Week 3

Question 1

Fertilisers ___ to increase crop yields

Answer 1

provide nutrients

Question 2

Global fertaliser use has steadily increased since about ___

Answer 2

1950

Question 3

Global fertaliser use has steadily increased since about ___

Answer 3

1950

Question 4

Global fertaliser prices have fluctuated markedly since ___

Answer 4

2006

Question 5

Fertalisers can greatly increase ___ of crops and pastures

Answer 5

yields

Question 6

Response to fertilisers depends on nutrients ___ in the soil

Answer 6

lacking

Question 7

Pattern of yield as fertaliser rate increases
___
Flattening off
Sometimes falling at excessive fertaliser rates

Answer 7

Increasing

Question 8

Pattern of yield as fertaliser rate increases
Increasing
___
Sometimes falling at excessive fertaliser rates

Answer 8

Flattening off

Question 9

Pattern of yield as fertaliser rate increases
Increasing
Flattening off
___

Answer 9

Sometimes falling at excessive fertaliser rates

Question 10

Production ___ describe the relationship between inputs and outputs of a production process

Answer 10

functions

Question 11

Production functions: Can take ___ shapes

Answer 11

different

Question 12

Production functions: Often have ___ marginal returns

Answer 12

diminishing

Question 13

Production functions: Often have ___ marginal returns

Answer 13

diminishing

Question 14

Revenue function is production multiplied by ___

Answer 14

output price

Question 15

Revenue function is ___ multiplied by output price

Answer 15

production

Question 16

___ function is production multiplied by output price

Answer 16

Revenue

Question 17

Profit is revenue minus ___

Answer 17

cost

Question 18

Profit is ___ minus cost

Answer 18

revenue

Question 19

___ is revenue minus cost

Answer 19

Profit

Question 20

The level of an input that maximises profit is that where the verticle difference between revenue and cost is ___

Answer 20

greatest

Question 21

Optimal input rates don’t depend only on specific biological factors (like ___ or soil nutrition)
But also
Output price
Input price
Potential yield

Answer 21

plant nutrition

Question 22

Optimal input rates don’t depend only on specific biological factors (like plant nutrition or ___)
But also
Output price
Input price
Potential yield

Answer 22

soil nutrition

Question 23

Optimal input rates don’t depend only on specific biological factors (like plant nutrition or soil nutrition)
But also
___
Input price
Potential yield

Answer 23

Output price

Question 24

Optimal input rates don’t depend only on specific biological factors (like plant nutrition or soil nutrition)
But also
Output price
___
Potential yield

Answer 24

Input price

Question 25

Optimal input rates don’t depend only on specific biological factors (like plant nutrition or soil nutrition)
But also
Output price
Input price
___

Answer 25

Potential yield

Question 26

More profitable crops justify ___ input levels

Answer 26

higher

Question 27

Agricultural pollution imposes social costs that aren’t reflected in decisions about farming ___

Answer 27

inputs

Question 28

If farmers factored pollution in, they would use ___ ___ rates (in those situations where the inputs are causing pollution)

Answer 28

lower input

Question 29

Relationship between input rates and net profit often has a ___ ___ area

Answer 29

wide flat

Question 30

Relationship between input rates and net profit often has a wide flat area

___ need for great precision when choosing rates

Answer 30

No

Question 31

Flat payoff functions: Farmers ___ adjust rates to allow for other factors such as risk or the environment, without sacrificing very much in the way of their own profit.

Answer 31

can