
Grading
What type of income tax would help stabalize a cyclical economy?
Graduated (income tax)
What is the most widely grown fruit in the world?
Grapes
What is the general value of the total debt to total asset ratio of an insolvent firm?
Greater than 1
The international effort to improve the productivity of agriculture in developing nations that began in the 1960's and resulted in major increases in production in wheat and rice in many areas of the world is most commonly known as?
Green Revolution
Automobile emissions, industrial pollution, and petroleum mining are considered primary sources of what substance endangering our atmosphere?
Greenhouse gas
The law associated with the phrase "bad money drives out good" is called:
Gresham's Law
Whose law states that bad money drives out good money?
Gresham's Law
Boston Market coined this term to describe the concept of offering consumers a complete and varied meal selection package for takeout.
Home meal replacement
What condition states that sum of the own price elasticity, the cross-price elasticity, and the income elasticity for a particular commodity must sum to zero?
Homogeneity
Which condition states that the sum of the own, cross-price, and income elasticities for a particular commodity must sum to zero?
Homogeneity
What is the term used to describe a production function that exhibits constant proportional returns to scale?
Homogeneous
What type of product of competing firms are perfect substitutes for each other?
Homogenous
In regression analysis, how do we refer to a situation where the error term for the model has a constant variance?
Homoscedasticity
What 4 countries are referred to as the "Asian Tigers"?
Hong Knog, Singapore, South Korea, and Taiwan
If a consumer derives no happiness from additional units of the good on the horizontal axis, what shape is the indifference curve?
Horizontal
If GDP is defined as, GDP= C+I+G+NX, then what do "C", "I", "G", and "NX" stand for?
Household consumption, business investment, government purchases, and net exports
A measure of the skills, ability or productivity of human beings.
Human Capital
What common household disinfectant is used in a vapor treatment or wash with various fresh-cut fruits and vegetables?
Hydrogen Peroxide
Extremely high inflation is often called?
Hyperinflation
When a government finances its operations mainly by printing money and prices increase very rapidly, the economy is said to experiencing a period of ______.
Hyperinflation
When inflation accelerates very rapidly, it is called:
Hyperinflation
What is the most popular dessert in the world?
Ice Cream
Country A limits other nation's exports to Country A to 1,000 tons of coal annually. This is an example of a(n)?
Import Quote
What type of goods and services purchased by businesses, individuals, or governments are from a foreign country?
Imports
When government spending exceeds the amount of revenue brought in from taxes and user fees, the budget is said to be what?
In a deficit
For what type of good is the demand curve upward sloping?
Inferior goods
As Marginal Product becomes negative, what happens to total product?
It begins to decrease
If the Fed wants to increase the money supply, does it buy or sell government bonds?
It buys bonds
What is happening to the long-run average cost curve if economies of size exist?
It is declining
What is the parity ratio?
It is the ratio of prices received by farmers to prices paid by farmers
The recession of 1990-1991 in the US had what effect on the trade deficit?
It was reduced
If interest rates increase, what will happen to the price of a zero-coupon bond?
It will fall, decrease
If the money supply is decreased, how will the interest rate respond?
It will rise
What will happen to aggregate demand if M1 is decreased?
It will shift to the left
The notion that the annual rate of increase in the money supply should be equal to the potential annual growth rate of the real GDP is known as?
Monetary Rule
What is the standard object used to facilitate the exchange of goods and services?
Money
What is the type of market, which deals with debt securities with maturities of less than one year?
Money Market
Which market deals with debt securities with maturities of less than one year?
Money Market
The intersections of the IS and LM curves represents equilibrium in what 2 markets?
Money and Product Markets
A price-discriminating monopoly selling in two markets will ordinarily charge the lower price in the market with what type of price elasticity?
More Price Elastic
What is the arrangement for financing the purchase of real estate where the buyer gets legal title and use of the property and the lender has the property as security on the loan?
Mortgage
A situation where persons interacting with each other choose their est strategy given the strategies that all other persons have chosen.
Nash Equilibrium
In the famous scenario, the Prisoner's Dilemma, prisoner A will choose the best possible action given the action of prisoner B and prisoner B will choose the best possible action given the action of prisoner A. This is an illustration of what type of equilibrium?
Nash Equilibrium
In the famous scenario, the Prisoner's Dilemma,prisoner A will choose the best possible action given the action of Prisoner B and Prisoner B will choose the best possible action of Prisoner A. This is a demonstration of what type of equilibrium?
Nash Equilibrium
NPV is:
Net present value
If data is collected on the entire population, what are the appropriate statistical tests to use?
None, because they are not "estimates."
Another name for a distribution free statistical test is a _______test.
Nonparametric
If both the income and substitution effects suggest that more of a good will be purchased as the price falls, what type of good is it?
Normal
When a firm's revenue received is exactly equal to the sum of all costs including opportunnity costs of family management, labor and invested capital, the firm is said to be earning ________ profits.
Normal
An economic study that says "only bad people like rock music" may be an example of what type of economics?
Normative
Taxol is a drug derived from a plant that shows great promis in treating various forms of cancer. What is the name of the plant?
Pacific Yew Tree
Data that includes both time series and cross sectional data are called____?
Panel data
A regression model that combines time series and cross-sectional data is called a _______ data model.
Panel or Pooled
What do we call the nominal or face value of a bond?
Par value
What index is the weighted average of the prices producers pay for goods and services?
Producer Price Index
In an enterprise budget, if you take the non-yield dependent costs and divide by the output price minus the price associated with yield dependent costs (Ex: Harvest Costs), you will get a breakeven _________.
Quantity or Yield
What type of tax occurs when the average tax rate falls as income rises?
Regressive
Who won the 1999 Nobel Prize in Economics?
Robert Mundell
What term describes an estimator that has the desirable property of being insensitive to departures from the assumptions under which it was derived?
Robust
What do we call a matrix of order 1xn?
Row vector
What are the four parts of a cows stomach?
Rumen, Reticulum, Omasum and Abomasum
What is the common term for the type of digestive system found in bovines?
Ruminant
What type of price discrimination, also known as block pricing, involves selling different quantities of goods at different prices?
Second-Degree
The market where existing shares of stocks or existing bonds are traded. This market provides liquidity to these financial assets.
Secondary Market
What kind of market deals in existing, already outstanding securities traded among investors (such as NYSE)?
Secondary Market
What type of market deals in existing outstanding securities traded among investors?
Secondary Market
In financial markets SEC stands for?
Securities and Exchange Commission
What is the name of the US regulatory agency know as the SEC?
Security and Exchange Commission
Who is the third in line of succession for the Presidency of the U.S.?
Speaker of the house
The acronym SMART represents what five characteristics of goals?
Specific, Measurable, Achieveable, Realistic, Time-based
The current market price at a specific location is often called the _____ price
Spot
In multiple regression, the process of using different combinations of variables until the best model is obtained.
Step-wise regression
How do we find the slope of a tangent line to a function at any point?
Take the (first) derivative
A straight line that matches the direction of a curve and "touches" that curve at just one point is called a _____ line?
Tangent
A mixture of vertical integration and market exchange, say owning some retail outlets and franchising others, is called?
Tapered Integration
A tax on import is called?
Tariff
A tax on imported goods is called a(n) ______.
Tariff
What is the term for a direct dollar-for-dollar reduction in the amount of taxes owed?
Tax Credit
What are 2 factors that have led to the Russian government's budget deficits?
Tax avoidance; subsidies to business and agriculture, Losses from state owned enterprises
What would be an appropriate fiscal policy for severe demand-pull inflation?
Tax rate increase
What type of analysisfocuses on historic price patterns as a tool for predicting price behavior in the future?
Technical Analysis
What term refers to the knowledge, tools, techniques, and activities used to transform an organization or producer's inputs into outputs?
Technology
Since Robert Mundell won the 1999 Nobel Prize in Economics, his repeated appearances on what talk show have included telling a series of Rodney Dangerfield jokes?
The Late Show with David Letterman
What measure describes the change in equilibrium GDP divided by the original change in spending that causes the change in GDP?
The Multiplier
What does the Gauss-Markov theorem guarantee under classical assumptions about regression?
The OLS estimators are BLUE
In OLS, what does NID(mu=0,sigma^2) mean?
The error terms are normally and independently distributed with a mean of zero and a constant variance
What is conjectural variation?
The expectation about the reactions of other firms to changes by one firm
The space defined by the constraints in a linear programming model is often called what?
The feasible region
What is Walras' Law?
The finding that if all but one of the conditions for general market clearing hold, then the final one must hold as well
Data that shows the fluctuations in a variable over time.
Time Series Data
For a mathematical demand equation, what would show the change in quantity for a change in price, ceteris paribus?
The partial derivative of quantity with respect to price
[email protected] is the e-mail address of which U.S. government office?
The president of the USA
What do open market activities (or operations) by the Federal Reserve consist of?
The purchase and sale of commercial bonds in an effort to affect the money supply
The equilibrium interest rate equates?
The quantities demanded and supplied of loanable funds
If satisfaction or utility does not change along an indifference curve, what does?
The quantities of the goods consumed
In equilibrium, how will consumers allocate their resources between inputs?
They will allocate them such that the marginal product per dollar spent on each resource is equal
A monopolist that can sell a good in more than one market and set different prices in each market (assuming the good cannot be transferred between markets), is engaging in what type of price discrimination?
Third-Degree
Which US state contains the most national parks?
Utah
What economic term is used for the satisfaction consumers derive from goods and services?
Utility
What curve is created by mapping the contract curve from the output space of an Edgeworth box diagram into utility space?
Utility possibilities curve
What are the three components necessary for real property to have value?
Utility, Scarcity, Demand
A tax levied on the addition to a product's value at each level in the production and distribution process is called:
VAT or value added tax
What is assumed constant in the quantity theory of money?
Velocity
What term refers to a group of plants engaged in different stages of the production of a final product in a single firm?
Vertical Integration
_____ _______ is linking successive stages in the production and/or marketing process into one decision-making entity.
Vertical Integration
_____ ______ is linking successive stages in the production and/or marketing process into one decision making entity?
Vertical integration
Characterize the shape or slope of the long run aggregate supply curve. (Hint: straight is not the correct answer)
Vertical or infinite slope
Name three types of integration found in food markets.
Vertical, Horizontal, Conglomerate
Tina's Flower Company, a flower seed firm, purchased Joe's Garden Store, a local retail flower distributor, and John's Wholesale Flower Corporation. Tina's has _____ integrated.
Vertically
What type of goods and services can be itemized in market transactions?
Visibles
President Kennedy's agricultural advisor who described the economic effect of technology as a "treadmill effect" was______.
Willard Cochrane
What do contingent valuation studies measure?
Willingness to pay
An insurance system to provide protection for employees who suffer job-related injuries or illnesses is called ________ ___________.
Workers' Compensation
Current assets minus current liabilities represents the __________ ____________ of a business.
Working Capital
Often used as a measure of business liquidity, the difference between current assets and current liabilities is called?
Working Capital
What is the difference in value between current assets and current liabilities (hint: measure of liquidity)?
Working Capital
The excess of current assets over current liabilities is:
Working capital (net working capital)
On the information highway what does WWW stand for?
World Wide Web
Which Fortune 500 Company submitted the largest bankruptcy filing in US history?
WorldCom
In what situation would a high tariff on imported good X reduce domestic employment in industry Y?
X is an input used domestically in producing Y
Given the following parameters: PV= current price of a bond, Payment= coupon of the bond, FV= par value of the bond, N= time left to maturity. Solving for the interest rate would give _____.
Yield to maturity
The name of the internal rate of return on a bond when held to maturity?
Yield to maturity
KFC, Pizza Hut and Taco Bell are all owned by what parent company?
Yum! Brands
The type of auction that begins with a high price, and then drops the price until a buyer accepts is called:
a Dutch auction
A lending association of the Farm Credit System that makes short and intermediate term loans with funds borrowed from a Farm Credit Bank is known as?
a Production Credit Association
Freight that a carrier transports while returning to its point of origin is called:
a backhaul
If a country's imports exceed exports, the country is said to have:
a balance of trade deficit (or trade deficit)
What do we call an estimate of future income, expenses and/or cash flows?
a budget
What is an agreement among countries to jointly control the quantity of a commodity entering a market?
a cartel
An unobservable variable that is calculated from other information (for example, real income from nominal income and the CPI) is called:
a constructed variable
A liability that will develop if some specified event occurs (usually reported as parenthetical insertations or footnotes on financial statement(s) is called:
a contingent liability
What is an economic variable measured as a quntity per unit of time?
a flow variable
Labeling agricultural chemicals is based on efficacy and safety. What is efficacy?
ability to control the targeted pest (effectiveness)
What is an ad valorem tariff?
an import duty related to the value of the imported good (i.e., the amount of a 10% tariff depends on the value of the import)
An industry with a few interdependent sellers is called:
an oligopoly
Making use of legal methods to minimize a tax burden is know as tax ______, while the illegal nonpayment of taxes, failing to report, or reporting inaccurably is called tax ______.
avoidance, evasion
Mobile is known as what flower "capital of the world"?
azalea
In general, the variety and variation among plants, animals, and microorganisms, and among their ecosystems.
biodiversity or biological diversity
The generic term for any living matter that can be converted into usable energy through biological or chemical processes.
biomass
A legal document issued by a corporation or government promising the repayment of a loan, usually with interest is a _______?
bond
_____ ________ is a term for the value of a brand.
brand equity
The approximately 10 year period in which the number of US beef cattle is alternatively expanded and reduced over several consecutive years in response to perceived changes in profitability by producers.
cattle cycle
A price _____ will cause quantity demanded to exceed quantity supplied.
ceiling
A comprehensive set of quantitative information on the agricultural sector of the US economy, broken down to the state and county levels
census of agriculture
A self-propelled irrigation system in which a single pipeline supported on towers rotates around a central point.
center pivot irrigation
What is a member of a marketing channel that assumes a leadership role in organizing the system?
channel captain
A program by which a small amount of money per unit of product is deducted from the proceeds of a farm commodity when it is sold, usually for the purpose of supporting research or promoting sales.
check-off
What is the fee paid to a commodity broker for conducting a futures transaction?
commission
What economic system has all economic, social, and cultural activities regulated by a single authoritarian party?
communism
What is the inverse of discounting called?
compounding
The probability that one particular event will occur given we already know that another event has occurred is called a _____ probability.
conditional
Assuming a good has a demand elasticity equal to -.05, a 2 percent increase in price will ______ quantity demanded by _______%
decrease, 1%
For a retailing operation, how would inventory turnover be calculated?
divide cost of goods sold by the average merchandise inventory for a specified period
Corporate payments to stockholders are generally called:
dividends
In regression analysis, a qualitative independent variable with a value of zero or one is called a _______?
dummy variable
The profit maximizing level of output for a monopolist must lie on the ______ portion of the demand curve, where further price increases would cause both revenue and costs to decrease.
elastic
What type of inventory management method focuses on keeping raw material inventory to a minimum, and then scheduling raw material to arrive as needed for the production process?
just-in-time management
Another term for bouncing a check, or writing a check for an account that lacks sufficient funds to pay the check is called check _______.
kiting
Indicators of change in economic activity that happen about one or two quarters before the change actually occurs are called:
leading economic indicators
In the marketing of cotton, the term staple is used to describe:
length of cotton fiber
A firm with the ability to individually affect either the total quantity or the prevailing price in the market has?
market power
What type of price support loan exists when the producer has the right to forfeit the commodity rather than pay back the loan?
nonrecourse loan
Identify on significant non-tariff barrier to entry for a new company trying to enter the crop protection manufacturing industry.
patent or high start-up costs (such as the high costs of building a plant, setting up a distribution system, or getting a product EPA labeled) or ( may be others, but make sure it is a reasonable and a significant barrier)
What are the distributions typically made annually by a cooperative to its members or patrons?
patronage dividends or refunds
What pricing strategy is used when a firm offers a new product at a low introductory price in order to capture market share?
penetration pricing
An annuity in which the cash flows continue forever is called a(n) ______.
perpetuity
What are four of the traditional demand shifters?
population, income of consumers, taste and preferences of consumers, price of related goods, and consumer expectations
Intrinsic value plus time value equals the __________ of a put or call option.
premium
A legally imposed price above which market prices cannot rise is called __________?
price ceiling
Aggregate demand shows the relationship between _____ and ______.
price level and real GDP
For a profit maximizing unregulated monopolist, what can be said about the relationship between price and marginal cost at the optimum level of output?
prices exceeds marginal cost
The food-market channel that produces food products to be sold under a "store Brand" is a
private label channel
What term describes work performed free or at a reduced rate for the public good, usually by professional such as lawyers and accountants?
pro bono
What concept does a Venn diagram visually represent?
probability (or sets)
What do economists call actions by individuals and interest groups designed to restructure public policy in a manner that will either directly or indirectly redistribute more income to themselves?
rent seeking
After tax-profits of a corporation that are not distributed to shareholders are called:
retained earnings
Corporate earnings that are reinvested in the company rather than distributed as dividends are:
retained earnings
What are activities called that are comprised of short-term incentives encouraging immediate purchases of a product or service?
sales promotion (not advertising) for example coupons, POP displays, demos, etc.
If time series data experience regular and predictable changes that recur every calendar year, this characteristic is known as?
seasonality
In linear programming, _______ analysis indicates when the basis will change due to changes in the coefficients.
sensitivity
What type of analysis shows how small changes in the coefficient of an LP affect the optimal solution?
sensitivity analysis
What is the amount by which the quantity demanded of a product exceeds the quantity supplied at a given (below-equilibrium) price?
shortage
What is a matrix that does not have an inverse called?
singular
A sampling technique that locates research subjects by asking existing subjects to provide the names of additional possible respondents is called:
snowball sampling
What are the 2 tools of fiscal policy?
taxation and government expenditure
What is the most "tender" cut of beef?
tenderloin
What is the central bank of the United States?
the Federal Reserve
In the late 1850's, China's leader Mao Zedong implemented an ambitious plan (which didn't work very well) to speed up the nation's industrialization. What was the name of this effort?
the Great Leap Forward
What was originally known as the National Associaton of Securities Dealers Automated Quotations?
the NASDAQ stock exchange
On Wall Street, what's known as the "big board"?
the New York Stock Exchange
The difference between the largest and smallest values in a data set is called:
the Range
Who typically bears the burden of an exice tax on a good with perfectly inelastic demand?
the consumer
What statistic measures the extent to which a set of numbers is dispersed about their arithmetic mean?
variance; or standard deviation
If y equals 1 over (1+x), what restriction must be placed on the value of x?
x can't equal negative 1
Differentiate the following natural log function: y=6lnx
y'=6(1/x) =6/x
Consider a linear programming model where labor is a resource constraint and the optimal solution shows a positive slack value for labor. Thus, the marginal value product of additional labor must be ____.
zero
What is the expected value of the error term in an OLS regression?
zero
If the benefit/cost ratio of a project is equal to one, what would be the net present value of the project?
zero (0)
The intersection of two mutually exclusive events equals___?
zero (or a null or empty set)
In game theory, what type of game is said to exist when one person's (or firm's) gain is another person's (or firm's) loss?
zero sum game
Assuming an interest rate of 10%, what is the appropriate net present value of a $100 payment to be received in one year?
~ $91 (100/1.10)=90.91
If income increases, the demand for an inferior good _____.
Decreases
What graphic device is most requently used to illustrate the contract curve in an exchange economy?
Edgeworth Box
A(n) _____ ____ represents the different combinations of two inputs or factors of production that can be purchased with a given sum of money.
Isocost line (budget line is not acceptable)
Over the relevant range of output, what can be said about the long run average cost curve of a "natural" monopoly?
It is decreasing
What is happening to the long-run average cost curve if diseconomies of size are present?
It is rising
Define the addition to total output attributable to the addition of one unit of the variable input in the production process, all other inputs remaining constant.
Marginal Product
The slope of an indifference curve is called:
Marginal Rate of Substitution (MRS)
If the quantity demanded of a good increases as an individual's real income increases what kind of good is it?
Normal Good
The income elasticity of demand for what type of good is positive?
Normal Good
What economic concept measures the cost of a college education compared to wages foregone from the time pursuing a degree?
Opportunity Cost
A commodity seller who is unable to affect the commodity price by changing the quantity it sells is referred to by what term?
Price Taker
How do we refer to the area above the supply curve and below the price?
Producer Surplus
What represents the different combinations of 2 products that a business can efficiently produce with its existing resources and technology?
Production Possibilities (Frontier)
What is the line that shows the combinations of two products that can be produced with a given level of inputs?
Production Possibilities Curve
How are the changes in price and quantity related if the price elasticity is -1?
Quantity chang is equivalent (=) to price change
According to Adam Smith, each individual's pursuit of their own self interest leads to the general good of society. Name this concept.
The Invisible Hand
In the 1970's, President Nixon imposed price cielings. What was the result of this action?
The quantity demanded exceeded the quantity supplied OR shortages existed in the market
If a consumer prefers bundle A to B, and prefers bundle B to C, what rationality axiom says bundle A must be preferred to bundle C?
Trasitivity Axiom
What depicts the relationship between the equilibrium quantity purchased of a good (typically food) and the consumer's level of income?
an Engel Curve
At the inflection point, total product changes from increasing at an increasing rate to increasing at a decreasing rate, what is the corresponding point on the marginal product curve?
maximum
Consumer surplus is the difference between the value the consumer places on the good and the ______?
the price (paid for the good)
A(n) _____ exists when someone ("the principal") hires another person ("the agent") to do a job, but the agent does not act in the best interest of the principal.
"agency problem"
If nominal GDP in 2004 was $800 million and the GDP deflator was 200, what was the real GDP in 2004?
$400 million
The present value of a future payment made in time period t is calculated by: [the future amount (A)] divided by what value?
(1+ discount rate) to the t power
What is the formula to determine the number of product units required for break-even?
(Fixed Costs) / (unit seling price - variable cost per unit)
What type of corporation, granted status by the internal Revenue Service, does not have double taxation?
(Subchapter) S-Corporation
If the quantity demanded increases by 30% in response to a 15% reduction in price, what is the elasticity of demand?
(negative) two
If the points in a scatter diagram lie exactly along a straight line with a negative slope, what is the correlation coefficient?
-1
What are the dimensions of a scalar matrix?
1 by 1
What exists when government spending exceeds government receipts?
A budget deficit
What will result in a change in demand?
A change in ceteris paribus conditions (e.g. change in price of alternative goods, income, tastes and preferences, population)
In what type of industry does neither the expansion of existing firms nor the entry of new firms affect the cost curves of firms?
A constant cost industry
A bond that can be exchanged for common stock at a previously specified ratio is referred to as:
A convertible bond
What is a federated cooperative?
A cooperative "owned" by other cooperatives
The equation of exchange suggests that, if the supply and velocity of money remains unchanged, an increase in the physical volume of goods and services produced will cause?
A decline in the general price level
What do we call the variable that can only have integer values?
A discrete variable
An oligopoly that consists of two firms is called what?
A duopoly
What is an economy that contains elements of both private and state enterprise?
A mixed economy
What characterizes a normal good?
A positive relationship between quantity and income or income elasticity >=1
What depicts all the different combinations of goods a country or firm can produce while using all its resources efficiently with the best available technology?
A production-possibilities frontier (or transformation curve)
What is a statistical exmaple?
A quantity of something that has been selected as representative of a larger group or population
A phenomenon where many of a bank's depositors try to withdraw their funds due to fears of a bank failure is called?
A run on the bank, or a bank run
A change in demand is graphically represented by what change in the demand curve?
A shift
An independent agency of the of the executive branch that administers US international development and humanitarian assistance programs.
AID (Agency for International Development)
A USDA agency established to conductinspections and regulatory and control programs to protect anmal and plant health
APHIS
The round logo of what major telecommunications company is often referred to as the "death star"?
AT&T
Assuming an interest rate of 10%, what is the approximatenet present value of $100 payment to be received in one year?
About $91
In a recessionary gap, where is the unemployment rate compared to the natural rate of unemployment?
Above (higher) the natural unemployment rate
In a recession, where does unemployment lie related to the natural rate of unemployment?
Above or higher than the natural rate
Which president created the United States Department of Agriculture?
Abraham Lincoln
What is any depreciation that produces larger deductions for depreciation in the early years of a project's life?
Accelerated Depreciation
A parameter that defines the relationship between national income and required capital stock.
Accelerator
What can be defined as a comprehensive system for recording and summarizing business transactions?
Accounting
Measures the explicit cost of operating a business.
Accounting Cost
The total amount customers owe to a business for purchases made on credit.
Accounts Payable
Financial goal of any insurance program as well as any federal crop insurance program is to operate on an _____ sound basis; that is, total premiums collected should more than offset total indemnities paid out.
Actuarially
If prices are too high, the "invisible hand" would draw competition in until the increased supply pulled the price down: and the opposite happens if prices were low. This concept is attributable to _________?
Adam Smith
Who wrote "An Inquiry into the Nature and Causes of the Wealth of Nations"?
Adam Smith
What is net farm income minus family living expenses and income taxes called?
Addition to Owner's Equity
What are the four major elements of a partial budget outline?
Additional Costs, Reduced Revenue, Additional Revenue, Reduced Costs
The ________ is the prevailing world price for upland cotton, adjusted to account for US quality and location.
Adjsuting World Price
According to the classical school of macroeconomics, how will prices and wages respond when the economy is in a recessionary gap?
Adjust so quickly that the economy is regarded as "self-correcting"
What type of mortgage carries a lower initial rate but is allowed to vary (adding risk for the borrower)?
Adjustable rate mortgage
Which regression statistic can be used to examine the effects of adding an independent variable to a model?
Adjusted R-squared
The problem of distinguishing good risk applicants from the bad risk applicants.
Adverse Selection
What is the total amount that all consumers, business firms, and government agencies are willing to spend on final goods and services?
Aggregate Demand
What factor must fall short of the full employment level of national output for a recession to occur?
Aggregate Expenditures
The locus of points that shows how a change in the price level will change aggregate expenditures on all goods and services in the economy. This is called?
Aggregate demand curve
Broad totals of economic variables such as production, consumption, and investment.
Aggregates
The _______ Act of 19___ redefined the process for establishing marketing orders. Under the authority of this permanent law and subsequent amendments, marketing orders have been established for milk as well as numerous fruits and vegetables.
Agricultural Marketing Act of 1937
What is the study of a complex system of natural resources, farms, agribusinesses, and government organizations that provide products for consumption?
Agricultural economics
A farm bill that adopted target prices and deficiency payments as a tool that would support farm income but reduce forfeitures to the Commodity Credit Coporation of surplus stocks.
Agriculture and Consumer Protection Act of 1973
(ACE)-An EPA program, administered cooperatively with USDA's Sustainable Agriculture Research and Education (SARE) program, to fund research projects that reduce the risk of pollution from pesticides and soluble fertilizers.
Agriculture in Concert with the Environment
What economist us known for his application of mathematics and diagrams to economic principles and for his students, including A.C. Pigou and J.M. Keynes?
Alfred Marshall
A systematic approach to farming intended to reduce agricultural pollution, enhance sustainability, and improve efficiency and profitability.
Alternative agriculture
What popular prime time program has been Ameica's most popular talent show over the past five years and has featured winners Kelly Clarkson and Clay Aiken?
American Idol
It may be misleading to label a trade deficit as "unfavorable" or "adverse" because?
American consumers benefit from a trade deficit during period it occurs
For traditional cooperatives patronage refunds are allocated to the membership on the basis of what?
Amount of business done with cooperative
What is contractual opportunity, but NOT an obligation, to buy or sell an asset or security at a pre-determined price on or before a specific date?
An Option
If one person, firm, or country can produce more of something with the same amount of effort and resources, what do they have over other producers?
An absolute advantage
What has been purchased if the investment returns a series of equal dollar payments for a specified time period?
An annuity
What is a constant stream of cash receipts or payments received annually for 20 years called?
An annuity
List four prime numbers
Any of the following: 1,2,3,5,7,11,13,17,19,23,29,31, etc.
What do we call it when a unit of domestic currency can buy more units of foreign currency?
Appreciation
What do we call it when one unit of domestic currency can buy more than one unit of foreign currency?
Appreciation
What is the practice of producing fresh or saltwater animals and/or plant products?
Aquaculture
Suppose the exchange rate quotations between London and New York are out of line. So, a trader could make a risk-free profit by buying in one market and selling in the other. This is an example of what process?
Arbitrage
What do you call the practice of switching sort-term funds from one investment to another in order to obtain the best return?
Arbitrage
Who is the current US Secretary of Defense
Ashton Carter
What type of demand for money varies inversely with the rate of interest?
Asset demand or investment demand
_____ ____ is the amount of sales generated for every dollar's worth of assets.
Asset turnover
What are the resources owned and controlled by the business called?
Assets
What do you call the properties and resources owned and controlled by a business?
Assets
What is the formula for the accounting equation?
Assets = Liabilities + Owner's Equity
What are policies that stimulate or depress the economy when necessary without any policy changes, such as reductions in taxes and increases in unemployment benefits during recessions?
Automatic stabalizers
Under which type of consumption would a person use money from savings or borrowed funds when income fell to zero?
Autonomous Consumption
What is the type of consumption a person would take out of savings or from borrowed funds if income fell to zero?
Autonomous Consumption
Consumption expenditures that are independent of income are called?
Autonomous expenditures
What per unit cost declines as long as output increases?
Average Fixed Cost
For a firm in a monopolistically competitive market, price must equal ________ in the long run.
Average Total Cost
The firm should cease production in the short run if the output price is below what per unit cost?
Average variable cost
What measure indicates the effect on GDP of equivalent changes in government spending and taxes?
Balanced budget multiplier
What measures indicates the effect on GDP of equivalent changes in government spending and taxes?
Balanced budget multiplier
What type of loan may require only interest payments each payments each period until the final payment when the entire principal is due?
Balloon
What is a system of exchange in which people trade one good or service for another with no money used in the exchange?
Barter
What is the term for a year selected as a reference point or benchmark for comparison?
Base Year
Six agricultual crops (corn, cotton, peanuts, rice, tobacco and wheat) declared by permanent law as requiring federal price support.
Basic Commodities
What economic term is associated with the difference between the futures price and cash price of a commodity?
Basis
In hedging what risk is associated with an unexpected change in the relationship between cash and futures price?
Basis risk
An index of the weighted average annual price for beef cattle, excluding calves, for an 11 western state area as compared with a specific based period equal to 100.
Beef (Cattle) Price Index
In computer programming, what does the acronym BASIC stand for?
Beginners All-purpose Symbolic Instruction Code
What country borders to the Netherlands, Germany, France and Luxembourgh?
Belgium
Name the new chair of the Federal Reserve.
Ben Bernanke
The process of gathering information on the performance of other companies in an industry for comparisons and to set goals is known as?
Benchmarking
The ratio of the present value of future cash flow divided by initial investment is called?
Benefit cost ratio or profitability index
What type of analysis leads to a statement assessing costs and benefits relative to project alternatives?
Benefit-cost analysis
To ______ something is to give or leave somethin by will, usually personal property.
Bequeath
What type of market exists when illicit trade in goods occurs in an economy?
Black Markets
_____ ______ often develop in the presence of price controls, when goods are sold illegally at a price higher than the legal maximum?
Black Markets
A condition where the incumbent firm need not undertake any entry-deterring strategies to deter entry. Entry is said to be __________.
Blockaded
Skilled labor jobs, such as shop, construction, or factory workers, and some unskilled labor jobs are often referred to as what kind of jobs?
Blue Collar
Individuals elected by a corporation's shareholders to oversee the management of the corporation, who are paid in cash or stock, and meet several times a year are known as the?
Board of Directors (BOD)
What was the name of the child prodigy who became the youngest international grandmaster in the history of chess and the first American chess player to win the world championship?
Bobby Fischer
Securities issued by corporations or governments representing the promise to make periodic interest payments and the full repayment of the face amount as a certain time.
Bond
What financial instrument is sold to investors by corporations and governments to incur long-term debt?
Bonds
What type of payments are made by employers to attract, keep, and reward good employees?
Bonus or Incentive Plans
The _____ _____ of a fixed asset original cost less accumulated depreciation.
Book Value
The value of an asset minus accumulated depreciation equals its?
Book Value
The value at which an asset is reported on a balance sheet is?
Book value (not market)
What is the marginal utility of both goods if an indifference curve is a 45-degree line from the origin?
Both goods have zero marginal utility
A naturally occurring protein that has been genetically engineered as a synthetic compound that causes cows to increase the efficiency of milk production per unit of feed consumed.
Bovine somatotropin (bST)
What term refers to beef that is sold by the meatpacker in primal, sub primal, or final retail cuts rather than as a carcass?
Boxed beef
Movement into a higher tax bracket as money income rises is commonly called what?
Bracket creep
What is the name, term, design, symbol, or any other feature that identifies one seller's good or service as distinct from those of other sellers?
Brand
What is the added value of a brand name beyond the functional benefits of the product?
Brand Equity
A new or modified product launched under an already successful brand name is called?
Brand Extension
A new or modified product launched under an already successful brand name is called:
Brand extension
An analysis of the level of sales at which a firm will just break even?
Break even analysis
What would an output price that is equal to average total cost (ATC) be called?
Breakeven Price
What results when total fixed costs are divided by [price minus average variable cost]?
Breakeven Quantity (Breakeven price is not correct)
At what conference was the World Bank and the IMF created?
Bretton Woods Conference
What does BTU stand for?
British Thermal Unit
A highly contagious disease of cattle, goats, sheep, and swine that can be transmitted to humans (undulant fever).
Brucellosis
A large upward movement in asset prices not based on rational factors or market fundamentals is called a financial ______.
Bubble
Canada is recognized as produced of the worlds highest quality of wheat grain?
Buckwheat
The excess of government spending over government revenues is referred to by what phrase?
Budget Deficit
The term _______ is used to describe the situation in which government revenues (i.e. taxes) fail to cover government expenditures.
Budget Deficit
The ______ is the locus of combinations or bundles of goods that can be purchased if the entire money income is spent. Its slope is the negative of the price ratio.
Budget Line
What line shows all possible combinations of goods that a consumer can buy for a given money income?
Budget Line
What does the excess of government reciepts over government spending create?
Budget Surplus
Inventories held as a reserve against possible shortages are called ________ __________.
Buffer Stocks
What is the term when two or more products are sold in one package?
Bundling
A bureau within the Department of the interior that has exclusive jurisdictionover about 268 million acres of federally owned lands.
Burea of Land Management
A bureau within the Department of the Interior, whose mission is to manage, develop, and protect water and related resources.
Bureau of Reclamation
Recession, fiscal recovery, growth, and fiscal decline are the four stage of the?
Business Cycle
What does "B2B marketing" mean?
Business to business marketing
The Federal Reserve calcualtes 5 measures of the money stock of the US economy. Which is the smallest?
C (currency)
What do we call a clause in a wage contract that raises wages in times of inflation?
COLA (cost of living adjustments) or cost of living escalators
How does CRC (criop revenue coverage) differ from traditional MPCI (multi-peril crop insurance)?
CRC covers revenue losses due to price declines as well as losses due to yield declines while MPCI has traditionally covered yield losses only
Name 3 of the 5 C's of credit.
Cahracter, capacity, capital, collateral and conditions
Which US state has the largest total cash receipts for agricultural goods?
California
Which US state has the largest total cash receipts for crop production?
California
A reedemable bond feature that gives the bond issuer the right to reddem their issue of the bond prior to maturity?
Callable
What is the dominant class of wheat produced in Canada?
Canadian Western Red Spring or Red Spring
A quasi-governmental self-financed agency, established in 1935,that markets Canadian wheat, oats, and barley on behalf of producers.
Canadian Wheat Board
Wheat marketed for export in Canada must go through what organization?
Canadian Wheat Board
What two STE's are dominant forces in the world EXPORT market for wheat?
Canadian Wheat Board and Australian Wheat Board
What is the process of grading or inspecting eggs for resale?
Candling
What is the term used to describe the decrease of a firm's existing products when a new product is launched?
Cannibalization
When a firm sells a capital asset for a price higher than the cost, the positive difference is called:
Capital Gains
The market in which corporate equity and longer-term debt securities (those maturing in more than one year) are issued and traded.
Capital Market
When a firm has more profitable or acceptable investment projects than it has available funds, it must engage in _______ __________.
Capital Rationing
When you have a fixed limit on capital that forces the company to choose among worthwhile projects is called?
Capital Rationing
What term describes the mix of funding sources a company uses to finance its operation?
Capital Structure
What is a realized increase in the vallue of a capital asset called, as when a share is sold for more than the price at which it was purchased?
Capital gains
In what type of economic system are most society's resources are privately owned and managed?
Capitalism
What is an economic system with private ownership of production capacity and output determined by markets called?
Capitalism
What is the notion that a person's productive efforts and his or her rewards are unrelated?
Capricious Universe View
Stanley Jevons and Leon Walras argued in favor of which theory of utility measure?
Cardinal Utility Theory
Which utility theory states that consumers can determine the number of utilities derived from consuming all goods?
Cardinal Utility Theory
The maximum stocking rate for livestock possible without damaging vegetation or related resources.
Carrying Capacity
OPEC is an example of what type of market structure, where there is an open and formal agreement among firms to collude?
Cartel
Another name for the rectangular coordinate system used in graphing is the _______ coordinate system.
Cartesian
In farm management, out-of-pocket costs are referred to _______ outlays?
Cash
An accounting system that recognizes income when it is actually received as cash and expenses when they are actually paid is called ______?
Cash Accounting
Which accounting method recognizes and records revenue only when income is actually received?
Cash Accounting
What is the term used to describe the settlement process for futures contracts that are not settled by delivery?
Cash Settled or Cash Settlement
What financial statement is a projection of future cash reciepts and cash disbursements?
Cash budget or cash flow statements
Name the 2 primary types of land leases in agriculture.
Cash leases and share leases
What type of risk consist of loss of assets to fire, wind, hail, flood, and theft?
Casualty Risk
What states that, for a given distribution, as the sample size increases the sampling distribution of the mean approaches a normal distribution?
Central Limit Theorem
What theorem states that if an infinite number of random samples are taken from a population the distribution of the samples means will be normal?
Central Limit Theorem
An economic system in which the government rather than market forces determine the production, pricing, and distribution of goods and services.
Centrally Planned Economies
What term describes the risk-free investment return necessary to provide the same utility as a risky investment?
Certainty Equivalent
Marketable claims to funds that have been deposited with a bank for specified period of time, earning a stipulated rate of interest are called:
Certificates of Deposit or CD's
What ratio defines the marginal propensity to consume?
Change in consumption/change in disposable income
The 3 tools of monetary policy are?
Change the reserve requirement ratio, Change the discount rate, Execute open market operations and thereby affect the Federal Funds Rate
What theory would suggest that a butterfly flapping its wings in West Africa could lead to a hurricane in Florida?
Chaos Theory
X is a normally distributed random variable. What is the distribution of X squared?
Chi Squared
What type of economy neither exports or imports goods and services?
Closed
What is the Credit ServiceCooperative that loans funds to agribusiness cooperative that loans funds to agribusiness cooperatives?
Co Bank
What field weed sparked the invention of Velcro?
Cocklebur
Name an Agricultural Commodity traded on the NYBOT.
Cocoa, coffee, cotton, FCOJ, sugar or ethanol
What do we get when we divide the standard deviation by the mean? It is used for evaluating and ranking risk.
Coefficient of variation
What is the method of prospecting for sales that involves contacting every farm or agribusiness in an area without prior selection criteria called?
Cold Calling
An asset a borrower pledges to a lender in case of default.
Collateral
Assets pledged to secure a debt with the lender entitled to the assets if the debt is not repaid defines:
Collateral
Property pledged to assure repayment of debt is known as?
Collateral
What is the pledge of specific firm assets to guarentee repayment of a loan?
Collateral
What is the technical name given to livestock, grain or personal property when these become security for a loan?
Collateral
What is said to be taking place when the firms in an industry reach agreements about price, output, and other matters?
Collusion
A federal agency which bears much of the responsibility for overseeing trade in futures contacts for the agricultural commodities
Commodity Futures Trading Commission
What type of money is intrinsically useful and would have value even if it did not serve as money?
Commodity Money
The set of legislation and practices jointly adopted by the nations of the European Union (EU) in order to provide a common, unified policy framework for agriculture.
Common Agricultural Policy (CAP)
In publicly held companies, the equity that does not have priority for dividends nor in bankruptcy proceedings is called ______.
Common Stock
What are the two major classes of stockholders?
Common and Preferred
What type of demand curve shows the relationship between price and quantity for a good under the assumption that other prices and utility are held constant?
Compensated (Hicksian)
What type of good has a negative cross- price elasticity of supply?
Competetive
Low-cost leadership and broad differentiation are examples of __________ _____________.
Competitive Strategies (generic)
A local department store found that when the price of shoes increased, the demand for slacks fell. What type of relation is implied?
Complementary
What measure refers to the percentage of the total sales of an industry made by the four (or some other number) largest sellers (firms) in the industry?
Concentration Ratio
What is necessary for a perfect hedge?
Constant basis
In an LP model, what rules out certain combinations of decision variables as feasible solutions?
Constraints
The Bureau of Labor Statistics' general measure of retail prices (for goods and services) paid by urban wage earners and clerical workers.
Consumer Price Index
In public policy there is an efficiency objection to a natural monopoly because the monopolist operates where price is above marginal costs resulting in a loss of _______
Consumer Surplus
In the Keynesian model the aggregate expenditure function included what three components?
Consumer, investment and govt. spending
Final goods and services are goods and services that are purchased for direct ________.
Consumption
The expenditure approach to measuring GDP sums what four items?
Consumption, Gross private domestic investment, government purchases, net exports
What are the 4 components of GDP?
Consumption, Investment, Government Spending, and Net Exports
What are the 3 components of aggregate expenditure for a closed economy?
Consumption, Investment, and Government Expenditures (No trade component)
What is the name of a plan that defines an organization's response to specific situations such as emergencies or setbacks?
Contingency Plan
What type of taxes are those estimated to be due if assets were liquidated at the market value shown on the balance sheet?
Contingent Income Tax
What entry sometimes included on a balance sheet shows the taxes that would be due if assets were liquidated at market value?
Contingent Tax
The curve that contacts the 2 diagonal corners of an Edgeworth's Box is called the _____ curve.
Contract Curve
What curve represents the set of efficient (or Pareto optimal) allocations among individuals in an exchange economy?
Contract Curve
Raising the Fed's discount rate and increasing the reserve requirement ratio are examples of what type of monetary policy?
Contractionary
The Federal Open Market Committee decided to SELL government securities. This would be an example of what?
Contractionary monetary policy
What are the four functions of management?
Controlling, Planning, Organizing, Directing
What is the term for a product that reduces time, effort, or ingredients required of the consumer in home food preparation?
Convenience food
What is the term for a product that reduces time, effort, or ingredients required of the consumer in home preparation?
Convenience food
According to the _______ hypothesis, international differences in real GDP per capita tend to narrow over time.
Convergence
A corporate bond feature that gives the bondholder the right to convert their bonds into a predetermined number of shares of stock?
Convertible
The feasible region of a linear programming model forms a ________set.
Convex
What is the shape of an indifference curve that exhibits diminishing marginal returns?
Convex
What is a legal entity (person, firm, or specified agency) chartered to do business by a state or federal government?
Cooperation
A business corporation that is organized to serve the needs of its member-patrons rather than to make a profit is a(n) _______.
Cooperative
What is an association of member-owners operating a business that provides services at cost to its patrons?
Cooperative
What type of business format provides business related services to a group of member-owners?
Cooperative
Afederal-state-local cooperative education system that provides continuing adult education based on the academic programs of the land grant colleges of agriculture and their affiliated state agricultural experiment stations.
Cooperative Extension Service
The tasks and processes in which a firm is considered an expert is their set of _____ competencies.
Core
Something a firm does especially well in comparison to rival companies, and hence is source of competitive advantage for the firm.
Core Competency
Based on quantity, what is the major grain crop produced in North America?
Corn
Name four of the five grains that dominate the world coarse grain supplies?
Corn, sorghum, barley, oats and rye
What type of solution to an indifference curve problem exists if one product is not preferred at all?
Corner Solution
What is the most favored type of financing vehicle that corporations use to raise cash in the capital market?
Corporate Bonds
A form of farm ownership which is a separate legal entity from the owners of the farm.
Corporate Farm
What form of business organization normally provides for the least difficulty in intergenerational transfers?
Corporation
What is a rise in the general price level caused by increased costs rather than excess demand called?
Cost-push inflation
The price of pork went up causing the local meat packer to limit production. What type of inflation is this?
Cost-push or supply-side inflation
The interest rate specified on interest coupons attached to bonds is the:
Coupon Rate
In a __________ duopoly, firms selling a homogeneous product simultaneously choose their output levels?
Cournot
In what oligopoly model does each firm take the quantities produced by its rivals as a given?
Cournot
What is a provision in a debt agreement requiring the borrower to do, or not do, something called?
Covenant
How does the banking system increase the money supply?
Creates checkable deposits
Similar to a bank, what is a member-owned financial cooperative?
Credit Union
The three R's of credit are used to determine:
Credit Worthiness of Borrowers
The geologic time period that occurred between 144 and 65 million years ago and that marked the end of the age of dinosaurs.
Cretaceous Period
An agricultural production management practice of alternating the types of crops grown on a field from season to season in a particular pattern is called ______ _________.
Crop Rotation
What is the practice of producing different crops in successive years on the same land?
Crop Rotation
What term is used for new construction that is cancelled because government spending is competing for borrowed funds?
Crowding Out
What would a macroeconomist call a fall in either private consumption or investment resulting from a rise in government expenditure?
Crowding Out
The government borrows money to increase spending, which drives up interest rates and reduces private investment. What is this called?
Crowding out effect
An unpaid balnce on the 2003 operating loan for a firm would be shown where on the 12/31/2003 balance sheet?
Current Liabilities
Accounts Payable are typically placed in what category on the balance sheet?
Current Liability
In a loan analysis, computing the present value of all remaining payments using a discount rate equal to the interest rate on the loan will give you the ______?
Current Loan Balance
A measure of liquidity, defined as current assets divided by current liabilities?
Current Ratio
What are the two categories of assets on a blance sheet suggested by the Farm Finacial Standards Council?
Current and Noncurrent
The cobweb model is often used to explain what type of commodity price variation?
Cyclical Price Variation
A net loss in total surplus is called a(n) _____ loss.
Deadweight
The cost to society associated with imperfect competition is called:
Deadweight Loss
What is the term for a permanent loss of well-being to societ that can occur when equilibrium for a good or serice is not Pareto optimal?
Deadweight Loss
What term is used to describe the loss of consumer surplus incurred by buyers and not captured by sellers that is generally associated with imperfect competition?
Deadweight Loss
What famous play by Arthur Miller--and its main character Wily Loman--are often referred to in sales training material?
Death of a Salesman
An unsecured bond that is not backed by specific assets, but backed by the general assets of the firm is called a(n) _____.
Debenture
What is the term for an unsecured long-term debt?
Debenture
What type of debt instrument is not secured by physical assets or collateral and is backed only by the general credit worthiness and reputation of the issuer?
Debenture
What is a ratio for measuring financial or capital structure?
Debt to asset or debt to equity or asset to equity
Total liabilities divided by total assets provides the _____ ratio.
Debt-to-asset
The leverage ratio is also known as the ____ _____ ratio.
Debt/equity
The market structural change characterized by movement of livestock from farms into the hands of processors and wholesalers without utilizing a traditional terminal market is an example of _______.
Decentralization
A graphic device that shows a sequence of strategic decisions and the expected consequences under each possible state of nature is called __________?
Decision Tree
A diagram that traces out all the possible strategies and outcomes for a particular decision or sequence of related decisions/
Decision tree
The principle of increasing risk illustrates that the return on equity will _____ as leverage ratios increase, as long as the return on assets (ROA) is less than the interest rate on debt capital?
Decrease
If the cost of irrigation water increases, ceteris peribus, how would a profit-maximizing producer react?
Decrease Water Useage
If the Fed increases the required reserve ratio, what happens to the money supply? Does it increase, decrease, or stay the same?
Decreases
Questions: If an LCD's term of trade is worsening, this means that the prices of its exports are ______ and the prices of its imports are _____.
Decreasing, Increasing
A decline in the aggregate price level over some defined time period is called:
Deflation
The number of independent observations used in calculating a statistic is referred to as:
Degree of Freedom
What phrase is used for the number of "free" or linearly independent observationsused in the calculation of a statistic?
Degrees of Freedom
What qualitative forecasting method repeatedly uses a panel of experts to obtain a consensus opinion about the future?
Delphi Method
What would be in excess if a market has an effective ceiling prices?
Demand
What type of inflation is caused by "too much money chasing too few goods"?
Demand Pull inflation
If there is a severe freeze in Florida that destroys much of the citrus crop (90% of which is used for making orange juice), what happens to the demand for apple juice?
Demand for apple juice increases
If the price of a complement to a substitute for good A increases, what happens to the demand for good A?
Demand for good A increases
Given downward sloping demand, what condition would allow an increase in price to decrease total revenue?
Demand would have to be elastic
What type of inflation is caused by an increase in aggregate demand?
Demand-pull Inflation
What type of inflation results from shocks to aggregate demand?
Demand-pull inflation
What is one result of the aggregate demand for goods and services increases faster than the aggregate supply?
Demand-pull inflation or prices rise or inflation
What theory of inflation combines elements of "demand-pull" and "cost-push" and considers inflation to result from structural changes in aggregate demand?
Demand-shift inflation
"Children are economic liabilities in the IAC's, so birth rates will be low. Conversely, in the LDC's children are economic assets so birth rates will be high." This notion is referred to as?
Demographic transition concept
There are a number of costs are associated with managing farm equipment. Name at least 3 of them.
Depreciation, Interest, Property Taxes, Insurance, Repairs/Maintenance, Housing, Fuel/Lubrication, Labor
What is the term for a financial asset whose value is derived from the value of some underlying asset?
Derivative
What is the term used to describe the relationship of farm level demand to the consumer demand for food?
Derived Demand
Interest rate at which an eligible depository institution may borrow funds, typically for a short period, directly from a Federal Reserve Bank.
Discount Rate
What is the term for the interest rate that the Federal Reserve Banks charge on the loans they make to depository institutions?
Discount Rate
The interest rate used to find the present value of a balance to be paid or received in the future is called the ____.
Discount rate
If the calculated Net Present Value is negative, then what can be said about the discount rate relative to the internal rate of return?
Discount rate is greater than the IRR
What do we call difficulties involved in managing and coordinating a large business enterprise?
Diseconomies of size
A term used to describe a situation such as an aeronautical engineer who is laid off and accepts employment as a parking lot attendant.
Disguised Unemployment
The process of lending directly and not going through a financial intermediary is called?
Disintermediation
What is the after tax income of individuals available to spend on goods and services?
Disposable Personal Income
Producing two or more commodities with production levels and/or prices that are not closely correlated is an example of __________.
Diversification
The process of investing in a number of different unrelated assets is called?
Diversification
What process involves investing in a number of different assets or enterprises to reduce risk?
Diversification
What type of analysis uses the interrelationships between performance measures (such as return on assets and profit margin) to analyze the components and linkages of a business?
Dupont Analysis
Goods that deliver consumption services over an extended period of time.
Durable Goods
What are goods purchased by consumers that tend to last for more than a year, such as cars, furniture, and appliances?
Durable Goods
What common statistical method tests for autocorrelation?
Durbin-Watson test
What type of wheat is predominately used in making pasta?
Durum
The inventory level that minimizes both administrative costs and carrying costs is known as?
Economic Order Quantity (EOQ)
USDA's in house agricultural economics analysis and research agency.
Economic Research Service
What is total revenue of a firm less all of the economic costs?
Economic profit or economic rent
What does ECR stand for?
Efficient Consumer Response
What measure of demand depends upon availability of substitutes, alternative uses of the good, and importance of the good in the consumer's budget constraint?
Elasticity of demand
Name the newest member of the Supreme Court.
Elena Kagan
The largest share of "shrink" for a supermarket is associated with what source of loss?
Employee theft
What measure is: number of employed/ by the civilian noninstitutional population?
Employment rate
What is it called when management gives employees expanded authority to solve problems as the arise?
Empowerment
What US Act to protect endangered species is being rewritten to include consideration of the cost of preservation?
Endangered Species Act
A(n) variable is a variable whose value is determined by a system of equations.
Endogenous
Variables determined within the system are referred to as what type of variables?
Endogenous
The curve that traces the relationship between income and quantity purchased of a particular good or service is called?
Engel curve or function
The idea that when a family's income increases, the proportion of money they spend on food decreases is known as what?
Engel's Law
What do we use to project the income and costs for growing an acre of a certain commodity?
Enterprise Budget
__________ is the process organizing, operating, and assuming the risks associated with a business venture.
Entrepreneurship
What term is used for the worth of a firm determined by deducting all debts from the value of all property?
Equity
What is the amount by which the value of total assets exceeds total liabilities, or the amount of the owner's own capital invested in a business?
Equity or net worth
_____ is when an estate is transferred to the government because a person has died without a will or legal heirs.
Escheat
What is the name for the total value of assets owned by an individual, often applicable when the individual dies or declares bankruptcy?
Estate
What corn by-product, used in a mixture with gasoline, burns cleaner than regular grade gasoline?
Ethanol
When gassing tomatoes, what is the gas?
Ethylene
What is the name of the European currency?
Euro
What type of quantity-based tax is levied on such commodities as tobacco and gasoline?
Excise
What type of tax is levied on things such as tobacco, gasoline and alcohol and is based on quantity sold?
Excise
A specific isocline representing a set of input price ratios the manager believes relevant can be called the firm's:
Expansion Path
Given constant input prices, what connects the set of optimal input combinations as total input expenditures increase?
Expansion Path
What curve represents the least-cost combination of two inputs that can be used to produce increasing quantities of a product?
Expansion Path
______ is the curve along which output expands when factor prices remain constant?
Expansion Path
____ costs include a frim's ordinary expenses in production, such as payroll, raw materials, etc., while ______ costs include the opportunity costs of the firm's resources.
Explicit, Implicit
What is the term for a suspension of exports in one or more commodities by a country to one or more countries?
Export Embargo
The US's EEP program would be an example of what type of trade policy?
Export Subsidy
What type of goods are produced in one country and shipped to another?
Exports
If a currency appreciates, what will happen to exports?
Exports will decrease
What economic rationale is used for interfering with Laissez-faire?
External economies or diseconomies
What are the benefits or costs accruing to some individuals or groups that are not reflected in a market transaction?
Externalities
______ are costs or benefits that exist outside of the normal of the cost/benefit computations of the firm or industry.
Externalities
What is the incorrect assumption that what works for parts of the economy, such as households or businesses, also works for the aggregate, or macroeconomy?
Fallacy of Composition
The ____ has primary responsibility for conducting monetary policy.
Federal Open Market
The branch of the Federal Reserve Board that determines the direction of monetary policy, such as its regular meetings to set key interest rates, is called the?
Federal Open Market Committee (FOMC)
What is another term for the paper money in the U.S.?
Federal Reserve Notes
The nation's central bank. It was established by an Act of Congress in 1913 and consists of the Board of Governors in Washington, D.C., and twelve District Banks.
Federal Reserve or FED
The function of investigating instances of fraudulent advertising has been assigned to the what?
Federal Trade Commission
Overnight loans between banks of their deposits with the Fed.
Federal funds instrument
Young livestock that are purchased for the purpose of being fed until they reach slaughter weight are called what?
Feeder Livestock
What do we call money that does not have intrinsic value?
Fiat Money
What type of money is valued only because it is used as money?
Fiat Money
What is the term for an asset which is essentially a paper claim on another economic unit?
Financial Asset
A form of indirect finance where an institution (a bank) acts as an intermediary to reduce transactions costs and facilitate borrowing and lending?
Financial Intermediation
Changes in government expenditures and taxation to achieve economic goals is called:
Fiscal Policy
Examples of ______ include setting the level of government expenditures and the level of taxation.
Fiscal Policy
A 1% change in the rate of inflation causes a 1% change in the nominal interest rate. This 1-to-1 relationship between inflation and nominal interest is called what?
Fisher Effect
What is the term for an intrinsically worthless commodity that serves as the medium of exchage by legal decree?
Flat Money
What is generally the reason that a farmer would choose to use the cash method over other methods of accounting?
Flexibility
What currency measure is allowed to fluctuate in the open market in response to the demand and supply of foreign currencies?
Flexible exchange rates
In the foreign currency market, what type of exchange in the basis for the United States dollar?
Floating rate of exchange
In market research, how do we refer to interviews that usually involve 8-12 individuals selected because they are from the target market segment?
Focus group
What term refers to the use of agricultural exports and development assistance as tools to achieve specific foreign policy goals?
Food Diplomacy
The food distribution channel that consists of restaurants and food service establishments is called?
Food away from home
What principle shows that fluctuations in exports or imports may generate magnified variations in national income?
Foreign-trade Multiplier
The value of a good associated with its availability in a form convenient to buyers is called _________ utility?
Form
What utility is created by a manufacturing process that converts raw materials into a product with more value in the marketplace?
Form
When a company purchases whole beef carcasses and converts them to packaged steaks and other beef products, we say the company has added ____ utility.
Form
What type of utility is added to a commodity through the processing function?
Form Utility
What type of utility is added to the commodity through the processing function?
Form Utility
What system can be described as the economic system that allows all agents to pursue their own best interests, resulting in a maximization of the well being of society?
Free Enterprise
What is someone who benefits from a public good or service without paying any of the cost called?
Free Rider
What type of unemployment arises if workers are laid off, due to changes in consumer preferences, but the remaining producers will eventually hire them in order to meet their own increased demand?
Frictional Unemployment
This exists when everyone who is willing and abe to work at the prevailing wage rate can find a job in the line of work for which he or she is qualified.
Full Employment
What term describes employment levels no greater than that stemming form the normal functioning of the labor market?
Full Employment
Suppose a Mexican resident comes to the US temporarily to work. Is the income he or she earns in the US part of US gross domestic product (GDP) or US gross national product (GNP)?
GDP (earned within US)
The difference between potential and actual GDP is known as ______?
GNP gap
What type of inflation proceeds at an exceptionally high rate, perhaps for only a relatively brief period?
Galloping inflation or hyperinflation
The analysis of situations involving two or more decision makers with conflicting objectivesis known as what?
Game Theory
_________ is concerned with the analysis of decision-making under conflict caused by opposing interests (Often included in studies of operations research methods.)
Game Theory
In accounting, what does the acronym GAAP stand for?
Generally Accepted Accounting Principles
A plant or animal whose genes have been altered through deliberate genetic engineering?
Genetically Modified Organism (GMO)
The biotechnology technique that transfers genetic material by recombinant DNA or "gene splicing" techniques from one organism to another for the purpose of improving plant or animal production results in products terms_________
Genetically Modified Organisms (GMO's)
What are the headquarters of the WTO located?
Geneva, Switzerland
For any given trait, what two componants make up the phenotype for an animal?
Genotype + Environment
Thomas Malthus argued that living standards would fall because population was growing at a(n) _____ rate, and food production would gow at a(n) ______ rate.
Geometric and Arithmetic
Name one American president not buried in the United States.
George W. Bush, Bill Clinton, George H. W. Bush, Jimmy Carter, Barack Obama
What scientist, who spent his career at Alabama's Tuskegee Institute, is credited with inventing hundreds of uses for the peanut and other plants?
George Washington Carver
An inferior good with an income effect larger in absolute value than the substitution effect is called?
Giffen Good
Historically, Irish potatoes are examples of what type of inferior goods, which violate the law of demand?
Giffen Good
What do we call a good with a positively sloped demand curve?
Giffen good
For an inferior good, an increase in price will have a positive income effect and a negative substitution effect. When the income effect outweighs the substitution effect, consumption increases. This unusual set of circumstances is called:
Giffen's Paradox (Giffen Good)
What is the relevant time frame for a firm's balance sheet?
Given point in time (one point in time)
What term refers to the greatest "openness" and emocratization embodied in the Gorbachev reforms?
Glasnost
Large multinationals produce their products in countries where labor expenses are lower and sell their output in growing international consumer markets. The movement is called:
Globalization
A ________ parachute is a severance contract that is intended to generously compensate top-level managers for the loss of their jobs in the event of takeover.
Golden
Because of its controversial production process, the city of Chicago banned the sale of foie gras in 2006, a French delicacy made from what?
Goose or Duck liver
Net Domestic Product (or NDP) is equal to:
Gross Domestic Product (GDP) less depreciation
The dollar value of all finished goods and services produced within the economy in a given period of time is called:
Gross Domestic Products (GDP)
The total value of all final goods and services, including depreciation, produced within a county is known as ________.
Gross Domestic Products (GDP)
Sales minus cost of good sold divided by sales is defined as _______.
Gross Margin
What do we call that total value of goods and services produced annually within a country?
Gross National Product (GNP)
In Canadian farm policy, the acronym GRIP stands for:
Gross Revenue Insurance Program
The Farm Service Agency has moved away from direct loans from congressional appropriations toward more loan _________.
Guarantees
An internationally accepted method of ensuring food safety by identify hazards and monitoring their Critical Control Points in the prices.
HACCP-Hazard Analysis Critical Control Points
What preventive system attempts to eliminate or minimize potential biological, chemical, and physical hazards relative to the safety and quality of foods?
Hazard Analysis Critical Control Points (HACCP)
Reducing price risk by taking a position in a commodity futures contract that is the opposite of of a cash position is known as _______.
Hedging
What is the implicit or shadow price for a specific characteristic of a commodity?
Hedonic Price
A graduated income tax doe what to a cyclical economy?
Helps stabalize it
What 2 indicators are associated with stagflation?
High inflation and some indicator of a recession (for exp high unemployment)
Who would own a tract of land after a man's death if it were owned in a joint tenancy with right of survivorship with his child, but his will left all his property to his wife?
His child
What term describes two organizations joining to sell the same or very similar goods?
Horizontal merger
What is the shape of the long-run supply curve for a constant-cost industry, or an industry that can expand without causing an increase in input prices?
Horizontal or flat
What term describes a hypothesized effect of history on unemployment rates--that a short-term rise in unemployment tends to persist?
Hysteresis
What is the name of the macroeconomic model which analyzes that interactionbetween the goods andservices market and the money market?
IS-LM Model
What US state is the leading producer of potatoes?
Idaho
A square matrix with 1's on the main diagonal from the upper left corner to the lower right corner, and 0's everywhere else.
Identity matrix
When an excise tax is placed on alcoholic beverages, what is meant by the incidence of the tax and what influences the incidence?
Incidence refers to who bears the burden of tax; Incidence is driven by the relative elasticities of the buyers and sellers
The Engel Curve shows the relationship between quantity purchased of a particular good or service and ________
Income
The _____ effect of a change in the price of a good is the change in the quantity consumed of that good that results form a change in the consumer's purchasing power due to the change in the price of the good.
Income
The consumption function shows a relationship between ______ and consumption.
Income
When the goods market is in equilibrium, combinations interest rates and output are depicted where spending equals what?
Income
Which approach to property appraisal focuses on the earnings potential of the property?
Income Approach
What measures the sensitivity of consumer purchases to each 1 percent change in income?
Income Elasticity
What method of measuring GDP totals all labor and other resource earnings within the economy during an accounting period?
Income Method
What is a summary of revenues and expenses over a given time period called?
Income Statement
What statement is the summary of receipts and gains during a specified period minus the expenses and losses during the same period?
Income Statement or Profit and loss statement
In Giffen's Paradox, what is the relationship between the income effect and substitution effect?
Income effect (negative) is stonger than the substituition effect (positive)
Net farm income, as reported on Schedule F of the IRS, is subject to income tax and self-employment tax. The gain on capital sales (such as machinery or breeding livestock) is only subject to ______ tax.
Income tax
The ratio of total nominal GNP to the stock of money?
Income velocity of money velocity of money
What are the 3 main approaches to property appraisal?
Income, cost, market
What are the three major approaches to appraisal of property?
Income, market and cost approaches
If additional variables are added to a linear regression model, will R-Squared: increases, decrease, or stay the same?
Increase
If the interest rate falls, what will the asset demand for money will likely do, other things being equal?
Increase
What is the most common method for a firm to increase its financial leverage.
Increase its debt
How would a Keynesian economist recommend dealing with high unemployment?
Increased government spending and/or reduced taxation
Holding other things equal, the present value of a particular investment will decrease if the discount rate does what?
Increases
In Michael Porter's Five Forces model, if suppliers' products become more differientiated or switching costs increase, supplier power ________.
Increases
There is a tendency for R-squared to do what as more explanatory variables are added?
Increases
Cost-push inflation is caused by what economic change?
Increases in the price of inputs
What do we call an industry that may not be able to survive the pressures of foreign competition during its early years before reaching maturity?
Infant Industry
The percentage increase in the cost of living from year to year is called __________
Inflation
What term is used for a sustained rise in the general price level for goods and services in the economy?
Inflation
The increased return on a security required to compensate investors for expected inflation is ________:
Inflation Premium
The portion of a nominal interest rate that represents compensation for expected future inflation is called the ______ _______.
Inflation Premium
The real interest rate may be calculated by taking the nominal interest rate and subtracting the _____.
Inflation rate
Aggregate expenditures above potential output that exist at the current price level. This is called?
Inflationary Gap
What do we call the amount by which equilibrium level of real GDP exceeds the full-employmentlevel of GDP?
Inflationary Gap
What is the term for a country's facilities (highways, railroads, etc.) that support economic activities?
Infrastructure
What is the term for a country's physical facilities that support economic activities?
Infrastructure
The general term used to describe roads, power lines, ports information networks, and other underpinnings for economic activity
Infrastucture
In 2006, Burger King was among a number of companies to launch an IPO, what is an IPO?
Initial Public Offering
What business activity includes the introduction of new products, the use of new production methods, or the restructuring of business entities?
Innovation
What is the term for the estimated value of a good or service not sold in the marketplace, and therefore has no market price?
Inputed value
A situation where liabilities are greater than assets is called _________.
Insolvency
If (total assets/total liabilities)<1, then the firm is what?
Insolvent
The SAEA Company has Total Assets of $576,000 and Total Liabilities of $730,000. Based on these numbers, SAEA is finacially ______.
Insolvent
According to the Keynesian economic model, a depression is caused by ______.
Insufficient aggregate expenditure or demand
Intellectual property, goodwill, and brand recognition, while not physical in nature, all contribute to a firm's bottom-line profits and are therefore referred to as?
Intangible assets
________ __________ refers to all of a company's patents, trademarks, service marks, trade names, trade secrets, and copyrights.
Intellectual Property
What equates the quantity of money demanded with the quantity of money supplied?
Interest Rate
An agreement to sell expected future returns on one financial instrument for the expected returns of another.
Interest Rate Swap
In dynamic markets (decisions over time) firms will invest up to the point at which the marginal rate of return from the last investment is equal to the ______
Interest rate
What is the price of borrowed money commonly called?
Interest rate
Production inputs that have finite useful life of more than one year andare generally used up or worn out during the production process are known as ________?
Intermediate assets
What type of goods are purchased for resale and further processing or manufacturing?
Intermediate goods
Goods held by the firm for future sales for use in the manufacturing of goods are?
Inventories
A measure of management' control of its investment in inventory, defined as cost of goods sold divided by inventory is called?
Inventory turnover ratio
Dividing the cost of goods sold on the income statement by the value of product inventory on the balance sheet generates what ratio?
Inventory turnover ratio
A market where distsant futures delivery month prices are lower than nearby month's prices.
Inverted Market
In the IS-LM model,what does IS stand for?
Investment and Saving
In terms of GDP accounting, what are additions to inventories called?
Investments
Which U.S. state produces the most pork?
Iowa
What two curves are tangent when the least cost combination of inputs is determined?
Isocost line and Isoquant
A(n) _____ is a curve or llocus of points showing all possible combinations of inputs physically capable of producing a given level of output.
Isoquant
How would a structural change in demand affect the demand curve?
It would change the shape and/or the slope of the curve
Which French economist used a "circular flow of money" diagram to demonstrate that "supply creates its own demand"?
J.B. Say
The Affluent Society was written by what famous economist?
J.K. Galbralth
Name one of the two primary founders of modern public choice theory; together they wrote "The Calculus of Consent"?
James Buchanan and Gordon Tullock
In terms of dollar value, what country represents the largest U.S. agricultural export market?
Japan
The horizontal expansion of a job by adding tasks at the same skill level to keep a worker from being bored is known as?
Job Enlargement
Who wrote the book, The New Industrial State?
John Kenneth Galbrath
The General Theory of Emplyment, Interest and Money was written in 1936 by _____.
John Maynard Keynes
What is the general term for any business arrangement whereby two or more parties contribute resources to, and engage in, a specific business undertaking?
Joint Venture
Who is responsible for the labor theory of value?
Karl Marx
What school of economic though advocates expansionary policy because on its own, the economy can take too long to eliminate a recession and return to full employment?
Keynesian
The assumption of "sticky prices" is central to what macro-economic model?
Keynesian macro-economics
What unit of currency in the Czech Republic is a homonym for the name of a Mexican Beer?
Koruna
Is nonlinear programming the first-order conditions are called the______ conditions.
Kuhn Tucker
What U.S president aimed to implement policies to create a "great society" in the 1960's?
L.B. Johnson
In land appraisal, using an income approach, what factor has the first claim on gross income while land gets the residual?
Labor
From what curve can we determine that at some point an increase in marginal tax rates will cause total tax revenues to decrease?
Laffer Curve
What is the name of the curve that shows the relationship between the tax rate and tax revenue?
Laffer Curve
A macroeconomic policy that the government should not intervene in the of the national economy is ________.
Laissez Faire
Economic thought that suggests the government ought to play a very limited role in economic activity is reffered to as:
Laissez Faire
What philosophy asserts that the government should exert minimal control over industry and trade?
Laissez Faire
_______ is a term used to refer to a policy whereby the government exercises minimum control over industry and trade.
Laissez Faire
What foreign phrase used in economics literally means "let do"?
Laissez-faire
What Land Class is suitable only for wildlife or recreation?
Land Class VIII
Name the four factors of production.
Land, Labor, Capital, and Entreprenuership (or managerial ability)
What are the four factors of production?
Land, Labor, Capital, and Management
There are four general categories of factors of production. Name 3 of them.
Land, Labor, physical capital, and human capital
What is the method of inventory accounting in which the newest item in inventory is assumed to be sold first?
Last in, first out (LIFO)
_______ demand exists when many consumers share a strong need that is not met by existing products or services.
Latent
What language is the phrase "ceterus paribus"?
Latin
What are "right to work" law?
Laws that make compulsory union membership illegal
What are 2 functions of a central bank?
Lender of last resort, banker's bank, clearing house for checks, control the money supply, etc
What term refers to the number of products that a firm offers within one category or line?
Length
If two goods were perfectly complementary , what functionional form would demonstrate this relationship?
Leontief
What are referred to as LDC's?
Lesser Developed Countries
What is the translation for the phrase caveat emptor?
Let the Buyer Beware
Debt divided by equity is commonly known as the _____ ratio?
Leverage
What is the practice of using credit or borrowed funds to increase the amount of capital managed by the owner so as to increase the return on equity?
Leverage
When investors do a LBO they have done a _____?
Leveraged Buyout
For a firm an obligation to pay an amount is known as?
Liability
What is a monetary debt owed by a firm or an individual?
Liability
a monetary debt owed by a firm or an individual is a _____.
Liability
What accounting schedule includes records of money loaned and borrowed, principal and interest payments, and unpaid balances?
Liability Schedule
__________ is when one organization grants another permission to use a registered brand, symbol, process, patent, etc.
Licensing
What is a claim given to a lender to have the debt satisfied out of property belonging to the debtor is repayment not made?
Lien
Scaling technique where respondents are asked to rate the attitude towards an object on each scale item in terms of a five-point category labeled scale.
Likert Scale
________ pricing is used by an incumbent firm to deter market entry. The incumbent sets price very close to marginal cost under this strategy.
Limit
A special form of partnership in which the liability of a partner for partnership obligations is restricted to that partner's investment in the business is called a ________ partnership.
Limited
What type of business organization is a hybrid of partnership and corporation?
Limited Liability Company (LLC)
A business organization like S Corporations width combine limited liability with pass through taxation. However, they are more flexible than S Corporations. There are no restrictions on the number of owners or their identity.
Limited Liability Company (LLC) or Limited Liability Partnership
A type of partnership where one or more of the partners enjoys limited liability as long as they do not participate in the control of the partnership business.
Limited Partnership
What deterministic modeling procedure is commonly used to determine the whole farm output mix given a set of output prices and resource constraints?
Linear Programming (LP) Model
If changes in interest rates have no effect on output, what condition exists?
Liquidity Trap
What is the term used when output fails to respond to changes in the interst rate?
Liquidity Trap
For the U.S. and Canada, what are the primary uses of barley?
Livestock feed and malting
How is the elasticity of the long run supply curve for a nondurable good related to the elasticity of the short run supply curve?
Long run is more elastic
The envelope of short-run average total cost curve is the?
Long-run average total cost curve
The Permanent Income hypothesis suggests that household consumption is strongly driven by what?
Long-run income expectations
How do we characterize a product that is intentionally sold below cost in order to potentially attract customers into the store?
Loss Leader
If the demand for an agricultural product is inelastic, a bumper crop will____the price and _____total revenue/
Lower; decrease
A resource that can be obtained only in certain indivisible sizes, such as a combine, a full-time employee, or a pivot irrigation system.
Lumpy Inputs
The sum of all coins, paper money in circulation and certain bank deposit balances comprise what economic entity?
M-1 money supply
A narrow money supply measure that includes currency in circulation and the value of demand deposits?
M1
The sum of currency, traveler's checks, and checkable deposits is known as _____?
M1
What can be said about the MC curve at the area where MC=MR?
MC is rising, not peak or max
Assuming the marginal propensity to consume (MPC) is equal to .94, what is the marginal propensity to save (MPS).
MPS=1-MPC or .06
If the inverse demand equation is P=10-2Q, what is the equation for the Marginal Revenue Curve?
MR=10-4Q
Corn is called by what other name in parts of the world?
Maize
A doctrine that states that population growth will inevitably outrun any growth in food supplies, leaving mankind in a desperate state of povertya nd hunger is attributable to ______.
Malthus
What exchange rate system is currently used by the industrially advanced nations?
Managed Float
What do we call the system that allows managers to compute costs by alternative methods and provides the means for monitoring and controlling those costs?
Management Information System (MIS)
A form of restructuring in which firm's managers acquire a greater stake in the firm by buying back shares form other shareholders.
Management buy-out
What is the systematic application of goal setting and planning to help individuals and firms to be more productive, abbreviated MBO?
Management by Objectives
You throw two fair dice and observe the two faces uo. What is the probability that the sum is not less than four?
Mar-36
Mobile is recognized as the first American city to celebrate what event in 1703?
Mardi Gras
A(n) ____ ______ is a request for additional money that a futures trader must provide to maintain an existing open position.
Margin Call
What is the request for additional money that a futures trader is required to deposit if an adverse price move significantly devalues his or her initial deposit?
Margin Call
A profit maximizing monopolist will produce at the point where marginal revenue equals what?
Marginal Cost
From a production function, the change in total variable costs divided by the change in output is defined as ____?
Marginal Cost
The amount that Total Cost changes with the addition of one extra unit of output defines _______.
Marginal Cost
The change in total cost due to a one unit change in the rate of output is ________
Marginal Cost
What per cost is obtained by taking the partial derivative of the total cost funtion with respect to the quantity of output?
Marginal Cost
What two marginal values are equal at the profit maximizing level of output?
Marginal Cost and Marginal Revenue
A crucial point in the economics of decision making is that, in the short run the decision maker should ignore fixed costs and rely on ______.
Marginal Costs
In stage III of the classical production function, what measures of variable inputs is negative?
Marginal Physical Product (MPP)
What economic term describes the additional bushels of corn produced on an acre of land that results from using one more unit of nitrogen?
Marginal Physical Product of Nitrogen
The ______ of an input is the addition to total output attributable to the addition of one unit of the variable input.
Marginal Product
What is the term for the extra amount of output a firm gets from one extra unit of labor?
Marginal Product of Labor
MPS stands for
Marginal Propensity to save
The value of the output produced by adding one additional unit of input is called:
Marginal Value Product (MVP) or Marginal Reven Product (MRP)
The change in total cost when output is changed by one additional unit is referred to by what term?
Marginal cost
The additional corn produced on an acre of land because of using one more unit o nitrogen is referred to by what phrase?
Marginal physical product of nitrogen
The amount consumed out of an additional dollar of income is known as the?
Marginal propensity to consume
The extra amount that people consume when they receive an extra dollar of income.
Marginal propensity to consume
The fraction of each additional dollar of income devoted to consumption expenditure.
Marginal propensity to consume
What do we call the fractional change in disposable income that is spent for consumer goods?
Marginal propensity to consume
Name the scheduled keynote speaker for the 2003 AAEA meeting.
Marion Nestle
The collection of consumer goods and services tracked in the process of calculating the Consumer Price Index is known as a(n)?
Market Basket
What term describes a selection of goods that are representative of consume purchases and is indicative of consume pricce movements?
Market Basket
What is the ability to advantageously influences markets, market behavior, or market results?
Market Power
A(n) ______ _____ is a domestic agricultural policy tool that limits the amount of output a producer can place on the market.
Market Quota
What do we call a firm's percentage of the total sales in a market?
Market Share
What term is used to describe an individual firm's share of the total market?
Market Share
Characteristics of an industry that relate to its economic performance, such as the number of buyers and sellers, product differentiation among firms, barriers to entry, costs, degree of integration, and diversification
Market Structure
_________ ________ describes the number and size distribution of firms in a given market.
Market Structure
What is the price at which an asset can be sold?
Market Value (market Price)
In land appraisal, name the three approaches typically used in determining the value for a particular parcel of real estate.
Market Value Method, Cost Method, Income Method
In futures trading, what kind of order instructs a broker to immediately execute an order at the best available price?
Market order
The alternative routes of product flows from producers to consumers are called _______________?
Marketing channels
How does marketing differ from selling?
Marketing involves market analysis before the production and selling begins
What do we call the portion of the consumer's food dollar that goes to food marketing firms?
Marketing margin
What are the costs incurred by buyer-seller search negotiations and contract enforcement activities?
Marketing quota costs
What type of contract between a seller and a buyer assures a market for a commodity at harvest at a negotiated price?
Marketing, sale, or forward sale
The most commonly used demand curve that reflects both the income and substitution effects is formally called:
Marshallian Demand
What is a marketing philosophy in which the seller views the market as a homogenous whole , and, therefore has only one marketing program for everyone?
Mass marketing; also unsegmented marketing or undifferentiated marketing
The number of years until the face value (or par value) is paid is called the bond's time to _____.
Maturity
Ordinary least squares is one technique to find the regression coefficients and MLE is another. The Acronym MLE stands for?
Maximum Likelihood Estimation
In dollar sales, what commercial eating establishment is the largest in the world?
McDonalds
In simple regression analysis, the regression line will always pass through the _______ of the dependant variable and the _______ of the independent variable.
Mean and Median or average and average
The transaction demand for money is related to money functioning as a?
Medium of Exchange
What is the general terminology describing what sellers accept for payment and buyers use as payment for a good or service?
Medium of exchange; currency
What are the two most common types of greenhouse gasses?
Methan and Carbon Dioxide
An economic system that relies on both markets and governments to allocate resources is known as a(n) ______ economy.
Mixed economy
What type of competition is characterized by: many firms selling a differentiated product, easy entry, some control over the price paid for the product, and considerable nonprice competition?
Monopolistic
A market structure in which a large number of firms sell a differentiated product, no barriers to entry exist, and no firm is a price taker is known as?
Monopolistic Competition
Changing the assumption of homogeenous products (in perfect competition) to product differentiation will lead to a market structure known as
Monopolistic Competition
A market structure where is only one buyer:
Monopsony
What is a market in which there is only one buyer of a good, service, or resource?
Monopsony
What is the term used for a market with a single buyer?
Monopsony
What type of competition is characterized by: many firms selling a differentiated product, easy entry, some control over the price paid for the product, and considerable non-price competition?
Monopsony
_____ hazard is the situation when an individual knows more about his or her own actions or situations than other people involved in the transaction
Moral
The potential for someone who has purchased an insurance policy to increase his or her risk-taking behavior as a result is an example of?
Moral Hazard
What is the name of the credit instrument that is used when a loan is secured by real estate?
Mortgage
What statistic is calculated by dropping the oldest observation and incorporating the most recent observation into a numerator, with a constant denominator?
Moving average
If regression results show a high R-squared and statistically insignificant coefficient estimates; what problem do you suspect?
Multicollinearity
Perfect correlation between the two explanatory variables in a regression model is termed Perfect____.
Multicollinearity
Significant linear correlation between the explanatory variables in a regression model is referred to by what term?
Multicollinearity
What type of agreement exists when any of the partners of a firm can act as the firm's agent and provide total financial commitment?
Mutual Agency
A ____ ____ is a financial intermediary that creates a stock portfolio and then resells shares of this portfolio to individual investors.
Mutual Fund
What term describes investment projects that are not independent, such that only one can be undertaken?
Mutually exclusive
Which food-marketing channel includes brand names like Pepsi and Doritos?
National Brand Channel
What are you calculating by taking: Gross Domestic Product minus nonincome charges plus net U.S. income earned abroad?
National Income
What is measured on the horizontal axis of the IS-LM diagram?
National Income (Y)
The set of rules and definitions for measuring economic activity in the aggregate economy. This is called?
National Income Accounting
A _______ can arise when the long- run average costs curve (given fixed input prices) is downward sloping, thus the least costly way to serve the market is to concentrate production in the hands of a single firm.
Natural Monopoly
What term describes the unemployment rate when the economy is in long-run equilibrium?
Natural Unemployment Rate
What is the abbreviation "in" typically used for in econometric analyses?
Natural logarithm
What is the average rate of unemployment around which the economy fluctuates?
Natural rate of unemployment
What would a monetarist call the rate of unemployment implied by the present structure of the economy?
Natural rate of unemployment
What term refers to liquid assets that are close substitutes for money?
Near Money
The income elasticity of demand for what type of goods is positive but less than one?
Necessities
In the context of labor markets, "shrinking" refers to?
Neglect or evading work
A NOW account is essentially an interest bearing checking account at a savings bank. The acronym NOW stands for?
Negotiable order of withdrawal
Assume that the commercial banking system has demand deposits of $10 billion and excess reserves of $1 billion at a time when the reserve requirement is 20 percent. If the reserve requirement is now raised to 30 percent, the banking system then has?
Neither an excess nor a deficiency of reserves
What form refers to the notion that industrially advanced nations are economically exploiting the LCD's?
Neocolonialism
What term do we use for the total value of all final goods and services produced within a country's borders in a year minus capital consumption allowance?
Net Domestic Product (NDP)
In an open economy, what must the difference between domesticsavings and domestic investment equal?
Net Export (or trade balance)
The discounted current value of all net benefits that occur in the future is called:
Net Present Value
Name the two basic discounted cash flow methods that provide information for capital budgeting decisions.
Net Present Value and Internal Rate of Return
Which methods of capital budgeting includes consideration for the time value of money?
Net Present Value and Internal Rate of Return
The difference between total cash inflows and total cash outflows for an operating period.
Net cash flow
What economic phrase describes the discounted sum of the income and cost streams associated with an investment?
Net present value
Current farm assets minus current farm liabilities is defined as
Net working capital
A strategy in which a firm produces a single product for a single market segment is called:
Niche Marketing
In commercial fertilizer mixtures, what do N, P, and K stand for?
Nitrogen, Phosphorous, Potassium
What is the primary distinction between nominal and real GDP?
Nominal GDP is in current dollars, real GDP is adjusted for changes in the price level
Sedimentation of major waterways from soil erosion is an example of what kind of pollution?
Non-Point Source
Which type of assets includes all assets other than land and items attached to land such as buildings and fences?
Non-real estate assets, or personal propertyassets
Economic questions that deal with value judgments such as "What should be the economic level?" are examples of _______ Economics.
Normative
Why is the production possibilities curve of 2 goods usually drawn concave from the origin?
Not all resources can be used equally efficiently in the production of each good
The hypothesis that implies that there is no difference between the true value of the population parameter and that which is being hypothesized is known in statistical theory as the ______.
Null hypothesis
What is the formula for calculating the unemployment rate?
Number of unemployed divided by total labor force
What is the term for a commodity that serves as a measure of value or unit of account in a commodity money economy.
Numeraire
The government agency charged with ensuring the health and safety of employees by providing safe working conditions.
OSHA Occupational Safety and Health Administration
Suppose for a linear regression model you wanted to conduct a t-test to test whether or not a parameter estimate was positive. What type of t-test would this be?
One-sided (One-tailed)
Buying and selling government securities by the Fed as a monetary policy tool is called:
Open market operations
How are futures prices established?
Open outcry of bids and offers
The purchase or sale of government bonds by the Federal Reserve in order to increase or decrease the money supply is known as?
Open-Market Operations
Expenses not directly attributed to any product or service but support the general operation of the business are called _________ _________.
Operating Expenses
The personal income forgone by someone going to college is what kind of cost?
Opportunity cost (or implicit costs)
A scientific discipline's general orientation or way of viewing its subject matter is called:
Paradigm
What is the term for a mind-set that forms a fundamental way of thinking, perceiving and understanding the world?
Paradigm
The only situation in which the optimal solution of a linear programming model is not unique is characterized when the objective function is __________to the feasible region.
Parallel
The exercise of monopoly power creates a welfare loss. Under constant returns to scale production technology, decompose this decrease in societal consumer surplus into its two respective parts.
Part of the loss in consumer surplus is associated with the transfer of consumer surplus from the consumer to the monopolist and the other part of lost consumer surplus is simply the deadweight or efficiency loss
The loss in consumer surplus that results from monopoly power can be divided into 2 components. What are the components?
Part of the loss in consumer surplus is transferred to the producer, and the rest is deadweight-loss (i.e., no one captures that loss)
Additional Revenue, Reduced Revenue, Additional Costs and Reduced Costs are the four categories that make up a __________ Budget.
Partial
A budgeting concept that analyzes a projected change in the business.
Partial budget
What are the earnings of a cooperative that are paid to member-patrons either in the form of stock or cash?
Patronage refund
A measure of a company's use of trade credit financing, defined as accounts payable divided by purchases per day is:
Payables period or payment period
What capital budgeting method results in the number of years required to repay the original investment?
Payback
Evaluating a long term investment by dividing the invested amount by the investment's projected annual cash flow is called:
Payback Method or Payback Period
A capital budgeting method which computes the length of time required for the accumulated returns to equal the original investment?
Payback Period or Payback Method
What type of substitutes arise from the ability oof a firm, depending on its size, to realize savings by purchasing inputs at a lower price or by selling products at a premium?
Pecuniary Substitutes
What types of substitutes arise form the ability of a firm, depending on its size, to realize savings by purchasing inputs at a lower price or by selling products at a premium?
Pecuniary substitutes
The animal rights group PETA is an acronym for what?
People for the ethical treatment of animals
If an isoquant is a downward sloping straight line, what kind of factor substitutability does this represent?
Perfect factor substitutability
If no seller can unilaterally influence the price of a good, what type of market exists?
Perfectly Competitive
What type of demand curve does a perfectly competitive firm face?
Perfectly Elastic or Horizontal
What hypothesis states that consumption is dependent upon a household's long-run income expectations?
Permanent income hypothesis
What is the term for a security, which promises a fixed-coupon payment at equal intervals forever?
Perpetuity
Keynesian economists assert that the interest rate motivates individuals to save, while monetarists assert that ______ motivates personal savings.
Personal Income
A theoretical relationship between the unemployment rate of a given economy and the rates of (wage) inflation.
Philips Curve (for A.W. Philips)
What are the 3 general forms of depreciation, regardless of whether they are curable or incurable?
Physical (deferred maintenance), Functional, External
The stock of equipment and structures used to produce goods and services is called what?
Physical Capital
"Defensive Medicine" refers to the notion that?
Physicians may require unnecessary testing as a means of protecting themselves against malpractice suits
What utility is created by firms that transport raw materials, intermediate products, and final goods to locations where they are desired by buyers?
Place
The value of a good or service associated with the location and convenience of its accessibility to buyers is called ________ utility?
Place utility
What type of utility is provided by transportation services?
Place utility
Also known as the Deming Cycle, PDCA is a cycle of activities designed to drive continuous improvement that stands for?
Plan, Do, Check, Act
In quantum physics, what is the name of the fundamental constant represented by the letter h?
Planck's Constant
Vision, mission, objectives, and goals are elements of which of the four functions of management?
Planning
Every game has three essential components. These are?
Players, payoffs, and strategies
What type of pollution would be caused by an industrial plant that discharges pollutants from a pipe or ditch into a body of water?
Point Source Pollution
Cross price elasticities are used in antitrust cases to help define or delineate a market. Goods in the same relative product market are expected to have ______ cross price elasticities.
Positive
What should the sign of the slope parameter for a substitute god be when using a regression model to forecast demand?
Positive
A food broker primarily provides what type of utility to the food marketing system?
Possession Utility
The actual price the buyer paus for a put or call is referred to as the ____________.
Premium
Generally reported with current assets, this balance sheet item represents cash expenditures for itemsthat will be incurred in future periods.
Prepaid expenses
The current value of a stream of payments to be made or received over some period of time in the future.
Present Value
Charging different prices to different consumers for the same good is called _______ ____________.
Price Discrimination
The practice by monopolists of charging different prices to different consumers is called _____ _____
Price Discrimination
The practice of selling a certain product of given quality and cost per unit at different prices to different buyers.
Price Discrimination
What term is defined as the percentage change in quantity demanded resulting from a 1 percent change in price?
Price Elasticity
When U.S. agribusinesses export agricultural commodities, what happens to the domestic price of those products?
Price Increases
What is the term for the process by which buyers and sellers arrive at a specific price for a given lot of produce in a given location?
Price discovery
Total cost is given by TC = 100 + 10Q and inverse industry demand is gien by P = 90 - 2Q . What is the competitive price and quantity solution?
Price equals $30, and quantity equals 30 units
The process by which prices rise and fall in an attempt to match the available supply with current demand is
Price rationing
According to the Quantity Theory of Money, what will happen in response to an increase in the money supply?
Prices will Increase
The market where new shares of stocks or new bonds are bought and sold. Activity in this market represents direct finance where actual borrowing and lending activity takes place.
Primary Market
Which government official lives at 24 Sussex Drive?
Prime Minister of Canada
Who's is David Cameron?
Prime Minister of England
What is the common name for the rate of interest charged by commercial banks to first-class-risk corporate borrowers for short term loans?
Prime Rate
Water rights doctrine adopted by some western states, giving the first person to use water from a stream the first right to such water.
Prior appropriation
Balance sheets and income statements based on projections of events and conditions are examples of what kind of financial statements?
Pro Forma
What kind of financial statement is prepared on the basis of some assumed future events?
Pro Forma
What name is commonly given to projected income statements and balance sheets?
Pro Forma
The traditional measure of ________ _________ is the area above the product supply curve and below the price.
Producer Surplus
A term or model used to describe the process by which demand for a product is low when it is introduces, followed by rapid growth, maturity, and decay.
Product Life Cycle
What are the 4 elements of the marketing mix, commonly called the 4-P's?
Product, price, promotion, and place
What term refers to producing a good in the least costly way?
Production Efficiency
Risk management education in agriculture usually includes five basic categories of risk:
Production, Marketing, Financial, Legal, Human
What is the differencce between productive efficiency and allocative efficiency?
Productive efficiency: production at the lowest unit cost; allocatie efficiency: production where P=MC
What is a measure of the average amount of output produced per employee or per hour?
Productivity
What is the proportion of each sales dollar that filters down to income, defined as income divided by net sales?
Profit margin
What is it called when employee compensation includes a portion of the company's earnings in addition to their wages?
Profit sharing
The shadow price of land equals 10 in the optimal solution of a linear programming model and the objective function, profit, is equal to $100. What is the effect of a one-unit increase of land?
Profit would increase by $10 to $110
From society's point of view, what stimulates the re-directions of resources in response to changes in the economy?
Profits
If a firm understates depreciation, overstates sales or ignores new liabilities, what is the effect on firm profitability?
Profits are overstated
What does PERT stand for AND describe what its use is?
Program Evaluation Review Technique - planning and controlling a project with sequenced component activities
A tax that takes a larger percentage from the income of high-income people than it does from low-income people is called a(n) ____ tax.
Progressive
What are the three primary formats for business organization?
Proprietorship, partnership, corporation
What is a formal legal document describing details of a corporation that includes company facts that are vitally important to potential investors?
Prospectus
Tariff or nontariff trade barriers imposed by a government to protect a domestic industry.
Protectionism
A(n) _____ ______ is the mechanism by which unhappy stockholders can act to replace existing management.
Proxy fight
What theory is based on the idea that government actions will be pursued according to the self-interest of politicians and lobbyists, rather than for the public good?
Public Choice
What branch of economics is sometimes called the economic analysis of politics?
Public Choice Theory
Food for Peace is another name forwhat USDA food aid program?
Public Law 480
A_______ strategy is a rule that tells the player what action to take at each of his/her information sets in the game?
Pure
Of the original seven wonders of the world, which one is the only one still intact?
Pyramids of Egypt
What is the name of the theorem that states that the square of the hypotenuse of a right triangle is equal to the sum of the squares of the other two sides?
Pythagorean theorem
Given a production function where TPP= 1000+200Q-2Q^2, what is the level of Q?
Q=50
The proportion of variation of the dependent variable explained by the independent variables in a regression is measured by what statistic?
R-squared
Which regression statistic can be expressed as the ratio of the regression sum of square to the total sum of squares (SSR/SST)?
R-squared
Launched in 2000, what proclaims itself as, "the nation's first 24 hour TV network dedicated to serving the needs and interests of rural America and agriculture?"
RFD-TV
To estimate the true statistical characteristics of a sample population, what type of sample should be taken?
Random sample
Selecting a group of subjects from a larger group in such a way that each subject is selected by chance, implying each member of the group has the same probability of being selected is called:
Random sampling
What term describes the use of a variety of ratios to evaluate the financial performance and conditions of the firm?
Ratio Analysis
Assume the decision maker selects the alternative that best satisfies the objective, whatever the objective may be. Economics commonly assumes this type of decision-making. What type of decision is this?
Rational
In inventory management, what is the term for the inventory level that should trigger an order to replenish supply?
Re-order point
GDP measured at constant (some base period) prices.
Real GDP
In an inflationary gap, how does the measure of real GDP compare to natural real GDP?
Real GDP is greater than Natural GDP
If nominal GNP equals 1100 and the GNP deflator equals 110, then Real GNP equals ______?
Real GNP= (1100/110) x 100= 1000
The rate at which one country's goods trade for another country's goods is called the _______ exchange rate.
Real exchange rate (not nominal)
What is the difference between nominal income and real income?
Real income is adjusted for the effects of inflation
____ property is considered permanent while ____ property is mobile and usually has a limited life.
Real, personal
A cyclical downward movement in the economy involving at least 2 consecutive quarters of a decline in the real (inflation-adjusted) Gross National Product (GNP).
Recession
A period of economic downturn milder than a depression is called?
Recession
What is that phase of the business cycle during which the nation's output is declining?
Recession
What is the amount by which the aggregate expenditure curve must shift upward to increase the real GDP to the full-employment, no inflationary level?
Recessionary Gap
What type of bilateral trade agreement allows the country's leadership to negotiate tariff concessions to another country ONLY if the other nation provides a parallel concession?
Reciprocal trade agreements
Name on type of specification that can be used to estimate a nonlinear relationship using a linear model?
Reciprocal, Logarithmic, Polynomial
A preliminary prospectus distributed to prospective investors in a new issue of securities is called a ______ _______.
Red herring
What is another name for a preliminary prospectus?
Red herring
If equilibrium in a competitive market occurs in the price-elastic range of the market demand curve, a reduction in supply of the good will do what to total expenditures on that good?
Reduce
What regulations sets legal ceilings on the interest rates that depository instituions can pay on their time and savings deposits AND sets penalities for preferential treatment of directors and officers?
Regulation Q
What type of risk is incurred when an investor must reinvest coupon payments from a bond at different interest rates than when the bond was first purchased?
Reinvestment Risk
The kinked demand curve suggests that prices in an oligopolistic market tend to:
Remain unchanged (price rigidity)
What is the specified minimum percentage of its deposits and liabilities that a bank must keep on deposit at the Federal Reserve Bank or as in-vault cash?
Reserve Ratio
The percentage the Federal Reserve System sets as the minimum amount of reserves a bank must have?
Reserve Requirement
The percentage of depositors' balances a bank must have on hand as cash is know as the?
Reserve ratio or cash reserve ratio (CRR)
In regression, what is the difference between the actual value of Y (dependent variable) and the projected Y.
Residual
What, statistically, represents the difference between the observed dependent variable and the predicted dependent variable?
Residual (or error or stochastic component)
The portion of net income kept within a business and added to net worth is called?
Retained earnings
What is the portion of profit after taxes called that a corporation does not pay to owners?
Retained earnings
Opportunity cost is defined as the ______ to a resource in its next best alternative use.
Return
(Net farm income from operations plus total interest minus an allocation for unpaid family labor) divided by average farm assets is defined as _______.
Return on Assets (ROA)
Net farm income from operations minus an opportunity cost for unpaid family labor and management divided by average net worth (equity) is defined as _______.
Return on Equity
The ratio determined by dividing earnings by the level of invested capital and expressed as a percent is called:
Return on Investment (ROI)
What analysis of consumer behavior is based only on information about consumer choices actually made in various price-income situations?
Revealed Preference
According to Baumol, many firms are uncertain about the demand curve they face and/or the marginal costs of their output. As such, what is their most likely alternative to profit maximization?
Revenue maximization or Market share maximization
If it pays to produce at all, production should always occur where Marginal ________ equals Marginal ______
Revenue; Cost
What is the name of the process that involves dismantling a competitor's product in order to improve one's own product?
Reverse Engineering
What is a special type of loan used to convert the equity in a home into cash, usually used to provide seniors with financial security in their retirement years?
Reverse Mortgage
Some plants have a horizontal unerground stem, often enlargest for storage. What is this stem called?
Rhizome
The theoretical finding that, given the amounts of government purchases, an increase in current taxes has the same effect on the economy as an equal increase in the government budget deficit.
Ricardian Equivalence Theorem
The theory that households respond to budget deficits by increasing their present saving in anticipation of higher future taxes is know as the?
Ricardian Equivalence Theorem
Define stagflation.
Rising prices (inflation) with declining output and unemployment
An adjustment to a real interest rate to compensate for uncertainty in the ability of a borrower to service a loan.
Risk Premium
What is the term for the additional return expected for taking on risk?
Risk Premium
What is the term, which represents the difference between the expected rate of return on a given risky asset and the expected return on a risk-free asset?
Risk Premium
For a firm the discount rate that includes a premium for risk is called?
Risk adjusted discount rate
Agricultural economists have proposed that there are "three R's" of credit-worthiness for farmers. Name them.
Risk bearing ability, Returns and repayment capacity
What are animals that have four parts to their stomach called?
Ruminants
What is the only country larger than Canada?
Russia
What type of corporation is taxed as a partnership, provided it has 25 or fewer shareholders and meets certain other requirements?
S Corporation
In managing risk, the rule that maximizes expected monetary value subject to specified probability of exceeding a minimum level of net income.
Safety First Criterion
The value of an asset at the end of its useful life for the firm is the asset's ________?
Salvage Value
What warehouse membership club makes Wal-Mart a major grocery retailing firm?
Sam's Club
Calculation of t and F statistics are necessary only for what type of data set?
Sample of a larger population
What name is given to a surge in the price of stocks that often occurs in the week between Christmas and New Years?
Santa Clause Rally
When farmers try to obtain at least a minimum income level instead of trying to maximize income, they are demonstrating what kind of behavior?
Satisfy-cing Behavior
When managers explore a limited number of options and choose an acceptable decision rather than the optimal decision, this response is known as?
Satisfy-cing Behavior
The difference between income and expenditure in the current time period.
Savings
"Supply creates its own demand" is a popular phrase to describe _______.
Say's Law (for Jean-Baptiste Say)
Who's law states "supply creates its own demand"?
Say's Law (for Jean-Baptiste Say)
What Classical School economics principle stated a "Law of Marekts" such that supply creates its own demand or the circular flow creates its own equilibrium?
Say's Law of Markets
What is the inability of society to satisfy human wants given limited resources?
Scarcity
A disease caused bya dietary deficiency of vitamin C?
Scurvy
In what US city were the latest World Trade Organization (WTO) talks held?
Seattle, WA
What do we call a line that connects two points on a curve?
Secant Line
What term is used for the deposition of eroded soil in ditches, waterways, lakes, and harbors?
Sedimentation
What is the term for the revenue raised by the government throught the creation of money, sometimes known as an inflation tax?
Seigniorage
What term is used for the difference between the value of money and the cost of producing it?
Seigniorage
What major difficulty is encountered when using the income apprach for an appraisal?
Selection of the appropriate capitalization rate
What type of hedger hedges when price moves are disadventageous to the operation and speculates in the cash market when price moves are advantageous?
Selective
The longest filibuster in US history took place in August of 1957 and lasted for and uniterrupted 24 hours and 18 minutes. Who is credited with this feat?
Sen. Strom Thurmond, D-S. Carolina
What is it when one performs an analysis of effect on a plan or forecast of a change in one of the input variables?
Sensitivity Analysis
What is the name of the risk analysis tool in which key variables are changed one at a time and the resulting changes in the optimal solution are observed?
Sensitivity Analysis
_________ cooperatives provide members with specialized services, such as ginning, hulling, and credit, which are often not economical for an individual farmer to obtain.
Service
National income accounting by a circular flow economy would indicate that businesses receive _____ from households in return for ______.
Service of factors of production; Wages, interest, profits, and rents
Assume goods A & B are substitutes. If the price of good B increases, what happens to the demand curve for good A assuming Good A is a normal good?
Shifts to the right or outward
What happens to the net export curve if the government imposes trade restrictions on imported goods?
Shifts to the right or outward
What is the term for an exogenous change in an economic relationship, such as an aggregate demand or aggregate supply curve?
Shock
There are time and effort costs associated with people who try to minimize cash holdings in order to avoid devaluation due to inflation. What is the common name for these costs?
Shoe Leather
A trader who sells a futures market contract without an offsetting purchase has taken what type of a position on the trade?
Short
A trader who sells a futures market contract without an offsetting purchase has taken what type of position on the trade?
Short
For a perfectly competitive firm, when price equals minimum average variable cost, this is called?
Shutdown point
What is a oridyct if acid fermentation of whle green forage crops that have been pressed and stored under anaerobic conditions?
Silage
In a data set, if the mean is greater than the median, what is the shape of the distribution?
Skewed right
In a LP solution, what term is used for any unused capacity associated with a less than or equal to constraint?
Slack
What are the three basic forms of business organization?
Sole Proprietorship, Partnership, Corporation
What are the 4 types of business ownership?
Sole proprietor, partnership, corporation, cooperative
Yard waste, materials from raised buildings, and packaging materials are examples of what type of waste?
Solid waste
What is the name of the model that shows how saving, population growth, and technological procress determine the level of and growth in the stadard of living?
Solow growth model
Futures market investing when the only motive is profit from price changes is called what?
Speculation
Provide another term for positive externalities which provide external benefits or costs of activities for which no compensation is made?
Spillovers
Markets where goods are bought and sold for " on the spot" delivery are known as what?
Spot Markets
What is the term for the cash price offered for immediate delivery?
Spot Price
What type of policy seeks to influence the level of aggregate demand?
Stabilization Policy
What type of policy seeks to influence the level of aggregate demand?
Stabilization policy
The output level where the Average Physical Product and Marginal Physical Product curves intersect divides Stage II and __________
Stage I
Given a classical three-stage production function, during what stage is the elasticity of production less than zero?
Stage III
Within the classical three-stage production function, during what stage is the elasticity of production less than zero?
Stage III
Macroeconomic policy makers in the 1970's observed high rates of inflation and low rates of output (i.e. high unemployment). This phenomenon is known as ________.
Stagflation
The increasing prices and falling economic output was experienced in the 1970's is known as?
Stagflation
What do we call a recession with rising prices?
Stagflation
What is the term used to describe an increase in the price evel at the same time the economy is in a recession?
Stagflation
What is the term used to describe increases in the price level at the same time the economy is in recession?
Stagflation
An economic condition where an economy is facing relatively high rates of inflation, little or no growth, and high unemployment.
Stagnation
What is the name of the numbering system developed by the US government in order to classify business and government organizations by their main economic activity?
Standard Industrial Classification System (SIC)
A loaf of bread, a gallon of milk, a bag of rice-these are examples of what kinds of foods?
Staples
Define the P/E ratio.
Stock price per share divided by earnings per share
Name the 3 functions of money.
Store of value, a unit of account, a medium of exchange
The factors for MACRS (as reported by the IRS) are calculated using which method(s) of computing depreciation?
Straight line and declining balance
What is the most common calculation method for deducting obsolescence and wear and tear in an income statement?
Straight line depreciation
What term describes goods, such as those used in national defense, which play an important role in the survival or well being of a nation?
Strategic
What type of change is defined as one in the environment that will affect the long run well-being of the organization?
Strategic
_________ management is the study of the process by which firms develop a mission, goals, objectives, and strategies to attain competitive advantage.
Strategic
An arrangement between two companies that have decided to share resources in a specific project but that is less involved than a joint venture is known as?
Strategic Alliance
What is a term often used for an informal or formal arrangement between two or more companies with a common business objective, such as a joint venture or a licensing or distribution argeement?
Strategic Alliance
A fututre-looking document about a company's intended achievements for creating and sustaining competitiveness in the coming one to three years is called a _________ ________.
Strategic Plan
A useful tool often used when developing an originations strategic plan is a SWOT analysis?
Strengths, Weaknesses, Opportunities, Threats
What is known about a call option's strike price relative to the underlying futures price if the call is out of the money?
Strike Price is above the underlying Futures Price
A type of unemployment resulting from a mismatch between the supply and demand for worker.
Structural Unemployment
In many retail stores price markdowns are now determined by computer. The "middle managers" that used to make these decisions have experienced what type of unemployment?
Structural Unemployment
What type of unemployment exists when workers have obsolete job skills?
Structural unemployment
What term refers to the number, size, and market share of the firms in an industry?
Structure
The acronym SCP stands for the ______-_______-________ paradigm.
Structure-Conduct-performance
Small agribusiness firms often incorporate under what provision of the Internal Revenue code to avoid corporate income taxes?
Subchapter S
Which principle states that an informed buyer will not pay more for a property than for another similar property?
Substition
A local grocery store found that when they lowered the price of bananas, the sales of apples decreased. What type of relationship is implied between bananas and apples?
Substitutes
The ________ effect is the change in the consumption of a good after a change in price, when the consumer is forced by a change in money income to consume at some point on the original indifference curve.
Substitution
What term describes the situation in which a fall in the price of a normal good causes an increase in the quantity purchased along an individual's indifference curve?
Substitution Effect
When the price of gasoline falls, ceteris paribus, so that people switch some of their consumption out of goods that are now relatively more expensive and buy more gasoline instead, this change in quatity demanded is due to the what?
Substitution Effect
Essentially all ethanol produced in Brazil is derived from what commodity?
Sugar
What type of production relationship exists between two enterprises when one enterprise can be expanded without impacting the other enterprise?
Supplementary
Indentify the type of management involved in this example: Proctor & Gamble assigned 20 employees to work at Wal-Mart HQ to improve speed and reduce cost of supplying goods to Wal-Mart.
Supply Chain Management
What type of management attempts to centrally control or link the production, shipment, and distribution of a product?
Supply Chain Management
In perfectly competitve markets prices are freely determined by the interaction of ________
Supply and Demand
What term describes the relationship between yield and term to maturity on securities that differ only in length of time to maturity?
Term Structure (of interest rates)
Which US state has the largest total cash receipts for livestock production?
Texas
The locus of points connecting the least-cost solutions in an isoquant map is called?
The Expansion Path
If we observe a 1-for-1 adjustment of the nominal rate to the inflation rate, we have evidence of what market phenomenon?
The Fischer Effect
What is the name of the curve that represents the goods market equilibrium?
The IS Curve
Which piece of legislation penalizes employers who knowingly hire illegal immigrants?
The Immigration Reform and Control Act of 1986 (Simpson-Rodino Act)
What congressional act in 1862 created the land grant university system?
The Morrill Act
In simple regression analysis, the covariance between X and Y divided by the variance of X is equivalent to?
The Slope of the Regression Line
At the Federal Level, who controls fiscal policy in the economy?
The US Congress
The National Labor Relations Board was established by which piece of legislation?
The Wagner Act
An undifferentiated marketing strategy is based upon what assumption about the target market?
The market has no individual segments and is best served with a single marketing mix
A decision criterion that proposes that a farm manager estimate the minimum return for each alternative and then choose the alternative with the greatest minimum return is called ________?
The maximum approach
The curve that defines the current limits on production capabilities in a given economic situation due to the physical restraints on resource supply and technology?
The production possibilities frontier curve (PPF or PPC)
"Featherbedding" refers to what?
The requirement that unneeded workers be retained on a job
What is the opportunity cost of an additional unit of variable input?
The return obtainable from the best available alternative use of that input
The difference between a normal distribution and a standard normal distribution is that:
The standard normal has a mean of zero and a standard deviation of 1
How did Wall Street gain its name?
The street was next to a wall that was built to keep pigs out of the grain fields of colonial New York City farmers
What statistic could be used to test to see if two samples came from the same population?
The t-statistic or the F-statistic
McGregor disputed the traditional approach to management (workers were inherently lazy and must be forced to work) and called this traditional approach:
Theory X
What does the acronym TINSTAAFL?
There is no such thing as a free lunch
Which two presidents died on the same day?
Thomas Jefferson and John Adams
Who was one of the earliest contributors to modern environmental thought and depicted the problem with exponential growth and linear food supply growth?
Thomas Malthus
Which group of producers is the least likely to benefit from government subsidies to agriculture?
Those with the lowest average farm income
An increase in savings can lead to a decrease in expenditures, decreasing output and causing a recession. This is called the Keynesian Paradox of _____.
Thrift
What type of data is likely cadidate for the problem of autocorrelation?
Time Series Data
The value of a good or service associated with its availability when it is desired by the buyer is called _______ utility?
Time utility
The phrase "a dollar today is worth more than a dollar next year" expresses what financial concept?
Time value of money
A management system for improving performance throughout a firm by maximizing customer satisfaction and making continuous improvements is known as?
Total Quality Management (TQM)
Normal profit equals ______ minus ______
Total Revenue, Total (explicit) Costs
Assume that TC (Q) = 100+25Q. What will be the change in total costs if a company decides to increase production form 100 to 110 units?
Total costs will increase by $250
The current ratio is calculated by:
Total current assets divided by total current liabilities
What does TDN stand for in livestock rations?
Total degestible nutrients
What does TDN stand for in livestock rations?
Total digestible nutrients
A brand name, symbol, or other mark that has legal recognition as a branding device is called a ____________?
Trademark
What type of payments are made, for which no goods or services are produced in return?
Transfer payments
What is the name of the process in which US dollars are traded for a second currency which is subsequently traded for a third currency, which is then traded for US dollars in an attempt to earn a profit via trading from the second currency to the third?
Triangular arbitrage
A price that the seller quotes for pickup at the seller's loading dock, and the buyer absorbs the freight charges for shipping from the seller's plant. This is called?
Uniform FOB Pricing
What do we call an organization of labor that exists in order to secure higher wages, better conditions, and other economic improvements on behalf of its members?
Union
What is an organization of labor that seeks to gain a degree of monopoly power in the sale of its services hoping to secure higher wages, better conditions and other economic improvements for the members?
Union
In termsof absolute volumes of imports and exports, the world's leading trading nation is?
United States
What is the name of the historic site where George Washington's Continental Army wintered during the British occupation of Philadelphia in 1777?
Valley Forge
When conducting strategic cost analysis, the ________ _________ identifies the activities, functions, and business processes that have to be performed to design, produce, market, deliver, and support a product or service.
Value Chain
What are exogenous variables?
Variables determined outside the system
What is the measure of dispersion calculated by summing each observation's squared deviation from the mean, and dividing by n-1?
Variance
Who described the behavior called"conspicuous consumption"?
Veblen
The idea that as a goods price goes down it is perceived as being of lower quality and people buy less of the good is called:
Veblen Effect
The number of times a given quatity (stock) of money changes hands in a given time period (the ratio of expenditures in that time period to a given measure of the money supply).
Velocity
What is the rate at which money changes hands in the economy?
Velocity of Money
What type of graph use circles to represent variable within a rectangular universe?
Venn Diagram
What type of financing is often associated with a group of wealthy investors or banks and is popular amoung new companies with limited operating history who cannot raise funds through a debt issue?
Venture Capital
Financing for new, often high-risk ventures often comes from VC. What does VC stand for?
Venture Capital (or venture capitalist)
An auction where the participants simultaneously submit sealed bids and the highest bidder wins but the price paid equals the second-highest bid is known as a (n) ______ _______.
Vickery auction (for William Vickery) OR second price sealed-bid auction
What two economists names are associated with utility funtions which are based on the decision-makers attitudes towards risk?
Von Neumann- Morgenstern Utility Functions (John von Neumann and Oskar Morgenstern)
What approach to emand theory named after two economists incorporates risk and asserts consumers attempt to maximize expected utility?
Von Neumann-Morgenstern Utility
A legal procedure in which a person's earnings are required by court order to be withheld by an employer for the payment of a debt is known as?
Wage Garnishment
Which presidents faces are on Mt Rushmore?
Washington, Jefferson, Lincoln and Teddy Roosevelt
What is a firm's cost of capital or discount rate that reflects the mix of various capital sources used to finance the firm, and the required return of each source?
Weighted average cost of capital
Pareto, Arrow, Pigou, and Edgeworth have conducted analyses concerning the social desirability of various economic arrangements. What type of economics is this?
Welfare economics
In Canadian agricultural policy, what does the acronym WGTA stand for?
Western Grain Transportation Act
What is a castrated lamb called?
Wether
Descriptive analysis determines, "What is...?" while diagnostic analysis determines ___________?
What is wrong...?
Farm management requires three key production decisions. What are they?
What to produce? How to produce? How much to produce?
When should a firm shut down in the short run?
When price falls below minimum average variable cost
If the supply curve is perfectly elastic for a given demand curve, what is consumer surplus?
Zero
In a linear programming model, there is slack or surplus labor in the optimal solution. What is the shadow price of labor?
Zero
What is the slope of a Keynesian aggregate supply curve?
Zero or Horizontal
If government receipts minus government spending is positive, the result would be called:
a budget surplus
What exists when government spending is less than government receipts?
a budget surplus
OPEC would be an example of?
a cartel
Generally speaking, a neighborhood business which stocks frequently purchased items such as milk, bread, and cigarettes is called?
a convenience store
An organization owned and operated by and for the benefit of its patrons is known as?
a cooperative
What is the difference between a cow and a heifer
a cow is a heifer that has had a calf (heifer has not had a calf)
A bond or long term note not separately backed or secured by specific assets is called:
a debenture
A partnership where some partners do not participate in management and these same partners don't have the full liability of a general partner is called:
a limited partnership
A commitment by a lender to make a certain sum of money available to a firm at whatever time the firm needs the funds is typically called:
a line of credit
A service or product that the firm has paid for , but has not yet received or used is called:
a prepaid expense
A cash outlay that has already occurred and cannot be recovered whether a project is continued or terminated is called:
a sunk cost
A process in which the level of debt is reduced when equal periodic debt payments that cover interest and principal are made is known as?
amortization
Simultaneous purchase of cash commodities or futures in one market against the sale of cash commodities or futures in the same or a different market to profit from a discrepancy in prices.
arbitrage
_________ is the act of buying an item in one market and selling it at a higher price in another market in order to profit from the price difference in the two markets.
arbitrage
What is the term for the price at which the market maker will sell?
ask or asking price
The symmetrical curve associated with the normal distribution is commonly called:
bell-shaped or bell curve
When is the next US farm bill scheduled to be passed?
between 2017-2019
What is the term for the price at which the market maker is willing to buy?
bid or bid price
A trade agreement between any two nations.
bilateral trade agreement
How is the basis calculated in the Futures Market?
cash less the futures price, or vise versa
The range of production in which the long run average total cost is constant as output increases is called:
constant returns to scale
What type of plan outlines a firm's responses to an unforeseen but significant event or set of circumstances?
contingency plan
To compute the CPI, the cost of the bundle of goods in the _______ year is divided by the cost of the bundle in the _____ year and ______ by 100.
current, base, multiplied
When an exporting country initiates an export tax on a specific good , what impact will the export tax likely have on the domestic price of the exported good?
decrease the domestic price as it discourages exports
Price is determined where demand and supply intersect and that price is an ______ price, a market clearing price.
equilibrium
What is the name of tax imposed on the consumption of a particular product or service
excise
What is the term for the action taken by an option holder to enter a futures position?
exercise
What is ELS cotton?
extra-long staple (or pima) cotton
In the 1930's, Brazilian cargo ships docking at Mobile accidentally introduced colonies of what notorius pest to the U.S.?
fire ants
The inclusive annual time period used by an organization to budget, account for, and report on operations is the organization's:
fiscal year
The government's choices about levels of spending and taxation is known as ____ policy, while the cetral bank's choice regarding the supply of money is known as _____ policy.
fiscal, monetary
What type of contract carries a legal obligation to make or take delivery?
futures
The increase in welfare to the world economy or an individual country as a result of engaging in international commerce is commonly called:
gains from trade
An economy is in _____ _____ when the quantity supplied is equal to the quantity demanded in all the markets
general equilibrium
Advertising a category or class of product rather than a particular brand, such as "Got Milk?" and "Beef, it's what's for Dinner" campaigns, is known as?
generic advertising
The crime of obtaining personal or financial information of another person for the purposeof assuming that person's name to make purchases or other transactions is known as?
identity theft
In production agriculture, what does the acronym IPM stand for?
integrated pest management
A closed economy does not engage in what?
international trade
The shadow price of irrigation water is positive in the optimal solution of a linear programming model. Characterize the irrigation water constraint in the production.
irrigation water is a binding constraint (i.e. there is no slack or surplus irrigation water at the optimal solution)
What is a distinctive symbol or a graphic version of a company's name, used to identify and promote its product?
logo
Name the type of pricing where the product is intentionally sold below cost to attract customers into the store.
loss leader pricing
The marginal value product of a factor of production is defined as:
marginal (physical) product X output price
What is any institution or mechanism that brings together the buyers and the sellers of a good or service
market
An action taken to (1) minimize an impact, (2) rectify the impact, or (3) reduce or eliminate the impact of an action.
mitigation
In an advanced exchange economy, the most common medium of exchange is:
money
What is the sign of the second derivative of a function at its maximum point?
negative
What is the degree of homogeneity for a production function exhibiting constant returns to scale?
one
For a traditional cooperatie, how is ownership voting rights established?
one member= one vote
A person who sells a option contract, receives the premium, and bears the obligation to buy or sell the asset at the strike price
option price
What traces a producers development over the four stages: introduction, growth, maturity, and decline?
product life cycle
What is the inability of society to satisfy human wants given limited resources
scarcity
The profit-maximizing firm will always produce somewhere in what area of the production function?
stage 2
On national forests, the forest service estimate of the market price for timber to be cut and removed is called the appraised _______ price.
stumpage
What is the ratio of an estimated regression parameter divided by the standard error of the estimate.
t-ratio or t-statistic
How is inflation beneficial to a farmer with a heavy debt load?
the debt can be paid back with dollars that are of lower value than when the loan was initiated
The amount by which aggregate expenditures falls short of the full employment level of output is called?
the deflationary gap
The interest rate used by the Federal Reserve to implement US monetary policy is called:
the discount rate
What is the identity MV=PQ commonly called?
the equation of exchange
In OLS, what is assumed to be (1) normally distributed, with (2) zero expected value or mean, and (3) constant variance?
the error term (or random disturbance, or stochastic term)
What is equal to zero at the local maximum or minimum of a function?
the first derivative
In matrix algebra, what does X multiplied by X-inverse equal?
the identity matrix
What results from the horizontal summation of the portion of the marginal cost curve above average variable cost for all of the firms in an industry?
the industry's short run supply curve
The total sum of money the federal government owes is called
the national debt
The price necessary to give a unit of agricultural output (for exp, a bushel of wheat) the same purchasing power the unit of output had during some specified base period is called:
the parity price
In food marketing, farmers share refers to what?
the percent of the consumer's food dollar received by farmers
In a system of linear equations given by: AX=d (in matrix form), a singular coefficient matrix would suggest:
the system doesn't have a unique solution
Eminent Domain is the right that allows what actions?
the taking of land by the federal governemnt for public use with compensation
The numerator refers to what part of the fraction?
the top part
The number of unemployed job-seekers divided by the total size of the labor force equals _________.
the unemployment rate
For a small open economy, the real interest rate is assumed to equal?
the world real interest rate
What does the term chisenbop mean?
using fingers to perform math computation