AGEC 105 Quiz Exam Questions and
Answers Graded A+
The U.S. population has increased from 154 million in 1951 to 313 million at the
start of 2012, a 103% increase. To feed the nation and the world, what is your best
estimate of the percentage increase in cropland in the U.S.? - Correct answer--25%
What is the slope of the line y = 5 - 0.2 x? - Correct answer--0.2
Which of the following would be examples of value added in agriculture? Check
all that apply. 0.33 points will be deducted from your score for wrong answers -
Correct answer--Your McDonalds Take out meal
-Strawberries turned into jam
-Bison meat being sold as jerky
Agricultural economics deals with - Correct answer-Farm supply and farms
Distributors such Ben E. Keith
Grain elevators and processors
Retailers such as Sam's Club or HEB
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,Which point(s) provide the largest level of utility? - Correct answer-B and D
Calculate the marginal rate of substitution of changing consumption from point B -
Correct answer-(3-5)/(12-8)=-2/4=-1/2
Let the black line represent the original budget constraint, which line represents an
increase in your budget? - Correct answer-Purple
Which of the following products do you most likely have an effective demand for
in your consumption bundle? - Correct answer-Low fat milk at $3.79/ gallon
At what point does the consumer maximize his / her utility? - Correct answer-4
coke and 10 pepsi
Assume the ratio of marginal utility of texting relative to the price of texting (air
time) is greater than the marginal utility of going to the movies relative to movie
ticket prices.
What should a rational consumer do to increase their utility? - Correct answer-
Purchase more text time and less movie tickets
Let the black line represent the original budget constraint, which line represents an
increase in the price of good A? - Correct answer-Red
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,The price of designer blue jeans has increased by 25%. As a rational consumer, you
have decreased your purchases of blue jeans by two. This decrease in purchases is
a result of - Correct answer-Income and Substitution Effect
Which area represents the change in consumer surplus if price decreases from 6 to
2 dollars? - Correct answer-FCBE
Which area represents the change in consumer surplus if price increases from 2 to
6 dollars? - Correct answer-FCBE
Changes in consumer equilibrium brought about by price changes were discussed.
____ effect of a price change is the change in quantity attributed solely to the
effective change in your buying power. - Correct answer-Income
Changes in consumer equilibrium brought about by price changes were discussed.
____ effect of a price change is the change in quantity attributed solely to the
change in the price ratio, Pgood A / Pgood B? - Correct answer-Substitution
The potato originated in the Andean region, wealthier people in this area prefer
wheat to potatoes. In Bangladesh, however, potatoes are viewed as a expensive
source of calories and a high prestige food. What type of good are potatoes in the
Andean region and in Bangladesh, respectively? - Correct answer-Inferior, Normal
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, What is the own price elasticity for the arc between points A and B? - Correct
answer-((12-20)/(10-6))*(((10+6)/2))/((20+12)/2))) = (-8/4)*(8/16) = -1
Do You Recall: Assume you have $20 to spend on hotdogs and coke. The price of a
hotdog is $2 and coke is $1. Which point is the correct consumer equilibrium? -
Correct answer-B
When a university experiences a decrease in state funding, the university often
increases tuition and fees in an attempt to meet their budget shortfalls. This works
only if enrollment is - Correct answer-Inelastic
The own price elasticity for Mountain Dew has been estimated to be -4.4, whereas
the own price elasticity for soft drinks has been estimated to be -0.9. How can this
be - Correct answer-If you increase the price of Mountain Dew you may switch to
another soft drink - making Mountain Dew more elastic relative to soft drinks in
general.
The own price elasticity for beer in the UK supermarkets is estimated by Meng et
al. (2014) to be -0.98, whereas, the elasticity for beer in pubs is -0.76. You own
both a supermarket and a pub and want to increase revenues in both, what should
you do? - Correct answer-Increase in the pub but not much you can do in the
supermarket.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 4
Answers Graded A+
The U.S. population has increased from 154 million in 1951 to 313 million at the
start of 2012, a 103% increase. To feed the nation and the world, what is your best
estimate of the percentage increase in cropland in the U.S.? - Correct answer--25%
What is the slope of the line y = 5 - 0.2 x? - Correct answer--0.2
Which of the following would be examples of value added in agriculture? Check
all that apply. 0.33 points will be deducted from your score for wrong answers -
Correct answer--Your McDonalds Take out meal
-Strawberries turned into jam
-Bison meat being sold as jerky
Agricultural economics deals with - Correct answer-Farm supply and farms
Distributors such Ben E. Keith
Grain elevators and processors
Retailers such as Sam's Club or HEB
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,Which point(s) provide the largest level of utility? - Correct answer-B and D
Calculate the marginal rate of substitution of changing consumption from point B -
Correct answer-(3-5)/(12-8)=-2/4=-1/2
Let the black line represent the original budget constraint, which line represents an
increase in your budget? - Correct answer-Purple
Which of the following products do you most likely have an effective demand for
in your consumption bundle? - Correct answer-Low fat milk at $3.79/ gallon
At what point does the consumer maximize his / her utility? - Correct answer-4
coke and 10 pepsi
Assume the ratio of marginal utility of texting relative to the price of texting (air
time) is greater than the marginal utility of going to the movies relative to movie
ticket prices.
What should a rational consumer do to increase their utility? - Correct answer-
Purchase more text time and less movie tickets
Let the black line represent the original budget constraint, which line represents an
increase in the price of good A? - Correct answer-Red
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
,The price of designer blue jeans has increased by 25%. As a rational consumer, you
have decreased your purchases of blue jeans by two. This decrease in purchases is
a result of - Correct answer-Income and Substitution Effect
Which area represents the change in consumer surplus if price decreases from 6 to
2 dollars? - Correct answer-FCBE
Which area represents the change in consumer surplus if price increases from 2 to
6 dollars? - Correct answer-FCBE
Changes in consumer equilibrium brought about by price changes were discussed.
____ effect of a price change is the change in quantity attributed solely to the
effective change in your buying power. - Correct answer-Income
Changes in consumer equilibrium brought about by price changes were discussed.
____ effect of a price change is the change in quantity attributed solely to the
change in the price ratio, Pgood A / Pgood B? - Correct answer-Substitution
The potato originated in the Andean region, wealthier people in this area prefer
wheat to potatoes. In Bangladesh, however, potatoes are viewed as a expensive
source of calories and a high prestige food. What type of good are potatoes in the
Andean region and in Bangladesh, respectively? - Correct answer-Inferior, Normal
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
, What is the own price elasticity for the arc between points A and B? - Correct
answer-((12-20)/(10-6))*(((10+6)/2))/((20+12)/2))) = (-8/4)*(8/16) = -1
Do You Recall: Assume you have $20 to spend on hotdogs and coke. The price of a
hotdog is $2 and coke is $1. Which point is the correct consumer equilibrium? -
Correct answer-B
When a university experiences a decrease in state funding, the university often
increases tuition and fees in an attempt to meet their budget shortfalls. This works
only if enrollment is - Correct answer-Inelastic
The own price elasticity for Mountain Dew has been estimated to be -4.4, whereas
the own price elasticity for soft drinks has been estimated to be -0.9. How can this
be - Correct answer-If you increase the price of Mountain Dew you may switch to
another soft drink - making Mountain Dew more elastic relative to soft drinks in
general.
The own price elasticity for beer in the UK supermarkets is estimated by Meng et
al. (2014) to be -0.98, whereas, the elasticity for beer in pubs is -0.76. You own
both a supermarket and a pub and want to increase revenues in both, what should
you do? - Correct answer-Increase in the pub but not much you can do in the
supermarket.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 4
