This quiz works best with JavaScript enabled. Home > Farm Management > Farm Managements – Quiz 3 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Farm Managements Quiz 3 (15 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. 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. 2. 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. 3. 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) A price maker. B) A price taker. C) Price neutral. D) Profitable. Show Answer Correct Answer: B) A price taker. 4. This financial statement explains changes in net worth. A) Balance sheet. B) Statement of owner equity. C) Income statement. D) Statement of cash flows. Show Answer Correct Answer: B) Statement of owner equity. 5. The ..... is King in the market place A) Farmer. B) Adviser. C) Consumer. D) Processer. Show Answer Correct Answer: B) Adviser. 6. If Max's demand for hot dogs falls as his income rises, then hot dogs are A) A bad good. B) An inferior good. C) A normal good. D) A preferable good. Show Answer Correct Answer: B) An inferior good. 7. When determining the effect of growing more acres of a crop in an enterprise budget, the cost most likely to change would be: A) Operating costs per acre. B) Rent per acre. C) Crop insurance per acre. D) Fixed costs per acre. Show Answer Correct Answer: D) Fixed costs per acre. 8. The point on a production function graph where marginal cost equals marginal revenue is where ..... A) Losses are the greatest. B) Profits will be greatest. C) Costs are minimized. D) Production is maximized. Show Answer Correct Answer: B) Profits will be greatest. 9. What does marginal cost measure? A) The change in cost from one enterprise to another. B) The output cost from production at the level of inputs. C) The change in the cost by adding another unit of input. D) The change in cost by producing another unit of output. Show Answer Correct Answer: C) The change in the cost by adding another unit of input. 10. 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. 11. 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. 12. 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. 13. The goal of tax management is to: A) Maximize profit before taxes. B) Minimize taxes. C) Maximize depreciation deductions. D) Maximize profit after taxes. Show Answer Correct Answer: D) Maximize profit after taxes. 14. 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) 468. B) 714. C) 1, 364. D) 4, 625. Show Answer Correct Answer: C) 1, 364. 15. 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 Managements Quiz 1Farm Managements Quiz 2 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books