FBLA Agribusiness Practice Questions with Explanations
Questions
The business of agricultural production, including supply, processing, distribution, and marketing of farm products, is:
- Agribusiness
- Agronomy
- Horticulture
- Aquaculture
The science of soil management and field crop production is:
- Agronomy
- Horticulture
- Silviculture
- Entomology
The science of growing fruits, vegetables, flowers, and ornamental plants is:
- Horticulture
- Agronomy
- Forestry
- Animal science
Raising fish and other aquatic organisms for food is:
- Aquaculture
- Hydroponics
- Agronomy
- Viticulture
Growing plants in nutrient solutions without soil is:
- Hydroponics
- Aquaculture
- Agroforestry
- Composting
The growing of grapes for wine is:
- Viticulture
- Silviculture
- Apiculture
- Pomology
Raising honeybees is:
- Apiculture
- Aquaculture
- Sericulture
- Viticulture
The businesses that provide farmers with seed, fertilizer, equipment, and feed are part of the:
- Input supply sector
- Processing sector
- Retail food sector
- Food service sector
Businesses that turn raw farm products into consumer goods, such as flour mills and meatpackers, are in the:
- Processing sector
- Input supply sector
- Production sector
- Research sector
The farmers and ranchers who grow crops and raise livestock make up the:
- Production sector
- Processing sector
- Marketing sector
- Distribution sector
The entire series of businesses that moves food from the farm to the consumer is the:
- Food supply chain
- Product life cycle
- Business cycle
- Organizational chart
In the United States, a "farm" is defined by the USDA as any place that produces and sells, or normally would sell, at least how much in agricultural products per year?
- $1,000
- $10,000
- $100,000
- $500
Which state typically leads the nation in total agricultural sales?
- California
- Georgia
- Texas
- New York
Georgia is the nation's leading producer of:
- Peanuts and broiler chickens
- Corn and soybeans
- Wheat and barley
- Potatoes and sugar beets
Which crop is the most widely planted in the United States by acreage and value?
- Corn
- Rice
- Cotton
- Tobacco
The region of the Midwest known for corn and soybean production is the:
- Corn Belt
- Sun Belt
- Cotton Belt
- Rust Belt
Farming that produces only enough food to feed the farmer's family, with little to sell, is:
- Subsistence farming
- Commercial farming
- Contract farming
- Precision farming
Growing crops in areas with little rainfall and no irrigation is:
- Dryland farming
- Hydroponics
- Aquaponics
- Flood irrigation
Raising animals such as cattle, hogs, and sheep for food and fiber is:
- Livestock production
- Horticulture
- Agronomy
- Silviculture
A facility where cattle are fed a concentrated diet to gain weight before slaughter is a:
- Feedlot
- Stockyard
- Grain elevator
- Hatchery
The growing and management of forests for timber and other products is:
- Forestry
- Horticulture
- Agronomy
- Aquaculture
Raising animals for milk production is:
- Dairy farming
- Poultry farming
- Aquaculture
- Ranching for beef
The basic economic problem that farmers face because land, water, and capital are limited is:
- Scarcity
- Inflation
- Surplus
- Monopoly
A market in which many farmers sell identical products and no single farmer can affect price is:
- Perfect competition
- A monopoly
- An oligopoly
- Monopolistic competition
Because individual farmers cannot set the market price of corn, they are called:
- Price takers
- Price makers
- Price leaders
- Monopolists
A basic, standardized agricultural product that is interchangeable regardless of who produced it, such as wheat, is a:
- Commodity
- Specialty product
- Brand-name good
- Capital good
When a large harvest increases the supply of corn while demand stays the same, the price of corn will likely:
- Decrease
- Increase
- Stay the same
- Double
Because people need about the same amount of food regardless of price, the demand for basic food is:
- Inelastic
- Elastic
- Perfectly elastic
- Unrelated to price
The point at which adding more of an input, like fertilizer, produces smaller and smaller increases in output is:
- Diminishing marginal returns
- Economies of scale (size efficiency)
- Break-even
- Equilibrium
Lower average costs per unit that result from larger operations are:
- Economies of scale
- Diminishing returns
- Opportunity costs
- Fixed costs
The value of the next best use of a farmer's land, such as renting it out instead of planting it, is the:
- Opportunity cost
- Sunk cost
- Variable cost
- Fixed cost
Seed, fertilizer, and fuel, which vary with the number of acres planted, are:
- Variable costs
- Fixed costs
- Sunk costs
- Overhead costs
Land payments, insurance, and depreciation on machinery, which do not change with production levels, are:
- Fixed costs
- Variable costs
- Marginal costs
- Opportunity costs
A farmer expects a yield of 180 bushels per acre on 500 acres. Total expected production is:
- 90,000 bushels
- 9,000 bushels
- 680 bushels
- 900,000 bushels
A farmer sells 90,000 bushels of corn at $4.50 per bushel. Gross revenue is:
- $405,000
- $20,000
- $450,000
- $40,500
Corn costs a farmer $720 per acre to produce, and the expected yield is 180 bushels per acre. The break-even price is:
- $4.00 per bushel
- $5.40 per bushel
- $3.60 per bushel
- $900 per bushel
Land, labor, capital, and management are the:
- Factors of production
- Four Ps of marketing
- Stages of the product life cycle
- Types of farm ownership
When the price of beef rises, consumers may buy more chicken instead. Chicken is a:
- Substitute good
- Complementary good
- Inferior good
- Luxury good
Goods that are used together, such as hamburger and hamburger buns, are:
- Complementary goods
- Substitute goods
- Inferior goods
- Capital goods
A government-set minimum price for a product, such as a support price for milk, is a:
- Price floor
- Price ceiling
- Market price
- Equilibrium price
A government-set maximum price for a product is a:
- Price ceiling
- Price floor
- Support price
- Target price
The value added by agriculture to the economy as part of GDP is roughly what share of U.S. GDP when counting only farm production?
- About 1%
- About 15%
- About 30%
- About 50%
A financial statement that lists a farm's assets, liabilities, and net worth on a specific date is the:
- Balance sheet
- Income statement (profit and loss)
- Cash flow statement
- Enterprise budget
A farm has assets of $2,400,000 and liabilities of $900,000. Its net worth is:
- $1,500,000
- $3,300,000
- $900,000
- $2,400,000
A statement that shows a farm's revenue and expenses over a period, resulting in net farm income, is the:
- Income statement
- Balance sheet
- Cash flow statement
- Production record
A budget that estimates costs and returns for a single crop or livestock product is a(n):
- Enterprise budget
- Whole-farm budget
- Partial budget
- Cash flow budget
A budget used to analyze the effect of a small change in a farm operation, such as buying a new machine, is a:
- Partial budget
- Enterprise budget
- Whole-farm budget
- Master budget
A budget that estimates when cash will come in and go out during the year is a:
- Cash flow budget
- Enterprise budget
- Balance sheet
- Partial budget
Current assets divided by current liabilities is the:
- Current ratio
- Debt-to-asset ratio
- Return on assets
- Operating ratio
A farm's ability to pay all of its debts if all assets were sold is:
- Solvency
- Liquidity
- Profitability
- Efficiency