MCQ on Farm management Economics Part 1

MCQ on Farm management Economics Part 1

Here is the MCQ on Farm management, Production & Resource Economics

1. Farm management is an:

A. Intra-farm science
B. Inter-farm science
C. Inter-regional farm science
D. International farm science

Read… FARM MANAGEMENT- DEFINITION & OBJECTIVES

2. Which of the following refers to application of the accounting principles to the business of farming:

A. Farm planning
B. Farm budgeting
C. Farm accounting
D. Marketing

3. Beef’ and ‘hides’ are examples of:

A. Independent enterprise
B. Joint enterprise
C. Supplementary enterprise
D. Competitive enterprise

4. Marginal product is ratio of:

A. Input-ouput
B. Output-Input
C. Cost-income
D. Price-Income

5. Which of the following is not correctly matched?

A. App rises continuously till APP and MPP is both equal.
B. MPP rises continuously – Till MPP is more than APP
C. TPP rises continuously – Till MPP is not equal to Zero
D. APP & MPP both fall but TPP rises. When MPP is less than APP but more than zero

6. Which one of the following pairs is not correctly matched?

A. Elasticity of production = Stage III of classical production function greater than unity
B. Negative marginal product = Stge III of classical production function
C. Negative elasticity of production = Stage III of classical production function
D. Average product decreases but is greater than marginal product = Stage II of classical production function

7. Quasi rent is opportunity cost of a:

A. Fixed factor of production
B. Variable factor of production
C. Semi-fixed factor of production
D. Semi-variable factor of production

8. A farmer having less than one hectare of irrigated land, is known as:

A. Small farmers
B. Marginal farmers
C. Big farmers
D. None of the above

Read also… TYPES OF FARMERS-GOVERNMENT INITIATIVES

9. A farmer, which has land holding between 1 to 2 hectare known as:

A. Marginal farmer
B. Small farmer
C. Optimal farmer
D. None of the above

10. A farmer which has land holding between zero to one hectare is known as:

A. Small farmers
B. Big farmer
C. Marginal farmer
D. Argicultural labour

11. A group of technical units are known as:

A. Farm firm
B. Plant
C. Economic unit
D. All above

12. A single convenient unit in production for which technical co-efficient are calculated is known as:

A. Units of accounting
B. Technical units
C. Marginal units
D. None of the above

13. According to quantity theory of money:

A. PT= MV+M’V’
B. P= M’V’/PT
C. T= MV+M’V’
D. M=TV

14. A statement, which shows the financial condition and stability of the business at a particular point of time, is known as:

A. Net worth statement
B. Business statement
C. Physical efficiency measures
D. None of the above

15. The overhead cost is also known as:

A. Fixed cost
B. Variable cost
C. Total cost
D. Marginal cost

16. A.P.P. Will be equal to (Y = output, X = input):

A. X/Y
B. X/Y x 100
C. Y/X
D. None of above

17. Above 15% farmers had land holding in between:

A. 2-4 ha
B. 0-1 ha
C. 1-2 ha
D. None of the above

18. Multiplier can be expresses as:

A. 1/(1-MPC)
B. 1/(MPS+MPC)
C. 1/MPC
D. MPC+MPS

19. The theory of revealed preference was given by:

A. Adam smith
B. Paul samuelson
C. Leon walrus
D. Alfred marshall

20. Absence integration between resources and activities in the process of production is called:

A. Linearity
B. Non-linearity
C. Quasi-non-linearity
D. Quasi-linearity

21. Iso-revenue line is a:

A. Straight line
B. Curve line
C. Horizontal line
D. Vertical Line

22. Average fixed cost is equal to:

A. Total fixed cost / 100
B. Total fixed cost/total variable cost
C. Total fixed cost/output
D. Total fixed cost/Input

23. Average product is equal to marginal product when:

A. Average Product is maximum
B. Average Product is minimum
C. Marginal Product is zero
D. None of the above

24. When marginal product is zero, the total product is:

A. Minimum
B. Maximum
C. Zero
D. Equal to average product

25. Basic fundamental law of agriculture is:

A. Law of diminishing return
B. Law of equimarginal return
C. Law of substitution
D. Law of demand and supply

26. Elasticity of production in the second stage of production is:

A. <1
B. >1
C. Negative
D. Equal to two

27. When average variable cost is minimum, it is equal to:

A. Average fixed cost
B. Average variable cost
C. Marginal cost
D. Total cost

28. Building machinery and implements are examples of:

A. Variable resources
B. Fixed resources
C. Flow resources
D. None of the above

29. Which one of the following principles is employed in production when resources are scarce?

A. Added cost is equal to added returns
B. Equal-marginal principle
C. Competitive advantage
D. None of these

30. Which one of the following pairs is correctly matched?

A. Common cost = Cost associated with variable resource
B. Average cost = A study of returns and costs
C. Marginal cost = Additional cost to produce an additional unit of output
D. Prime cost = Cost related to fixed resources

31. The line passing through the least cost points on isoquant map is called?

A. Ridge line
B. Price line
C. Expansion path
D. Income line

32. Which one of the following is operational decision?

A. Enterprise mix
B. Selection of least cost
C. Level of resource use
D. All above

33. Co-operative farming, Collective farming, Capitalistic farming, State farming and Peasant farming are:

A. Types of farming
B. System of farming
C. Both these
D. None of these

Read… TYPES OF FARMING- SYSTEM OF FARMING

34. Which one of the following is not a system of farming?

A. Peasant farming
B. Co-operative farming
C. Mixed farming
D. Co-operative collective farming

35. Crop farming and milk production is an example of:

A. Competitive enterprise
B. Complementary enterprise
C. Supplementary enterprise
D. None of them

36. Dairy farming, poultry farming, crop farming and pig farming are:

A. Types of farming
B. System of farming
C. Both (a) and (b)
D. None of these

37. Decisions regarding irrigation, conservation and reclamation programmes are comes under:

A. Buying decisions
B. Selling decisions
C. Marketing decisions
D. Strategic decisions

38. Decisions regarding selection of enterprise comes under:

A. Marketing decisions
B. Buying decisions
C. Administrative decisions
D. Operational decisions

39. Diversified farming is a?

A. System of farming
B. Type of farming
C. Both of the above
D. None of the above

40. Which one of the following is not a physical factor affecting the type of farming?

A. Climate
B. Topography
C. Soil
D.Labour supply

41. Enterprise budgeting deals with input-output relationship of:

A. A set of different enterprises
B. A single enterprises of the farm
C. Both of the above
D. None of the above

42. Expenditure on fertilizers is called:

A. Fixed cost
B. Variable cost
C. Marginal cost
D. Total cost

43. Support prices of agricultural commodities are recommended by:

A. CACP
B. NAFED
C. ICAR
D. Agriculture minister

44. Which one of the following formulae gives the correct measure of ‘Rate of Capital turnover’?

A. (Gross income/Total farm assets) x 100
B. (Net income / Total farm assets) x 100
C. (Farm business income / Total farm assets) x 100
D. (Capital investment / Total farm assets) x 100

45. Fasts and findings of other science are coordinated for the solution of various problems of individual farmers with view to achieving certain desired goals, hence, farm management is:

A. Micro Approach Science
B. Integrating Sciencec
C. Practical science
D. Broader Field

46.  As a resource allocation proportion, Farm management is related to:

A. Inter-farm management
B. Intra-farm management
C. Both inter and intra farm management
D. Inter-regional management

47. Farm management deals with obtaining the maximum yield per hectare and considers per unit cost, therefore it is:

A. Practical Science
B. Integrating Science
C. Profitability Oriented
D. Broader Field

48. Farm management deals with:

A. Judicious decisions
B. Use of scarce resources
C. Profit maximization and family satisfaction
D. All of these

49. Farm management is a practical science because of:

A. It is interested in profitability
B. It is integrating facts and findings of other sciences
C. It deals with facts of other physical sciences and testing the applicability of those facts and findings
D. All of these

50. Farm management treats every farm unit unique in available resources, problems and potentialities because it has:

A. Broader Field
B. Micro Approach
C. Practical
D. All of these

51. Farm planning involves:

A. Preparing farm budget in advance
B. Selecting and adopting best package of practices
C. Both of these
D. None of these

52. Farming planning means:

A. Types of enterprise
B. Cropping sequence
C. Farm budgeting
D. None of these

53. The economic principle helps a farmer to allocate his limited resources to two different enterprises?

A. The law of variable proportions
B. The law of comparative advantage
C. The law of equimarginal returns
D. The principles of fixed and variable costs

54. When marketed surplus is greater than marketable surplus then the situation is:

A. Market efficiency
B. Market Integration
C. Distress sale
D. Duopoly market

55. Central cooperative banks normally operate at:

A. District level
B. State level
C. Village level
D. Country level

56. Which of the following statement is correct?

A. When average cost is decreasing, it is more than marginal cost
B. When average cost is decreasing, it is less than marginal cost
C. When average cost is increasing, it is more than marginal cost
D. None of the above

57. Gross return plus charge in inventory minus total cost is equal to:

A. Farm income
B. Family income
C. Tax
D. None of the above

58. How much farmers have land holding more than 10 hectares?

A. 15%
B. 9%
C. 15%
D. 4%

59. How much percent of total cost of production goes to labour investment?

A. 35-40%
B. 46-50%
C. 40-45%
D. 25-30%

60. The field of farm management is broader, because:
A. It tests the applicability of facts and findings
B. It is interested in profitability
C. It gets information from more than one discipline
D. None of the above

61. If more and more capital and labour are applied to a fixed piece of land, the system of cultivation/farming is known as:

A. Intensive cultivation
B. Extensive cultivation
C. Co-operative farming
D. Large scale farming

Also Read: Download New Aadhaar Card Free Here, Old Aadhaar Card Rejected

62. If substitution ratio is equal to price ratio than cost will be:
A. Minimum
B. Increasing
C. Maximum
D. Decreasing

63. If substitution ration is less than price ratio than cost will be:

A. Increasing
B. Maximum
C. Decreasing
D. None of the above

64. If the members have not any right on land and connot take decisions regarding farming but guided by a general body and profit is given according to the labour and capital invested by the member is known as:

A. Co-operative joint farming
B. Co-operative collective farming
C. Co-operative better farming
D. Co-operative tenant farming

65. If the small holders form a society for farming and get profit after deducting the expenses of his price of land and farmer also have right on his land the system is known as:

A. Co-operative better farming
B. Co-operative collective farming
C. Co-operative joint farming
D. None of these

66. In a complete farm planning due consideration is given to:

A. Resource use and restrictive
B. Relationship among different enterprises
C. Goods managerial skill of the operator
D. All of above

67. Price determination under bilateral monopoly takes place through:

A. Intersection of MRP & MC
B. Intersection of MRP & ME
C. Intersection of MVP & ME
D. Negotiation

68. Returns to scale can be known by summing of:
A. Elasticities
B. Coefficients
C. Price ratio
D. Marginal products

69. In a manufacturing industry generally applies law of:

A. Constant return
B. Increasing return
C. Decreasing return
D. All of the above

70. In capitalistic farming, the land is owned by:

A. Land lord
B. Factory lord
C. Both (a) and (b)
D. Government

71. In classical production function when average product is increasing:

A. Marginal product is less than average product
B. Marginal product is equal to average product
C. Marginal product is greater than average product
D. None of the above

72. In classical production function, rational zone is always:

A. First zone
B. Second zone
C. Third zone
D. None of the above

73. In mixed farming the contribution of livestock to gross farm income is:

A. At least 10%
B. At least 30%
C. At least 40%
D. More than 50%

74. In peasant farming the owner of the land is:

A. Land lord
B. Co-operative society
C. Government
D. Farmer

75. In the short run, Average Cost, Average Variable Cost and Marginal Cost Curves are ‘U’ shaped due to the operation of:

A. Law of equimarginal returns
B. Substitution between two factor inputs
C. Law of variable proportion
D. Time comparison principle

See also…
MCQ ON SEED TECHNOLOGY PART-1
ANIMAL HUSBANDRY MCQ PART 1
MCQ ON SOIL SCIENCE- PART 1
MCQ ON AGRONOMY- PART 1
MCQ ON GENETICS & PLANT BREEDING- PART1