Test Bank For Farm Management 9th Edition by Ronald Kay
CHAPTER 1
SAMPLE TEST QUESTIONS – MULTIPLE CHOICE
- One force that has helped cause farms in the United States to become larger and fewer is:
a. competition from foreign producers
b. lower production costs per unit by spreading fixed investment in technology over more units
c. more labor used in agricultural production
d. declining nonfarm wage rates
- Improved data collection technology such as satellite or drone-based photography will be most helpful to farm managers for:
a. preparing up-to-date financial statements
b. balancing livestock rations
c. prescribing fertility and pest control practices for smaller land units
d. producing more uniform products
- Standardization of farm financial ratios and accounting practices will help farm managers:
a. compete with nonfarm businesses for capital
b. summarize their account books in less time
c. pay less income tax
d. manage hired employees more effectively
- Agricultural processors will probably want more uniform products in the future in order to:
a. pay lower prices to producers
b. diversify their product lines
c. reduce environmental contamination
d. make more efficient use of processing and packaging equipment
- By forming strategic alliances, small and medium-sized farmers and ranchers can:
a. increase their managerial freedom
b. achieve advantages of diversification
c. achieve marketing advantages that larger operations enjoy
d. increase their own volume of production
- An increase in the number of non-farmers living in rural areas will cause:
a. farmland values to decrease
b. farmers to pay more attention to off-farm effects of their production practices
c. less regulation of agricultural production practices
d. profit maximization to be the only criterion for adopting new technologies