Free Agricultural Economics and Extension MCQs with Answers
190 Agricultural Economics and Extension MCQs from Agriculture, each with the correct answer and a written explanation of why it is correct. Free and unlimited, with no account needed.
Last updated
190 questions · page 8 of 10
- A. Steep slope
- B. Downward slope
- C. Positive slope
- D. None
Explanation: A downward-sloping production possibility curve shows that producing more of one good requires sacrificing some of another.
Correct answer: Downward slope- A. Trade off
- B. Trade deficit
- C. Trade surplus
- D. None
Explanation: A trade surplus occurs when the value of exports exceeds the value of imports. The reverse situation is called a trade deficit.
Correct answer: Trade surplus- A. Speculation
- B. Spillover
- C. Specializing
- D. All
Explanation: Speculation involves buying or selling an asset with the expectation of benefiting from a later price change.
Correct answer: Speculation- A. Allocative efficiency
- B. Productive efficiency
- C. Less than full use of resources
- D. Unattainable levels of output
Explanation: Every point on the production possibility curve represents productive efficiency because available resources are fully employed with…
Correct answer: Productive efficiency- A. Theoretical
- B. Positive
- C. Normative
- D. None
Explanation: Normative economics examines what the economy ought to be like and therefore involves judgments about desirability or policy.
Correct answer: Normative- A. None
- B. Real cost
- C. Economic cost
- D. Opportunity cost
Explanation: Opportunity cost is the value of the next-best alternative that must be sacrificed to obtain a good.
Correct answer: Opportunity cost- A. The curve gets steeper as we move downward
- B. The marginal benefit decreases as more of a good is consumed
- C. In reflects the law of increasing opportunity cost
- D. Resources are scarce
Explanation: A concave production possibility curve reflects increasing opportunity cost: as production shifts toward one good, progressively larger…
Correct answer: In reflects the law of increasing opportunity cost- A. Theoretical economics
- B. Normative economics
- C. Positive economics
- D. factual economics
Explanation: Positive economics focuses on objective, testable statements about what is happening and avoids judgments about what should happen.
Correct answer: Positive economics- A. Macroeconomic
- B. Normative economic
- C. Positive economic
- D. Micro economic
Explanation: Microeconomics studies individual economic units or small parts of the economy, such as a household, firm, or particular market.
Correct answer: Micro economic- A. Profit sharing plan
- B. Labour saving scheme
- C. Labour laws
- D. Profit maximizing plan
Explanation: A profit-sharing plan gives employees a portion of the firm's profits in addition to or instead of fixed wages.
Correct answer: Profit sharing plan- A. Resource market
- B. Product market
- C. Consumer market
- D. None
Explanation: The product market is where firms sell goods and services and households buy them for consumption.
Correct answer: Product market152. An institution or mechanism which brings together buyers and sellers is called____________________?
- A. None
- B. Resource Market
- C. Product Market
- D. Market
Explanation: A market is any institution or arrangement that brings buyers and sellers together to exchange goods, services, or resources.
Correct answer: Market- A. Value added
- B. Value of money
- C. Vertical range
- D. None
Explanation: Value added is the firm's selling value minus the value of intermediate goods and services purchased from other firms.
Correct answer: Value added- A. Inflation rate
- B. Unemployment rate
- C. Deflation rate
- D. None
Explanation: The unemployment rate is calculated as unemployed people divided by the labour force, usually expressed as a percentage.
Correct answer: Unemployment rate- A. Tax
- B. Tariff
- C. Transfer payment
- D. Subsidy
Explanation: A transfer payment is money or goods provided by government without a directly received good or service, such as certain welfare payments.
Correct answer: Transfer payment- A. Tax
- B. Tariff
- C. Tacit collusion
- D. Subsidy
Explanation: A tax is a compulsory payment to government for which the payer receives no specific good or service directly.
Correct answer: Tax- A. Pure capitalism
- B. Command Economy
- C. Closed economy
- D. Open economy
Explanation: Pure capitalism is based on private ownership of resources and the use of markets and prices to coordinate economic decisions.
Correct answer: Pure capitalism- A. Firm
- B. Plant
- C. Factory
- D. None
Explanation: A plant is the physical establishment where production or related operations take place, whereas a firm is the business organization that…
Correct answer: Plant- A. Max price
- B. Floor price
- C. Ceiling price
- D. None
Explanation: A ceiling price is a legally imposed maximum price, usually intended to protect consumers from excessive prices.
Correct answer: Ceiling price- A. Foreign exchange market
- B. International market
- C. Money market
- D. All of these
Explanation: The foreign exchange market is where the currency of one country is exchanged for the currency of another.
Correct answer: Foreign exchange market