Scarce Resources
Category that includes machines, equipment, and structures
What are Manufactured Resources or Capitol
A social science that deals with consumers, producers, and societies choose among the alternative uses of scarce resources in the process of producing, exchanging, and consuming goods and services.
What is Economics
Economic theory assumes consumers are _____.
What is rational and seek to maximize utility while staying within budget.
Economists report economic activity through these.
What are index values.
Cash Receipts $450
Govt. payments $200
Farm Income $1200
Production Expenses $500
Calculate Gross Farm Income
What is $1,850
Provided by laborers and management to the production of goods and services that are considered scarce
What is Human Resources
The implicit cost associated with the next best alternative set of choices available.
What is Opportunity Cost
The change in utitliy derived from an increase in consumption of a particular good.
What is Marginal Utility
U.S. Farms tend to be ____ rather than diversified.
What is Specialized.
Calculate the slope of a budget line given this information.
Price of Hamburgers = $2.50Price of Tacos = $0.75
What is -3.33
The category that includes water, livestock, crops, and wildlife
What are Natural and Biological Resources
Values for which no adjustments to inflation have been made.
What are Nominal Values
Modern theory measures utility in this term.
What is ordinal
These are the 4 main farm inputs.
What are land, labor, capitol and materials.
Calculate Real net farm Income
Gross Farm Income $1850
Production Expenses $500
What is $1350
Forces consumers and producers to make choices
What is Resource Scarcity
Sum utility derived from each of individual commodities
What is Total Utility
The slope of an indifference curve is known as this.
What is the Marginal Rate of Substitution (MRS)
Defined as output per unit of input and has dramatically increased since WWII.
What is Productivity
Calculate total utility for ice-cream and french fries
# icecream #french fries
2 20
What is 40
Concerned with an individual or small group versus economics at a large scale
What is Microeconomics
If all other factors remain constant, and disposable income increases, percentage of income spent on food decreases.
What is Engel's Law
Limits the amount that a consumer can spend on items.
What is the Budget Constraint.
These provide farmers and ranchers with the inputs they need to produce crops and livestock.
What are farm input suppliers
Calculate MU for the consumption of 2 tacos vs 5 tacos.
#Tacos Total Utility
2 56
5 24
What is 10.67