This quiz works best with JavaScript enabled. Home > Farm Management > Management Techniques > Farm Managements – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Farm Managements Quiz 2 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Selling through a farmers' market or roadside market is known as ..... A) Equilibrium. B) Call Option. C) Direct Marketing. D) Demand. Show Answer Correct Answer: C) Direct Marketing. 2. An agriculture producer learns what from the production function? A) Output responses to an input. B) Whether or not to operate in the long run. C) How to accolate resources throughout an enterprise. D) ALL of the above. Show Answer Correct Answer: A) Output responses to an input. 3. If the market is said to be "bearish, " prices are expected to: A) Increase. B) Decrease. C) Remain the same. D) Fluctuate greatly. Show Answer Correct Answer: B) Decrease. 4. Your ability to plan loan payments is best determined by analyzing your: A) Checkbook balance. B) Profit and loss statement. C) Projected cash flow statement. D) Enterprise budgets. Show Answer Correct Answer: C) Projected cash flow statement. 5. When a market has huge swings on a daily basis, it is described as .....? A) Stable. B) Comfortable. C) Volatile. D) Variable. Show Answer Correct Answer: C) Volatile. 6. Net farm income from operations for a sole proprietorship business refers to: A) Total market value assets minus total liabilities. B) Current assets minus current liabilities. C) Accrual adjusted revenues minus accrual adjusted expenses. D) Cash income minus cash expenses. Show Answer Correct Answer: C) Accrual adjusted revenues minus accrual adjusted expenses. 7. Comparing the retail price to the farm price for an agricultural commodity allows you to determine the portion of each dollar spent at the retail level that farmers receive for their commodities. The difference between retail value and the farm value is A) Profit. B) B. Net farm revenue. C) C. Farm to city transportation cost. D) D. Marketing margin. Show Answer Correct Answer: D) D. Marketing margin. 8. On March 1, JD Farms borrowed $ 15, 000 to plant soybeans. On November 1, they repaid the $ 15, 000 along with $ 500 in interest. What annual interest rate was paid on the loan? A) 3.33%. B) 5.00%. C) 7.50%. D) 10.00%. Show Answer Correct Answer: B) 5.00%. 9. On a production function graph MC=MR A) Where losses will be the least. B) Where change in cost and chage in revenue are the same. C) Where the profits are the greatest. D) ALLof the above. Show Answer Correct Answer: D) ALLof the above. 10. The present value of $ 175 that will be received at the end of one year, given a 5% interest (discount) rate is: A) $ 87.50. B) $ 155.00. C) $ 166.67. D) $ 183.75. Show Answer Correct Answer: C) $ 166.67. 11. What is stage II (2) of the production function? A) Thw lowest point. B) The highest point. C) The point of demolishing returns. D) The decision making stage. Show Answer Correct Answer: D) The decision making stage. 12. 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. 13. 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) Decrease in the number of cattle. B) Increase in the number of beef cattle producers. C) Increase in the cost of producing beef. D) Decrease in the income of beef consumers. Show Answer Correct Answer: D) Decrease in the income of beef consumers. 14. 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. 15. 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. 16. Which of the following is an opportunity cost of farming your own land? A) Equipment cost. B) Labor cost. C) Eroded soil. D) Potential rent. Show Answer Correct Answer: D) Potential rent. 17. When a farmer increases his investment in land, buildings, and equipment without increasing the total units of production, cost per unit: A) Increases. B) Remains the same. C) Decreases. D) Varies with the operator. Show Answer Correct Answer: A) Increases. 18. 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. 19. 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. 20. The most common element of federal government programs has been to: A) Lower production. B) Provide price support. C) Have a food reserve. D) Fund research activities. Show Answer Correct Answer: B) Provide price support. ← PreviousNext →Related QuizzesFarm Management QuizzesFarm Managements Quiz 1Farm Managements Quiz 3 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books