30 Questions
Which of the following is a reason why agricultural production is unstable from year to year?
All of the above
Why is storage limited for some agricultural products?
Both A and B
What is a consequence of biological lags in production?
None of the above
What is a scarce resource in agriculture that cannot be increased?
Land
Why is there limited opportunities for managing supply in agriculture?
All of the above
Which of the following is NOT a biological condition affecting agriculture?
Market conditions
What is the purpose of storage in agriculture?
To manage supply
Which of the following is an example of a product with limited opportunities for reserves?
Fresh vegetables
What is the main reason for large annual yield fluctuations in agriculture?
All of the above
What is a consequence of the tie to the land in agriculture?
Increased competition for agricultural resources
Which factor contributed to the growth in U.S. farm sector output between 1948 and 2017?
Increase in total factor productivity
What does Total Factor Productivity (TFP) growth measure?
The rate of growth of total output
What does productivity measure in agriculture?
Changes in the efficiency with which inputs are transformed into outputs
What can affect measured agricultural productivity in the short term?
Random events like weather
What does Total Factor Productivity (TFP) encompass?
The average productivity of all inputs employed in the production of all crop and livestock commodities
What is the result of total consumption for agricultural products over time?
It does not change much
What is the result of certain products' demand over time?
It increases significantly
What is the main reason for the week bargaining power of individual producers in agriculture?
Relatively homogeneous products
Why is asset fixity a challenge for farms?
It is difficult to dispose of capital equipment when downsizing or shutting down the business
Why is world trade in agricultural products relatively small?
Trade policy restrictions
According to the text, what are the four assumptions of the cobweb phenomena?
i) There is a time lag before production responses to a price change ii) There are no reserves iii) Producers plan their future production based on current prices iv) Market prices are determined by the amount supplied with immediate adoption
What does the production function show?
The relationship between quantity of inputs used to make a good and the quantity of that good output
What are the two types of production functions mentioned in the text?
Biological and nonbiological production functions
What does the agricultural (biological) production function measure?
Quantity of output (bushels corn per acre)
In a dry year, what is the range of pounds of nitrogen per acre in the typical production function?
20 to 100
What are the three special conditions of agriculture mentioned in the text?
Biological conditions, structural conditions, market conditions
What is the most correct definition of the cobweb phenomena?
Cyclical fluctuations in trade and production
What is the relationship between the quantity of inputs and the quantity of output in a production function?
The quantity of output increases as the quantity of inputs increases
What is the correct formula for the non-biological production function?
$f(x) = 2x$ where $x$ is the quantity of inputs
What is the correct formula for the agricultural (biological) production function?
$f(x) = x^2$ where $x$ is the quantity of inputs
This quiz tests your knowledge on the uniqueness of agriculture and its impact on society. Topics include the development of agriculture, the reasons behind European dominance in agriculture, and agriculture's special conditions. Prepare to review and expand your understanding of these important concepts.
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