This quiz works best with JavaScript enabled. Home > Agriculture > Farm Management > Management Techniques > Farm Managements – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Farm Managements Quiz 2 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is stage II (2) of the production function? A) The decision making stage. B) The highest point. C) The point of demolishing returns. D) Thw lowest point. Show Answer Correct Answer: A) The decision making stage. 2. At a price of $ 15, Marta buys 3 CD's per month. When the price increases to $ 20, Marta buys 2 CD's per month. Luz says that Marta's demand for CD's has decreased. Is Luz correct? A) Yes. B) No her demand increased. C) No, Luz is incorrect. Marta's quantity demanded has decreased, but her demand has stayed the same. D) No, Luz is incorrect. Marta's quantity demanded has increased, but her demand has stayed the. Show Answer Correct Answer: C) No, Luz is incorrect. Marta's quantity demanded has decreased, but her demand has stayed the same. 3. The price of beef is determined by the supply of beef and the demand for beef. A change in price occurs when the demand for beef increases or decreases even though the supply remains constant. Which of the following causes a change in demand for beef? A) Increase in the cost of producing beef. B) Decrease in the income of beef consumers. C) Decrease in the number of cattle. D) Increase in the number of beef cattle producers. Show Answer Correct Answer: B) Decrease in the income of beef consumers. 4. The relationship between quantity purchased and price is known as ..... A) Demand. B) Supply. C) Call Option. D) Equilibrium. Show Answer Correct Answer: A) Demand. 5. What does the Production Function indicate for an agricultural producer? A) How to allocate resources throughout a business. B) How output responds to inputs. C) Whether to operate in the long run. D) ALL of the above. Show Answer Correct Answer: B) How output responds to inputs. 6. Which of the following is an opportunity cost of farming your own land? A) Potential rent. B) Eroded soil. C) Equipment cost. D) Labor cost. Show Answer Correct Answer: A) Potential rent. 7. When a farmer increases his investment in land, buildings, and equipment without increasing the total units of production, cost per unit: A) Remains the same. B) Decreases. C) Increases. D) Varies with the operator. Show Answer Correct Answer: C) Increases. 8. Which one of the following can increase the retained earnings of the farm business? A) Net farm income less than business withdrawals for family living expenses and income. B) Net farm income greater than business withdrawals for family living expenses and income taxes. C) An operating loss for the accounting period. D) An increase in the amount of money withdrawn from the business for family living expenses and income taxes. Show Answer Correct Answer: B) Net farm income greater than business withdrawals for family living expenses and income taxes. 9. On an agricultural producer's balance sheet, which of the following contains only current assets? A) Tractor, livestock barn, herd bull. B) Fertilizer, breeding cows, truck. C) Cash, corn silage, feeder calves. D) Land, combine, growing crop. Show Answer Correct Answer: C) Cash, corn silage, feeder calves. 10. The most common element of federal government programs has been to: A) Have a food reserve. B) Lower production. C) Provide price support. D) Fund research activities. Show Answer Correct Answer: C) Provide price support. 11. Three financial indicators that can be calculated from the net worth statements are liquidity, solvency, and equity. Solvency is the: A) Ability of all assets, if sold at market value, to cover all debts. B) Ability of a business to generate enough cash to pay bills without disrupting business. C) Amount of cash received by a farm business in a one-year period. D) Amount of money that will need to be borrowed to cover expenses . Show Answer Correct Answer: A) Ability of all assets, if sold at market value, to cover all debts. 12. The primary purpose of the production function is to determine ..... A) Whether or not to operate in the long run. B) How to Accolade resources throughout a business. C) How much to produce. D) ALL of the above. Show Answer Correct Answer: C) How much to produce. 13. A farm business where it can be exposed to changes in demand and therefore changes in price that is totally beyond its control is referred to as being: A) Profitable. B) Price neutral. C) A price maker. D) A price taker. Show Answer Correct Answer: D) A price taker. 14. This financial statement explains changes in net worth. A) Statement of cash flows. B) Balance sheet. C) Statement of owner equity. D) Income statement. Show Answer Correct Answer: C) Statement of owner equity. 15. The ..... is King in the market place A) Processer. B) Consumer. C) Farmer. D) Adviser. Show Answer Correct Answer: D) Adviser. 16. If Max's demand for hot dogs falls as his income rises, then hot dogs are A) An inferior good. B) A bad good. C) A preferable good. D) A normal good. Show Answer Correct Answer: A) An inferior good. 17. When determining the effect of growing more acres of a crop in an enterprise budget, the cost most likely to change would be: A) Crop insurance per acre. B) Operating costs per acre. C) Fixed costs per acre. D) Rent per acre. Show Answer Correct Answer: C) Fixed costs per acre. 18. The point on a production function graph where marginal cost equals marginal revenue is where ..... A) Losses are the greatest. B) Production is maximized. C) Profits will be greatest. D) Costs are minimized. Show Answer Correct Answer: C) Profits will be greatest. 19. What does marginal cost measure? A) The change in cost by producing another unit of output. B) The change in cost from one enterprise to another. C) The output cost from production at the level of inputs. D) The change in the cost by adding another unit of input. Show Answer Correct Answer: D) The change in the cost by adding another unit of input. 20. Which of the following is true about the relationship between price and quantity supplied? A) There is always a direct relationship. B) There is always an inverse relationship. C) There is usually a direct relationship. D) There is usually an inverse relationship. Show Answer Correct Answer: C) There is usually a direct relationship. 21. Any time a consumer will take more only at lower prices is called ..... A) Margin. B) Supply. C) Discovery. D) Demand. Show Answer Correct Answer: D) Demand. 22. The point where Marginal Costs = Marginal Revenue is ..... A) Where production reaches maximum point. B) Where all of your resources are used. C) Where profits are at a maximum. D) ALL of the above. Show Answer Correct Answer: C) Where profits are at a maximum. 23. The goal of tax management is to: A) Maximize depreciation deductions. B) Maximize profit before taxes. C) Maximize profit after taxes. D) Minimize taxes. Show Answer Correct Answer: C) Maximize profit after taxes. 24. A grain combine can be purchased for $ 148, 000. Total annual fixed costs will be $ 15, 000 and variable costs per acre will be $ 21. If a custom operator can be hired to combine grain for $ 32 per acre, what is the minimum number of acres one should plan to harvest to justify buying the combine? A) 714. B) 1, 364. C) 468. D) 4, 625. Show Answer Correct Answer: B) 1, 364. 25. A demand for a product at the farm level is a(n) ..... A) Equilibrium. B) Demand Curve. C) Supply Curve. D) Deprived Demand. Show Answer Correct Answer: D) Deprived Demand. ← PreviousRelated QuizzesFarm Management QuizzesAgriculture QuizzesFarm Managements Quiz 1 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books