FFA: FBM 21

A severe drought in a given corn-producing area is most likely to shift the:

• supply curve to the right

• supply curve to the left

• demand curve to the left

• demand curve to the right

Which of the following is the best economic explanation of what determines an agricultural product’s price?

• Weather

• Production

• Supply and Demand

• Governmental policy

What is the general economic term used to describe the place where buyers and sellers interact?

• A market

• An exchange

• Production

• Arbitrage

In business and economics, what you give up in order to do something is called?

• an opportunity cost

• a sunk cost

• a fixed cost

• profit

Money owed by you that you have NOT paid yet would be called this on your ‘balance sheet’:

• account payable

• negative cash flow

• current liability

• account receivable

A risk-taker in business is:

• a hedger

• making a poor decision

• an entrepreneur

• a profit maker

Based on the law of diminishing returns, an added pound of fertilizer in corn production will eventually reduce:

• Total corn production

• The additional corn produced per additional unit of fertilizer

• Profit

• Dollar returns

Which of the following would most likely increase the demand for pork chops in a grocery store?

• negative publicity about a hamburger ingredient called ‘pink slime’

• increase in the price of pork chops

• decrease in the price of chicken

• increase in the price of charcoal

A farm with multiple enterprises is:

• diversifying

• specializing

• increasing risks

• expanding

What is the ‘future value in one year’ of $108 today if the interest rate = 8%?

• $108.00

• $116.64

• $224.64

• $100.00