Answer TRUE or FALSE a) Output per person employed; output per hour worked; output per hectare are examples of total factor productivity measures. b) If a farm's technical efficiency estimate is 0.55, this means farm output can be increased by 55% without using additional farm inputs. c) Mwango grows strawberries. He observes that doubling land under strawberries, labour and other inputs doubles output. This means that production of strawberries is characterized by increasing returns to scale.
Answer TRUE or FALSE a) Output per person employed; output per hour worked; output per hectare are examples of total factor productivity measures. b) If a farm's technical efficiency estimate is 0.55, this means farm output can be increased by 55% without using additional farm inputs. c) Mwango grows strawberries. He observes that doubling land under strawberries, labour and other inputs doubles output. This means that production of strawberries is characterized by increasing returns to scale.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Question 1
Answer TRUE or FALSE
a) Output per person employed; output per hour worked; output per hectare are examples of
total factor productivity measures.
b) If a farm's technical efficiency estimate is 0.55, this means farm output can be increased by
55% without using additional farm inputs.
c) Mwango grows strawberries. He observes that doubling land under strawberries, labour and
other inputs doubles output. This means that production of strawberries is characterized by
increasing returns to scale.
d) When government support prices exceed levels at which supply and demand are in
equilibrium, surpluses of the price-supported agricultural commodities occur
e) A farmer decides to diversify farm production by growing avocado fruit and keeping dairy
cattle as a mechanism to deal with price and income variability. For this to be effective the
two farm activities must have prices and outputs that move opposite to each other.
f) If landowners possess monopsony power in agricultural labour markets, due to unequal
distribution of landownership, a defective land tenure system, and privileged access to the capital
market, the result will be lower wages and less employment than would otherwise be the case.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F190a3969-a111-4028-b6a6-6dd42dee99bd%2F6d7093b7-71a4-40aa-9d6f-adce88a57cb8%2Fdgo7vt3_processed.png&w=3840&q=75)
Transcribed Image Text:Question 1
Answer TRUE or FALSE
a) Output per person employed; output per hour worked; output per hectare are examples of
total factor productivity measures.
b) If a farm's technical efficiency estimate is 0.55, this means farm output can be increased by
55% without using additional farm inputs.
c) Mwango grows strawberries. He observes that doubling land under strawberries, labour and
other inputs doubles output. This means that production of strawberries is characterized by
increasing returns to scale.
d) When government support prices exceed levels at which supply and demand are in
equilibrium, surpluses of the price-supported agricultural commodities occur
e) A farmer decides to diversify farm production by growing avocado fruit and keeping dairy
cattle as a mechanism to deal with price and income variability. For this to be effective the
two farm activities must have prices and outputs that move opposite to each other.
f) If landowners possess monopsony power in agricultural labour markets, due to unequal
distribution of landownership, a defective land tenure system, and privileged access to the capital
market, the result will be lower wages and less employment than would otherwise be the case.
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