Question Bank - WordPress.com · Web viewQuestion Bank AGRICULTURAL PRODUCTION ECONOMICAS AND FARM MANGEMENT (AG. ECON 6.5) DEPARTMENT OF AGRICULTURAL ECONOMICS, C. P. COLLEGE OF

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Question BankAGRICULTURAL PRODUCTION ECONOMICAS

AND FARM MANGEMENT(AG. ECON 6.5)

DEPARTMENT OF AGRICULTURAL ECONOMICS,C. P. COLLEGE OF AGRICULTURE,

S. D. AGRICULTURAL UNIVERSITY, SARDARKRUSHINAGAR- 385 506

Sr. No. Unit Weightage

(%)

1 Agricultural Production Economics: An Introduction 14.28

2. Production Function 5.233. Laws of Returns 5234. Factor-Product Relationship 7.615. Factor-Factor Relationship 4.766. Product-Product Relationship 3.807. Types of Enterprise Relationships 5.238. Returns to Scale 2.389. Farm Management : An Introduction 6.19

10. Economic Principles applied to the Organizations of Farm Business 25.23

11. Types and Systems of Farming 5.7112. Farm Planning and Farm Budgeting 10.0013. Risk and Uncertainty 8.57

IINDEX

DEPARTMENT OF AGRICULTURAL ECONOMICS, C.P.C.A. SDAU, SARDARKRUSHINAGAR

AGRICULTURAL PRODUCTION ECONOMICS AND FARM MANGEMENT

Unit: 01 A gricultural production economics1. Farmer owning up to 1 ha land is called __________ farmer

A. Marginal C. MediumB. Small D

. Large2. Farmer owning more than 1 ha to 2 ha land is called_____________

farmer.A. Marginal C. MediumB. Small D

. Large3. Farmer owning more than 2 ha to 4 ha land is called _________

farmer.A. Marginal C. MediumB. Small D

. Large4. Farmer owning more than 4 ha land is called _________ farmer.

A. Marginal C. MediumB. Small D

. Large5. Farm-firm is an economic unit which is run under ________

management.A. One C. ThreeB. Two D

. Four6. The total area of land owned by an individual or joint family

whether cultivated by the family or rented out is calledA. Land holding. C. Operational holdingB. Economic holding D

. None of above7. Total land area held under a single management for the purpose of

cultivation is called A. Land holding. C. Operational holdingB. Economic holding D

. None of above8. The land area which could provide a reasonable standard of living

to the cultivators and give full employment for a family of normal size is called A. Land holding. C. Operational holdingB. Economic holding D

. None of aboveAnything that aids in production is called


9. A. Variables C. CapitalB. Resources D

. Assets10. Resources which remain unchanged irrespective of the level of

production are called A. Fixed resources C. Flow resourcesB. Variable resources D

. Stock resources11. Resources which changed with the level of production are called

A. Fixed resources C. Flow resourcesB. Variable resources D

. Stock resources12. The resources which cannot be stored and should be used as and

when they are available are called A. Fixed resources C. Flow resourcesB. Variable resources D

. Stock resources13. The resources which can be stored and should be used as and

when required are called A. Fixed resources C. Flow resourcesB. Variable resources D

. Stock resources14. The resource which is used only once in production is called

A. Mono-period resource C. Fixed resourcesB. Flow resources D

. Variable resources15. The resource which is used in the production process over several

periods is called A. Poly-period resource. C. Fixed resourcesB. Mono-period resource D

. Variable resources16. Any input which can have different quantities/values in the

production process is called A. Variable C. CapitalB. Resources D

. Asset17. A variable whose value does not depend on other variable is called

A. Independent variable C. Fixed variableB. Dependant variable D

. All of above18. A variable that is governed by another variable is called

A. Independent variable C. Dependent variableB. Fixed variable D

. All of above19. Using resources most effectively to satisfy the farmer’s needs and

goals is called DEPARTMENT OF AGRICULTURAL ECONOMICS, C.P.C.A. SDAU,

SARDARKRUSHINAGAR

A. Variable C. EfficiencyB. Holding D

. All of above20. The ratio of output to input is called

A. Technical efficiency C. Working efficiencyB. Economic efficiency D

. None of above21. The expression of technical efficiency in monetary value by

attaching prices is called A. Economic efficiency C. Working efficiencyB. Technical efficiency D

. None of above22. The ratio of value of output to value of input is called

A. Economic efficiency C. Working efficiencyB. Technical efficiency D

. None of above23. In general, the transformation of inputs into outputs is called

A. Production. C. UtilitiesB. Management D

. Creation24. In economics, production means ______________ of utilities.

A. Creation C. ManagementB. Production D

. Utilities25. The factors of production have been traditionally classified as land,

labour, capital and ___________.A. Organizer C. ConsumerB. Producer D

. Retailer26. In a production process, land is a passive factor, labour is an active

factor, capital is a passive factor and organizer is an ___________ factor.A. Active C. A and B both B. Passive D

. None of above27. In a production process, labour’s reward is wages, the landlord

gets rent, and the capitalist gets interest, while the entrepreneur’s reward is A. Profit C. RentalB. Interest D

. Hired28. The goods which are used to produce other goods and services are

called A. Land C. Labour


B. Capital D. Asset

29. __________ Is a produced means of production.A. Land C. CapitalB. Labour D

. Asset30. All wealth is not capital but all capital is

A. Land C. LabourB. Wealth D

. Asset

Unit: 02 Production function 31. The functional relationship between inputs and outputs is known

as A. Farm management C. Production functionB. Marketing efficiency D

. Marketing management32. The production function explains how the output can be

_______________ with the help of given inputs. A. Maximized C. OptimizedB. Removed D

. None of above33. The main objective of production function is

A. Resource maximization C. Both A and BB. Resource optimization D

. None of above34. Two types of production function: __________________ production

function and ___________ production function.A. Short run C. Both A and BB. Long run D

. None of above35. The short-run production function is also called

A. The law of variable proportions C. The low of returns to scale

B. The low of increasing returns

D.

The law of decreasing returns

36. The long-run production function is also called asA. The law of variable

proportions C. The low of returns to scale

B. The low of increasing returns

D.

The law of decreasing returns

37. Total Product (TP) is the sum of output which can be produced by using various units of inputs. Generally, it is denoted as A. X C. Y


B. X2 D. Y2

38. Marginal Product (MP) is the additional quantity of output, added by an additional unit of A. Input C. ReturnB. Output D

. Production39. Average Product (AP) refers to the average____________________of a

resource It is the ratio of total product to the total input used in production.A. productivity C. returnB. elasticity D

. production40. Elasticity of Production (Ep) is defined as percentage change in

______________________________as a result of percentage change in input.A. output C. inputB. elasticity D

. Production41. The ratio of MP and AP is called ________________________of

Production.A. input C. elasticityB. production D

. output

Unit: 03 Laws of returns 42. The low of returns represents ___________ production function.

A. short-run C. medium- RunB. long-run D

. output43. The Law of Increasing Returns states that marginal returns

______________as the quantity of an input is increased.A. decreasing C. constantB. rise D

. all of the above

44. The Law of Constant Returns states that marginal returns remains __________________________ as the quantity of an input is increased.A. decreasing C. constantB. rise D

. all of the above45. The Law of Decreasing Returns states that marginal returns fall as


the quantity of an input is ____________________________.A. increased C. constantB. rise D

. all of the above46. The shape of the curve of increasing returns gets

______________________ to the origin.A. convex C. concaveB. straight D

. double47. The shape of the curve of constant returns gets_____________________

line.A. convex C. concaveB. straight D

. double48. The shape of the curve of decreasing returns gets ________________

to the origin.A. convex C

. concave

B. Straight D. double

49. The law of ____________returns operates widely in agriculture.A. decreasing C. constantB. increasing D

. marginal50. The law of ______________as well as _________ returns operates widely

in industry where non-human and non-animal power resources are used.A. increasing , constant C. increasing, marginalB. decreasing , constant D

. decreasing, marginal51. In agriculture, the law of __________________________returns is

normally observed at the initial stage of production while the law of constant returns and decreasing returns are observed at the middle and later stage of production, respectively.A. increasing C. constantB. decreasing D

. all of the above52. In actual, laws of ____________________ three different stages of the

Law of Diminishing Marginal Return or the Law of variable proportion.A. return to scale C. decreasing returnB. returns represent D

. increasing return


Unit: 04 Factor-Product Relationship 53. The Law of _______________ states that as the proportion of one

factor in a combination of factors is increased, after a point, first the marginal and then the average product of that factor will diminish. A. diminishing Marginal

Return C. decreasing return

B. variable Proportion D. increasing return

54. The Law of Variable Proportion is also known as Law of ______________ .A. Decreasing return C. Diminishing Marginal

ReturnB. Increasing return D

. Constant return55. The Factor – Product Relationship represents the law of variable

proportion or the law of _____________________.A. Diminishing Marginal

Return C. Decreasing return

B. Variable Proportion D. Increasing return

56. The Factor – Product Relationship is also known as classical production function or __________ zones of production function.A. one C. threeB. two D

. four57. The Factor – Product Relationship explains______________.

A. When to produce? C. how to produce?B. Where to Produce? D

. how much to produce?58. The objective of Factor – Product Relationship is____________.

A. When to produce? C. how to produce?B. resource optimization D

. how much to produce?59. When TP is maximum, MP will be____________.

A. one C. twoB. zero D

. three60. When TP starts decreasing _________becomes negative.

A. MP C. APDEPARTMENT OF AGRICULTURAL ECONOMICS, C.P.C.A. SDAU,

SARDARKRUSHINAGAR

B. TP D. MR

61. The zone-I starts from origin and it ends at MP=__.A. AP C. TPB. MP D

. MR62. The zone-II starts from MP=_____ and it ends at MP=0.

A. AP C. TPB. MP D

. MR63. The __________ starts from MP=0 and onwards.

A. zone-III C. zone-IB. zone-II D

. All of the above

64. In zone-I, MP>AP, while in _____________AP>MP.A. zone-I C. zone-IIIB. zone-II D

. All of the above65. The zone-I represents increasing returns, zone-II represents

decreasing returns while _______________represents negative returns. A. zone-I C. zone-IIIB. zone-II D

. All of the above66. When TP changes its curvature (from increasing rate to decreasing

rate), _____ is maximum. This point is known as point of inflection.A. TP C. APB. MR D

. MP67. The zone-I and zone-III are called irrational zone while, __________ is

rational zone.A. zone-I C. zone-IIIB. zone-II D

. All of the above68. The profit rule to find out optimum level of resource use is

MC=_______.A. MR C. APB. TP D

. MP

Unit: 05 Factor-Factor Relationship 69. The Factor – Factor Relationship explains ______________.


A. how to produce? C. When to produce?B. how much to produce? D

. Where to Produce?70. The objective of Factor – Factor Relationship is ______________ .

A. Profit minimization C. Profit maximizationB. Cost minimization. D

. Cost maximization.71. The curve representing all combinations of two _______ that produce

the same level of output is called an iso-quant.A. Inputs C. LineB. Outputs D

. Graph72. If a number of iso-quants are drawn in ____________ graph, it is

known as iso-quant map.A. One C. ThreeB. Two D

. Four73. Iso-quant is _______ to the origin.

A. Concave C. StraightB. Convex D

. Forward74. The line that represents all possible combinations of two inputs that

can be purchased with the given amount of money is called ___________ . A. Iso-cost line C. Price lineB. Straight line D

. Budget Line

75. Iso-cost line is always a ________.A. Iso-cost line C. Price lineB. Straight line D

. Budget line76. The iso-cost line is also known as _______________.

A. Budget line C. Straight lineB. Price line D

. A and B both77. ________ is the rate of exchange between two inputs which are

equally preferred.A. MRTS C. MPB. MRPS D

. MR78. The profit rule to get least cost combination is MRTS=_____.

A. PR C. APB. MP D TP


.

Unit: 06 Product-Product Relationship 79. The Product – Product Relationship is explains _____________ .

A. how to produce? C. What to produce?B. how much to produce? D

. Where to Produce?80. The objective of Product – Product Relationship is _______________ .

A. Profit minimization C. Profit maximizationB. Cost minimization. D

. Cost maximization.81. The curve that represents all possible combinations of two products

that can be produced with given amount of resources is known as _________ .A. Production Possibility

Curve C. Iso -Revenue Curve

B. Iso Revenue line D. Iso- Revenue cost

82. The ___________________ is also called opportunity curve as well as a production frontier.A. Production Possibility

Curve C. Iso -Revenue Curve

B. Iso Revenue line D. Iso- Revenue cost

83. Production Possibility Curve is __________ to the originA. Concave C. StraightB. Convex D

. Forward84. The line that represents all possible combinations of two products

which would yield equal revenue is called iso-revenue line.A. Straight line C. Iso -Revenue CurveB. Iso Revenue line D

. Iso- Revenue cost 85. MRPS is the rate of exchange between _____ products which are

equally preferred.A. two C. fourB. three D

. five86. The profit rule to find maximum profit combination of products is

MRPS=PR.A. PR C. MPB. AP D

. MR


Unit: 07 Types of Enterprise Relationships The products which are produced from the same production process are called _____________ products.A. Joint C. ComplementaryB. Competitive D

. Supplementary88. Production of one without the other is not possible is known as

_______ products.A. Competitive C. ComplementaryB. Joint D

. Supplementary89. Production of cotton and cotton-seed is an example of ________

products.A. Competitive C. ComplementaryB. Joint D

. Supplementary90. Two products are ___________ when with a change in the level of one,

the other also changes in the same direction. A. Competitive C. ComplementaryB. Joint D

. Supplementary91. If maize is grown after gram, it is an example of _____________


. Supplementary92. Growing paddy along with a small dairy farm is a case of ____________


. Supplementary93. Two products are _______________ when change in level of one

product does not affect the production level of the other product. A. Competitive C. ComplementaryB. Joint D

. Supplementary94. Growing maize in kharif and wheat in winter is a case of

________________ products.A. Competitive C. ComplementaryB. Joint D SupplementaryDEPARTMENT OF AGRICULTURAL ECONOMICS, C.P.C.A. SDAU,

SARDARKRUSHINAGAR

.95. Two products are said to be _____________, when increase in the

production of one results in decrease in the production of the other and vice-versa.A. Competitive C. ComplementaryB. Joint D

. Supplementary96. Cotton and Sugarcane crops are example of_______________ products.

A. Competitive C. ComplementaryB. Joint D

. Supplementary97. In general, crops grown in the same season are ________________ .

A. Competitive C. ComplementaryB. Joint D

. SupplementaryUnit: 08 Returns to Scale

98. Returns to scale studies the changes in output when all factors are changed simultaneously in the same_______________. A. Proportion C. InputsB. Direction D

. Outputs99. The ____________ means all factors are changed simultaneously in the

same proportion.A. Scale C. InputsB. Returns D

. Outputs100.Returns to scale represent ________________ function.

A. Long-run production C. Factor-FactorB. Product - Product D

. Factor- Product101.In the _______________, all factors can be changed.

A. Long-run production C. Factor-Factor RelationshipB. Product - Product

RelationshipD.

Factor- Product Relationship

102.Returns to Scale is more of ______ interest than being relevant to actual life.A. theoretical C. strategic B. practical D

. tactical

Unit: 09 Farm Management : An Introduction


103.A ________ is a piece of land, where crops and livestock enterprises are taken up under a single management and has specific boundaries. A. Farmer C. farmB. Input D

. Output104._________________ is the act or art of managing.

A. Input C. ProductionB. Output D

. Management105.______________ is a science of organization and operation of farm

with a view to earn continuous and maximum profits.A. Input Factor C. Production FunctionB. Output Factor D

. Farm Management106.The overall goal of farm management is to manage farm businesses

effectively in order to achieve continuous and maximum returns from the farm as a whole.A. Input Factor C. Farm ManagementB. Output Factor D

. Production Function107._____________ is an integral part of agricultural production

economics.A. Input Factor C. Farm ManagementB. Output Factor D

. Production Function108.___________ deals with economic efficiency at the farm level.

A. Input Factor C. Output FactorB. Farm Management D

. Production Function109.____________ implies a decision-making process.

A. Farm Management C. Output FactorB. Input Factor D

. Production Function110._______________ decisions are broadly classified into three groups viz.,

Organizational management decisions, Administrative management decisions and Marketing management decisions A. Farm Management C. Output FactorB. Input Factor D

. Production Function111.Organizational Management Decisions are sub-divided into Opera-

tional management decisions and ______________ management decisions.DEPARTMENT OF AGRICULTURAL ECONOMICS, C.P.C.A. SDAU,

SARDARKRUSHINAGAR

A. Tactical C. TheoreticalB. Strategic D

. Operational112.___________ Management Decisions involve heavy investment.

A. Strategic C. TheoreticalB. Tactical D

. Operational113.Operational Management Decisions are also known as _______

decisions.A. Strategic C. TheoreticalB. Tactical D

. Operational114.____________ Management Decisions are also known as basic

decisions.A. Strategic C. TheoreticalB. Tactical D

. Operational115.______________ Management Decisions involve less investment.

A. Strategic C. TheoreticalB. Tactical D

. Operational

Unit: 10 Economic principles to Applied to Farm Management Law of Diminishing Returns

116.The Low of Diminishing Returns explains the _________relationship.A. input-output or factor-

product C. output - output or product -product

B. input-input or factor-factor D. All of above

117.The Low of Diminishing Returns states that if the quantity of one input is increased, keeping other resources constant, the total product may increase initially, but will ____________ after a certain point.A. Increase C. DecreaseB. Constant D

. All of above118.The Low of Diminishing Returns is associated with farmer’s decision

about______________ .A. how to produce? C. What to produce?B. how much to produce? D Where to Produce?DEPARTMENT OF AGRICULTURAL ECONOMICS, C.P.C.A. SDAU,

SARDARKRUSHINAGAR

.119.The Low of _________ is also known as the law of variable proportions.

It is a fundamental economic law, applicable to any production activity.A. Diminishing Returns C. Opportunity cost PrincipleB. Minimum loss Principle D

. Time Comparison Principle120.The Low of Diminishing Returns guides the farmer/manager in

choosing the optimum level of production.A. Opportunity cost Principle C. Diminishing ReturnsB. Minimum loss Principle D

. Time Comparison Principle121.The Low of Diminishing Returns Profit Rule: The optimum production

level can be obtained where MC=_____.A. MR C. TPB. MP D

. AP

Principle of Factor Substitution 122.Principle of Factor Substitution involves ______________ relationship.

A. product - factor C. factor-factorB. product - product D

. All of above123.Principle of Factor Substitution is associated with farmer’s decision

about _______. A. how to produce? C. What to produce?B. how much to produce? D

. Where to Produce?124.Principle of ______________ implies the choice of methods of

production or technology or the type of combination of resources. A. Factor Substitution C. Factor - Product

SubstitutionB. Product Substitution D

. All of above

125.Principle of ____________ guides the farmer/manager in choosing the most appropriate combination of inputs that produces a given quantity of output with least cost.A. Factor Substitution C. Factor - Product

SubstitutionB. Product Substitution D

. All of above


126.Principle of Factor Substitution Profit Rule: Least cost combination is at the point where MRTS = _____ .A. PR C. APB. MP D

. TP

Principle of Product Substitution 127.Principle of Product Substitution involves _________ relationship.

A. product - factor C. factor-factorB. product - product D

. All o above128.Principle of Product Substitution is associated with farmer’s decision

about _________________ .A. how to produce? C. What to produce?B. how much to produce? D

. Where to Produce?129.The objective of Principle of Product Substitution is_________ .

A. profit maximization C. profit minimizationB. Cost maximization D

. all of above130.Principle of _________ guides the farmer/manager in choosing the

most appropriate combination of enterprises that gives the maximum profit. A. Product Substitution C. Factor SubstitutionB. Factor Product Substitution D

. All of above131.Principle of Product Substitution Profit Rule: Profit maximizing

combination is at the point MRPS = _______.A. PR C. APB. MP D

. TP132.Two products are _____________, when increase output of one also

results in an increase in the output of the other, with resources held constant.A. Competitive C. ComplementaryB. Joint D

. Supplementary133.Two products are __________, when an increase or decrease in the

output of one product does not affect the output of the other.A. Competitive C. ComplementaryB. Joint D

. Supplementary


134.Two products are _______ , if output of one product can be increased only through a sacrifice in the output of the other.A. Competitive C. ComplementaryB. Joint D

. Supplementary135.Principle of Product Substitution is associated with the appropriate

use of inputs which are___________.A. limited C. sufficientB. unlimited D

. all of above136.Principle of __________ states that the limited resources should be

allocated among alternative uses in such a way that the marginal value product (MVP or additional returns) of the last unit of resources is equal in all uses. A. Product Substitution C. Factor SubstitutionB. Factor Product Substitution D

. All of above137.Principle of _______________ guides the farmer/manager that any

limited input should be allocated in that use where it brings in the greatest MVP, so that profit can be maximized.A. Factor Substitution C. Product SubstitutionB. Factor Product Substitution D

. All of above

Opportunity Cost Principle 138. The income of next best alternative that is sacrificed to produce

any good is known as___________ .A. Factor Substitution C. Product SubstitutionB. Factor Product Substitution D

. opportunity cost139. Whatever must be given up to obtain some item is called

opportunity cost.A. Factor Substitution C. Product SubstitutionB. opportunity cost D

. Factor Product Substitution 140. The opportunity cost is referred to as the real cost or true cost of an

input.A. Factor Substitution C. opportunity costB. Product Substitution D

. Factor Product Substitution 141. The ____________ principle guides the farmer/manager that If the

returns from the current use of the input are less than its opportunity cost, then the decision is to be changed.


A. opportunity cost C. Factor Substitution B. Product Substitution D

. Factor Product Substitution

Minimum Loss Principle 142. __________________ Principle is associated with the fixed and variable

cost.A. opportunity cost C. Factor Substitution B. Product Substitution D

. Minimum loss

143. ______ are those costs, which do not vary with the level of output. Fixed costs incurred even in the absence of production.A. Fixed costs C. Total costsB. Variable costs D

. All of above144. _______________ are those costs, which vary with the level of output.

If there is no production, there are no variable costs. A. Fixed costs C. Total costsB. Variable costs D

. All of above145. The farmers sometimes incur loss instead of profit when price of

farm produce goes down. Then they should continue the farming with an objective of_______________ . A. minimizing losses C. maximizing lossesB. minimizing cost D

. All of above146. _______________ principle explains as to how the producer minimizes

losses under adverse price environment A. Minimum loss C. opportunity costB. Factor Substitution D

. Product Substitution 147. The farmer should continue the farming till the loss is less than ____

costs.A. fixed C. totalB. variable D

. All of above148. __________ principle explains regional specialization in the production

of crops and livestock enterprises. For example, Wheat farming is predominant in UP, Punjab and Haryana, Rice farming in AP, WB, and Assam, Cotton farming in Gujarat etc.A. Minimum loss C. Opportunity costB. Factor Substitution D Product Substitution


.149. The relative yields, costs and returns are to be considered as the

criteria for explaining _________________ principle.A. Factor Substitution C. opportunity costB. Minimum loss D

. Product Substitution

Time Comparison Principle 150. _______________Principle is associated with the investment made on

capital assets or fixed assets viz., land, farm buildings, machinery etc.A. Factor Substitution C. Opportunity costB. Time Comparison D

. Product Substitution 151. The costs and returns from investing in __________resources occur

within a production period of a year or less. There is no need to bring time element into discussion, as both costs and returns were assumed to fall within the same production cycle.

A. fixed C. operatingB. variable D

. all of above152. In the case of investment on capital assets, where the costs and

returns are in different time periods. To examine the profitability of these investments it requires the recognition of ____________.A. returns to scale C. farm managementB. time value of money. D

. production economics153. The time value of money can be adjusted through compounding

and discounting. A. time value of money C. farm managementB. returns to scale D

. production economics154. The money possesses earning power which is represented by the

_____________of money or rate of interest.A. returns to scale C. opportunity costB. time value of money D

. farm management155. Purchasing power of money varies ________________with the price

level. A. inversely C. A and B bothB. equally D

. none of above


156. A rupee earned in future is ______ valuable than a rupee earned today.A. less C. greaterB. equal D

. all of above157. _____________is the procedure to find the future value of a present

sum.A. Compounding C. Farm managementB. Discounting D

. return to scale

Unit: 11 Types of farming 158. Major types of farming are: Specialized farming, Diversified farming,

Mixed farming, Dry farming and_______________.A. Raining C. RanchingB. Farming D

. Animal husbandry159. When a farm business unit derives more than ___per cent of its

income from a single enterprise it is called as a specialized farmA. 10 C. 50B. 25 D

. 75160. ________ farming means a number of enterprises are taken up on

the farm at the same time. A. Diversified C. MixedB. Specialized D

. Dry161. ______ farming represents a type of farming in which crop

production and livestock production are combined to sustain and satisfy as many needs of the farmer as possible where livestock enterprises are supposed to contribute at least 10 per cent of gross income and it should not exceed 49 per cent. A. Diversified C. MixedB. Specialized D

. Dry162. Growing of crops entirely under rainfed conditions is known as

_________ agriculture.A. Diversified C. MixedB. Specialized D

. Dry Land163. Depending on the amount of rainfall received, ___________

agriculture is categorized into dry farming, dry land farming and rain fed farming.


A. Diversified C. MixedB. Specialized D

. Dry Land164. Dry farming means cultivation of crops in areas where rainfall is less

than ________ mm per annum. A. 500 C. 100B. 750 D

. 1150165. Dry land farming is the cultivation of crops in regions with an annual

rainfall more than _____ mm. A. 750 C. 100B. 500 D

. 1150166. Rainfed farming is crop production in regions with an annual rainfall

more than ________ mm.A. 750 C. 100B. 500 D

. 1150167. In _______________ farming and dry land farming, emphasis is on soil

and water conservation, sustainable crop yields and limited fertilizer use according to soil moisture availability.A. dry C. diversified B. mixed D

. specialized168. In ____________ agriculture the emphasis is on disposal of excess

water, maximum crop yield, high levels of inputs and control of water erosion.A. diversified C. rainfedB. specialized D

. mixed169. Grazing of livestock on public pastures is called______ . These lands

are not fit for cultivation.A. diversified C. ranchingB. specialized D

. mixed

Unit: 12 Farm planning and farm budgeting

Farm Planning DEPARTMENT OF AGRICULTURAL ECONOMICS, C.P.C.A. SDAU,

SARDARKRUSHINAGAR

170. ________________ is the foundation of managementA. Farm Budgeting C. Farm PlanningB. Production economics D

. Farm management171. ______________ precedes all other managerial functions.

A. Farm Budgeting C. Farm PlanningB. Production economics D

. Farm management172. Thinking before doing is called _____________.

A. doing C. budgetingB. planning D

. processing173. ___________ is an intellectual process.

A. Planning C. BudgetingB. Doing D

. Thinking174. ____________ is a continuous and unending process.

A. farm Budgeting C. Farm PlanningB. Production economics D

. Farm management175. Planning in the minds of the organizer is called _________ planning.

A. informal C. directB. formal D

. all of above176. Planning committed on a paper is called formal planning.

A. informal C. directB. formal D

. all of above177. __________ is a process of making decisions regarding the

organization and operation of farm business, so that it results in continuous maximum net returns of farm business.A. Farm Budgeting C. Production economicsB. Farm Planning D

. Farm management178. Two types of farm planning: Simple farm planning and

_______________ farm planning.A. complete C. hardB. complex D

. incomplete179. Planning for minor changes or for a particular enterprise or to

substitute one resource by another is called _______ farm planning.A. complete C. simpleB. complex D

. incomplete


180. Planning for the whole farm is called ___________ farm planning.A. complete C. simpleB. complex D

. incomplete181. A programme of the total farm activity drawn up in advance is

called a _________________ .A. farm plan C. farm managementB. farm budget D

. production economics

Farm Budgeting 182. The expression of a farm plan in monetary terms by estimation of

returns, expenses and net income is called __________________ .A. farm budgeting c. farm planningB. production economics d. farm management

183. Farm planning and ________________ go side by side.A. production economics c. farm planningB. farm budgeting d. farm management

184. Three Types of Farm Budgeting are Enterprise budgeting, Partial budgeting and __________ budgeting.A. complete C. simpleB. complex D

. incomplete185. Farm enterprise budget It is the estimation of expected income,

costs and profit for an________ . A. farm C. enterpriseB. farmer D

. all of above186. ________________is prepared for a unit i.e., acre, hectare, for a crop,

one head of livestock, etc.A. Farm enterprise budget C. Total budgetB. Partial budget D

. Complete budget187. __________budgeting is a statement of anticipated changes in costs,

returns and profitability for a minor modification.A. Partial C. simpleB. complete D

. incomplete188. When a farmer contemplates few modifications or minor changes in

the existing plan of the farm business, _________ budgeting technique is employed.A. simple C. partialB. incomplete D

. complete


189. Four important elements of ______________ are added costs, added returns, reduced returns and reduced costs.A. Complete budgeting C. Partial planningB. Complete planning D

. Partial budgeting190. ____________ Method is used to make a budget for the whole farm.

A. Complete budgeting C. Partial planningB. Complete planning D

. Partial budgeting191. _____________ is used in situations involving extensive remodeling of

the farm organizations.A. Partial planning C. Complete budgetingB. Partial budgeting D

. Complete planning

Unit: 13 Risk and uncertainty 192. ___________ is defined as a, situation when all possible outcomes

are known for a given management decision and probability associated with each possible outcome is also known.A. Risk C. ProductionB. Uncertainty D

. Management193. Uncertainty is defined as a situation when all the possible outcomes

of events are unknown, then neither the probability nor the outcomes are known.A. Risk C. ProductionB. Uncertainty D

. Management194. _____________ is defined as a situation when all the possible

outcomes of events are unknown, then neither the probability nor the outcomes are known.A. Risk C. UncertaintyB. Production D

. Management195. Three major sources of Risk are _________ risk or technical risk, Price

risk or marketing risk and Financial risk.A. Input C. outputB. Production D

. Management196. Weather risk and technical risk are the most important components

of ______________ risk. A. Input C. Production


B. output D. Management

197. In general, two factors viz., ___________and the expected value, should form the basis for selecting the best enterprise among alternative risky enterprises.A. the variance C. the factorB. the production D

. the output198. In case of prices estimates of farm produce, if expected value is

more than simple average then there is no price risk for the commodity as on the contrary, if expected value is less than the simple average, there is a __________ risk.A. Price C. TechnicalB. Production D

. All of above199. In case of yield estimates, if expected value is more than simple

average then there is no production risk for the commodity as on the contrary, if expected value is less than the simple average, there is a _____________ risk.A. Price C. TechnicalB. Production D

. All of above200. _____________ is a measure of variability.

A. Range C. InputB. Output D

. Production201. The difference between the lowest and the highest possible

outcome is called ______.A. Risk C. ProductionB. Uncertainty D

. Variance202. _________________ enterprises should be preferred which have got

smallest range value, or lowest variance, provided their expected values are the same.A. Alternative C. SmallB. Same D

. Big203. Selection of suitable crops and livestock enterprises is the first step

in __________ .A. diversification C. managementB. modification D

. cultivation204. ____________ Programming models and game theory models should

be used to formulate whole farm plans under different risky DEPARTMENT OF AGRICULTURAL ECONOMICS, C.P.C.A. SDAU,

SARDARKRUSHINAGAR

situations. A. Risk C. ProductionB. Uncertainty D

. Management205. Stable enterprises should be preferred particularly in situation of

farm risks.A. Production C. RisksB. Uncertainty D

. Management 206. __________ reduces production risk as well as financial risk.

A. Insurance C. Minimum Support PriceB. Animal husbandry D

. all of above207. _________________ reduce production risk.

A. Animal husbandry C. Appropriate agronomic practices

B. Insurance D. All of above

208. __________ provides protection against fall in the prices of farm products.A. Insurance C. Animal husbandryB. Appropriate agronomic

practicesD. Minimum Support Price

209. _________________ reduces the marketing risk or the price risk.A. Insurance C. Animal husbandryB. Appropriate agronomic

practicesD. Minimum Support Price

210. At macro level, the fiscal policies formulated by RBI are aimed at to provide different measures to safeguard against the________________ risk.A. Financial C. ProductionB. Price D

. Technical

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Question Bank - WordPress.com · Web viewQuestion Bank AGRICULTURAL PRODUCTION ECONOMICAS AND FARM MANGEMENT (AG. ECON 6.5) DEPARTMENT OF AGRICULTURAL ECONOMICS, C. P. COLLEGE OF