Risk/Cost Management Final Test

location, product, time, an institutional level

4 parts of ag marketing

agribusiness

the input supply and farm markets

production

the creation of utility

utility

the process of making useful goods and services

form, place, time, and possession

what are the 4 types of utility?

input sector, farm sector, and product marketing sector

what are the 3 sectors in food industry?

mechanization

• less expensive than the labor it replaced

• farmers can up production and total profit

• work is easier and enjoyable

management style

• authoritarian (want control)

• democratic (“your idea, you decide”

• free rein

micromarketing

individual decision maker

retailers, and wholesalers

who are the merchant middlemen?

Stop Loss Order

You tell your broker “if it does this, get me out”

Back Haul

orders for truckers, they get paid both directions of travel

corner

these people control a lot because they have a lot of money

leverage

controlling a large amount of money with a small number of funds is called what?

spread

buying 1 contract month, and selling 1 contract month later on is called what?

energy, labor, packaging, freight, and advertising

80% of food money is determined by what?

parity prices

an attempt to define “fair price” for farmers is called what?

FSA - flexible spending account

The _____ set aside pre-tax money from your paycheck to pay for eligible healthcare

EPA - environmental protection agency

The _____ protect human health and the environment by creating and enforcing regulations

DNR - department of natural resources

The ____ manages and protects natural resources like water, wildlife, forests, and parks

USDA - U.S. department of agriculture

The _____ oversees farming, food safety, and rural development in the U.S.

FCC - federal communications commission

The _____ regulates radio, television, internet, and other communication services

Packers and stockyards act

this regulates meatpacking and livestock markers to ensure fair trade practices and prevent money manipulation or unfair treatments

NLRB - national labor relations board

the ______ enforce labor laws related to workers’ rights to organize and unionize

FDA - food and drug administration

the _____ regulates safety of food, medicines, medical devices, and cosmetics

OSHA - occupational safety and health administration

_____ sets and enforces workplace safety and health standards

FTC - federal trade commision

the _____ protects consumers and promote fair competition by preventing fraud, deceptive advertising, and unfair business practices

price discovery, near rail-raod terminals, transportation and shrinkage

3 parts of public central terminal markets

vertical integration

combine activities unlike those it currently performs - buying stations

horizontal integration

gain control over other firms performing similar activities

conglomeration

combine unlike kinds of economic activities into a single firm

negative, none, latent, faltering, full, irregular, overall, unwholeome, or excessive

what are the varieties of food demand?

opponent pain

what does reduce influence create?

opponent gain

what does an increase power of a weaker source create?