The only thing that can cause movement along a supply curve is....

Change in the price of our commodity

The Lee Thesis States that.....

Democracy harms economic development

Asset fixity refers to....

Difficulty selling off agricultural assets for what was paid

Elasticity Measures......

How supply/demand respond to price changes

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Econ Midterm Quiz

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Questions 98

Answers

1
Insider trading is a good example of....
Asymmetric Information
Information bias
Framing Issues
Lack of Education/Awareness
2
This is a country with a high standard of living, low childhood mortality, access to education, and good healthcare
Manufacturing
Underdeveloped
Developed
Developing
3
Pick the two that are perfect complements
Tractor
iPhone
iPhone Case
Tractor Driver
4
Which of the following crop production enterprises is likely to have highest labor costs
Sorghum
Apples
Corn
Wheat
5
Any change in price will either cause demand to be infinite or 0. Demand is....
Perfectly elastic
Unitarily Elastic
Inelastic
Perfectly inelastic
6
Price went up 100% and demand did not change. Demand is....
Perfectly elastic
Perfectly inelastic
Unitarily elastic
Elastic
7
The only thing that can cause movement along a supply curve is....
Change in the price of inputs
Change in population
Government intervention
Change in the price of our commodity
8
The most profitable companies in the world today tend to be manufacturing companies
True
False
9
The Lee Thesis States that.....
Food Supply will outpace population
As income rises, percentage of income spent on food declines
Democracy harms economic development
Population will outpace food supply
10
Small farms account for about ___% of farms in the US
10
50
25
90
11
The vast majority of goods experience inflation at the same rate
False
True
12
The point at which supply and demand curves meet
Producer Surplus
Consumer Surplus
Market Equilibrium
Perfectly Inelastic
13
These are the overall debts/financial obligations of a farm
Expenses
Assets
Liabilities
Equity
14
The biggest driver of increases in farm equity in recent times is.....
Increased yield
Better technology
Better commodity prices
Increasing land value
15
This is something of value that you own
Supply
Expense
Liability
Asset
16
Which of these is a good example of a variable cost
Feed
None of the above
Land
Machinery
17
Nominal values have not been adjusted for inflation
False
True
18
One concept closely tied to production possibilites frontier
Unemployment
Law of Demand
Inflation
Opportunity Cost
19
Which of the following is NOT a trend in agriculture
Better technology
More women involved
Decreasing yields
Aging farmers
20
This country has high mortality, corruption, lack of infrastructure, and poor health outcomes
Developed
Underdeveloped
Developing
Service
21
We are in this stage of the production function when output declines
II
III
I
IV
22
"Family Farms" must be small in size
False
True
23
This is additional output generated from adding one more unit of input
Marginal Profit
Marginal Cost
Marginal Physical Product
Marginal Revenue
24
In the long run all costs are technically variable costs
True
False
25
The only thing that can cause a shift in a demand curve is change of price of our good
False
True
26
All countries on earth have some form of a 'mixed economy'
False
True
27
An isoquant curve is from the perspective of a producer
True
False
28
The idea that there are limits to the amount of resources we have
Asset fixity
Correlation
Scarcity
Ceteris Paribus
29
Blueberries and grapes are....
Imperfect substitutes
Perfect Complements
Imperfect Complements
Perfect substitutes
30
A consumer price index measures....
Wages
Productivity
Inflation
Efficiency
31
Microeconomics deals with things like governments, international trade, and ag policy
True
False
32
My friend Bill that I hired to work on my farm is an example of....
Natural Resource
Manufactured Resource
None of the above
Human Resource
33
Asset fixity refers to....
Generally low interest rates in agriculture
Difficulty selling off agricultural assets for what was paid
Trend of aging farmers
Concerning levels of agricultural debt
34
The law of demand states that as prices rise so will demand
False
True
35
At breakeven levels of production, price is equal to...
0
Average Total Cost
Average Fixed Costs
Average Variable Cost
36
Our optimal input/output combination will be somewhere in this stage of the production function
II
III
IV
I
37
"The Chinese are ripping us off on trade deals". This is a positive economic statement.
True
False
38
An advertisement convinced me to buy something I don't need
Framing Issues
Information Bias
Moral Hazard
Failure to Disclose
39
Indifference curves for perfect complements are....
U Shaped
Have no defined shape
S Shaped
L Shaped
40
Price increased 10% and Demand decreased 20%. Demand is inelastic
False
True
41
The US is a manufacturing economy today
False
True
42
Where do we see consumer equilibrium?
C
B
A
D
43
Taxpayers bailed out Wall Street and now the bankers are making even more risky loans
Framing Issue
Information Bias
Failure to Disclose
Moral Hazard
44
Very steep population pyramids (wide base, narrow middle/top) usually indicate
Developing countries
Underdeveloped Countries
Developed countries
Service Economies
45
Elasticity Measures......
None of the above
How tight market equilibrium is
How supply/demand respond to price changes
Impact on additional inputs on output
46
This is the value that an owner has invested in their farm
Liabilities
Expenses
Equity
Assets
47
Inflation is always necessarily a bad thing
False
True
48
Which of the following could cause Cost-Push Inflation?
Increasing consumer demand
Decreasing consumer demand
Decreasing input costs
Increasing input costs
49
Land is generally considered a variable cost
False
True
50
Farm size has been decreasing in recent years
False
True
51
Law of diminishing marginal returns measures how much satisfaction is gained from consumption
True
False
52
The only thing that can cause movement along a demand curve is change in price
True
False
53
Democracy hurts economic development
Law of Demand
The Lee Thesis
Malthus' Hypothesis
Cobweb Adjustment Pattern
54
Deflation is almost always a bad thing
False
True
55
Indifference curves for perfect substitutes are....
Straight Lines
U Shapes
L Shaped
S Shaped
56
Price went up 10% and supply went up 10%. Supply is....
Unitarily elastic
Elastic
Inelastic
Perfectly elastic
57
Small farms account for about __% of production value in the US
25
10
50
90
58
This is the application of statistical modeling to economics
Consumer behavior theory
Social Economics
Econostatistics
Econometrics
59
Land prices have been
Very volatile
Staying the same
Decreasing lately
Increasing lately
60
A corn-soy rotation could best be described as....
High Volume, Low Margin
None of the above
Speciality service provider
Low Volume, High Value
61
Small farms farm about ___% of acreage in the US
25
10
50
90
62
This graph looks at two different outputs that could be produced from a fixed input
Production Possibility Frotier
Average Cost Curve
Isoquant Curve
Production Function
63
Most economic statements we hear from politicians are normative
False
True
64
Ceteris Paribus
Helps measure demand in developed countries
Helps compare two variables by having all else remain constant
Is assets-liabilities
Is another word for asset fixity
65
The shutdown level of production is when price falls belowor at.....
Average Fixed Cost
None of the above
Average Variable Cost
Average Total Cost
66
Supply Curve for Wheat: What could cause the change in the following graph?
Decrease in the price of wheat seed
Increase in the price of wheat seed
Decrease in the price of wheat
Increase in Price of wheat
67
The BEST definition for inflation would be
Decreasing value of the dollar relative to goods/services
Trend towards decreasing unemployment
General increase in prices in the economy
General price decreases in the economy
68
This sector takes the largest part of the food dollar
Food Service
Farmers
Food Advertisers
Food Wholesalers
69
This is when producers are producing just enough to satisfy consumer demand, with no excess demand or supply
Shortage
Cobweb Adjustment Pattern
Surplus
Equilibrium
70
Consumer equilibrium is associated with isoquant curves
True
False
71
A shortage is when I have too much supply and not enough demand
False
True
72
Which of the following can cause supply curve movement
Change in price of inputs
Change in population
Change in consumer trends
None of the above
73
A banana republic relies mostly on one good for their whole economy
True
False
74
When marginal utility becomes negative, total utility declines
True
False
75
Malthus' Hypothesis was that.....
Countries with natural resources develop worse
Authoritarian government was better for economy
Food supply wouldn't keep up with population
Inverse relationship between unemployment and inflation
76
Below is a demand curve for apples. What could have caused this change?
Increase in Pear Price
Decrease in Pear Price
Decrease in Apple Price
Increase in Apple Price
77
Which of the following is NOT an assumption of the law of demand
Consumer tastes stay the same
Price has no influence on demand
Substitute goods don't change in price
Consumer income stays the same
78
Price increased 10% and supply increased 5%. Supply is inelastic
True
False
79
Short Run Cost Curves are U-Shaped
True
False
80
Income gained from the sale of agricultural products (without accounting for expenses)
Equity
Revenue
Net Farm Income
Assets
81
Anti Price Gouging Laws would be.....
Equilibrium
Surplus
Price Floor
Price Ceiling
82
In a functioning market, if there is excess supply prices will rise
False
True
83
Which of the following is NOT true of authoritarianism
Manage economies better than democracy
Few checks and balances
Limited political pluralism
Basis of power in emotion
84
Which of the following is NOT a trend in agriculture?
Diversity of farms increasing
Size of farms increasing
Very low interest rates on farm loans
Farm income outpacing general household income
85
Minimum Wage is an example of....
Equilibrium
Price Floor
Elasticity
Price Ceiling
86
Additional satisfaction that I gain from eating one more slice of pizza is....
Marginal Utility
Total Utility
Total Production
Marginal Production
87
As income rises, people spend less on food
True
False
88
This is when there is excess demand and not enough supply
Shortage
Surplus
None of the Above
Equilibrium
89
Hot dogs and hot dog buns are
Perfect substitutes
Perfect Complements
Imperfect Substitutes
Imperfect Complements
90
It's always the case that our highest production level is also our most profitable
False
True
91
Developed countries tend to have the highest birth rates
False
True
92
The best synonym for utility would be.....
Profit
Satisfaction
Opportunity Cost
Revenue
93
This states that as income rises PERCENTAGE of income spent on food declines
Engel's Law
Law of Diminishing Marginal Utility
Law of Diminishing Marginal Returns
The Lee Thesis
94
Below is a demand curve for apples. What caused the change from A to B?
Beyonce said she hates apples
Increase in apple prices
Decrease in apple prices
New research suggests apples cause cancer
95
Indifference curves measure
A combination of two goods that give satisfaction
Combination of 2 inputs that generate output
How supply responds to price changes
How demand responds to price changes
96
The government only listens to pesticide companies about their product safety and not independent scientists
Framing Issues
Asymmetric Information
None of the Above
Information Bias
97
Consumer surplus is basically the same idea as profit
False
True
98
Shark attacks and ice cream consumption is an example of....
Correlation
None of the above
Supply and demand
Causation

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