Agricultural Economics MCQs

Agricultural Economics MCQs

Try to answer these Agricultural Economics MCQs and check your understanding of the Agricultural Economics subject. Scroll down and let's begin!

1: Normative economics deals with ____ and positive economics deals with ____.

A.   What should be; what is

B.   What is; what is

C.   What is;what should be

D.   What should be;what should be

2: A demand curve that illustrates the law of demand ______.

A.   Shows that the quantity demanded decreases as the price falls

B.   Is downward sloping

C.   Shows that the quantity demanded remains the same when the price falls

D.   Is horizontal

3: Five characteristics of hunter gatherer societies were _____

A.   Trash located in one spot

B.   More surplus food

C.   More dangers from animals and accidents

D.   Few social changes

E.   People lived in one place

F.   Healthier and better diets

G.   Little problem with spread of disease

H.   Few technological changes

4: Using the factors of production to make one product always means that _____.

A.   A company may experience a shortage of materials

B.   A nation can make more money

C.   It is possible to make too many of that product

D.   Fewer resources are left to make something else

5: If the price elasticity of demand is equal to 2, the good has _____ demand.

A.   Normal.

B.   Elastic.

C.   Inferior.

D.   Inelastic

6: What is agricultural economics?

A.   The study of the biology and genetics of agricultural crops

B.   The study of the economic principles and decision-making in agriculture

C.   The study of agricultural engineering and technology

D.   The study of environmental conservation in agriculture

7: Which of the following is NOT considered a factor of production in agriculture?

A.   Land

B.   Labor

C.   Fertilizers and pesticides

D.   Money

8: What is the term for the process of converting raw agricultural products into more valuable products for consumers?

A.   Agricultural engineering

B.   Agricultural marketing

C.   Agricultural processing

D.   Agricultural sustainability

9: Which economic concept is used to describe the total value of all goods and services produced within the agricultural sector in a given time period?

A.   Gross Domestic Product (GDP)

B.   Gross National Product (GNP)

C.   Agricultural Output

D.   Consumer Price Index (CPI)

10: What is the economic principle that suggests farmers should choose the combination of inputs that maximizes their output, given the constraints they face?

A.   Law of diminishing returns

B.   Law of supply and demand

C.   Law of marginal utility

D.   Law of least cost

11: Which of the following is an example of an agricultural subsidy?

A.   Financial assistance provided to farmers to offset losses due to natural disasters

B.   Tax on imported agricultural products

C.   Price floor on agricultural commodities

D.   Quota on agricultural exports

12: What is the term for the difference between the total revenue from agricultural sales and the total cost of production?

A.   Gross income

B.   Net profit

C.   Marginal cost

D.   Total revenue

13: Which economic concept refers to the responsiveness of the quantity supplied or demanded of an agricultural product to changes in its price?

A.   Elasticity

B.   Marginal utility

C.   Inflation

D.   Deflation

14: What is the economic principle that suggests as more units of a variable input are added to fixed inputs, the additional output will eventually decrease?

A.   Law of supply and demand

B.   Law of diminishing returns

C.   Law of comparative advantage

D.   Law of increasing opportunity cost

15: Which economic approach advocates for the use of market forces to determine agricultural prices and resource allocation?

A.   Command economy

B.   Traditional economy

C.   Market economy

D.   Mixed economy