MODULE 1&2 (Midterm)

Question 1

are concerned with issues related to resource use in the
production, processing, distribution, and consumption of products in the agricultural system.

Answer 1

Microeconomic Level

Question 2

are interested in how agriculture and
agribusinesses affect domestic and world economies and how the events taking place in other sectors affect
these firms and vice versa.

Answer 2

Macroeconomic level

Question 3

social science meaning that it uses scientific methods to study the way people
behave

Answer 3

Economics

Question 4

science which studies human behavior as a
relationship between ends and scarce means which have alternative uses. It has also been defined as the
study of how societies use scarce resources to produce valuable commodities and distribute them among
different people.

Answer 4

Economics

Question 5

The word economics comes from Greek word oikonomia whick means

Answer 5

Household Management

Question 6

_________ is an individual or firm that produces (makes; manufactures) a good or provides a service.

Answer 6

Producer

Question 7

A physical product

Answer 7

Good

Question 8

is an individual or household that purchases a good or a service

Answer 8

Consumer

Question 9

is an intangible product such as a haircut, an insurance policy,
or cell phone service.

Answer 9

Service

Question 10

is the study
of individual decision-making units such as individuals, households, and firms.

Answer 10

Microeconomics

Question 11

is based on factual statements.
‘What is?’

Answer 11

Positive Economics

Question 12

is
based on statements that contain opinions and/or value judgments. A normative statement contains a
judgment about “what ought to be” or “what should be.”

Answer 12

Normative Economics

Question 13

Agricultural Economics is the scientific study of methods,
practices, conditions and policies affecting agriculture. The definition itself is a justification that Agricultural
Economics goes beyond farming and farm management.

Answer 13

According to Merriam Webster

Question 14

Economics is the study of production, distribution and consumption of goods and services related to food.

Answer 14

According to Lumenlearning

Question 15

Moreover,
as defined by ___________, agricultural economics is an applied area as well as a hybrid discipline

Answer 15

intechopen.com

Question 16

is an applied science in which the thought, process, analysis,
and organization of economics are studied in relation to the specific forces and relationships arising out of
agriculture being followed as a vocation and as well as a mode of life, under a particular political, social, and
cultural set-up. Agricultural economics is an applied social science that deals with how producers, consumers,
and societies use scarce and natural resources in the production, processing, marketing, and consumption
of food and agricultural product

Answer 16

Agricultural Economics

Question 17

is a simplified representation of some part of reality; its function is to exhibit relationships and interdependence

Answer 17

model

Question 18

latter means that all other things remain the same

Answer 18

Ceteris Paribus

Question 19

means that there is less than the
desired quantity of something. Scarcity reflects the idea that we live in a world of finite
resources and unlimited wants and desir

Answer 19

Scarcity

Question 20

refers to the finite
quantity of resources that are available to meet
society’s needs.

Answer 20

scarcity

Question 21

_____________ can be broken down into Land,
Labor, Capital and Entrepreneurship. Some
categorized these resources as natural and
biological resources (refers to land), human resources (labor and entrepreneurship), and manufactured
resources (capital).

Answer 21

Scarce resources

Question 22

Entrepreneurship. The person who puts together or organizes the other factors of production to
make the needed goods and services is called the entrepreneur. This is also called as

Answer 22

Management

Question 23

_______ defines it as “the allocation of scarce resources among competing ends

Answer 23

Economics

Question 24

1. What to produce?
2. How much to produce?
3. How to produce?
4. For whom to produce

Answer 24

The four basic economic questions

Question 25

Resource scarcity forces consumers and producers to make ___________.

Answer 25

choices

Question 26

By focusing the use of our resources on a specific task, we are engaging in ________

Answer 26

specialization

Question 27

One of the key elements of science is simplification or modelling, also known as “_____________.”

Answer 27

reductionism

Question 28

____________ for a good or services is defined as the amount or quantity of good or service that a consumer is both willing and able to purchase during a specific period of time

Answer 28

demand

Question 29

The quantity demanded is inversely related to its price and all other factors are assumed to be constant.

Answer 29

Law of demand

Question 30

Is a numerical listing of the quantity demanded of a commodity and/or services at alternative prices assuming other factors held constant

Answer 30

Demand schedule or table

Question 31

Graphical representation shows the same information as depicted in the demand schedule

Answer 31

demand curve

Question 32

: the decline in the price of a commodity leads to an equivalent increase in the income of a consumer because he has to spend less to buy the same quantity of goods. This is also known as the Purchasing Power Effect. Example, House Rent...

Answer 32

Income effect

Question 33

: is the decrease in sales for a product that can be attributed to consumers switching to cheaper alternatives when its price rises. Example, Restaurant Meal.....

Answer 33

Substitution effect

Question 34

Goods for which demand increases as the price increases, because of its exclusive nature and appeal as a status.

Answer 34

Veblen Goods

Question 35

The higher the price the higher will be the demand. (Shares, lotteries, gamble and ply-win type of markets.)

Answer 35

Speculative Market

Question 36

A special type of inferior goods for which demand increases as the price increases and falls when the price decreases.

Answer 36

Giffen Goods

Question 37

A special type of inferior goods where the increase in the price results into the increase in the quantity demanded

Answer 37

Ignorance (Exceptional Demand)

Question 38

quantity supplied is directly related or positively related to price

Answer 38

Law of supply

Question 39

all other things held constant

Answer 39

(ceteris paribus

Question 40

is a market situation in which the market price does not equalize supply and demand.

Answer 40

Disequilibrium

Question 41

(Qs > Qd). A market situation in which the quantity supplied exceeds the quantity demanded. At this point, producers are willing to supply more of a good than consumers are willing to purchase at a given price

Answer 41

Surplus

Question 42

. A market situation in which the quantity demanded exceeds the quantity supplied. At this point, consumers are willing and able to purchase more of a good than producers are willing to supply at a given price.

Answer 42

Shortage

Question 43

occur at all prices below the equilibrium price (P*)

Answer 43

Shortages

Question 44

measures the responsiveness of one variable to a certain change of another variable

Answer 44

Concept of elasticity

Question 45

a. When a commodity is a NECESSITY, its demand is generally ________.

Answer 45

inelastic

Question 46

b. When a commodity is a COMFORT, its demand is generally ________.

Answer 46

elastic

Question 47

c. When a commodity is a LUXURY, its demand is generally __________________ as compared to the demand for comforts.

Answer 47

more elastic