an establishment that has (or should have had) at least $1,000 of sales of agricultural products during the year
those firms engaged in the production of raw food, fiber, and other agricultural products
Food Product Processors
buy ingredients and process them into the form in which they are ready for sale to the consumer
all firms engaged in the production, processing, and/or distribution of food, fiber, and other agricultural products
buy raw agricultural products that have not been processed and convert them into food ingredients
The combination of different businesses of different businesses at different stages of the production/ marketing sequence under a single management
The communication system that conveys consumer wants to producers
The dominance of an industry by a few firms, usually measured by the percentage of the total market owned by the largest four firms
The ability of a firm or firms to control price and/ or quantity traded in a market because of the dominance of the firms in the market
The expansion of firms across national boundaries
Concentration among processors is a concern because concentrated firms
gain market power
In terms of number of farms, non-family, corporate farms are what proportion of total farms in the United States?
The average American farmer produces enough to feed approximately ________ people (both domestic and exports)
Which of the following is NOT one of the major sectors of the food industry?
the food sector
According to the U.S. Department of Agriculture, the number of farms in the United States is approximately
the study of the entire economy, including employment, inflation, international trade, and monetary issues
Microeconomics of Consumption
the economics of the individual consumer making decisions about the allocation of the family budget
an interaction between potential buyers and sellers
The study of the behavior of an individual firm is part of
the social science that deals with the allocation of resources among an unlimited number of competing alternative uses
the social science that deals with the allocation of resources among those competing alternative uses found in the production, processing, distribution, and consumption of food and fiber
The market for beef in the U.S. is an example of allocation using the ________ system
The economic term used to describe the earnings forgone by attending college is
In the language of economics, which of the following is a “resource”?
When a local McDonald’s manager hired a third counter worker her sales increased by 22%. When she hired a fourth counter worker, her sales increased by 12%. This is an example of
a short had way of saying “let one economic variable change and see how another economic variable changes assuming everything else stays the same.”
a measure of how much of an earning opportunity is foregone by using a resource in its current employment
potential buyers and sellers in a perfectly competitive market who face a “take it or leave it” situation
an additional or incremental unit of something
a general concept used in a variety of situations measuring output per unit of input. The higher the ratio the more efficient the process.
Decreasing Marginal Returns
As additional units of a variable input are used, output increases at an decreasing rate.
Increasing Returns to Scale
As the size of inputs increases, outputs increase by a proportionately greater amount
Decreasing Returns to Scale
As the size of inputs increases, outputs increase by a proportionately lesser amount
Negative Marginal Returns
As additional units of a variable input are used, output decreases.
Constant Return to Scale
As the size of inputs increases, outputs increase by the same amount
Law of Diminishing Marginal Product
as equal increments of the variable input are added to the fixed inputs, there will inevitably occur a decrease in the rate of increase of the total product.
Increasing Marginal Returns
As additional units of a variable input are used, output increases at an increasing rate.
those inputs for which the use rate does not change as the level of output change
a time period in which some factors of production are fixed
a period of time in which all resources are variable.
the difference between revenue earned and expenses incurred
those inputs for which the use rate does change as the level of output changes.
the difference between all revenue and all input costs, whether actually paid or not.