ࡱ> npm bjbjSS 4B112   8DTT ^2ZZZ6^8^8^8^8^8^8^$`ch\^Z&8"ZZ\^:q^Z^6Z6^V\Pe(0tX4]^0^Xpddh\d\ZZZZZZZ\^\^ZZZ^ZZZZdZZZZZZZZZ :  AQ #1 - KEY (25 points) Name: ____________________ UIN: _____________________ (3 pts) 1. List three distinct sectors of the food and fiber industry. (a) Farm input supply sector (d) Wholesale, Retail, and Food Service sector (b) Farm sector (e) Consumers (c) Processing and Manufacturing sector (also distribution) (1 pt) 2. In recent times, the price of oil has risen dramatically. Economic analysts currently are focusing on questions concerning the likely impacts of this price increase on the U.S. economy. The branch of economics that deals with this situation is called ____positive_____________ economics. (2 pts) 3. List two distinct types of resources. (a) Natural and Biological Resources (c) Manufactured Resources (capital) (b) Human Resources (labor) (2 pts) 4. Assume that for Jim Swain, a corn producer from Illinois, the only source of farm income is from the production of corn. Swain produced 150,000 bushels of corn in 2012, receiving $5 per bushel. Assuming this producer had production expenses of $300,000, and assuming the Consumer Price Index (CPI) for 2012 was 2.50, what was his real farm income for 2012? Show all work. Nominal Net Farm Income = (150,000 bu) ($5/bu) - $300,000 = $450,000 Real Net Farm Income = $450,000 / 2.5 = $180,000 5. The output produced in bushels and the prices of this output ($/bushel) over the last three years for Seth Johnson, a farmer in Amarillo, Texas, are as follows: YearOutput (bushels)Price ($/bushel)201070,000$3.20201175,000$2.90201280,000$3.50 Let the base year be 2011. (1 pt) (a) Construct the output index for 2010. 70,000 / 75,000 = 0.933 (1 pt) (b) Relative to 2011, output for 2010 was lower by __6.67________ percent. (1 pt) (c) Construct the price index for 2012. $3.50 / $2.90 = 1.207 (1 pt) (d) Relative to 2011, the price of this commodity in 2012 was higher by ___20.69____ percent. (1 pt) 6. RJR Nabisco has three alternatives for manufacturing snack foods: Option 1: Manufacture cookies alone and obtain a profit of $30 million. Option 2: Manufacture chips alone and obtain a profit of $25 million. Option 3: Manufacture both cookies and chips and obtain a profit of $35 million. What is the opportunity cost of this firm? $30 million (1 pt) 7. Concern is expressed on the part of the current administration about what should be the optimal tax rate for those households who make more than $250,000 per year. This issue corresponds to what branch of economics? Normative economics (7 pts) 8. True (T) or False (F). Circle the correct answer for each statement. T or F (a) Agricultural economics is an applied social science. T or F (b) The number of U.S. farms is on the order of 4 million at present. T or F (c) The value of any index for the reference or base year is always 1. T or F (d) On the basis of net farm income, 2013 is projected to be an exceptional year for U.S.  agriculture. T or F (e) U.S. farms tend to be diversified rather than specialized. T or F (f) One out of every six jobs in the U.S economy is tied to the food and fiber sector. T or F (g) The U.S. economy represents a mixture of capitalism and socialism. (1 pt) 9. The branch of economics that deals with the gross domestic product (GDP), interest rates, and the unemployment rate is ______macro___________ economics. (1 pt) 10. The term real as opposed to nominal means that economists are making adjustments for ______inflation_________________. (1 pt) 11. The food and fiber industry today accounts for what percent of gross domestic product (GDP) in the United States? Circle the correct answer. 4 to 7 percent 8 to 11 percent 12 to 15 percent 16 to 20 percent (1pt) 12. The current Commissioner of Agriculture for the State of Texas is __Todd Staples_______. BONUS (1pt): Completely off the wall question: The number one U.S. landmark named recently in Trip Advisors Travelers Choice awards is the ____Bellagio Fountains_____________.  Sign the Aggie Pledge: An Aggie does not lie, cheat or steal, or tolerate those who do. _______________________________________ ________________ Signature Date     Fall 2013 AGEC 105 Capps   &+>@GHJMNOPRSbhijlo²~~r~rj[WNEh h,R&CJh htCJh/>hL`hL`CJOJQJaJh\CJaJh,R&CJOJQJaJh@JCJOJQJaJh\h@JCJaJhthtaJhtCJaJhtCJOJQJaJhP&B*CJ OJQJaJphhP&CJOJQJaJ%hP&hP&B*CJOJQJaJph%hP&htB*CJOJQJaJphhtCJOJQJaJ&Nij " _ a ) * ^gdYR 0^`0gdNOgdf 0^`0gd,R& 80]^`0gd/>gdL`gd@Jxgdt$a$gdtopu|}   ! & ' ^ _ ` a c d j k  # j r }q}bhP&5>*B*CJaJphh hNO6CJaJh htCJaJh hL`CJaJh hfCJaJh hNOCJaJhNOhthP&hNO5B*CJphhP&5B*CJph hP&CJh hfCJh hNO5CJh htCJh hL`CJh hNOCJ$   ( ) * + , / 0 5 + D Z ] ^ g m n 굧굧zodddYYdYh h7|CJaJh htCJaJh hhCJaJh hUCJaJ hP&hA5B*CJaJph hP&hNO5B*CJaJphhP&5B*CJaJphhP&CJaJh hNO5CJaJh hfCJaJh hL`CJaJh hzCJaJh hNOCJaJh hsCJaJ"n x ' ( * - 01ǻodYMh ht5CJaJh h/>CJaJh hL`CJaJ hP&h-f5B*CJaJphh-fCJaJ hP&hf5B*CJaJphhP&5B*CJaJphhP&CJaJh h,R&5CJaJh hD5CJaJh hNO5>*CJaJhYR>*CJaJh hNO>*CJaJh htCJaJh hNOCJaJ ( ) * $$Ifa$gdhgdNO^gdNngdL`  uuu $$Ifa$gdh~kd$$IfTlF <) t6    44 lapythT  uuu $$Ifa$gdh~kd$$IfTlF <) t6    44 lapythT")/uuu $$Ifa$gdh~kd$$IfTlF <) t6    44 lapythT/01MN#|sniii\ii 0^`0gd;.8gdAgdL``gdNngdNO~kd$$IfTlF <) t6    44 lapythT 1:JLMN]}~ "#%:;=>AKXv}˵w˵oohBPuCJaJh hjSCJaJhP&5>*B*CJaJphh%CJaJh hNnCJaJ hP&hP&5B*CJaJphhP&5B*CJaJphh;.8CJaJhP&CJaJh h;.85CJaJh hACJaJh htCJaJh h;.8CJaJ'#;<< YZ>^gdtgd#?* & Fgd;.8 0^`0gd;.8gdA}~   ꪟ~mbbꟌ~mZh%CJaJh hACJaJ hP&h;.85B*CJaJphhP&5B*CJaJphhP&CJaJh h/>CJaJh h#?*CJaJh h  CJaJh h-fCJaJh-fCJaJh CJaJhP&5>*B*CJaJphh htCJaJh h;.8CJaJh h7|CJaJ XYZ[\]cg>@μrg\KgKg hP&h 5B*CJaJphh hNnCJaJh h CJaJ hP&ht5B*CJaJphhP&CJaJh%CJaJ hP&h%5B*CJaJph.jhP&5B*CJUaJmHnHphu"jhu`CJUaJmHnHu hP&hA5B*CJaJphh h;.8CJaJh htCJaJh hhCJaJ>`UVvw !gd  & FgdD & Fgdh 0^`0gdhgd#?* 0^`0gd gdh^gdt ^`gd-f^gd  IWX^_`b8=IJUииІ{sh{YQhu`CJaJhu`5>*B*CJaJphh h%CJaJhzCJaJh h7|CJaJh CJaJ hP&h 5B*CJaJph hP&h%5B*CJaJphh%CJaJ.jhu`5B*CJUaJmHnHphuh hhCJaJh h CJaJ"jhu`CJUaJmHnHuh-fCJaJUVa[vw .N겡ꙑБ}u}}q`Uh h+OJQJ jhNE06U]mHnHuhNnhBPuCJaJh-fCJaJhBPuh-f5CJaJh CJaJhVCJaJ hu`hh5B*CJaJph"jhu`CJUaJmHnHuh hh5CJaJhu`5>*B*CJaJphh h CJaJh hhCJaJh hzCJaJ!012 ,p@ P !$gd+$ ,p@ P !$a$gd+ ,p@ P !$gd%gd+gdD8^8gdNngd /012žyla]hdAMhthdAMOJQJhthdAMCJOJQJhthtCJOJQJhthNOCJOJQJ,jhthdAMCJOJQJUmHnHuh{hth+^jh+^U h+h+ h+]h+h+6] h+6] h 6]h<h+6] h%6]h h+CJOJQJ$ ,p@ P !$gd+  !H$gdt21h:pt/ =!"#*$% $$If!vh#v#v<#v):V l t655<5)pythT$$If!vh#v#v<#v):V l t655<5)pythT$$If!vh#v#v<#v):V l t655<5)pythT$$If!vh#v#v<#v):V l t655<5)pythT^ 2 0@P`p2( 0@P`p 0@P`p 0@P`p 0@P`p 0@P`p 0@P`p8XV~_HmH nH sH tH @`@ NormalCJ_HaJmH sH tH DA D Default Paragraph FontRi@R  Table Normal4 l4a (k (No List 4@4 L`Header  !4 @4 L`Footer  !H@H   Balloon TextCJOJQJ^JaJj#j U Table Grid7:V0PK![Content_Types].xmlN0EH-J@%ǎǢ|ș$زULTB l,3;rØJB+$G]7O٭V$ !)O^rC$y@/yH*񄴽)޵߻UDb`}"qۋJחX^)I`nEp)liV[]1M<OP6r=zgbIguSebORD۫qu gZo~ٺlAplxpT0+[}`jzAV2Fi@qv֬5\|ʜ̭NleXdsjcs7f W+Ն7`g ȘJj|h(KD- dXiJ؇(x$( :;˹! I_TS 1?E??ZBΪmU/?~xY'y5g&΋/ɋ>GMGeD3Vq%'#q$8K)fw9:ĵ x}rxwr:\TZaG*y8IjbRc|XŻǿI u3KGnD1NIBs RuK>V.EL+M2#'fi ~V vl{u8zH *:(W☕ ~JTe\O*tHGHY}KNP*ݾ˦TѼ9/#A7qZ$*c?qUnwN%Oi4 =3N)cbJ uV4(Tn 7_?m-ٛ{UBwznʜ"Z xJZp; {/<P;,)''KQk5qpN8KGbe Sd̛\17 pa>SR! 3K4'+rzQ TTIIvt]Kc⫲K#v5+|D~O@%\w_nN[L9KqgVhn R!y+Un;*&/HrT >>\ t=.Tġ S; Z~!P9giCڧ!# B,;X=ۻ,I2UWV9$lk=Aj;{AP79|s*Y;̠[MCۿhf]o{oY=1kyVV5E8Vk+֜\80X4D)!!?*|fv u"xA@T_q64)kڬuV7 t '%;i9s9x,ڎ-45xd8?ǘd/Y|t &LILJ`& -Gt/PK! ѐ'theme/theme/_rels/themeManager.xml.relsM 0wooӺ&݈Э5 6?$Q ,.aic21h:qm@RN;d`o7gK(M&$R(.1r'JЊT8V"AȻHu}|$b{P8g/]QAsم(#L[PK-![Content_Types].xmlPK-!֧6 0_rels/.relsPK-!kytheme/theme/themeManager.xmlPK-!0C)theme/theme/theme1.xmlPK-! ѐ' theme/theme/_rels/themeManager.xml.relsPK] B )+-/14o n 1} U  /#>! @   @ (  VB  C D"?: (  P  # o#" `?B2  3 B2  3 B2  3 B2  3 B2   3 B2   3 B2   3 B2   3 B S  ?Z [ etututut et ut ut v)ItL!t4Dh+humpdf?A  Y [  G S V ` d333333 8 = I J   8 = I J  C"0[  ZzC` Z@# {O tr4dRer{r Ŋc**~k._*@Os-"p=+7SdB?4idUMC6 RI0.UILm\)qM[VB Oj>hWN21 yY,h]+i-r0o^`OJPJQJ^J( ^`hH. pLp^p`LhH. @ @ ^@ `hH. ^`hH. L^`LhH. ^`hH. ^`hH. PLP^P`LhH.^`o(   ^ `hH.  L ^ `LhH. xx^x`hH. HH^H`hH. L^`LhH. ^`hH. ^`hH. L^`LhH.8^8`o(() ^`hH.  L^ `LhH.  ^ `hH. x^x`hH. HL^H`LhH. ^`hH. ^`hH. L^`LhH.88^8`o() ^`hH.  L ^ `LhH.   ^ `hH. xx^x`hH. HLH^H`LhH. ^`hH. ^`hH. L^`LhH.^`o(   ^ `hH.  L ^ `LhH. xx^x`hH. HH^H`hH. L^`LhH. ^`hH. ^`hH. L^`LhH.8pp^p`OJQJo(hH8pp^p`OJQJ^Jo(hHo8@ @ ^@ `OJQJo(hH8^`OJQJo(hH8^`OJQJ^Jo(hHo8^`OJQJo(hH8^`OJQJo(hH8PP^P`OJQJ^Jo(hHo8  ^ `OJQJo(hH0^`0o(() ^`hH.  L ^ `LhH.   ^ `hH. xx^x`hH. HLH^H`LhH. ^`hH. ^`hH. L^`LhH.^`o(() ^`hH. pL^p`LhH. @ ^@ `hH. ^`hH. L^`LhH. ^`hH. ^`hH. PL^P`LhH.8^8`o(() ^`hH.  L^ `LhH.  ^ `hH. x^x`hH. HL^H`LhH. ^`hH. ^`hH. L^`LhH.^`o(( ^`hH. pLp^p`LhH. @ @ ^@ `hH. ^`hH. L^`LhH. ^`hH. ^`hH. PLP^P`LhH.h^`OJQJo(hHh^`OJQJ^Jo(hHohp^p`OJQJo(hHh@ ^@ `OJQJo(hHh^`OJQJ^Jo(hHoh^`OJQJo(hHh^`OJQJo(hHh^`OJQJ^Jo(hHohP^P`OJQJo(hH^`o(( ^`hH. pLp^p`LhH. @ @ ^@ `hH. ^`hH. L^`LhH. ^`hH. ^`hH. PLP^P`LhH.^`o(( ^`hH. pLp^p`LhH. @ @ ^@ `hH. ^`hH. L^`LhH. ^`hH. ^`hH. PLP^P`LhH.^`o(( ^`hH. pLp^p`LhH. @ @ ^@ `hH. ^`hH. L^`LhH. ^`hH. ^`hH. PLP^P`LhH.88^8`o(() ^`hH.  L ^ `LhH.   ^ `hH. xx^x`hH. HLH^H`LhH. ^`hH. ^`hH. L^`LhH.^`o(( ^`hH. pLp^p`LhH. @ @ ^@ `hH. ^`hH. L^`LhH. ^`hH. ^`hH. PLP^P`LhH.88^8`o(. ^`hH.  L ^ `LhH.   ^ `hH. xx^x`hH. HLH^H`LhH. ^`hH. ^`hH. L^`LhH.h^`OJQJo(hHh^`OJQJo(hHhp^p`OJQJo(hHh@ ^@ `OJQJo(hHh^`OJQJ^Jo(hHoh^`OJQJo(hHh^`OJQJo(hHh^`OJQJ^Jo(hHohP^P`OJQJo(hH^`o(( ^`hH. pLp^p`LhH. @ @ ^@ `hH. ^`hH. L^`LhH. ^`hH. ^`hH. PLP^P`LhH.88^8`o(() ^`hH.  L ^ `LhH.   ^ `hH. xx^x`hH. HLH^H`LhH. ^`hH. ^`hH. L^`LhH.p`p^p``o( ^`hH.  L ^ `LhH.   ^ `hH. xx^x`hH. HLH^H`LhH. ^`hH. ^`hH. L^`LhH.^`o() pp^p`hH. @ L@ ^@ `LhH. ^`hH. ^`hH. L^`LhH. ^`hH. PP^P`hH.  L ^ `LhH.88^8`o(() ^`hH.  L ^ `LhH.   ^ `hH. xx^x`hH. HLH^H`LhH. ^`hH. ^`hH. L^`LhH.dR yY]-r ti# [ C` RI\)qMhW.UIUMCCdB?=+7._*{r Os-B O Zc*DThw                LLz        l        qY        8        Ld        _\         m                                 K        V        Y        $ذ        J\                 80D        | ;                :Z        h a        onv9|3  ?@tG+^P&,R&#?*Me*Q++*/ !0NE0t"4t 5;.8X99<X=>/>@AdAMNO}:QjSO U XXN2XYX_b_$`L`u`=b e-fAlCm?nNn,ptuBPu^uy7|K}YRUXf3!gzDG\is J@MD2&'^;-+RdJ9@ Jzhp|{1N@J% 1\aRV; Ox@YJ$h$ w_AMO_XmlVersionEmpty@@Unknown G*Ax Times New Roman5Symbol3. *Cx ArialS. Franklin Gothic Heavy3N Forte5. .[`)Tahoma?= *Cx Courier New;WingdingsA$BCambria Math"qh'3*3Iz z !*24 3QHP ?L`2!xx AQ #1KJWrightLoren N. Schroederh                  Oh+'0T     (4<DLAQ #1 KJWrightNormalLoren N. Schroeder3Microsoft Office Word@Ik@f@h'@dc(z ՜.+,0 hp  (Department of Agricultural Economics AQ #1 Title  !#$%&'()+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\^_`abcdfghijkloRoot Entry Fp>e(qData "1Table*kdWordDocument4BSummaryInformation(]DocumentSummaryInformation8eCompObjr  F Microsoft Word 97-2003 Document MSWordDocWord.Document.89q