Lesson 2 Fundamentals Of Agricultural Economics

Question 1

An applied field of science wherein the principles of choice are applied to the use of capital, labor, land, and management resources in the farming industries.

Answer 1

Agricultural economics

Question 2

What are the scope of agricultural economics?

Answer 2

-policy analysis
-impact studies
-benefit-cost analysis
-natural resource
Economic development in rural areas

Question 3

A Republic in conducting scientific research and investigation?

Answer 3

Republic Act No. 4059

Question 4

Importance of agriculture?

Answer 4

-Provision of food
-Provision of jobs
-Government revenue
-Trading and foreign exchange earning
-provision of market for other industries
-Education and training

Question 5

Top Philippine food export

Answer 5

Tuna
Banana
Mango
Pineapple
Coffee
Coconut

Question 6

All accredited farmers and fisherfolk enterprises may be exempt from income tax on income derived from the enterprise provided they are registered as BMBEs.

Answer 6

Exemption from Income Tax

Question 7

BMBEs stand for ______.

Answer 7

Barangay Micro-Business Enterprises

Question 8

• applies the principles front general economics to the agricultural industry.
• it is an applied of science, static and dynamic, and is a mix of science and art.

Answer 8

Nature of Agricultural Economics

Question 9

Oldest of arts and the queen of all social science.

Answer 9

Art

Question 10

Role of agricultural economists in microeconomics level.

Answer 10

Production economist
Market economist
Financial economist
Resource economist

Question 11

Examine how firms decide the optimal combination of inputs (labor,capital, and raw materials) to produce goods and services.

Answer 11

Production economist

Question 12

Focus on the flow of goods and services in the market channels and determine prices,

Answer 12

Market economist

Question 13

Concern with the issues related to financing of business.

Answer 13

Financial economist

Question 14

Used and preservation of natural resources.

Answer 14

Resource economist

Question 15

• are abundant in nature
  -no price attached

Answer 15

Free products

Question 16

Sunshine,sea water,air we breath are example of _______.

Answer 16

Free products

Question 17

Goods and services that are relatively scarce, and transferrable to others.

Answer 17

Economic products

Question 18

-Commodities and/products that an individual can use
-concret and tangible

Answer 18

Goods

Question 19

-Work performed for someone else
-manual work such as carpentry, tailoring, etc.

Answer 19

Services

Question 20

What are the type of goods

Answer 20

Consumer goods
Capital goods
Durable goods
Non-durable goods

Question 21

-Used by individuals
-food, clothing, medicine, etc.

Answer 21

Consumer goods

Question 22

-Used to produce other goods
-eg. Machineries, tractors, threshers

Answer 22

Capital goods

Question 23

-Last for less than three(3) years
- e.g computers, cellphones, shoes

Answer 23

Non-durable goods

Question 24

-will last for three (3) years or more
-buildings, trucks, etc.

Answer 24

Durable goods

Question 25

-individuals who used goods and services to satisfy their needs and wants -individuals or entities that purchase products and avail services offered to them.

Answer 25

Consumers

Question 26

-Something with worth that can be expressed in monetary terms like peso or dollars. -determined by the price someone would pay for something

Answer 26

Value

Question 27

What are the basic concepts and principles of agricultural economics?

Answer 27

1. Value 2. Utility 3. Capital 4. Income 5. Wealth 6. Welfare 7. Opportunity cost 8. Economic efficiency 9. Scarcity and choice

Question 28

In order for something to have value, it has to be scarce.

Answer 28

Paradox value

Question 29

-The capacity to be useful to someone - not measurable and can be different from one person to the next - the satisfaction that one achieves from consuming goods/services.

Answer 29

Utility

Question 30

Additional satisfaction one gets from each unit consumption.

Answer 30

Marginal utility

Question 31

-anything which has value - the sum of economic products that are tangible, scarce, useful, and transferable from one person to another.

Answer 31

Wealth

Question 32

- part of the wealth of individuals and of communities other than money - used to assist in the production of further wealth

Answer 32

Capital

Question 33

Tools, implements, machinery,seed, raw materials, transport facilities such as roads, railways, ships etc. are examples of ___________?

Answer 33

Capital

Question 34

- money derived from property or assets - income generated from rented house, revenue generated from cultivating own farmland.

Answer 34

Income

Question 35

-Wealth is the means and welfare is the end - generally derived from wealth - In form of mental, moral, and physical well-being of individual

Answer 35

Welfare

Question 36

The value of the next-highest-valued alternative use of a source

Answer 36

Opportunity cost

Question 37

-Condition where each and every resource is allocated optimally so that each person is served in the best possible way. -measure of output obtained with a given of inputs with least amount of wastage

Answer 37

Economic efficiency

Question 38

- requires people to make decisions about how to allocate resources efficiently, in order to satisfy basic needs and as many additional wants as possible given scarce resources.

Answer 38

Scarcity and choice

Question 39

What are the subject matter of economics?

Answer 39

1. Consumption 2. Production 3. Exchange 4. Distribution

Question 40

- satisfaction of human needs and wants - produced goods are consumed immediately or sometime in the future - consumption represent using up of utilities

Answer 40

Consumption

Question 41

A process when needs and wants are satisfied ?

Answer 41

Consumption

Question 42

Creation of wealth, creation of utility, all activities which are undertaken to produce goods which satisfy human needs and wants.

Answer 42

Production

Question 43

A process of extracting minerals from the earth's crust; fishing from rivers, lakes and oceans; and growing trees.

Answer 43

Production

Question 44

Transfer of goods, takes place among groups of individuals, countries, markets, regions, province etc. - leads to increase in welfare of individuals through creation of higher utilities for goods and services.

Answer 44

Exchange

Question 45

Refers to the sharing of wealth produced by community among the agents of production, proper distribution of wealth, and resources leading to development and economic welfare of the people in a nation

Answer 45

Distribution

Question 46

Wealth is produced by the combination of ____, ____, ____, and ____.

Answer 46

Land, labour, capital and entrepreneurship

Question 47

Wealth is distributed in the form of ____, _____, ______, and _____.

Answer 47

Rent, wages, interest and profits

Question 48

Tools in Economic analyses

Answer 48

Economic model Centeris paribus Marginal analysis Correlation and causation

Question 49

Examining changes, and refers to an additional or incremental unit of something.

Answer 49

Marginal analysis

Question 50

A simplified description of reality, designed to yield hypotheses about economic behavior that can be tested.

Answer 50

Economic models

Question 51

-Tools in Economic analyses which means "everything else being equal".

Answer 51

Centeris paribus

Question 52

-used in economics to rule out the possibility of others factors changing.

Answer 52

Centeris paribus

Question 53

Used in economics to rule out the possibility of other factors changing.

Answer 53

Centeris paribus

Question 54

Refers to two events that share some sort of "mutual relationship" in a regular and predictable manner.

Answer 54

Correlation

Question 55

Refers to two events in which there is a " cause-and-effect relationship.

Answer 55

Causation

Question 56

Two or more than two products are produced in the same production process.

Answer 56

Joint product

Question 57

Occurs when one of the products produces an input used by the product.

Answer 57

Complementary products

Question 58

If one product can be increased without increasing or decreasing the other product.

Answer 58

Supplementary productions

Question 59

Increase in one product requires a reduction in the other.

Answer 59

Competitive relationships

Question 60

Types of principles of combining enterprises:

Answer 60

Joint product Complementary products Supplementary production Competitive relationships

Question 61

As you increase production of one good, the opportunity cost to produce an additional unit of that good will increase.

Answer 61

Law of increasing opportunity cost

Question 62

Types of law comparative advantage?

Answer 62

Comparative advantage Absolute advantage

Question 63

Advantage if he can produce the crops at a lower opportunity cost than another farmer.

Answer 63

Comparative advantage

Question 64

If he can produce crops at a faster rate with the same amount of resources compared to another farmer.

Answer 64

Absolute advantage

Question 65

What are the agricultural economics principles?

Answer 65

Law diminishing marginal returns Law of equi-marginal returns Law of substitution Principles of combining enterprises Law of increasing opportunity cost Law of comparative advantage