Question 1

Most farm families:

Accepted Answer

According to the U.S. Department of Agriculture, the majority of farm families rely on off-farm income to supplement their farm income.

Question 2

Agriculture is:

Accepted Answer

Agriculture is a global industry, as it involves the production, processing, and trade of food and other agricultural products across borders.

Question 3

If the price of corn increases, then:

Accepted Answer

The answer of If the price of corn increases, then:
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Question 4

The price of cattle assumes:

Accepted Answer

The answer of The price of cattle assumes:
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Question 5

When the price of gasoline increases, ceteris paribus:

Accepted Answer

According to the law of demand, when the price of a good increases, the quantity demanded of that good decreases, ceteris paribus. Therefore, when the price of gasoline increases, the quantity demanded of gasoline will decrease, assuming all other factors remain constant.

Question 6

Economics assumes that all business firms desire to:

Accepted Answer

The fundamental goal of a business firm is to maximize profits. Profit is calculated as the difference between total revenue and total cost. Therefore, a business firm must strive to maximize its total revenue and minimize its total cost in order to maximize its profits.

Question 7

Suppose that Congress increased the minimum wage to $12.50/hour, ceteris paribus. This will:

Accepted Answer

Increasing the minimum wage would increase the labor cost for fast food businesses. As a result, they might have to cut back on the number of workers to offset the increased expense. Therefore, the increase in minimum wage would lead to a decrease in the number of fast food workers.

Question 8

Mechanization of agriculture has:

Accepted Answer

Mechanization of agriculture has resulted in the elimination of millions of agricultural jobs, been due to relative price changes, and resulted in larger farms. Therefore, all of the other answers are correct.

Question 9

Resources are:

Accepted Answer

Resources are considered scarce because they are limited in supply relative to the demand for them. This is why the concept of economics is often framed as the study of how societies allocate scarce resources among competing demands. While resources may be more abundant in certain areas or nations than others, scarcity is still a fundamental concept that applies across all societies.

Question 10

If the price of corn increases relative to other crops:

Accepted Answer

If the price of corn increases relative to other crops, farmers are likely to shift towards producing more corn as it becomes more profitable. However, this increase in production may not meet the demand in the market, resulting in an increase in the price of corn. As a result, consumers may switch to other crops, leading to a decrease in corn consumption. Therefore, corn production will increase and corn consumption will decrease.

Question 11

Define the term, "scarcity," and explain why scarcity is the fundamental problem of economics.

Accepted Answer

The answer of Define the term, "scarcity," and explain why...

Question 12

Explain how economists use the concept of ceteris paribus.

Accepted Answer

The answer of Explain how economists use the concept of...

Question 13

Briefly explain how resources are allocated in: (a) a market economy, and (b) a command economy.

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Question 14

Draw a circular flow diagram of a mixed economy.

Accepted Answer

The answer of Draw a circular flow diagram of a...

Question 15

Agricultural commodity prices constantly fluctuate. Write an essay on who benefits, who loses, and indirect effects of price movements of wheat, corn, soybeans, etc. What determines the fluctuations?

Accepted Answer

The answer of Agricultural commodity prices constantly fluctuate. Write an...

Question 16

Many claim that globalization leads to job loss for American workers. Write an essay on the strengths and weaknesses of this claim. Is globalization and trade good for agriculture? Explain your arguments carefully.

Accepted Answer

The answer of Many claim that globalization leads to job...

Question 17

Write an essay that explains the phrase, "scarcity forces us to choose." Why is scarcity the fundamental idea behind economics? Explain thoroughly and completely.

Accepted Answer

The answer of Write an essay that explains the phrase,...

Question 18

Write an essay that explains the difference between scarce and nonscarce goods. Define and explain all terms.

Accepted Answer

The answer of Write an essay that explains the difference...

Question 19

Write an essay that explains the difference between absolute and relative prices. Define and explain all terms.

Accepted Answer