AGEC 325 Exam Questions and Answers
Graded A+
Managers allocate _________. - Correct answer-Scarce resources
T/F: Future farm managers will still have to allocate scare resources in the future,
just as business managers do now. - Correct answer-True
Future farm managers will still use: - Correct answer--economic principles
-budgets
-records summaries
-investment analyses
-financial statements
-other management techniques currently being used
Future farm managers will still have to decide: - Correct answer--input and output
levels
-enterprise combinations
-risk and returns
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,-appropriate markets
-optimal farm size
Broad types of decisions will be the same but: - Correct answer--technology will
continue to provide new inputs
-more specialized products will be possible
-competition with nonagricultural business for use of land, labor and capital
resources will likely increase
-better managers will adapt to these changes
Changes will be driving by: - Correct answer--labor-saving technology
-more lucrative off-farm employment opportunities
-the desire of farm operators for higher income
-high fixed costs of some technology
Number of farms in the US is ________. - Correct answer-decreasing
Average farm size is ______. - Correct answer-increasing
Four general farm business strategies: - Correct answer--Low Volume, High value
producers
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,mushrooms
lavender
flower
-Specialty product and service providers
free range poultry
organic beef
aquaculture
-High volume, low margin producers
corn
soybeans
rice
cattle
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, -Part-time farmers and ranchers
farmer's markets eggs and produce
Part-time Producers: Lifestyle Satisfaction Maximizers - Correct answer--earn
most of their income off the farm
-involved in production agriculture for the lifestyle as much as, or even more than,
the profits generated by their operation
Commercial Producers: Profit Maximizers - Correct answer--focused on efficiency
and cost minimization in order to generate maximum profits
What are the factors effecting farm management in the future? - Correct answer--
new technology
-readily available information
-control of assets
-human resources
-producing to meet changing consumer needs
-contracting and vertical integration
©COPYRIGHT 2025, ALL RIGHTS RESERVED 4
Graded A+
Managers allocate _________. - Correct answer-Scarce resources
T/F: Future farm managers will still have to allocate scare resources in the future,
just as business managers do now. - Correct answer-True
Future farm managers will still use: - Correct answer--economic principles
-budgets
-records summaries
-investment analyses
-financial statements
-other management techniques currently being used
Future farm managers will still have to decide: - Correct answer--input and output
levels
-enterprise combinations
-risk and returns
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,-appropriate markets
-optimal farm size
Broad types of decisions will be the same but: - Correct answer--technology will
continue to provide new inputs
-more specialized products will be possible
-competition with nonagricultural business for use of land, labor and capital
resources will likely increase
-better managers will adapt to these changes
Changes will be driving by: - Correct answer--labor-saving technology
-more lucrative off-farm employment opportunities
-the desire of farm operators for higher income
-high fixed costs of some technology
Number of farms in the US is ________. - Correct answer-decreasing
Average farm size is ______. - Correct answer-increasing
Four general farm business strategies: - Correct answer--Low Volume, High value
producers
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
,mushrooms
lavender
flower
-Specialty product and service providers
free range poultry
organic beef
aquaculture
-High volume, low margin producers
corn
soybeans
rice
cattle
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
, -Part-time farmers and ranchers
farmer's markets eggs and produce
Part-time Producers: Lifestyle Satisfaction Maximizers - Correct answer--earn
most of their income off the farm
-involved in production agriculture for the lifestyle as much as, or even more than,
the profits generated by their operation
Commercial Producers: Profit Maximizers - Correct answer--focused on efficiency
and cost minimization in order to generate maximum profits
What are the factors effecting farm management in the future? - Correct answer--
new technology
-readily available information
-control of assets
-human resources
-producing to meet changing consumer needs
-contracting and vertical integration
©COPYRIGHT 2025, ALL RIGHTS RESERVED 4
