General Knowledge 2023

Question 1

Which of the following is an appropriate enterprise unit combination for an enterprise budget?

*Poultry- per 25 birds
*Sheep- per ewe
*Cow/Calf- per cow/calf pair
*Corn- per acre
All the above

Answer 1

Poultry- per 25 birds

Question 2

If the U.S. wheat industry has an inelastic demand curve, a decrease in the amount of wheat supplied to the market would:

Answer 2

Increase the total revenues for wheat producers

Question 3

For tax purposes, a new machine shed built and completed in October 2022 has a depreciable life of _____.

Answer 3

20 years

Question 4

The change in total cost or total variable cost, due to one unit change in output

Answer 4

Marginal Input Cost

Question 5

The financial returns after all costs have been paid:

Answer 5

Profit

Question 6

The standard milage rate for the last six months of 2022 for the cost of operating your car, van, pickup, or panel truck for each business use trip is

Answer 6

$0.625

Question 7

By selecting multiple auction barns to sell livestock at, you are addressing

Answer 7

Market risk

Question 8

MO FFA Farms purchased a sprayer for $300,000 three years ago. The sprayer has been depreciated $110,000 on their machinery inventory. Their lender assigned a market value of $225,000 to the sprayer. The value to list on a Cost Basis Balance Sheet is:

Answer 8

$190,000

Question 9

Which of the following causes a direct shift in the demand for beef:

*Increase income of consumers
*A decrease in cattle numbers
*Increase cost of producing beef
*None of the options
*Increased number of cattle producers

Answer 9

Increase income of consumers

Question 10

How often a yield is achieved is an example of measuring ________ in risk management.

Answer 10

Frequency

Question 11

Which budget is useful for estimating profitability for a cow/calf operation?

Answer 11

Enterprise budget

Question 12

By purchasing yield protection insurance, you are addressing

Answer 12

Production risk

Question 13

Monetary outlay for the fixed and variable input factors needed to obtain output:

Answer 13

Cost of production

Question 14

Which of the following is considered Schedule F farm income?

Answer 14

Sale of hay and straw

Question 15

The maximum amount that can be claimed as a Section 179 expense deduction on your 2021 tax return is:

Answer 15

$1,080,000

Question 16

Corn and grain sorghum are substitutes for each other in many livestock feed rations. Assuming they are substitutes, a decrease in the supply of corn would cause the demand for grain sorghum to:

Answer 16

Shift to the left

Question 17

The maximum amount a wife can inherit from her husband without owing any federal estate tax is:

Answer 17

Unlimited

Question 18

An LLC (Limited Liability Company) is usually

Answer 18

Taxed like a partnership

Question 19

For Tax year 2022, the social security wage base was

Answer 19

$137,700

Question 20

The short-run supply curve for a firm is identical to

Answer 20

Average variable cost

Question 21

The self-employment tax rate for Medicare is

Answer 21

2.90%

Question 22

A grain farmer who normally stores his soybeans at a local elevator has decided to use the options market to create a synthetic storage. To do so he will sell his beans at harvest and:

Answer 22

Sell a put option

Question 23

International economic challenges due to government intervention is an example of:

Answer 23

Legal risk

Question 24

The demand for an item with many possible substitutes is _____ than the demand for an item with few substitutes.

Answer 24

More elastic

Question 25

A farmer should issue an IRS Form 1099-NEC for which of the following?

Answer 25

$850 paid to a neighbor for baling the farmer's hay

Question 26

The IRS form used to calculate self-employment tax is:

Answer 26

Schedule SE

Question 27

MO FFA Farms purchased seed corn in November 2022. It will be used for the 2023 crop. The seed corn should be listed on the ending 2022 Market Value Balance sheet as a:

Answer 27

Current Asset

Question 28

Equity plus liabilities equals:

Answer 28

Total Assets

Question 29

The total tax deduction for conservation expenses in any tax year is limited to ____ of your gross income from farming for the year?

Answer 29

25%

Question 30

The main reason for hedging is

Answer 30

To reduce the price risk associated with producing or storing a cash commodity

Question 31

If anhydrous ammonia (NH3) is 82.3% nitrogen by weight and is selling for $1,600 per ton, what is the cost per pound of actual N?

Answer 31

$0.66

Question 32

If the price of a commodity is too low, the demand will be greater than the supply resulting in a:

Answer 32

Shortage

Question 33

The demand curve shows the relationship between:

Answer 33

Price and the quantity demanded

Question 34

When required, you must send an IRS form 1099-MISC to the individual you paid by

Answer 34

January 31

Question 35

An example of a Current Liability is:

Answer 35

Accrued Interest

Question 36

Which of the following is not a supply shifter for farm products? *Weather *Government programs *New technology *Consumer income *None of these

Answer 36

Consumer income

Question 37

A decrease in the value of the U.S. dollar relative to the currency of other countries should result in:

Answer 37

More costly imports

Question 38

Which Financial Ratio is used to evaluate the Solvency of a farm business?

Answer 38

Debt to Asset ratio

Question 39

What typically happens to the basis during the harvest of a larger than usual crop?

Answer 39

Basis widens

Question 40

Marginal outputs decreasing with each additional unit of input:

Answer 40

Diminishing physical returns