Posted on May 27, 2024 by Tadele AnagawAgricultural Economics Model Exit Exam 2024 0 votes, 0 avg 236 123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960616263646566676869707172737475767778798081828384858687888990919293949596979899100 Created on May 27, 2024 By Tadele Anagaw Agricultural Economics Model Exit Exam 2024 Salale University College of Agriculture and Natural Resource Department of Agricultural Economics Model for Exit Exam Time allowed: 2:30 hr. Name of StudentID NumberModality (egular, Extention or Weekend)Phone Number 1 / 100 1) Which of the following tests compares the residual sum of squares computed with and without the restrictions imposed? A) t-test B) Chi –square test C) F-test D) Z-test Multiple choice 2 / 100 2) Which of the following are not third-world regions? A) Australia B) Latin America C) Asia D) Africa Multiple choice 3 / 100 3) If there is high collinearity problem between variables; A) the OLS estimators of the regression estimators are BLUE. B) the variances and the standard errors of the estimates will increase. C) estimates of the coefficients are statistically unbiased D) All Multiple choice 4 / 100 4) Economic development refers to A) economic growth plus changes in output distribution and economic structure B) improvement in the well-being of the urban population. C) sustainable increases in Gross National Product. D) economic growth Multiple choice 5 / 100 5) What is gross domestic product (GDP)? A) income earned through foreign exchange B) the number of dollars earned in industry C) income earned within a country’s boundaries. D) goods received from the nation’s local residents Multiple choice 6 / 100 6) To say a give natural resource is essential; A) All B) when it is used as waste disposal processing agent. C) when the ecosystem cannot survive without them D) when it is ecologically important Multiple choice 7 / 100 7) Which of the following is not an element of the marketing mix? A) Target market B) Product C) Pricing D) Promotion Multiple choice 8 / 100 8) Which one of the following is incorrect statement about pricing strategy A) Cost-based pricing è determined by adding a specific proportion of the overall cost to the cost of the product B) Price skimming è a company aims to maximize its profits by charging high prices for its newly introduced product. C) Penetration pricing è involves offering a new product or service at a low initial price to gain customers’ attention. D) Value-based pricing è is a strategy where a product or service is priced above the market price. Multiple choice 9 / 100 9) The main differences between economic and financial analysis of a project lies on A) Prices B) Treatment of transfer payments C) Objective & Participants D) All of the above Multiple choice 10 / 100 10) The Harrod-Domar growth model suggests that growth is A) directly related to savings and inversely related to the capital/output ratio B) directly related to the capital/output ratio and inversely related to savings C) indirectly related to savings and the capital/output ratio D) directly related to savings and the capital/output ratio Multiple choice 11 / 100 11) V Company is considering a project that would require an investment of 48,000 birr. No other cash outflows would be involved. The present value of the cash inflows would be 52,800 birr. The present value index of the project is: A) 0.09 B) 0.1 C) 1.1 D) 0.9 Multiple choice 12 / 100 12) If the a company produces a new product and offering for sell at low price initially to gain customers’ attention. This types of pricing strategy is called___________ A) value based pricing B) Price skimming C) Cost-plus pricing D) Penetration pricing Multiple choice 13 / 100 13) _________are incurred when commodities move from the farm to the final market. A) Marketing margin B) Production cost C) Marketing channel D) Marketing cost Multiple choice 14 / 100 14) Which of the following characteristics are most likely found in developing countries? A) high population growth rates. B) all of the above C) large number of people living in poverty D) very traditional methods of agricultural production Multiple choice 15 / 100 15) An underdeveloped economy is characterized by A) All the above B) Large proportion of the labor force in the tertiary sector C) High per capita real income D) State of deprivation of a large proportion of the population Multiple choice 16 / 100 16) When project gets acceptance in discounted investment criteria? A) If benefit is greater than cost B) If NPV exceeds zero C) All of the above D) If IRR exceeds opportunity cost of capital Multiple choice 17 / 100 17) Which of the following is different from the others? A) Option value B) Indirect use value C) Existence value D) None Multiple choice 18 / 100 18) When countries trade according to each country’s respective comparative advantage A) The country that exports the most gains while the country that imports the most loses B) Each country will capture some of the gains from trade C) If one country gains from the trade, the other country must lose an equivalent amount D) The country that imports the most gains while the country that exports the most loses Multiple choice 19 / 100 19) How can we measure the goodness of fit in binary regressand model? A) F-test B) Pseudo R2 C) Adjusted –square D) Coefficient of determination Multiple choice 20 / 100 20) Which of the following is true about marginal extraction cost? A) All B) It is the revenue gained from one additional unit of a resource C) It is the expense to get one additional unit of a resource D) It is the cost incurred to extract one additional unit of a resource Multiple choice 21 / 100 21) Assume that a project is expected to have initial investment and life of Br. 350,000 and five years respectively. The annual cash flow estimated at 12 % discount rate is Br. 125,000 for each of the five years and the discount factor from the present value of annuity of table is equal to 3.605. What are the NPV? A) None of the above B) -129,707 C) 100625 D) -225,000 Multiple choice 22 / 100 22) Which of the following could be considered critical questions in development economics? A) What are the major theories of economic development? B) What factors affect labor skills in the third world? C) How do the poorest 2/3 of the world live? D) all of the above are correct. Multiple choice 23 / 100 23) International trade and specialization are determined by A) comparative advantage B) production possibility frontier C) absolute costs D) absolute advantage. Multiple choice 24 / 100 24) The impact of the project on international trade is reflected through A) Cost of production B) Consumer willingness to pay C) Foreign exchange value D)  marginal social value Multiple choice 25 / 100 25) Which one of the following is incorrect? A) When, IRR = r ….. NPV = 0 B) When IRR < r ….. NPV >0 C) When IRR > r ….. NPV > 0 D) None of the above Multiple choice 26 / 100 26) Income inequalities are often shown on a A) production possibility curve B) Lorenz curve C) marginal inequality curve D) Sen curve. Multiple choice 27 / 100 27) Which of the following is true about opportunity cost? A) It is easy to measure B) All C) It is the value of the best alternative given up D) It is difficult to measure Multiple choice 28 / 100 28) U Company has several investment opportunities to evaluate, but does not have the funds to invest in all of them. Which calculation would be best to determine which project(s) to choose? A) Payback period B) Net present value C) Accounting rate of return D) Benefit cost ratio Multiple choice 29 / 100 29) Which of the following is true about Environmental economics? A) It studies about the impact of goods and services produced on the environment B) It studies about economics of pollution and how we control it C) It studies about environmental valuation techniques D) All Multiple choice 30 / 100 30) What is the principle behind time value of money? A) Cash in and cash out B) Projects with more risk have a lower discount rate C) Money tomorrow is worth more than money today D) Money today is worth more than money tomorrow Multiple choice 31 / 100 31) Balanced growth theories of advocates___________? A) parity between capital stock and labor B) simultaneous development of all sectors of the economy C) a steady rate of growth of GNP D) all of the above Multiple choice 32 / 100 32) Which of the following countries is not a low-income country? A) Somalia B) Singapore C) Rwanda D) Ethiopia Multiple choice 33 / 100 33) If a firm has a number of proposals which all have a positive NPV and IRR that exceeds the cost of capital, but can’t undertake these entire projects because of limited availability of fund. So what the firm should perform in order to rank these projects? A) The firm should rank projects according to their profitability index B) The firm should rank projects using net Benefit – investment ratio C) The firm simply choose projects those with highest NPV D) A & C Multiple choice 34 / 100 34) The Human Development Index (HDI) summarizes a great deal of social performance in a single composite index, combining A) disparity reduction rate, human resource development rate and the composite index B) human resource training, development and R&D C) minimum schooling, adult literacy and tertiary educational attainment. D) longevity, education and living standard. Multiple choice 35 / 100 35) _______ are buy farm products from wholesalers and other actors and sell them to the consumers in small quantities. A) Wholesalers B) Retailor C) Consumer D) Producer Multiple choice 36 / 100 36) ___________is below the income that secures the bare essentials of food, clothing, and shelter. A) Absolute poverty B) Income inequality. C) Functional poverty. D) Relative poverty Multiple choice 37 / 100 37) Which of the following factors are led to the growth in agricultural marketing? A) All B) Urbanization C) Specialization D) Transportation and communication Multiple choice 38 / 100 38) If rate of interest is greater than the increase in price per unit; A) Difficult to decide B) All C) It is better to extract resource today and invests the money D) Better to extract in the future Multiple choice 39 / 100 39) The infant industry arguments refers to a tariff designed to A) provide incentives for established local manufacturing firms to venture in foreign markets B) help foreign industries establish themselves in the local market. C) help consumers enjoy a variety of products in the local market. D) protect young manufacturing products from foreign competition Multiple choice 40 / 100 40) Which of the following is example/s of fund pollutant? A) B and C B) Waste paper product C) Heavy metals D) CO2 Multiple choice 41 / 100 41) _______refers to the difference between the price at which a good is purchased from another company and the price at which it is sold to the consumer. A) Marketing institution B) Marketing channel C) Marketing margin D) Marketing communication Multiple choice 42 / 100 42) The zero conditional mean assumption shows that; A) Disturbance terms has negative effect on dependent variable B) It assumed the effect of error terms affect the dependent variable positively and negatively in equal amount C) Error terms has positive effect on dependent variable D) All Multiple choice 43 / 100 43) Market does not naturally lead to the optimal allocation of pollution emission. Because; A) Pollution is an externality B) Taxing pollutant C) The amount of information needed are enormous and uncertain D) A and B Multiple choice 44 / 100 44) Which of the following is the first stage in contingent valuation techniques? A) Set-up a hypothetical market B) Estimate mean WTP or WTA C) Obtain bids D) Estimate bid curves Multiple choice 45 / 100 45) The Physical Quality of Life Index (PQLI) combines three indicators. They are A) crime rate, clean environment and quality of housing. B) air pollution rate, water pollution rate and sanitation. C) infant mortality, life expectancy and adult literacy rate. D) health, education and environment. Multiple choice 46 / 100 46) ___________is used to test the overall Significance of Regression Model A) Z-test B) t-test C) Chi-square test D) F-test Multiple choice 47 / 100 47) The practical application of present value method includes one of the following except A) Annual outlays and receipts from each investment are known for the entire life of the project B) Interest rate should be known C) Project life span must be fixed D) None of the above Multiple choice 48 / 100 48) _________ is the term that shows/measures the degree of market performance A) Market structure B) Market efficiency C) Market performance D) Market conduct Multiple choice 49 / 100 49) Which one of the following is incorrect about market classification? A) Spot or cash markets è a market in which goods are exchanged for money immediately after the sale B) Wholesale Markets è commodities are bought and sold in large lots or in bulk C) Consumer market: è those markets which mainly assemble the commodity for further distribution to other markets. D) Short-period Markets è the markets which are held only for a few hours. Multiple choice 50 / 100 50) Which one of the following is different from the other? A) Customer focus B) Marker research C) Market testing D) Product research Multiple choice 51 / 100 51) Factor proportions theory is also known as the A) comparative advantage theory B) laissez faire theorem C) Heckscher-Ohlin theorem D) product cycle model Multiple choice 52 / 100 52) The World Trade Organization A) is also known as NAFTA B) is also known as the International Monetary Fund (IMF). C) was established to resolve disputes arising under world trade rules D) enhances world trade by providing interest rate subsidies to foreign borrowers who buy exports on credit Multiple choice 53 / 100 53) What is the Gross National Product: A) The total output of goods and services produced by the country’s economy B) National Income minus National Expenditure C) The sum of gross domestic product and investment D) The total domestic and foreign output claimed by residents of the country Multiple choice 54 / 100 54) ____is the process of determining the needs and wants of consumers & being able to satisfy those needs & wants profitability A) Customer satisfaction B) Agricultural market C) Marketing D) Market Multiple choice 55 / 100 55) _________ is a strategy that focuses on customer preferences and requirements. A) Product research B) Pricing C) Market orientation D) Product orientation Multiple choice 56 / 100 56) _________is a strategy used to set prices according to current prices in the market for the same or similar products or services. A) product research B) Market pricing C) Product orientation D) Market research Multiple choice 57 / 100 57) Assume that the project requires 10,000 unskilled labours for which the project control board (project promoter) has decided to pay a Br. 10 daily wage rate. The shadow price of unskilled labour is Br. 6 per day. What is the cost of unskilled labour from Private and economic point of view? A) 100,000and 60,000 B) None of the above C) 10,000 and 60,000 D)  60,0000 and 100,000 Multiple choice 58 / 100 58) When Leontief tested the predictions of the Heckscher-Ohlin theory, he found that in 1947 the United States was exporting relatively labor-intensive goods and importing relatively capital-intensive goods. This was called the Leontief Paradox. This finding: A) Justified the imposition of import tariffs on capital-intensive goods B) Contradicted the Heckscher-Ohlin theory as the United States was relatively labor abundant C) Fit the predictions of the Heckscher-Ohlin theory concerning the trading patterns of a capital-abundant country. D) Contradicted the Heckscher-Ohlin theory as the United States was relatively capital abundant. Multiple choice 59 / 100 59) How can we know the presence of heteroscedastic problem? A) Park test B) All C) Goldfeld and Quandt Test D) Spearman’s Rank Correlation test Multiple choice 60 / 100 60) Assume a project whose NPV is 785 & -963 at discount rate of 6% and 7% respectively. What is the IRR? A) 16.63% B) None of the above C) 6.65% D) 6.45% Multiple choice 61 / 100 61) Which one of the following is incorrect about marketing cost? A) The more processing of the commodity, the greater will be the marketing costs B) The more perishable the product, the greater will be the marketing costs C) The more waste a product has, the lesser the marketing costs. D) The greater the amount of produce handling and transportation, the greater the marketing costs. Multiple choice 62 / 100 62) If the error terms of an equation has heteroscedastic problem; A) All B) the OLS estimator are unbiased C) the OLS estimators are biased D) the OLS estimators are efficient Multiple choice 63 / 100 63) Suppose you have given the costs and benefits of project in the form of cash. If you want to check the project worthiness and made investment decision through discounted measures of project worth, so what you should be done? A) Determine the payback period of project and select one with the shortest payback period B) Calculate IRR and invest in project if IRR greater than the minimum acceptable cost of capital C) A & B D) Calculate the sum of discounted cash flow and invest in project if net present worth is positive Multiple choice 64 / 100 64) Which of the following are /is the cause of heteroskedastic problem? A) Misspecification of the model B) All C) Incorrect data transformation D) Existence of outliers Multiple choice 65 / 100 65) Which of the following is false about economic analysis of project A) Done from the point of view of the national economy B) Indirect subsidies are included in the economic analysis C) Provide information on the impact of projects on key economic variables D) Performed for profit oriented project Multiple choice 66 / 100 66) ______ is the methodologies and tactics adopted by the companies to convey the messages in a unique and creative manner to their existing and prospective customers about their offerings of products and services. A) Marketing margin B) Marketing institution C) Marketing communication D) Marketing channel Multiple choice 67 / 100 67) With perfect income equality the Gini coefficient in a country would be A) 1 B) infinity C) 5 Multiple choice 68 / 100 68) _________is the set of marketing tools the firm uses to pursue its marketing objectives in the target market. A) Marketing channel B) Marketing mix C) Marketing cost D) Marketing margin Multiple choice 69 / 100 69) Non-tradable goods are goods that do not enter into the international trade because of their; A) Nature of the good/product B) All of the above C) Economics of trading D) Policy barriers Multiple choice 70 / 100 70) Asian tigers countries of East and Southeast Asia include the following except A) China B) Singapore C) South Korea D) Taiwan Multiple choice 71 / 100 71) Imports are defined as the goods and services that we A) None of the above answers are correct B) produce and consume in the United States. C) buy from other countries D) sell to other countries Multiple choice 72 / 100 72) Which of the following statements is not true about import restriction A) Import restrictions raise prices for buyers to a product, B) Import restrictions involve a deadweight loss C) Import restrictions attract resources to protected industry D) Import restriction shift welfare from producers to consumers Multiple choice 73 / 100 73) If a nation imports a good that can be domestically produced, the market price of the good A) None of the above answers are correct B) decreases C) increases D) remains constant Multiple choice 74 / 100 74) Autarky refers to a country A) which is self sufficient, and is a closed economy B) with an authoritarian government C) which has free trade with the rest of the world D) none of the above Multiple choice 75 / 100 75) ____is the study of all activities, agencies, and policy involved in the procurement of farm inputs and the movement of agricultural product from the farms to the consumer. A) Marketing B) Agriculture C) Agricultural marketing D) Market Multiple choice 76 / 100 76) _________ occurs when one observation’s error term (εi) is correlated with another observation’s error term (εj): A) Multicollinearity B) Normality assumption C) None D) Serial correlation Multiple choice 77 / 100 77) Economic growth measures the A) growth of productivity B) increase in nominal income C) increase in output D) none of the above Multiple choice 78 / 100 78) A country has a balance of trade deficit if the value of its exports are ____ the value of its imports A) None of the above B) less than C) greater than D) equal to Multiple choice 79 / 100 79) With international trade, a country A) cannot consume at a point on its PPF B) cannot consume at a point outside of its PPF C) None of the above answers are correct D) can consume at a point outside its PPF Multiple choice 80 / 100 80) What is hedonic price in environmental valuation? A) It measures the effects of specific environmental attributes on the price of goods and services. B) It uses market, observed and data on property sales or wage rates. C) It measures the welfare effects of changes in environmental goods or services by estimating the influence of environmental attributes on the value. D) All Multiple choice 81 / 100 81) Infant mortality means__________? A) is life expectancy up to age 3 B) reflects the availability of primary education, the rights of employment and social security C) is defined as the annual number of deaths of infant under 1 year old per 1,000 live births. D) reflects the availability of hospitals and childcare facilities, and the parents’ wealth Multiple choice 82 / 100 82) ________ is a pricing strategy that utilizes competitor prices as a benchmark, rather than setting a price based on company costs or customer value. A) value based pricing B) Cost-plus pricing C) Competitor-based pricing D) Price skimming Multiple choice 83 / 100 83) Country A limits other nation’s exports to Country A to 1,000 tons of coal annually. This is an example of ___? A) export subsidy B) import quota C) voluntary export restriction D) protective tariff Multiple choice 84 / 100 84) When the fitted linear regression is given by Yi= 8+0.82Xi, the value of 0.82 shows: A) the increase of Y as X increase by one unit B) The change of X as Y changes by one percent C) A and C D) The change of Y as X changes by one unit Multiple choice 85 / 100 85) Assume the regression of log(wage)=0.25+0.75education, then which of the following is true? A) As education change by one unit wage change by 0.75percent B) All C) as education increase by one unit, wage increase by 0.75 unit D) As education increase by one percent wage increase by 0.75 percent Multiple choice 86 / 100 86) Based on the data given above, what is the company’s accounting rate of return? A)  None of the above B) 0.75% C) 75% D) 65% Multiple choice 87 / 100 87) The standard error test of the parameter estimates measure: A) the statistical reliability of the estimates B) the degree of relation between variables C) the degree of confidence that we may attribute to the estimates D) B and C Multiple choice 88 / 100 88) Which of the following is false about revealed preference approach? A) Estimate from use values B) Asking hypothetical questions C) Use market transaction D) None Multiple choice 89 / 100 89) If producers sell new and innovative, or improvised products or services at a high price for a short period of time and then the types of pricing strategy that the producer uses is _____________. A) Price skimming B) Cost-plus pricing C) Penetration pricing D) value based pricing Multiple choice 90 / 100 90) H Company is studying a project that would have an eight-year life and would require a 300,000 investment in equipment which has no salvage value. The project would provide net income of 112,500 for the life of the project; What is the payback period for this project? A) 2 years B) 3 years C) 2.67 years D)  2.5 years Multiple choice 91 / 100 91) ______ describes the direction and volume of goods flow from producers to consumers. A) Marketing channel B) Marketing institution C) Marketing margin D) Marketing communication Multiple choice 92 / 100 92) As it relates to international trade, dumping A) is a form of price discrimination illegal under U.S. antitrust laws B) is the practice of selling goods in a foreign market at less than cost. C) constitutes a general case for permanent tariffs. D) is defined as selling more goods than allowed by an import quota Multiple choice 93 / 100 93) Suppose the project requires indigenous power equipment costing Br. 900,000 (estimated by project promoter). The power equipment produced indigenously is a tradable item whose FOB value is $100,000. The shadow price per dollar is Br. 9.5, though the official price is Br. 8.925. What is the cost of power equipment from private and economic point of view? A) None of the above B) 900,000 and 100,000 C) 900,000 and 892,500 D) 900,000 and 950,000 Multiple choice 94 / 100 94) According to Rostow’s economic stages, which of the following does not belong to the “precondition for take off”: A) Development of social overhead capital B) Growth of the durable consumer goods industry C) Political stability D) Increased agricultural productivity Multiple choice 95 / 100 95) Present values are better than the same values in the future. Thus, which method can be used to include the time dimension in a given project evaluation A) All of the above B) Accounting C) Compounding D) Discounting Multiple choice 96 / 100 96) Which of the following is correct about public goods in economic analysis project? A) Provided free by governments B) Their economic value is considered as zero C) They are exclusionary goods D)  A & B Multiple choice 97 / 100 97) _______is designed to estimate the linear relationships between variables when either left or right censoring in the dependent variable (the dependent variable is between 1 and 0). A) Tobit regression model B) Heckman two stage estimation method C) Multinomial logit model D) Logit regression model Multiple choice 98 / 100 98) _______ is the difference between the price paid by the consumer and price received by the farmer. A) Price spread B) Consumer share C) Producer price D) Producer share Multiple choice 99 / 100 99) The biological maximum of fish population is occurred at; A) Maximum death rate equal with birth rate B) Maximum death rate greater than birth rate C) None D) Maximum death rate less than birth rate Multiple choice 100 / 100 100) Development economics focuses primarily on the poorest ___________ of the world’s a. population A) one-third B) 28 percent C) two-thirds D) population Multiple choice Your score is 0%