AGEC 440 Exam 1 Questions and
Answers Graded A+
Agribusiness - Correct answer-Agribusiness can be viewed as a number of
interrelated sub sectors which work together formally and informally to produce
goods and services
Formal vs. Informal - Correct answer-- Western world primarily uses contracts
-Eastern world and Latin America use handshakes
(In Asia it is because it has to do with trust and business is kept within the family
usually)
(In Latin America it is because the legal system is corrupt and have hard time
enforcing contracts)
Agribusiness is a ... - Correct answer-System
Driver of the the Agribusiness system - Correct answer-Consumer Sovereignty
Consumer Sovereignty - Correct answer-Overarching principle that impacts
agribusiness system
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,-desires and needs of consumers control the output of producers
-*McDonald's GM Case* : banned meat reared on genetically mortified feed from
its hamburgers due to public concerns
Distinctive Characteristics of Agribusiness: - Correct answer--Food is intertwined
with culture
-Uncertainty underlying biological basis of production
-Political intervention
-Ag and food technology development (public vs. private research)
-Competitive market structure
-Food is a necessity
Food is intertwined with culture, domestically and internationally - Correct
answer--American's eat turkey on Thanksgiving
-No beef in India
-No pork in the Middle East
-"Meatball War": Sweden, banning pork due to growing Muslim population,
against Danish culture, created social conflict
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, Uncertainty underlying biological basis of crop and livestock production - Correct
answer--Weather
-Food safety
-Disease
-Case of E coli every summer
Political intervention across sub sectors and between nations (US farm bill) -
Correct answer--Most subsidies go to farmgate level
-Goes back to the biological uncertainty
-Rest of subsidies go to SNAP and WIP
Ag and food technology development (public vs. private research) - Correct
answer--Transition from mostly government R&D to now mostly private
companies
-Example of a company that spends a lot of time and money on R&D: Monsanto
-Impacts of Transition: Higher prices for customers
Competitive market structure - Correct answer--Highly concentrated
-Greater consolidation
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Answers Graded A+
Agribusiness - Correct answer-Agribusiness can be viewed as a number of
interrelated sub sectors which work together formally and informally to produce
goods and services
Formal vs. Informal - Correct answer-- Western world primarily uses contracts
-Eastern world and Latin America use handshakes
(In Asia it is because it has to do with trust and business is kept within the family
usually)
(In Latin America it is because the legal system is corrupt and have hard time
enforcing contracts)
Agribusiness is a ... - Correct answer-System
Driver of the the Agribusiness system - Correct answer-Consumer Sovereignty
Consumer Sovereignty - Correct answer-Overarching principle that impacts
agribusiness system
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,-desires and needs of consumers control the output of producers
-*McDonald's GM Case* : banned meat reared on genetically mortified feed from
its hamburgers due to public concerns
Distinctive Characteristics of Agribusiness: - Correct answer--Food is intertwined
with culture
-Uncertainty underlying biological basis of production
-Political intervention
-Ag and food technology development (public vs. private research)
-Competitive market structure
-Food is a necessity
Food is intertwined with culture, domestically and internationally - Correct
answer--American's eat turkey on Thanksgiving
-No beef in India
-No pork in the Middle East
-"Meatball War": Sweden, banning pork due to growing Muslim population,
against Danish culture, created social conflict
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
, Uncertainty underlying biological basis of crop and livestock production - Correct
answer--Weather
-Food safety
-Disease
-Case of E coli every summer
Political intervention across sub sectors and between nations (US farm bill) -
Correct answer--Most subsidies go to farmgate level
-Goes back to the biological uncertainty
-Rest of subsidies go to SNAP and WIP
Ag and food technology development (public vs. private research) - Correct
answer--Transition from mostly government R&D to now mostly private
companies
-Example of a company that spends a lot of time and money on R&D: Monsanto
-Impacts of Transition: Higher prices for customers
Competitive market structure - Correct answer--Highly concentrated
-Greater consolidation
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
