Introduction to Agricultural Economics

Question 1

“is the study of why John
doesn’t have his own farm.”

Answer 1

economics

Question 2

This is the value of the next best alternative..

Answer 2

opportunity cost

Question 3

these are the Most
Scarce Resources

Answer 3

Time and Money

Question 4

We look at how
people make
choices on a?

Answer 4

personal and
societal level

Question 5

these are the most scarce resources

Answer 5

time and money

Question 6

the greek word which means “skilled in

household management”

Answer 6

Oikonomia

Question 7

the ___________ concerned with
the efficient use of scarce resources
to achieve maximum satisfaction of
unlimited wants

Answer 7

social Science

Question 8

the social Science concerned with
the efficient use of scarce resources
to achieve ____________________ of
unlimited wants

Answer 8

maximum satisfaction

Question 9

the scientific study of methods,
practices, conditions, and policies
affecting agriculture

Answer 9

Agricultural Economics

Question 10

it is a branch of economics that
specifically dealt with land usage. It is the
application of economic methods to optimizing the decisions made by agricultural producers.

Answer 10

Agronomics

Question 11

the social Science concerned with
the efficient use of scarce resources
to achieve maximum satisfaction of
unlimited ______.

Answer 11

wants

Question 12

it is dedicated to the study of land
use, natural resources, public utilities, housing,
and urban land issues.

Answer 12

Land Economics

Question 13

Led to war and motivated colonial expansion

Answer 13

Mercantilists

Question 14

Recognizes the important role of productive activities

Answer 14

Physiocrats (18th century French Economists)

Question 15

They shared Adam Smith’s strong suspicion of
government and his confidence in the power of self-interest represented by his famous “invisible hand”

Answer 15

Classical School

Question 16

he is Father of Economics

Answer 16

Adam Smith

Question 17

His rent theory was foundational to free
trade policy

Answer 17

David Ricardo (England,1772-1823)

Question 18

He did not foresee the impact of Industrial
Revolution (1760-1840) and modern technology.

Answer 18

Thomas Robert Malthus

Question 19

His work later led to the Mathematical measurement of pleasure or
satisfaction (“utils”) of Alfred Marshall, Leon Walras and Carl Menger

Answer 19

John Stuart Mill

Question 20

It is a wide-ranging school of ideas from which modern economic theory
evolved.

Answer 20

Neoclassical School

Question 21

The usefulness of products influences _____ and _________

Answer 21

Supply
and Demand

Question 22

He Also Established the Faculty of
Economics in Cambridge University

Answer 22

Alfred Marshall

Question 23

“The _____ of a product is the point where
production cost meets consumer’s marginal utility”

Answer 23

price

Question 24

His ideas influenced the economic policies of
most non-communist governments after
World War II. (1939-1945)

Answer 24

John Maynard Keynes(1883-1946), Great

Britain

Question 25

he believes that DEMAND CREATES SUPPLY

Answer 25

John Maynard Keynes

Question 26

Some would consider this the most significant document where Communism is founded upon

Answer 26

MARXISM

Question 27

Major Criticisms of Capitalism

Answer 27

Marxist

Question 28

what are Three elements of the “Economic Perspective”?

Answer 28

1. Scarcity (we need to make trade- offs) 2. Rational Behavior 3. Marginalism

Question 29

Means that society has limited resources and therefore cannot produce all the goods and services people wish to have. Just as a household cannot give every member everything he/she wants, a society cannot give every individual the highest standard of living to which he or she might aspire.

Answer 29

SCARCITY

Question 30

The positive achievements in one particular goal can result in decreased levels of achievement with another goal.

Answer 30

Economic Goal Trade-offs

Question 31

governments might bow to political pressures from one particular interest group even though they might claim to be “even handed”. example: infant industries lobbying for protection

Answer 31

VOLUNTARY Goal trade-offs

Question 32

The ______________ of an item is what you give up to get that item.

Answer 32

Opportunity Cost

Question 33

People systematically and purposefully do the best they can to achieve their objectives, given the opportunities they have.

Answer 33

Rational

Question 34

Economists use the term ___________ ____________to describe small incremental adjustments to an existing plan of action.

Answer 34

Marginal Changes

Question 35

Three elements of the “Economic Perspective”

Answer 35

1. Scarcity 2. Rational Behavior 3. Marginalism

Question 36

Methodology in Analyzing Economic Problems such as?

Answer 36

1. Terminology 2. Generalizations 3. Other-things-equal assumption 4. Abstractions 5. Graphical Expression

Question 37

a tentative explanation for a phenomenon, used as a basis for further investigation. It needs initial testing

Answer 37

Hypothesis

Question 38

it has already been tested but needs more testing

Answer 38

Theory

Question 39

a theory that has strong predictive accuracy, over and over

Answer 39

Law or Principle

Question 40

it is Simplified representation of reality which combines several concepts /ideas into one single representation

Answer 40

Model

Question 41

it is the Economic principles are expressed as the tendencies of typical or average consumers, workers, or business firms

Answer 41

Generalizations

Question 42

It is used to indicate that something would be the case if everything else under consideration remains the same.

Answer 42

“Ceteris Paribus”

Question 43

they are not mirror to the whole complexity of the real world. Albeit, Economics remains practical because it gives meaning to an otherwise overwhelming and confusing maze of facts.

Answer 43

Abstractions

Question 44

it is a method or procedure that has characterized natural science since the 17th century, consisting in systematic observation, measurement, and experiment, and the formulation, testing, and modification of hypotheses.

Answer 44

Scientific Method

Question 45

are designed to achieve certain economic goals, then we need to recognize a number of goals that are widely accepted in many countries.

Answer 45

Economic Policies

Question 46

Produce more and better goods and services, or more simply, develop a higher standard of living.

Answer 46

Economic Growth

Question 47

It is the total market value of a country’s output. It is the market value of all final goods and services produced within a given period of time by factors of production located within a country

Answer 47

GROSS DOMESTIC PRODUCT (GDP)

Question 48

Provide suitable jobs for all citizens who are willing and able to work.

Answer 48

Full Employment

Question 49

Achieve the maximum fulfillment of wants using the available productive resources.

Answer 49

Economic Efficiency

Question 50

it Avoids large upswings and downswings in the general price level; that is, avoid inflation and deflation.

Answer 50

Price-level Stability

Question 51

it Guarantee that businesses, workers, and consumers have a high degree of freedom in their economic activities

Answer 51

Economic Freedom

Question 52

it Ensure that no group of citizens faces poverty while most enjoy abundance.

Answer 52

Equitable Distribution of Income

Question 53

it Provide for those who are chronically ill, disabled, laid off, aged, or other-wise unable to earn minimal levels of income.

Answer 53

Economic Security

Question 54

it Seeks a reasonable overall balance with the rest of the world in international trade and financial transactions.

Answer 54

Balance of Trade

Question 55

the Study of the economy as a whole or with the basic subdivisions or aggregates – such as the government, household, and business sector.

Answer 55

Macroeconomics

Question 56

it is Study of activity in individual markets. It is concerned with specific economic units and a detailed consideration of the behavior of these individual units.

Answer 56

Microeconomics

Question 57

it deals with what the economy is actually like. It focuses on facts and avoids value judgments. It tries to establish scientific statement about economic behavior. It is concerned with “what is”

Answer 57

Positive Economics

Question 58

it involves value judgment about what the economy should be like or what particular policy actions should be recommended to get it to be that way.

Answer 58

Normative Economics

Question 59

The ________________ is at the heart of the definition of economics...

Answer 59

Economizing Problem

Question 60

It shows the varying amounts of two types of output that can be produced in relation to that can be produced by the fixed amount of resources.

Answer 60

Production Possibilities Frontier

Question 61

the ability to produce a larger total output – a rightward shift of the production possibilities curve is caused by

Answer 61

Economic Growth

Question 62

Due to scarcity problems, societies have been forced to make certain basic economic decisions in their desire to efficiently allocate available resources.

Answer 62

Economic Ideologies of Nations

Question 63

An ______________ is defined as the sum total of institutions and models of customs which have become permanent and become a part of the economic activities of a country.

Answer 63

Economic System

Question 64

it is structures of an economy determine the use of economic inputs (the means of production), distribution of output, the level of centralization in decision- making, and who makes these decisions.

Answer 64

Decision-making

Question 65

A ________ is one of many varieties of systems, institutions, procedures, social relations and infrastructures whereby parties engage in exchange.

Answer 65

market

Question 66

It can be said that a market is the process by which the prices of goods and services are established.

Answer 66

Barter

Question 67

A market with single seller and multiple buyers is a _______

Answer 67

monopoly

Question 68

A market with a single buyer and multiple sellers is a _________

Answer 68

monopsony

Question 69

also called the private-enterprise system or simply the market system.

Answer 69

capitalism

Question 70

centralized planning and no private property

Answer 70

Command Economy

Question 71

with private property and with government intervention or a combination of the abovementioned

Answer 71

Mixed Economy

Question 72

It suggests a complex, interrelated web of decision making and economic activity involving businesses and households.

Answer 72

Circular Flow Model

Question 73

it is the place where resources or the services of resource suppliers are bought and sold.

Answer 73

Resource Market

Question 74

it is the place where goods and services provided by businesses are bought and sold.

Answer 74

Product Market

Question 75

This is the market where the goods and services consumed by the household sector come from.

Answer 75

Product Market

Question 76

Payment of the Business Sector to the Resource Market in exchange of using the Economic Resources such as Land, Labor, Capital and Entrepreneurial Ability.

Answer 76

Costs

Question 77

This is received by the Business Firms in exchange of providing the goods and services to the household.

Answer 77

Revenue

Question 78

“The exclusive right of a person to buy, keep, use and sell or give away things of value”

Answer 78

Private property

Question 79

Anyone has the freedom to make a living. Private businesses are free to obtain economic resources, to organize these resources in the production of goods and services of the firm’s own choosing, and to sell them in the market of their choice.

Answer 79

Freedom of enterprise and choice

Question 80

Ensures that entrepreneurs and private businesses are free to obtain and use economic resources to produce their choice of goods and services and to sell them in their chosen market.

Answer 80

Freedom of Enterprise

Question 81

Enables owners to employ or dispose of their property and money as they see fit. It allows workers to enter any line of work for which they are qualified. It also ensures that consumers are free to buy the goods and services that best satisfy their wants. (Legally of course)

Answer 81

Freedom of Choice

Question 82

it is Not the same with Selfishness

Answer 82

Self-interest

Question 83

it can be Sellers, Consumers, Employers and Job Seekers all compete among themselves.

Answer 83

Competition

Question 84

it is the basic coordinating mechanism of a capitalistic economy.

Answer 84

The Market System

Question 85

it is a self regulating and self adjusting economy precludes any extensive economic role for government

Answer 85

pure capitalism

Question 86

he Published “The Wealth of Nations” in 1776

Answer 86

Adam Smith (Scotland, 1723-1791)

Question 87

he is known for the Theory of Comparative Advantage

Answer 87

David Ricardo

Question 88

he Questioned the “invisible hand”

Answer 88

Thomas Robert Malthus(England,1766-1834)

Question 89

he Published Principles of political economy in 1848 and “Utilitarianism” 1861

Answer 89

John Stuart Mill (England, 1806-1873)

Question 90

he Published “Principles of Economics” in 1890

Answer 90

Alfred Marshall

Question 91

A student of Alfred Marshall

Answer 91

John Maynard Keynes

Question 92

he Published “The Communist Manifesto in 1848”

Answer 92

MARXISM