Lesson ABR:A1-1
The Scope and Importance of Agribusiness
CD ABR.  Agribusiness
Unit A.  Introduction to Agribusiness
Problem Area 1.  Understanding the Scope of Agribusiness
Lesson 1.  The Scope and Importance of Agribusiness

1. Which of the following is a definition of agribusiness?

a. a business that buys items from farmers for production; provides services to other agricultural businesses; or is any business that is engaged in the marketing, transportation, processing, and distribution of natural resources

b. a business that sells items to farmers for production; provides services to other agricultural businesses; or is any business that is engaged in the marketing, transportation, processing, and distribution of agricultural products

c. agricultural groups that provide services at the federal, state, and local levels

d. the science that deals with the production, distribution, and consumption of wealth

Answer: a

2. What is a resource used in production?

a. import

b. input

c. output

d. shotput

Answer: b

3. _____________________ refers to the use of land to produce goods.

a. agribusiness

b. agricultural processing

c. agricultural production

d. agriscience

Answer: c

4. How are value-added products defined?

a. an increase in production efficiency

b. receiving optimum output from an input

c. the value of goods and services America produces

d. those products improved through processing or manufacturing

Answer: d

5. Which of the following includes any agribusiness that affects an agricultural commodity between production and the consumer?

a. agribusiness input sector

b. agribusiness output sector

c. agriservices sector

d. public agriservices

Answer: b
What is the use of land to produce goods known as?
b)production agriculture
d)economic botany

Answer: b
Production efficiency is __________.
a)the optimum output for the given input
b)only possible in the United States
c)the quickest product made with the cheapest input
d)a result of improved farming techniques alone

Answer: a
What is the difference between the agriservices and the agribusiness output sectors?
a)The agribusiness output sector is about the resources involved in production and the agriservies sector is all about marketing the final product.
b)The agribusiness output sector is managed in the public sector and the agriservice sector is managed in the private.
c)The agribusiness output sector is all about getting product out (like packaging and transportation) whereas the agriservice sector is dedicated to creating new ways to approach agriculture.
d)There is no real difference between the two because they are both dealing with getting the product out to the public.

Answer: c
About how much of the world population is employed by the agribusiness sector?
a)Exactly 17 percent
b)About 50 percent
c)Everyone is in some way working for this sector
d)Nearly 80 percent

Answer: b
Agriculture has a large economic multiplier effect. This means that when agribusiness is thriving, the other economic sectors are _____.
a)thriving likewise
b)doing well or doing poorly, depending on how great the multiplier is at that point
c)doing poorly because all resources are going into making agribusiness thrive
d)still unaffected by agribusiness because they are completely separate sectors

Answer: a
What is not a difference between the public and private sectors of agriservices?
a)The private sector, unlike the public, is not managed by the federal, local, and/or state governments/
b)The private sector deals only with finances whereas the public sector deals only with regulations.
c)The public sector deals with consumer education and research that is run by the government, whereas it is privately funded and run in the private sector.
d)There are three areas of the private sector, whereas the public sector is slightly more vast, and has more areas of specialty.

Answer: b
Agriservice is the _____ activity that gives value to both the buyer and the seller.

Answer: d
What is gross domestic product?
a)The value of the goods and services produced within a nation in a year
b)The value of goods and services purchased yearly by a nation
c)The value of all goods and services produced by the citizens of a country within a year
d)The total income received by a country for the goods and services produced and sold within that given country

Answer: a
How did agriculture become the foundation of civilization?
a)People realized that they needed corn, wheat, and other grains in order to survive and based their societies off those grains.
b)People had to develop language and trading skills in order to barter their crops with other people groups.
c)Through domestication, people groups were able to settle down and grow their own crops and thus trade their crops.
d)The growth of domestication and language caused people to develop calendars which are now the basis for civilization.

Answer: c
Production agriculture refers to the use of ________ to produce goods.

Answer: c