Ag Econ Chapters 1-4 Questions with Verified
Answers
scarcity Ans✔✔-finite quantity of resources that are available to meet society's
needs
Types of Scarce Resources Ans✔✔-1. Natural and biological
2. Human
3. Manufactured
What is capital? Ans✔✔-Manufactured resources; machines, equipment, and
structures
Opportunity Cost Ans✔✔-the implicit cost associated with the next-best
alternative in a set of choices available to decision makers (cost vs. benefit)
Specialization Ans✔✔-focusing the use of resources on a particular task
Economics Ans✔✔-a social science that deals with how consumers, producers,
and societies choose among the alternative uses of scarce resources in the
process of producing, exchanging, and consuming goods and services
Microeconomics Ans✔✔-focuses on actions/behavior of individual agents or
groups of agents
Macroeconomics Ans✔✔-focuses on broad aggregates of economy
, fallacy of composition Ans✔✔-which is true in an individual situation may not be
true in the aggregate
positive economics Ans✔✔-focuses on what-is and what-would-happen-if
questions and policy issues ***No value judgements of prescription
normative economics Ans✔✔-focuses on "what should be" or "what ought to be"
capitalism Ans✔✔-free market economic system in which individuals own
resources and have the right to employ their time and resources however they
choose with minimal legal constraints from the government
socialism Ans✔✔-resources are collectively owned and the government decides
how human and nonhuman resources are to be utilized across the various sectors
of the economy
mixed economic system Ans✔✔-markets are not entirely free to determined
price in some markets but are free in others
agricultural economics Ans✔✔-deals with how producers, consumers, and
societies use scarce resources in the production, processing, marketing, and
consumption of food and fiber products
agecon - micro Ans✔✔-resource use in the production, processing, distribution,
and consumption of products in the food and fiber system (supply/demand, price,
finance, capital, preservation)
Answers
scarcity Ans✔✔-finite quantity of resources that are available to meet society's
needs
Types of Scarce Resources Ans✔✔-1. Natural and biological
2. Human
3. Manufactured
What is capital? Ans✔✔-Manufactured resources; machines, equipment, and
structures
Opportunity Cost Ans✔✔-the implicit cost associated with the next-best
alternative in a set of choices available to decision makers (cost vs. benefit)
Specialization Ans✔✔-focusing the use of resources on a particular task
Economics Ans✔✔-a social science that deals with how consumers, producers,
and societies choose among the alternative uses of scarce resources in the
process of producing, exchanging, and consuming goods and services
Microeconomics Ans✔✔-focuses on actions/behavior of individual agents or
groups of agents
Macroeconomics Ans✔✔-focuses on broad aggregates of economy
, fallacy of composition Ans✔✔-which is true in an individual situation may not be
true in the aggregate
positive economics Ans✔✔-focuses on what-is and what-would-happen-if
questions and policy issues ***No value judgements of prescription
normative economics Ans✔✔-focuses on "what should be" or "what ought to be"
capitalism Ans✔✔-free market economic system in which individuals own
resources and have the right to employ their time and resources however they
choose with minimal legal constraints from the government
socialism Ans✔✔-resources are collectively owned and the government decides
how human and nonhuman resources are to be utilized across the various sectors
of the economy
mixed economic system Ans✔✔-markets are not entirely free to determined
price in some markets but are free in others
agricultural economics Ans✔✔-deals with how producers, consumers, and
societies use scarce resources in the production, processing, marketing, and
consumption of food and fiber products
agecon - micro Ans✔✔-resource use in the production, processing, distribution,
and consumption of products in the food and fiber system (supply/demand, price,
finance, capital, preservation)
