AEC 305 exam 1 Question and answers
already passed 2025
1. Recall that we discussed in our opening lecture how agricultural commodity
and food markets are unique compared to other (non-food) consumer
markets. Be able to discuss some of these differences - correct answers
everyone is an agricultural consumer
everyone uses the food market system every day, 3 times a day
millions of producers compared to other goods
Identify and describe three approaches (institutional, functional, and
behavioral) to studying agricultural marketing issues. Be sure to be able to
give examples of each approach as it relates to food and agricultural
marketing. - correct answers Institutional- the study of the various individuals,
agencies, and businesses that perform/affect the marketing processes.
Farmers/ producers Functional- specialized activities performed within the
marketing process
transportation
Behavioral- examining the performance of management decisions made by
marketing firms
Can changes be made in the marketing system to lower the cost of food to
consumers?
Recall the difference between macro and micro analysis in ag/food marketing.
- correct answers micro- firm level analysis
how much do i spend to advertise?
macro- firm level analysis
what was the effect of the California drought on US food prices?
, a food marketing system is comprised of many entities, input suppliers,
farmers, agribusinesses, consumers, and the government - correct answers
understand the term marketing bill - correct answers o Marketing Bill- is the
difference between total consumer expenditures for domestically produced
foods and the corresponding farm value of raw U.S. agricultural commodities
Represents the annual cost for the food sector's marketing services, including
transporting, processing, storage, and distributing domestic farm foods.
Covers foods consumed both at home and away from home
understand the term market basket - correct answers o Market Basket-
consists of a fixed quantity of U.S. farm-originated food to track U.S. food
price changes in grocery stores over a given time.
understand the term price spread - correct answers o Price spreads- isolating
on the price difference for a single food item or group of similar items at
different stages in the marketing system
from a dairy cow to a gallon of milk
field corn to a box of corn flakes
wheat to a loaf of bread
generally, the greater the amount of processing for the product, the lower the
farm value share of the retail food dollar
Briefly describe trends in the U.S. farm value, marketing bill, and consumer
food expenditures (both
increase in the marketing bill, farm to retail price spreads, and consumer food
expenditures over the past several decades - correct answers o
CALCULATIONS: PFV(i)= Pf * CF
where PF= the price the farmer receives at the farm market level
already passed 2025
1. Recall that we discussed in our opening lecture how agricultural commodity
and food markets are unique compared to other (non-food) consumer
markets. Be able to discuss some of these differences - correct answers
everyone is an agricultural consumer
everyone uses the food market system every day, 3 times a day
millions of producers compared to other goods
Identify and describe three approaches (institutional, functional, and
behavioral) to studying agricultural marketing issues. Be sure to be able to
give examples of each approach as it relates to food and agricultural
marketing. - correct answers Institutional- the study of the various individuals,
agencies, and businesses that perform/affect the marketing processes.
Farmers/ producers Functional- specialized activities performed within the
marketing process
transportation
Behavioral- examining the performance of management decisions made by
marketing firms
Can changes be made in the marketing system to lower the cost of food to
consumers?
Recall the difference between macro and micro analysis in ag/food marketing.
- correct answers micro- firm level analysis
how much do i spend to advertise?
macro- firm level analysis
what was the effect of the California drought on US food prices?
, a food marketing system is comprised of many entities, input suppliers,
farmers, agribusinesses, consumers, and the government - correct answers
understand the term marketing bill - correct answers o Marketing Bill- is the
difference between total consumer expenditures for domestically produced
foods and the corresponding farm value of raw U.S. agricultural commodities
Represents the annual cost for the food sector's marketing services, including
transporting, processing, storage, and distributing domestic farm foods.
Covers foods consumed both at home and away from home
understand the term market basket - correct answers o Market Basket-
consists of a fixed quantity of U.S. farm-originated food to track U.S. food
price changes in grocery stores over a given time.
understand the term price spread - correct answers o Price spreads- isolating
on the price difference for a single food item or group of similar items at
different stages in the marketing system
from a dairy cow to a gallon of milk
field corn to a box of corn flakes
wheat to a loaf of bread
generally, the greater the amount of processing for the product, the lower the
farm value share of the retail food dollar
Briefly describe trends in the U.S. farm value, marketing bill, and consumer
food expenditures (both
increase in the marketing bill, farm to retail price spreads, and consumer food
expenditures over the past several decades - correct answers o
CALCULATIONS: PFV(i)= Pf * CF
where PF= the price the farmer receives at the farm market level
