Free Agricultural Economics and Extension MCQs with Answers

• A. Future planning
• B. None
• C. Speculation
• D. Store of value

Explanation: A store of value is an asset held to preserve purchasing power for future use, such as money, gold, or some financial assets.

• A. State Bank
• B. National Bank
• C. Business authorized bank
• D. None

Explanation: A state bank is a commercial bank operating under a charter or authorization from a state government.

• A. Speculation
• B. Specialization
• C. Spill over
• D. anti dumping

Explanation: A spillover is an external benefit or cost imposed on people who are not directly buying or selling the product.

• A. Income tax
• B. None
• C. Consumer charge
• D. Sales tax

Explanation: Sales tax is charged on the sale or purchase price of goods, often across a broad group of products.

• A. None
• B. Private sector
• C. Public utility
• D. Public sector

Explanation: The public sector includes government-owned and government-controlled entities at federal, provincial and local levels.

• A. Public debt
• B. Public finance
• C. Public good
• D. None

Explanation: Public debt is the total amount the government owes to holders of government securities and other creditors.

• A. Generalization
• B. Specification
• C. Rationing function of the price
• D. None

Explanation: The rationing function of price allocates limited goods among buyers and signals producers, helping bring quantity demanded and quantity…

• A. Upward movement or shift of entire cure.
• B. Shift of the demand curve to left side
• C. None
• D. Movement from one point to the other on the same demand curve

Explanation: A change in quantity demanded results from a change in the good's own price, so it is shown as movement from one point to another on the…

• A. Increase in demand
• B. Changing in quantity demanded
• C. Decrease in quantity demanded
• D. None

Explanation: An upward or rightward shift of the demand curve means demand has increased at every possible price.

• A. Complementary goods
• B. Superior or normal goods
• C. Substitutes
• D. None

Explanation: Normal, or superior, goods have positive income elasticity of demand, so demand increases as money income increases.

• A. None
• B. P & D are directly related
• C. There is no relation bet P & D
• D. Price and quantity demanded are inversely related

Explanation: An individual's demand curve slopes downward because price and quantity demanded generally move in opposite directions, assuming other…

• A. Producing all output combinations in the least costly way
• B. Producing the specific output mix most desired by society
• C. Producing the desired ones only
• D. None

Explanation: Productive efficiency means obtaining a given combination of outputs at the lowest possible cost, or producing the maximum possible output…

• A. Superior good
• B. Complementary good
• C. Normal good
• D. None

Explanation: Complementary goods are used together to satisfy a need, such as a tractor and fuel or tea and sugar.

• A. Demand effectors
• B. Demand determinants
• C. Demand shifters
• D. none

Explanation: Demand shifters are factors other than the good's own price, such as income, tastes, population and prices of related goods, that shift…

• A. Indifference curve
• B. Income budget line
• C. Says law
• D. Circular flow model

Explanation: The circular flow model shows how households and firms exchange resources, income and goods through factor and product markets.

• A. Authoritarian economy
• B. Traditional economy
• C. Mixed economy
• D. Command economy

Explanation: Hitler's Nazi system is commonly described in basic economics texts as an authoritarian economy, in which the state exercised strong…

• A. Pure capitalism
• B. Both
• C. Iaissez faire capital
• D. None

Explanation: Pure capitalism, also called laissez-faire capitalism, is based on private ownership and market prices coordinating economic activity.

• A. Mixed system
• B. Fascism
• C. Economic system
• D. None

Explanation: An economic system is the institutional arrangement and coordinating mechanism a society uses to decide what to produce, how to produce it…

• A. Both A. and B.
• B. Failure to achieve productive efficiency
• C. Unemployment
• D. None of these

Explanation: A point inside the production possibility curve shows that available resources are not being fully or efficiently used.

• A. International Trade
• B. International specialization
• C. Speculation
• D. None

Explanation: International specialization occurs when a country concentrates resources on goods it can produce relatively efficiently and obtains other…