Introduction To Agriculture Economy

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Quizzes Created: 1 | Total Attempts: 117

Questions: 9 | Attempts: 117 | Updated: Mar 21, 2023

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Introduction To Agriculture Economy - Quiz

The quiz has been design to review content covered in class under introduction in business of farming. This will aid in preparing ourselves in entering a new topic on the law of diminishing returns in agriculture.

Questions and Answers

1.

The shape of the marginal product curve is when the marginal product curve increases sharply, and reaches a maximum and then
- A.
  
  Meets equilibrium
- B.
  
  Increases
- C.
  
  Decline
- D.
  
  Lower
- E.
  
  Input
Correct Answer
C. Decline

Explanation
The shape of the marginal product curve is declining. This means that initially, as more input is added, the marginal product increases sharply, indicating increasing returns to scale. However, as the input continues to increase, the marginal product starts to decline, indicating diminishing returns to scale. This occurs because the additional input becomes less productive and cannot contribute as much to the overall output. Therefore, the marginal product curve shows a decline after reaching a maximum point.

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2.

2. Factors to be considered by sellers when fixing the price of a commodity are the total cost of ____ and transporting the goods, together with the market intelligence regarding ___________
- A.
  
  Buying, supply and demand
- B.
  
  Product, consumers
- C.
  
  Processing, transportation
- D.
  
  Supporting, consumers
Correct Answer
A. Buying, supply and demand

Explanation
When fixing the price of a commodity, sellers need to consider the total cost of buying the product and transporting the goods. This includes the cost of purchasing the commodity from suppliers and the expenses incurred in transporting it to the market. Additionally, sellers also need to have market intelligence regarding supply and demand. This means they need to be aware of the current market conditions, such as the availability of the product and the level of demand from consumers. By considering these factors, sellers can determine an appropriate price for their commodity that takes into account both their costs and the market conditions.

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3.

TWO economic factors which affect the willingness of consumers to purchase a particular product are:
- A.
  
  Merchandising
- B.
  
  Price and availability
- C.
  
  Processing
- D.
  
  Supporting
Correct Answer
B. Price and availability

Explanation
Price and availability are two economic factors that affect the willingness of consumers to purchase a particular product. Price refers to the cost of the product, and consumers are more likely to purchase a product if it is priced affordably. Availability refers to the ease with which consumers can access the product, and consumers are more likely to purchase a product if it is readily available to them. These two factors play a significant role in influencing consumer behavior and their decision to purchase a specific product.

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4.

The relationship between the demand and the price of a commodity is:
- A.
  
  The lower the price, the greater the quantity that will be demanded
- B.
  
  The lower the price, the less the quality that will be demanded
- C.
  
  The lower the price, the ineffective the quality that will be demanded
- D.
  
  The lower the price, the greater the price demanded
- E.
  
  Option 5
Correct Answer
A. The lower the price, the greater the quantity that will be demanded

Explanation
As per the law of demand, there is an inverse relationship between the price of a commodity and the quantity demanded. When the price of a commodity decreases, consumers are more likely to purchase it as it becomes more affordable. This leads to an increase in the quantity demanded. Therefore, the lower the price, the greater the quantity that will be demanded.

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5.

The FOUR factors which affect the change in supply of a product includes less supply from the market, _________, change in technique of production, variation in weather conditions, taxation changes and future expectations
- A.
  
  Change in cost
- B.
  
  Equilibrium
- C.
  
  Consumable
- D.
  
  The supply
Correct Answer
A. Change in cost

Explanation
The correct answer is "Change in cost". The explanation for this is that the cost of production directly affects the supply of a product. If the cost of production increases, it becomes more expensive for producers to produce the product, leading to a decrease in supply. Conversely, if the cost of production decreases, it becomes more affordable to produce the product, leading to an increase in supply. Therefore, a change in cost is one of the factors that can affect the change in supply of a product.

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6.

The price of a product determined in a perfect market is done through the interaction of the forces of __________ at a particular time
- A.
  
  Change in cost
- B.
  
  Supply and demand
- C.
  
  Equilibrium
- D.
  
  Surplus
Correct Answer
B. Supply and demand

Explanation
In a perfect market, the price of a product is determined through the interaction of the forces of supply and demand at a particular time. Supply refers to the quantity of a product that producers are willing to sell at a given price, while demand represents the quantity of a product that consumers are willing to buy at a given price. The equilibrium price is reached when the quantity supplied matches the quantity demanded, ensuring a balance in the market. Therefore, the correct answer is supply and demand.

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7.

The amount (quantity) of a good that buyers are willing to purchase at alternative prices for a given period.
- A.
  
  Supply
- B.
  
  Demand
- C.
  
  Equilibrium
- D.
  
  Surplus
Correct Answer
B. Demand

Explanation
Demand refers to the amount of a good that buyers are willing to purchase at different prices during a specific period. It represents the consumer's desire and ability to buy a particular product or service. The demand curve shows the relationship between price and quantity demanded, indicating that as the price of a product decreases, the quantity demanded increases, and vice versa. Therefore, the correct answer is "Demand."

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8.

Quantity Supplied refers to the amount (quantity) of a good that sellers are willing to make available for sale at alternative prices for a given period.
- A.
  
  Supply
- B.
  
  Demand
- C.
  
  Equilibrium
- D.
  
  Surplus
Correct Answer
A. Supply

Explanation
Supply refers to the amount of a good or service that producers are willing and able to offer for sale at various prices during a specific period of time. It is determined by factors such as production costs, technology, and the number of producers in the market. As the price of a good increases, producers are generally willing to supply more of it, leading to an upward-sloping supply curve. Conversely, as the price decreases, the quantity supplied decreases. Therefore, the correct answer is Supply.

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9.

The graph that shows the principles of economies
- A.
  
  Depreciation of value
- B.
  
  Diminishing returns
- C.
  
  Risk and uncertainty
- D.
  
  Supply and demand
Correct Answer
D. Supply and demand

Explanation
The correct answer is supply and demand. Supply and demand is a fundamental concept in economics that explains how the availability of goods and services (supply) and the desire for those goods and services (demand) interact to determine prices and quantities in a market. This graph likely illustrates the relationship between the quantity of goods supplied and the quantity of goods demanded at different price levels, demonstrating the equilibrium point where supply and demand intersect. The graph may also show how changes in supply or demand can shift the equilibrium and impact prices and quantities in the market.

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Current Version
Mar 21, 2023

Quiz Edited by
ProProfs Editorial Team
Aug 08, 2020

Quiz Created by
Nenitayana

Introduction To Agriculture Economy

The shape of the marginal product curve is when the marginal product curve increases sharply, and reaches a maximum and then

2. Factors to be considered by sellers when fixing the price of a commodity are the total cost of ____ and transporting the goods, together with the market intelligence regarding ___________

TWO economic factors which affect the willingness of consumers to purchase a particular product are:

The relationship between the demand and the price of a commodity is:

The FOUR factors which affect the change in supply of a product includes less supply from the market, _________, change in technique of production, variation in weather conditions, taxation changes and future expectations

The price of a product determined in a perfect market is done through the interaction of the forces of __________ at a particular time

The amount (quantity) of a good that buyers are willing to purchase at alternative prices for a given period.

Quantity Supplied refers to the amount (quantity) of a good that sellers are willing to make available for sale at alternative prices for a given period.

The graph that shows the principles of economies

2. Factors to be considered by sellers when fixing the price of a commodity are the total cost of and transporting the goods, together with the market intelligence regarding _______