Agexmark Q&a 1

reserves and accumulated surplus).
Financial strength improves with increased

member finan cing of the cooperative's assets. Net worth is the pesos value received by the members in a liquidation of the co-
operative on the day of the balance sheet.
Solvency in = Members' funds (share capital + reserves + surplus) x 100 % divided
by Total liabilities (total financing)
AGRICULTURAL ECONOMICS AND MARKETING

Indebtedness
Indebtedness is the opposite of solvency and describes how much of the 1. Economics is based on two fundamental facts. These are
total capital of the cooperative consists of debt payable to creditors and banks. a. Consumers would like to maximize their satisfaction while producers would
Indebtedness can be calculated as a percentage ratio. like to maximize profit
b. Resources are scarce while human wants are unlimited
C.Family income is limited while goods and services to buy are limited
Indebtedness in % = Total liabilities less members' funds x 100 divided by Total
d. Resources are Scarce
liabilities (total financing) 2. This marketing function addresses the problem on product seasonality. The
primary aim is to help balance consumption or periods of scarcity
Value of the cooperative a. Processing
Net worth shows the cash value of the cooperative to its members. It is b. Storage
normally already calculated in the balance sheet for the day indicated in the balance C. Pooling
sheet. Net worth is equal to owners' equity = members' funds (share capital+ d. Packaging
reserves + accumulated surplus) and gives the share of member financing of the 3. It is the key link in the food systems marketing chain connecting different
production points and consuming centers
assets of the cooperative.
a. Transportation
b. Storage
Net worth in peso = Equity (members' funds) = Share capital + reserves +
C. Processing
accumulated surplus. d. Buying and selling
GreenEMPIRE PH (www.facebook.com/greenempireph) 64
4. It is the ratio between a country's export and imports C. Technology
a. Balance of trade d. Products
b. Balance of payment 10. This is the utility created when raw materials are transformed into products
C. Net export a. Place
d. None of the above b. Time
5. The objective or goal of a rational producer or firm is C. Form
a. Benefit maximization d. Possession
b. Sales maximization 11. The process of transformation of inputs into output
C. Profit maximization a. Processing
d. Cost maximization b. Manufacturing
6. The book which became the apostle of dassical economics written by Adam Smith CConsumption
a. Principles of Political Economny d. Production
b. Inquiry into the Nature and Causes of the Wealth of Nations 12. System of compulsory contributions levied by a government on persons,
C. Essay on the Principle of Population corporations, and properly, primarily as a source of revenue for government
d. General Theory of Employment, Interest and Money expenses.
7. It is a policy which defends domestic producers from foreign competition a. Conscription
a. Fiscalism b. Subsidy
b. Monetarist C. Taxation
C. Mercantilism d. Philanthropy
d. Protectionist 13. The astronomer who encountered the quantity theory of money and prices
8. The fundamental problem faced by every economy is a. John Locke
a. Finite amount of factors of production b. Copernicus
b. Scarcity C. David Hume
C. Limited supply of resources d. John Law
d. All of the above
14. Tariff barrier
9. Anything that can be offered to a market for attention, acquisition, use, or
a. Export tax
consumption to satisfy human needs and wants
b. Quota
a. Goods
C. Import tax
b. Service
d. Preferential trading 20. The economic system under which private individuals and businesses carry on
15. The agreement among countries to present common trade regulations and the production and exchange of goods and services through a network of markets.
trading front a. Mercantilism
a. Collusion b. Capitalism
b. Merging C. Socdalism
C. Uniform market d. Syndicalism
d. Common market 21. A left-alone policy with respect to the business as a natural consequence of the
16. Known as the Father of Modern Economics principle of competition which is the underlying assumption of the invisible hands.
a. John Maynard Keynes a. Cost
b. Karl Marx b. Economics
C. Adam Smith Laissez Faire
d. St. Thomas Aquinas d. Freedom
17. A system of buyers and sellers with facilities for trading with each other. 22. It is concerned with controlling or influencing economic behavior or its
a. Pure competitive market Consequences
b. Market
a. Policy economics
C. Public market
b. Normative economics
d. Supermarket
18. It consists of market participants or intermediaries who are directly responsible c.Positive economics
d. Agricultural economics
for making farmers' product available to the users at the right place, time and form
23. The inflation rate shows
a. Producer subsystem
b. How subsystem a. The average price level during a particular period of time
C. Channel subsystem b. The price level in a given year expressed in terms of a base year
d. Functional subsystem C. A measure of the change in real output from one year to the next
19. These are considered as fixed costs except d. The percentage rate per period that prices are increasing
a. Labor cost 24. The first book ever published about the study of economics
b. Depreciation a. The General Theory of Employment, interest and Money
C. Interest b. The Wealth of Nations
d. Tax C. Communist Manifesto
d. Das Kapital
25. Which of the following is most closely approximates our definitions of oligopoly? 30. While macroeconomics deals with the economy as a whole, microeconomics
a. The cigarette industry deals with the actions of individual
b. The fast food chains a. Enterprise
C. Rice farming in the region b. Firms and markets
d. Corn farming in the region C. Expenditures
26. To which of the following would the mercantilists have objected d. Employment
a. Stimulating exports 31. The CPI is designed to measure the degree to which
b. Restricting imports a. Income are distributed among the poor and rich over time
C. Free trade b. Consumer prices have risen, relative to wages
d. Accumulation of gold by their nation C. The cost of purchasing a bundle of consumer goods has changed with time
27. The process of finding the future value in some future year of a present amount d. Consumption patterns have changed with time because of prices
growing at compound interest 32. Laissez faire means
a. Discounting a. Absence of government support
b. Discount rate b. Absence of government concern in the market
C. Compound rate C. Absence of government intervention
d. Compounding d. All of the above
28. An applied science which is concerned with the identification, description and 33. The performance of all business activities involved in the flow of goods and
classification of economic problems in agriculture. services from initial agricultural production until they are in the hands of the
a. Applied economics ultimate consumers.
b. Agricultural economics a. Marketing function
C. Normative economics b. Marketing
d. Positive economics C. Exchange function
29. Who published the book "Gen eral Theory of Employment, Interest and Money" d. Marketing
a. Adam Smith 34. A tariff expressed as a fixed percentage of the value of imported product.
b. David Ricardo a. Specific tariff
b. Ad valorem tariff
C. Leon Walras
C. Nominal tariff
d. John Maynard Keynes
d. Optical tariff
35. A payment made by a borrower to lender
GreenEMPIRE PH (wwwfacebook.com/greenempireph) 67
a. Interest b. Distribution
b. Principal C. Marketing
Debt d. Production
d. Debt service 41. Study of the various agencies and business structure which perform the
36. These are considered scarce and to be paid for and are produced and needed by marketing processes
men to satisfy their wants. a. Commodity approach
a. Market goods b. Functional approach
b. Intangible goods C. Institutional approach
C. Economic goods d. Structure-conduct-performance-approach
d. Tangible goods 42. The export of a commodity at below costs or its sale abroad at a lower price
37. It is an economic system associated more with the political system of a strong than at home
one-man or junta dictatorship. a. Import quota
a. Marxist b. Free trade area
b. Feudalism C. Dumping
C. Fascism d. Economic union
d. Socalism 43. The anticipated reduction in the value of assets over time that is brought about
38. Scardty is a permanent economic phenomenon, shortage is through physical use or obsolescence
a. Temporary a. Apprediation
b. Limited b. Devaluation
C. Occasional C. Depredation
d. Short run d. Stagnation
39. People who do not have jobs as a result of suggish economic activity are
44. In economics, this word is defined as the creation of goods and services to
considered as part of
satisfy human wants
a. Structural unemployment
a. Consumption
b. The underemployed workforce
b. Marketing
c. Cyclical unemployment
C. Production
d. Frictional unemployment
d. Transporting
40. The addition of values to a product as it moves to the consumer is called
45. The theory of how government spending decisions are made and how they
a. Selling
should be made
a. Quantity Theory d. Free trade area
b. Satisfying Theory 51. A study of a proposed project to indicate whether the proposal is attractive
C. Theory of Public Choice enough to justify more derailed preparation
d. Game Theory a. Feasibility study
46. The objective of a rational consumer is to b. Market study
a. Buy as much as his income allows of the cheapest artides C. Technical study
b. Avoid purchasing the most expensive commodities d. Finandal study
C. Spread his expenditures over as many products as possible 52. In production, this is the input considered as the organizer and coordinator of
d. Secure the highest of satisfaction from his money income labor, and capital.
47. The Philips curve shows the relationship between inflation and a. Cooperative
a. The interest rate b. Corporation
b. The wage rate C. Firm
C. The budget deficit d. Management
d. Unemployment 53. The exchange of goods and services across international boundaries.
48. The utilization of products a. Regional trade
a. Consumption b. Domestic trade
b. Marketing C. Local trade
C. Selling9 d. International trade
d. Production 54. The market equilibrium point foe a commodity is determined by
49. The set of all actual and potential buyers of goods and services (products) a. The balan cing forces of demand and supply
a. Middlemen b. The market demand
b. Producers C. The market supply
C. Market d. All of the above
d. Trading center 55. Capitalism is an economic system that
50. The form of economic integration that removes all barriers on trade among a. Presence of Essential Freedoms
members but each nation retains its own tariff rates against non-members b. Absence of a central economic plan
a. Custom union C. Promotes private ownership of resources
b. Economic market d. All of the above
C. Economic union
56. Individuals or business concerns that specialize in performing the various d. None of the Above
marketing functions involve in the purchase and sold of goods as they moved from 61. Infiationary pressure may be reduced by:
producers to consumers a. Increasing money supply
a. Merchant middlemen b. Raising income taxes
b. Middlemen C. Raising9 government spending
C. Processors and manufacturers d. All of the above
d. Wholesalers 62. The problems of what to produce, how to produce, and for whom to produce
e. Assemblers-wholesalers are automatically solved by
57. Period during which a borrower need not repay principal and sometimes, interest a. The economists of the country
a. Guarantee period b. The president of the country
b. Free period C. The use of computers
C. Grace period d. The price mechanism
d. Non-payment period 63. The behavior pattern of a firm in the industry
58. The president responsible for the implementation of the Comprehensive Agrarian a. Market structure
Reform Program in the Philippines. b. Market performance
a. Joseph E. Estrada c.Market conduct
b. Corazon C. Aquino d. Pure competitive market
C. Ferdinand E. Ramos 64. Point of consumption is the point of sale.
a. First
d. Fidel V. Ramos
b. Second
59. Source of gains from trade
C. Last
a. Forex
d. Infinite
b. Resource endowment
65. A financial report that summarize the revenues and expenses of an enterprise
C. Remittance
during an accounting period
d. Foreign investors
60. Which of the following is also known as RA 7394 which protects consumerss a. Balance sheet
against hazard to health and safely, unfair sales acts and the like? b. Funds flow analysis
a. Toxic Substance and Nuclear Waste Control Act C. Financial statement
b. Retail Trade Liberalization Act d. Income statement
C. Consumers Act of the Philippines 66. The 1991 Consumer Act of the Philippines is also known as
GreenEMPIRE PH (www.fucebook.com/greenempireph) 70
a. Consumer Quality and Safety Law C. Market intelligence
b. Consumer Product Quality and Safety Law d. Market behavior
C. Product Quality and Safety Law 72. It is an arrangement whereby the manufacturer or sole distributor of a trade-
d. Product Safety and Quality Law marked product or service gives exdusive rights of local distribution to
67. The exclusive right of an inventor for the control of his invention for a period of independent retailers in return for their payment of royal ties and conformance to
some say, 20 years is called standardized operating procedures
a. Royalty a. ensing
b. Patent b. Patenting
C. Monopoly C. Guaranteeing
d. Franchise d. Franchising
68. A fee received by in dividuals for endorsing a product is called 73. The time from the beginning of project until the net value of the investment
a. Franchise production stream totals the amount of the investment of capital
b. Patent fee a. Pay-back period
C. Royalty b. Recovery period
d. Intellectual property rights fee C. Operating period
69. The real wage is equivalent to the nominal wage adjusted for d. All of the above
a. Allowances and other benefits 74. The soial science concerned with the production, distribution, consumption and
b. Inflation exchange of goods and services to satisfy human wants.
C. Income taxes a. Economics
d. Income and business taxes b. Anthropology
70. The maximum amount of food and dothing that a nation can produce using all C. Semantics
its stock resources is depicted by the nation's d. Sociology
a. Market supply curve 75. Protection against imitators or copycats is known as
b. Indifference curve a. Intellectual property rights
C. Production possibility curve b. Copyright
d. Isoquant curve C. Patent
71. Acts as the grease in the marketing machinery d. SEC registration
a. Facilitating function 76. Which of the following cannot be used as synonym for another?
b. Transportation
GreenBMPIRE PH (www.facebook.com/greenempireph) 71
a. Price system a. Corporativism
b. Free enterprise b. Privatization
C. Command economy C. Cooperativism
d. Capitalism d. Regulation
77. An economy that is producing above its production possibility curve is 82. The i s the unemployment rate that exists in normal times when there is
a. Maximizing profit neither a recession nor a boom.
b. Minimizing loss a. Cyclical unemployment
C. Maximizing satisfaction b. Natural unemployment
d. Non existent C. Frictional unemployment
78. When a firm sells its locally produced goods in a foreign country through an d. Structural unemployment
intermediary is called 83. A type of middlemen or market intermediaries that takes the title to and
a. Importing therefore own, the products they handle in the marketing process
b. Indirect exporting
a. Merchant middlemen
C. Indirect importing9 b. Retailers
d. Exporting
C.Wholesalers
79. A form of organization by a few firm in an oligopolistic industry with thee d. Middlemen
objective of regulating the output, prices, and behavior of members in the industry 84. It refers to organization that require goods and services which are used in the
a. Sales
production of product that they Ilater sell ata profit
b. Purchasing a. Reseller market
C. Cartel b. Government market
d. Profit C. Industrial market
80. In economics, the term used to describe the persistent increase in the general d. Consumer market
price level. 85. The amount of goods and services that can be bought with a given income and
a. Flux prices of commodity
b. Inflation a. Total revenue
C. Interest b. Sales
d. Coordinate c. Purchasing power
81. It is the selling of government-owned or controlled corporations and non d. Profit
performing assets to the private sector
86. Any medium of exchange that is widely accepted in payment for goods and a. Wholesaling
services and in settlement of debts. b. Selling
a. Bond C. Distribution
b. Foreign exchange d. Retailing
C. Stock exchange 92. The income that households are free to spend or save
d. Money a. Gross domestic product
87. Underground economy is conducted b. Savings
a. Within legal boundaries C. Personal disposable
b. Outside legal boundaries d. Gross national product
C. On parts of entry 93. Represents the fraction of the labor force that cannot find jobs.
d. Outside parts of entry a. Employment rate
88. The locus of points each of which represents a bundle of goods that can be b. Birth rate
purchased if the entire money is spent is called C. Unemployment rate
a. Indifferen ce curve d. Labor Force Participation Rate
b. Budget line 94. Which of the following best describe the "Production Function"?
C. Isoquant a. It indicates the best output to produce
d. Supply curve b. It relates peso inputs to peso outputs
89. An extreme high inflation is known as C. It relates physical inputs to physical outputs
a. Stagflation d. It indicates the best way to combine factors to produce any given product
b. Hyperinflation 95. A negative inflation rate or declining prices is known as
C. Super inflation a. Deflation
d. Mega inflation b. Disinflation
90. Marketing function that represents the point at which the price determination is C. Reinflation
influenced in the marketing process. d. Price shock
a. Exchange function 96. An approach used in analyzing economic situation using value judgment is called
b. Buying a. Positive economics
C. Pricn9 b. Normative economics
d. Selling9 C. Microeconomics
91. The business activity of selling goods and services to the final consumer d. Macroeconomics
97. It is a management orientation that assumes that the consumer wll normally d. Substitution principle
buy enough of the company's product unless they are approached with a 102. Scardity of capital relative to labor will induce producers to use
substantial selling and promotion effort a. More capital intensive techniques
a. Product concept b. More labor intensive techniques
b. Marketing concept C. Capital and labor in the same amount
C. Sodetal marketing concept d. All of the above tax
d. Seling concept 103. When the government controls the price of basic goods
98. It refers to the corporate concern for social welfare a. Interferes with the free market
a. Consumerism b. Motivates producers of these goods to produce more
b. Sodal respon sibility C. Discourages consumers to buy more of these goods
C. Environmentalism d. All of the above
d. Socdal issue 104. These are individuals, institutions, or organizations that facilitate the flow of
99. The measure of responsiveness of quantity demanded or supplied to changes in goods and services between the producers and its final markets
price, income or price of other related goods a. Assemblers-wholesalers
a. Price elasticity b. Processors/manufacturers
b. Elasticity C. Market intermediaries
C. Cross price d. Retailers
105. It refers to the dassification of buyers according to social lass, life style or
d. Income elasticity
personality characteristics.
100. The monetary authority in the Philippines that governs the level of money
a. Psychographic segmentation
supply through policies set by the Monetary Board.
b. Geographic segmentation
a. Business Trust Corporation
C. Demographic segmentation
b. Central Bank of the Philippines
d. Behavior segmentation
C. Philippine Trust Company
106. A constantly increasing output or income per person per year of development
d. Allied Bank of the Philippines
a. Economic profit
101. The concept, which determines the combination of inputs that will produce aa
b. Economic growth
given output at the least possible cost, refers to
C. Economics
a. Inverse price ratio
b. Isoquant d. Rural development
C. Least cost combination
107. Refers to the exchange of goods and services between one country and other b. Production era
countries. C. Sale era
a. Expo-Filipino Trade d. Marketing department era
b. Domestic Trade 113.. _cost refers to any resource used in the direct production
C. International Trade a. Opportunity
d. Barter Trade b. Explicit
108. The most important characteristics of monopolistic competition C. Implicit
a. Many sellers d. Marginal
b. Product differentiation 114. The financdal arm of the Agrarian Reform Program.
C. Existence of non-price competition a. Metrobank
d. Easy entry b. Land Bank of the Philippines
109. The labor force is C. Development Bank of the Phil.
a. The working age population d. Bank of the Phil. Islands
b. Country's population 115. The cost that a firm incurs in purchasing or hiring any factor of production is
C. Country's population less the physically handicapped referred to as
d. Sum of the employed plus unemployed a. Implicit cost
110. Which of the following is not a concern of macroeconomics? b. Explicit cost
a. Study of factors affecting changes in the price of oil C.Variablecost
b. Study of aggregate supply and demand d. Fixed cost
C. Study of unemployment 116. The building of skills of a farm's employees while they work for the firnm is
d. Study of inflation known ass
111. These are the various resources of labor, capital and management that a a. Practicum
producer or firm used in the marketing process. b. Investment in human capital
a. Inputs of marketing c. On the job training
b. Transportation cost d. Investment in human capital
C. Packaging materials e. Skills formation
d. Labor cost 117. Payments to international transactions can be carried out through the use of
112. A time when a company emphasized selling because of increased competition the following instruments except one:
a. Marketing company era a. Personal check
b. Cable or telegraphic transfers C. Robert Cruz
C. Bank drafts d. Robert Lee
d. Letter of credit 123. At a lower price, one can afford more of the good without giving up any
118. What utility is created when a carpenter constructs a piece of furniture and alternative good is true for
displays it in his store along the highway? a. Substitution effect
a. Place utility b. Income effect
b. Time utility C. Neither a nor b
C. Form utility d. All of the above
d. All of the above 124. A deflationary gap can be eliminated by
119. A type of middlemen that undertake some action of production to change or a. Deareasing investment
alter the form of a product Decreasing government spending
a. Processors and manufacturers C. Decreasing taxes
b. Jobbers d. Decreasing autonomous consumption
C. Financier-wholesaler 125. It is a trade barrier by which foreign firms "voluntarily" limit the amount of their
d. Grain millers exports to a particular country.
120. The father of economics is a. Import quota
a. Maynard Keynes
b. Tariff
b. Adam Smith
C. Voluntary Export Restriction
C. David Ricardo
d. Peter Ducker d. Non-tariff barriers
121. A good that is not purchased for the purpose of producing other goods 126. Which of the following do not belong to the group?
a. Durable good Donation
b. Final good b. Barter
C. Intermediate good C. Buying by means of money
d. Buying by means of credit
d. Non-durable
127. Activities that involve handling, movement, and physical change of the actual
122. Organized the Rochdale Society of Equitable Pioneers and which gain him the
Commodity itself
title as Father of Cooperatives
a. Physical function
a. Robert Owen
b. Processing function
b. Robert Roosevelt
C. Transportation function d. Investments
d. Storage function 133. A law that sets a fixed amount of imports. It specifies the maximum amount of
128. Variation in price which is repetitive in nature commodity that may be imported in any period.
a. Annual a. Import quota
b. Random b. Tariff
C. Cydical
C. Voluntary Export Restriction
d. Seasonal
d. Non-tariff barriers
129. It is the year from which the quantities of a basket of goods that is used for
calculating the price index 134. Using a good or service which results to satisfaction of human wants
a. Current a. Utilization
Distribution
b. Production
C. Base year Consumption
d. Utility
d. Fiscal year
135. Marketing function that involves the seeking out of the sources of supply,
130. The use by the taxpayer of illegal or fraudulent means to defeat or reduce the
assembling of products, and the activities associated with purchase
payment of tax.
a. Selling function
a. Tax exemption b. Exchange function
b. Tax evasion
CWholesaling
C. Tax avoidance d. Buying function
d. Tax transformation 136. The forces infiuencing price determination
131. Which form of monopoly regulation is most advantageous for the consumer? a. Demand and supply
a. Per-unit tax b. Demand
b. Price control C. Supply
C. Lump-sum tax d. Neither supply nor demand
d. All of the above 137. The analysis of how the individual consumer or producer responds to changes
132. Fiscal policy refers to government polides related to in economic environment is
a. Wages and prices a. Macroecon omics
b. Money supply, credit and interest rate b. Microeconomics
C. Government expenditures and taxation C. Economic Policy
d. Economic Theory b. Freedom of expression
138. Form of business organization created by operation of law with not less than 5 C. Freedom of unityy
and not more than 15 members. d. Freedom of contract
a. Cooperative 143. The price of a product is placed at P995.95. This is an example of
b. Partnership a. Price bundling
C. Sole proprietorship b. Odd-centavo pricing
d. Corporation C. Price lining
139. All productive activities are based on d. Multiple unit pricing
a. Distribution 144. It is an economic system in which all major decisions concerning the level of
b. Exchange resource use, the composition and distribution of output and the organization of
C. Consumption production are determined by the price system.
d. Marketing a. Capitalism
140. Which of the following is in Iline with a tight fiscal policy? b. Communism
a. Lower income taxes C. Socialism
b. Lower government spending d. Fascism
C. Low money supply growth 145. These are taxes imposed on goods exported from or imported into a country.
d. Limits on imports a. Energy taxes
141. The difference between all revenues or receipts of the firm and all the value of b. Value added taxes
all inputs used by the firm, whether paid or not. For those productive services for C. Incomes Taxes
which a cash payment is not made, the economist estimates th eir value using the d. Customs Duties
concept of opportunity cost 146. Disposable income is comprised of
a. Accounting profit a. Consumption + Government Expenditures
b. Gross profit b. Savings + Consumption
C. Economic profit C. Savings + Taxes

d. Consumption+ Investment
d. Net profit
147. The difference between the receipts of a firm & its expenses. The costs that are
142. When two individuals enter into an agreement and bind themselves to this
considered are those for which payment is actually made. It can be misleading
agreement, they are enjoying
because it may omit some very important costs of production
a. Freedom of fulfillment
a. Economic profit
b. Accounting profit C. All construction
C. Gross profit d. All of the above
d. Net profit 153. It refers to how much of a good or service a buyer is willing to purchase at a
148. Which statement is different from the other statements? single specified price, in a given market, at a given time, ceteris paribus.
a. Quantity Supplied
a. Production dedsions are done by central planning board
b. There is economic freedomn b. Supply
C. There is private ownership of property C. Quantity Demand
d. Goods and services are distributed through the market system d. Demand
149. The job of collecting, interpreting and disseminating information that is 154. Description of the number and nature of participants in the market
necessary to the smooth operating of the marketing process. Market association
a. Market research b. Market structure
b. Marketing intelligence function C. Competitive market
C. Demand creation d. Trading center
d. Risk-bearing function e. Market monopoly
e. Fadilitating function 155. Tupperware company uses the pricing strategy called
150. Pricing three apples at P50.00 OR 2 T-shirts for P180.00 is an example of a. Price lining
a. Multiple unit pricing Odd-centavo pricing9
b. Odd-centavo pricing C. Reference pricing
c. Price bundling d. Prestige pricing9
d. Price lining 156. They are the resource users who receive receipts or revenues as payment for
151. The tax on the net income or the entire income realized in one taxable year. the production and sales of goods and services.
a. Donors tax a. Government
b. Income tax b. Household
C. Value-added tax C. Rest of the world
d. Revenue tax d. Business Firm
152. Gross private investment indudes 157. This act shall be known as the "High Value Crops Development Act of 1995"
a. Changes in inventories a. RA 8900
b. All final purchases of machineries, equipment and tools b. RA 7900
C. RA 9700 163. An economic resource that is considered as a "free gift of nature"
d. RA 9800 a. Labor
158. A schedule which shows the various amounts household plan to consume at b. Land ability
various levels of in come is a C. Capital
a. Demand schedule
d. Entrepreneurial
b. Consumption level
164. RA 6938 is otherwise known as the
C. Savings schedule
a. Agriculture Code of the Philippines.
d. Supply schedule
159. It refers to how much of a good or service a seller is willing to offer at a single, b. Forestry Code of the Philippines.
specified price, in a given market, at a given time, ceteris paribus. C. Cooperative Code of the Philippines.
a. Supply d. Taxation Code of the Philippines.
165. Debtors and profit earners benefit from inflation. This statement is
b. Quantity Supplied
a. False
C. Quantity Demand
b. True
d. Demand C. Ambiguous
160. The surplus value is eliminated under what economic system? d. None of the above
a. Socialism 166. An attribute that signal quality which involve the physical composition of the
b. Communism product such as flavor, color and sweetness in an orange drink.
C. Capitalism a. Internal cues
d. Both a and b
b. Quality assurance
161. All activities that relate to the container or wrapper of the produdt
C. External cues
a. Augmented product
d. Standards
b. Product mix
C. Brand 167. Business cydes is inherent under
d. Packaging a. Socialism
162. The initial price of a produdct is called the b. Market system
a. Fixed price C. Command economy
b. List price d. Barter economY
C. Total price
d. Marginal price
168. Appraisal of how much the economic resources of the industry's market C. Cost push inflation
behavior form the best possible contribution it can make to achieve relevant socio- d. None of the above
economic goals. 173. An attribute that signal quality which are product-related but not part of the
a. Market performance physical product itself such as brand name, price, warranty, product form, and
b. Market conduct level of advertising.
C. Fadlitative organization a. Internal cues
d. Marketing system b. Quality assurance
169. The price of the camera is P1,000 while a roll of 36 shots film is P105. This is a C. External cues
form of
d. Standards
a. Price lining
174. Monopolistic competition might also be referred to as:
b. Skimming price
a. Pure competition
C. Captive pricing
b. Perfect competition
d. F.O.B origin pricing
C. Market competition
170. It describes how the capitalistic economy works given the interaction between
d. Imperfect competition
the households, who are the owners of resources and the firms, who are the users
175. The cost incurred in selling the products
of resources.
a. Marketing cost
a. Transformation curve b. Advertising cost
b. Production Possibility Frontier C. Distribution/tran sportation cost
C. Cirular flow model d. Packaging cost
d. None of the above 176. The price of the product with different sizes is: Small P3.50, Medium =P4.00
and Large = P4.50. This is form of
171. A Latin phrase which means in Economics "all other things held constant"
a. Ager cultura a. Captive pricing
b. Ceteris paribus b. Price lining
C. Laissez faire C. Skimming pricee
d. None of the above d. F.O.B origin pricing
172. Inflation brought about by considerable market power is referred to as 177. Movements along a given demand curve are caused by changes in
a. Demand pull inflation a. Income
b. Structural inflation b. Price
C. Related goods 183. Before, a compact disc was valued at P200 now it is P100. This is an example
d. Taste and preferences of
178. Also known as the law of diminishing marginal productivity a. Price lining
a. Law of Diminishing Utility b. Captive pricing
b. Law of Diminishing Returns C. F.O.B origin pricing
C. Law of Diminishing Supply d. Skimming price
d. Law of Diminishing Demand 184. It formalizes the relationship between price and quantity consumers are willing
179. Because of scarcity, a choice must be made which in turn involves to buy at those prices
a. Trade off a. Law of supply
b. Exchange b. Demand
C. Decisions Supply
d. Priorities d. Law of demand
180. Pricing a less desirable product with a more desirable product.
185. A collective term referring to the use of taxation and government spending to
a. Extinction pricing
influence the level of income
b. Tie-in pricing a. Monetary policy
C. Pre-emptive pricing b. Trade policy
d. Competitive Pricing
CFiscalpolicy
181. Monopsony is a term used in economics to describe a situation in which the d. Credit policy
following con dition applies 186. Consumer behavior can be understood if the following are considered except
a. One buyer a. Producer's preferences
b. Many seller b. Budget constraints
C. Few seller C. Consumer s preferen ces
d. One seller d. Consumer's choices
182. The difference of marketing revenue and marketing cost 187. Type of pricing usually used by wholesalers. A pricing agreement is negotiated
a. Marketing margins with the buyer.
b. Total sales a. Extinction pricing
C. Product cost b. Penetration pricing
d. Selling cost C. Pre-emptive pricing
d. Formula Pricing a. Tax exemption
188. Which of the following issues is a normative economics? b. Tax avoidance
a. The ben efits from an increase in government spending on education c. Tax anmnesty
b. The size of the increase in sales of recyclable materials if the government d. Tax evasion
puts up collection 193. The theory of consumer sovereignty says that in a free market economy will
C. The increase in a firm's profit from its introduction of a better mosquito determine which goods and services to produce
killer a. Consumer
d. All of the above b. Producer
189. Subdividing markets into distinct subsets of costumers/buyers, where any C. Buyer
subset may conceivably be selected as a target market d. Seller
a. Market segmentation 194. Pricing a produdt on the basis of their variable costs in order to force firms in
b. Geographic segmentation weak financial positions to discontinue their production.
C. Demographic segmentation a. Extinction pricing
d. Psychological segmentation b. Penetration pricing
190. A pencil case packed for sale with a scissor, ball pen, pencil, eraser, and foot
C. Pre-emptive pricing
ruler valued at just P50.00. The pricing strategy applied is
d. Formula Pricing
a. Captive pricing
b. Skimming price 195. The wild mushrooms that your father brought home for your consumption is
C. Package pricing considered:
d. Price lining a. A free good since he did not buy themn
191. It is an economic system characterized by the public ownership of propertyy b. An economic good because the mushroom has an opportunity cost
resources and collective determination of economic decisions through central C. An economic good because it is not abundant in nature
economic planning. d. Both b and c are true
196. A type of middlemen who buy, take title to and resell the products they handle
a. Sodalism
b. Communism a. Wholesaler
b. Retailer
C. Fascism
C. Merchant middlemen
d. Capitalism
d. Financier-wholesaler
192. A grant of immunity to particular persons or corporations from a tax which they 197. The fastest-growing advertising medium is
are obliged to pay.
a. Television a. An increase in the price of the good
b. Direct mail b. An increase in the income of the consumers
C. Magazine C. A decrease in the income of consumers
d. Radio d. A decrease in the price of the good
198. It is said to exist when the prevailing price of commodity is above the 203. The sequence of firms and individuals comprise of all the intermediates involved
equilibrium price. in the products/goods and the title to them from the producer to the ultimate
a. Shortage consumer
b. Consumer surplus a. Merchant middlemen
C. Producer surplus b. Professors and manufacturers
d. Surplus C. Marketing channel
199. The extra product or output added for every one extra unit of the factor added, d. Faclitative organizations
while other factors are held constant. 204. Sales promotion is conducted mainly by producers and
a. Average product a. Wholesalers
b. Total Product b. Distributors
C. Constant product C. Retailers
d. Marginal Product d. Advertising agencies
200. The best way to avoid buying on installment is by 205. A marketing service that the influences the buyers and/or consumers to buy.
a. Withholding consumption The objective is to inform consumers what is available for purchase, especially if
b. Borrowing the product is new in the market
C. Credit buying a. Market intelligence
d. Savings b. Branching
201. Setting the price of a product so low that the market is unattractive to C. Advertising
competitors. d. Market research
a. Extindtion pricingg 206. Refers to the know-hows and the physical means of transforming resources into
b. Penetration pricing want satisfying form.
C. Pre-emptive pricing a. Depreciation
d. Formula Pricing b. Techniques of production
202. A downward movement along a given demand curve is a result of: C. Production
d. Resources d. Pull premium
207. Capital is usually acumulated frozen 212. If the price of good X is negatively related with the demand for Good Y, then,
a. Savings a. Goods X and Y are independent
b. Interest b. Goods X and Y are complements
C. Profit C. Goods X and Y are substitutes
d. Rent d. None of the above
208. Which of the following is not one of the five ways of which prices for farm 213. The difference between total revenue and total costs
products are "discovered" a. Profit
a. Individual negotiations b. Breakeven price
b. Organized markets
CMarginalrevenue
C. Retailing d Variable cost
d. Collective bargaining 214. It is the process by which buyers and sellers arrive at a specific price for a
209. In drawing a farmer's supply curve for cabbage, the following factors are kept given lot of produce in a given Iocation.
constant except for: a. Price determination
a. Technology b. Price discovery
b. Price of cabbage C. Price exploration
C. The supplies of inputs d. Marketing
d. Environment factors
215. A decrease in demand with supply constant will lead to:
210. It is to test and dedide the dasses of products and labeling them as to quality
a. A decrease in both price of the product and the equilibrium quantity
a. Sortinng
b. An inrease in the price of the product and a decrease in the equilibrium
b. Standardization
C. Grading
quantity
C. A decrease in the price of the product and an increase in equilibrium
d. Processing
quantity
211. The sales promotion technique most likely to hold customers over a period of
d. A equilibrium in both price of the product and the equilibrium quantity
time would be
216. Means buying a quantity of a product and breaking or dividing the bulk items
a. Trading stamps
into amounts desired by customers
b. Coupons
a. Grading
C. Bonus packs b. Standardization
GreenEMPIRE PH (www facebook.com/greenempireph) 85
C. Sorting 222. A government-established price floor will result in excess supply if:
d. Processing a. The quantity demanded is greater than the quantity supplied
217. The primary goal of promotion is to b. The floor price is above the equilibrium price
a. Inform C. The floor price is below the equilibrium price
b. Remind d. The floor price is equal to the equilibrium price
C. Persuade 223. It is a method of pricing the product by adding certain percentage to the cost in
d. Create awareness producing the product
218. A vertical supply curve can be associated with a. Cost-oriented pricing
a. Long run supply curve b. Target pricing
b. Short run supply curve C. Price elasticity
C. Perfectly elastic supply d. Mark-up pricing
d. Perfectly inelastic supply 224. Which form of monopoly regulation is most advantageous for the consumer?
a. Price control
219. Point where profit is zero.
b. Specific tax
a. MC is constant
b. Break even C. Lump sum tax
C. MR>MC d. All of the above are equally advantages
d. MR=P
225. Cost of the self-owned, self-employed resources used by a firm in the
220. The amount of goods and services that your wages can buy is called production process
a. Implicit cost
a. Real wage
b. Free wage b. Cash cost
C. Money wage C. Explicit cost
d. SalarY d. Fixed cost
221. Refers to the process by which the broad forces of supply and demand 226. The most common cause of depreciation of land value is
establish a general market dearing or equilibrium price. a. Depletion of fertility
a. Price determination b. Erosion
b. Price discovery C. Acid rain
d. Pollution
C. Price exploration
227. A market for commodities which are difficult to standardize. It is most widely
d. Marketing
used where actual inspection of the product is desirable to determine its quality.
a. Black market d. Movie
b. Auction market 232. It refers to the unintended effect (beneficial or harmful) of production or
C. Supermarket consumption on other individuals not involved in production or consumption.
d. Shopping malls a. Pollution
228. Which is not true at market equilibrium? b. Externality

Side effedts
a. Surplus equals sh ortage
d. Sodal cost
b. Quantity demanded is equal to quantity supplied
233. It refers to the share of the land used in the production of goods and services
C. The price that con sumers are willing to pay is equal to the price that sellers
are willing to acceptt
a. Interest
d. All of the above b. Profit
229. Costplus pricing, where the costs of producing product or completing a project Dividend
d. Wage
are totaled and a profit amount or percentage is added on. It describes the pricing
234. A type of trading which specify the minimum grade or particular grades of a
of job or products that are non-routine and difficult to value or cost in advance.
commodity which must be delivered in fulfillment of the contract at some future
a. Mark-up pricing
b. Target pricing or rate of return pricing date
C. Production cost a. "Spot" or cash market
d. Cost-oriented pricing b. Future contracts
230. A form of communication management that seeks to influence the image of an C. Reservations
organization and its product and service d. Product sampling
a. Advertisement 235. Demand for the product is elastic. To increase total revenue, the seller should
b. Personal selling a. Increase the price of the product
C. Sales promotion b. Not change the price of the product
d. Pubiic relation C. Decrease the price of the product
231. Which of the following industries most dosely approximates the perfectly d. Increase quantity supplied
competitive model 236. Price is determined by adding a desired rate of return on investment to total
a. Oil costs
b. Rice farming a. Target pricing or rate of return pricing
C. Postal service b. Return on investment (ROI)
GreenEMPIRE PH (www facebook.com/greenempireph) 81

C. Mark-up pricing 242. Which of the following would be true if demand for the good is perfectly
d. Cost oriented pricing inelastic?
237. This is unpaid media exposure about a firm or its product and service a. A decrease in price will increase total revenue because consumers will
a. Public relation double the quantity they will buy
b. Publicity b. An increase in price will increase total revenue because consumers will not
C. Sale promotion react to the change in price
d. Advertisement C. An increase in price will not change the total revenue because consumers
238. Pollution is an example of will not react to the change in price
a. Economies of scale d. All of the above
243. The tool of public relation used to announce important scientific breakthrough
b. Pecuniary externality
or to explain the details of corporate expansion
C. Negative externality
a. Press releases
d. Positive externality
b. Sponsored events
239. In long-run equilibrium, the pure monopolist can make pure profits because of
a. Advertising C. Company newsletter
d. Interviews & press conferences
b. High selling prices
244. The price that is equal to a firm's average variable costs, wherein the firm will
c. Blocked entry
no longer produce any output
d. Low produ ction costs
240. It is defined as the price paid for personal service in production a. Shut down price
b. Break-even price
a. Wage
b. Interest C. Marginal price
C. Profit d. Market price
d. Dividend 245. A basic cause of inflation is excessive
241. A type of trading which involves trading in actual commodities, normally on the a. Supply
basis of samples. b. Demand
a. "Spot" or cash market C. Consumption
b. Future contracts d. None of the above
246. A simple bargaining between individual buyers and sellers for each transaction.
C. Meet-up
a. Individual negotiation
d. Product sampling

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reserves and accumulated surplus).

Financial strength improves with increased

by Total liabilities (total financing)

AGRICULTURAL ECONOMICS AND MARKETING

C. Economic profit C. Savings + Taxes

b. All final purchases of machineries, equipment and tools b. RA 7900

b. Structural inflation b. Price

228. Which is not true at market equilibrium? b. Externality

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