b. Commodity exchanges d.

Licenses
C. Barter 252. It is the quantitative expression of the power a product has to attract other
d. Auction house products in exchange.
247. Which of the following is the same for all points on an indifferen ce curve? a. Price
a. The prices faced by the consumer b. Utility
b. The level of satisfaction obtained from consumption C. Opportunity cost
C. The con sumers income d. Value
d. All of the above 253. When the price of a commodity changes, the resulting income effect
248. It is an oral presentation in a conversation with one or more prospective a. Always supports the law of demand
purchase/buyers for the purpose of making sales b. Always supports the law of demand only for inferior goods
a. Advertising CAlways supports the law of demand only for normal goods
b. Sales promotion d. Supports the law of demand for normal and inferior goods but not for
C. Publicity Giffen goods
d. Personal selling 254. Means of identifiable effort on the part of the seller to persuade buyers to
249. The sales promotion can be effective if the buyer is price accept the seller's information and store it in retrieval form. Or it is the company's
a. Unaffected attempt to stimulate sales by directing persuasive communication to the buyers.
b. Insensitive a, Personal selling
C. Sensitive b. Advertising
d. Unconscious C. Publicity
250. If the firm stops operating, the loss is equal to d. All of the above
a. Marginal cost 255. The free samples of shampoo or soap are examples of
b. Opportunity cost a. Coupons
C. Total variable cost b. Premiums
d. Total fixed cost C. Sampling
251. The main source of government revenues are d. Rebate
a. Taxes 256. Which is a characteristic of an oligopolistic industry?
b. Fees a. Market situation with only one seller
C. Fines b. Market situation with only a few competing sellers

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 C. Market situation with one buyer b. Coupons
d. Open market C. Sampling
257. A term created to described a situation of simultaneous economic stagnation, d. Premiums
high unemployment and inflation is 262. Non-price competition often takes the form of
a. Deflation a. Produdt differentiation
b. Inflation b. Collusion
C. Stagnation C. Homogenous products
d. Depression d. Price wars
258. A legally imposed price above the equilibrium price 263. Among the effedts and widespread unemployment is
a. Price control a. Supply effect
b. Support Price Income effect
C. Price ceiling C. Substitution effect
d. Subsidy d. None of the above
259. If the income elasticity of the good is negative, we may conclude that 264. A legally set price below the equilibrium price
a. The good is a normal good a. Price control
b. The demand curve for this good must be downward sloping b. Price floor
c. The good is an inferior good CPriceceiling
d. The good is a substitute good d. Subsidy
260. Non-personal stimulation of demand for a product, service, or business unit byy 265. The main difference between the long run and the short run is that:
panting, commercially significant news about it in published medium or obtaining a. In the long run all input are fixed while in the short run all inputs are
favorable presentation of it in radio, television, or stage that is not paid for by the variable
sponsor b. In the long run some inputs are fixed while in the short run one or two
a. Publicity inputs are fixed
b. Advertising C. All inputs in the long run are fixed while in the short run one or more
C. Promotion variable
d. Selling d. All inputs in the long run are variable while in the short run one or more
261. This is a price reduction mechanism designed to induce immediate purchase inputs are fixed
a. Rebate

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266. It is marketing activities, other personal selling, advertising, publicity to 271. It is the set of significant institutions, individuals and flows that connect the
stimulate consumer purchasing and dealer effectiveness such displays, shows, and organization or individuals to its markets.
exhibition, demonstrations and various non-recurrent selling efforts not in the a. Marketing facilities
ordinary routine. b. Marketing system
a. Sales promotion C. Middlemen
b. Consumer promotion d. Producers
C. Sales-force promotion 272. Economic is a . Science
d. Trade promotion a. Social
267. Giving a gift certificate or travel abroad to your retailer is an example of b. Biological
a. Contest C. Physical
b. Trade shows d. All of the above
C. Incentives 273. A formal organization of firms in an oligopolistic industry where decisions
d. Allowance regarding output, price, sales are made.
268. A tax imposed upon the monopolist regardless of the output level a. Cooperative
a. Ad valorem tax b. Cartel
b. Profit tax cCorporation
C. Lump sum tax d. Partnership
d. Specific tax 274. Which of the following is not a source of aggregate demand?
269. Changes in real wages are calculated by comparing changes in money wages a. Exports less imports
with changes is the b. Government expenditures
a. Rate of profits work C. Savings
b. Effort of work d. Consumption expenditures
C. Cost of living 275. It is a function performed on a product that alters its form, time, place or
d. Tax rate possession characteristics. It involved costs and add value to the product (value
270. The marginal product of a variable input is the: added) and somebody has to pay for it.
a. Change in total output divided by the change in total variable input a. Services
b. Added output produced by an added unit of variable input b. Production
C. Output per unit of variable input C. Marketing
d. Total output divided by total variable input
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 d. Utility b. Dividends
276. With labor as the variable input, when marginal product of labor is zero. C. Investment income
a. Total product is minimum d. Personal taxes
b. Total product is maximum 281. It involves contracting with sellers of inputs, maintaining an adequate supply
C. Total product is increasing for production and scheduling deliveries to the local plant.
d. Total produ ct is decreasing a. Inventory
277. A management orientation that holds that the key task of the organization or b. Procurement
producers is to determine the needs, wants, and values of a target market and to C. Marketing
adapt the organization to deliver the desired satisfaction more effectively and d. Product delivery
efficiently than its competitors. 282. It refers to the relationship between the maximum amount of output that can
a. Marketing management be produced and the amount of input required to make that output
b. Marketing concept
a. Total physical product
C. Product concept
b. Marginal product
d. Sodietal marketing concept
C. Production function
278. Economic principles can be presented in
d. Input productivity
a. Graphs 283. A management orientation aimed at generating customers' satisfaction and long
b. Mathematical equ ation
run consumer ad public welfare as the key to satisfying organizational goals and
C. Tabular form
responsibilities
d. All of the above a. Product concept
279. The banner program for agricultural development. It is a transitional blueprint b. Marketing concept
for putting AFMA to work. C. Societal marketing concept
a. Emergency Employment Program d. Marketing management
b. Comprehensive Agrarian Reform Program 284. The essential characteristics of capitalism are
C. Urban Development Housing Program a. Profit motive
d. Ginintuang Masaganang Ani Program b. Economic freedom
280. An important difference between personal income and personal disposable C. No private property
income consists of d. A & B
a. Personal wages 285. The using up of commodities to satisfy human wants

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 Consumption a. Competitive goods
b. Distribution b. Market goods
c. Rationing C.Consumptiongoods
d. Production d. Productive goods
286. The phase of the cyde wherein output and employment expand to full 291. Reserve held by the bank over the legal reserve is called
employment is a. Required reserve
a. Recovery b. Excess reserve
b. Peak C. Interest rate
C. Recession d. Neither a nor b
d. Trough 292. The opposite of solvency and describes how much of the total capital of the
287. The word market comes from the Latin word which means cooperative consists of debt payable to creditors and banks.
merchandise or trade or a place where business is conduted. a. Indebtedness
a. Marcatus b. Loans
b. Marcitus C. Assets
c. Marces d. Net worth
d. Marca 293. Stage II of the production function always begin where the
288. The cost incurred by firm that varies with output produced a. Average product is zero
a. Implicit cost b. Average product starts to dedine
b. Explicit cost C. Total product starts to dedline
C. Opportunity cost d. Marginal product starts to be negative
d. Variable cost 294. This is a pricing strategy to gain more customers while maintaining/holding the
289. An organization/association who aids the various middlemen in performing their present ones (e.g. Odd-centavo pricing, even centavo pricing, price of PO.99 etc.)
tasks, but do not directly participate in the marketing processes a. Psychological pricing
a. Market associations b. Unit pricing
b. Broker C. Price lining
C. Fadlitative organizations d. Special pricing
d. Agent middlemen 295. Utilization of goods and services for the satisfaction of wants and needs
290. Goods that are produced to satisfy consumption needs directly a. Production

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 b. Distribution d. Public auction
C. Utilization 301. Which item does not belong to the group?
d. Consumption a. Descriptive economics
296. Goods which do not satisfy consumption needs directiy but are used to meet b. Production economics
the requirements of other industries. C. Policy economics
a. Productive goods d. Economic theory
b. Competitive goods 302. The law which states that buyers are likely to buy more goods and services as
price decreases and buy less goods and services as prices rises.
C.Consumption goods
d. Market goods a. Law of supply
297. Money balances held to meet unforeseen contingencies is referred to as b. Law of diminishing returns
a. Speculative demand for money C.Law of demand
b. Transaction demand for money d. Law of increasing cost
C. Real demand for money 303. Nominal money supply is
d. Precautionary demand for money a. Flow of receipts per unit of time
298. Refers to both unsold products and unprocessed raw materials or other inputs b. The peso value of the nation's money supply
a. Inventory C.Checking accounts at commercial banks
b. Stocks d. Peso value of the money supply over the price level
304. It is essentially a set of guidelines for the group enterprise
C. Inputs
a. Business plan
d. None of the above
b. Vision
299. When AC is at a minimum
C. Mission
a. TVC is maximum
b. AVC = MC
d. Rules and regulations
C. MC AC 305. When MP is maximum
d. AFC is minimum a. TP starts to increase at a decreasing rate
300. It is also termed as the arena for exchange between the buyer and the seller b. It is the point of inflexion of the TP curve
a. Assembly centers C. AP is increasing and less than MP
b. Stock exchangee d. All of the above
C. Market

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306. Organizations that deals with business enterprise, which is owned, patronized a. Increasing cost
and managed by members, is called b. Constant cost
a. Corporation C. Decreasing cost
b. Sole proprietorship d. Minimum cost
C. Cooperative 312. The simplest forms of business organization is
d. General partnership a. Corporation
307. Which is not a variable input? b. Cooperative
a. Level of fertilizer C. General partnership
b. Number of laborers d. Sole proprietorship
C. Interest 313. It shows the physical relationship between the level of inputs and the resulting
d. Bags of animal feeds output of goods and services
308. A market condition which causes price to increase decreasing, decreasing the Production possibility
amount that each consumer is willing to buy. b. Production function
a. Demand C. Indifference curve
b. Surpluss d. Demand curve
C. Shortage 314. The demand for "necessities" tend to be
d. Market equilibrium a. Elastic
309. Phase in the business cycle when economic prosperity is experienced is the b. Perfectly elastic
a. Recession C. Inelastic
b. Peak d. Unitary elastic
C. Trough 315. Commodities that have been processed but require further processing before
d. Recovery phase they are made available to the final consumer are called
310. The introduction of new products or activities to the cooperative. a. Crude materials
a. Product development b. Finished goods
b. Diversification C. Durable goods
C. Product sampling d. Intermediate goods
316. A method of cost covering with a fixed percentage of the sale's price deducted
d. Intensification
from the total sales proceeds.
311. The term economies of scale is most closely related to:
a. Kick-back
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 b. Tax d. None of the above
C. Commission 322. A union of two or more organizations which creates a new association and
d. Share terminates the original organizations involved.
317. Total product divided by total cost is: a. Merger

a. Average product b. Subsidiary

b. Marginal cost C. Consolidation
C. Average cost d. Bankruptcy
d. None of the above 323. The cost incurred by a firm in buying inputs is called:
318. The process of organizing resources to put an enterprise into existence, to run a. Implicit cost
and manage it on a long term Explicit cost
a. Entrepreneurship
b. Business planning
CVariable cost
d. Opportunity cost
C. Farm management 324. A firm based in one country but carries on production research or sales in other
d. Enterprise management countries is referred to as
319. Which item does not belong to the group a. International company
a. Pure profit b. National company
b. Rent Multi-national company
C. Wage d. Local company
d. Interest 325. This is a cost of production
320. Meeting the needs of present generations without compromising the ability of a. Normal profit
future generations to meet their own needs. b. Pure profit
a. Sustainable development C. Economic profit
b. Economic growth d. Maximum profit
C. Economic freedom 326. Enterprise that utilizes a high ratio of labor or capital relative to a particular
d. Economic development land resource
321. Keynes' fundamental law states that a. Extensive
a. The change in consumption is greater than the change in income b. Subsistent
b. The change in income is greater than the change in consumption C. Intensive
C. People stop consuming when they become affluent
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 d. Sustainable b. False
327. Which of the following statements is incorrect? C. Neither true nor false
a. A household's average holding of money for transactions in unrelated to its d. May be true and may be false
pattern of expenditure 332. The economic principle that seek or helps to explain specialization of production
b. A household's average holding on money for transactions increases as the or specialization of doing a particular activity.
level of disposable income inaease's a. Principle of Diminishing Marginal Utility
C. A household's average holding of money for transactions increases as the b. Principle of Comparative Advantage
number of days in a pay period increases
C. Principle of Diminishing Returns
d. None of the above
d. Principle of Increasing Cost
328. The absorption of one assodiation by another with only the acquiring
333. Disposable income can either be spent on which two items?
cooperative retaining its corporate identity.
a. Consumption and savings
a. Merger
b. Savings and investment
b. Subsidiary C. Consumption and investments
C. Consolidation d. None of the above
d. Bankruptcy 334. A measure of the ability to repay long-term debt. One measure is the ratio net
329. In the short run period all cost are worth divided by total assets.
a. Changing as output varies a. Viability
b. Variable b. Liquidity
C. Fixed C. Durability
d. None of the above
d. Solvency
330. Industries that are concerned with manufacturing of industrial services engaged
335. Which of the following cost dedines as output inareases
in production with total assets of more than 5M but not exceeding 51 and an
a. Average variable cost
employment size of 5-99 workers is a
b. Average total cost
a. Barangay-based microenterprise
C. Average fixed cost
b. Large scale in dustry
d. Total fixed cost
C. Small-scale industry
336. A frequently used provisions of labor contracts that grants wage increases
d. Medium-scale industry
based on changes in the consumer price is
331. Maximum profit is the same as maximum total output. This statement is
a. Amelioration fund
a. True
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 b. Cost of living allowance (COLA) d. RA 6436
C. 13h month pay 342. One rule in the production of product particularly in the short run period, if total
d. Cash gifts revenue is greater than variable cost, the business must
337. Profit is when the marginal revenue is equal to marginal cost. a. Shutdown
a. Positive b. Operate
b. Maximum C. Indifferent
C. Minimum d. A & b
d. Zero 343. A development strategy which is designed to promote domestic industry to
338. The principal determinant of supply elasticity is replace imports.
a. Time a. Outward-looking development
b. Demand b. Inward-looking development
C. Price C. Balanced development
d. Supply
d. "Basicneeds" Strategy
339. The ability to repay short-term debt (current liabilities). One measure is the
344. A cooperative's proceeds, usually called net savings, are returned to members
Current ratio.
in proportion to their use of the cooperative-that is, according to the amount they
a. Viability
bought or sold to the cooperative.
b. Liquidity
a. Patronage refund
C. Durability
b. Shares
d. Solvency C. Dividend
340. Which of the following criteria is used in dassifying markets based on structure?
d. Stocks
a. Types of sellers or buyers
345. Homogenous product means that:
b. Location of market
a. The product of one seller is a perfect complement for another seller's
C. Homogeneity of products
product
d. Taste and preferen ces of consumers
b. The product of one seller is a perfect substitute for another seller's product
341. The law which promotes high value crops, is
C. The product of each seller is different
a. RA3438
d. The product of each seller is unique
b. RA 7900
346. A measure of determining which resource a country to use abundantly in order
C. RA 6455
to be competitive in the export market is
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 Record Company of America a. Loss minimization
b. Rice and Corn Administration b. Shut down condition
C. Revealed Comparative Advantage C. Profit maximization
d. Resonance Competitive Advantage d. None of the above
347. In the long-run period of production process, all costs are 352. The main recipients of redistributed lands by virtue of CARP are
a. Fixed a. Agricultural Resource Committee
b. Constant b. Association of Reformed Communities
C. Variable C. Agricultural Rehabilitation Centers
d. None of the above d. Agrarian Reform Communities
348. A development strategy which is designed to promote industry to replace 353. A price index of 125% means that the current price is higher than the
price in the base year.
imports.
a. Inward-Hooking development 125%
b. 100%6
b. Balanced development
C. 25%
C. Outward-looking development
d. 1.25%
d. "Basic needs" Strategy
349. Macroeconomics maybe divided into four sectors except 354. Which among the following is NOT a source of monopoly power?
a. GNP sector a. Ownership of a patent
b. Public sector b. Control over supply of raw material
C. Money sector C. Free entry to the industry
d. Unemployment and inflation sector d. Product being produced has no dose substitute
350. An association of local cooperatives in which the local associations elect a board 355. Spedalization and division of labor will likely to result in:
of directors to govern the central association, with the locals retaining their a. Diseconomies of scale
autonomous character. b. Economies of scale
a. Credit union C. Law of diminishing marginal returns
b. Corporation d. Any of the above
356. Which of the following will be determined in the product market?
C. Cartel
a. The price of a new pair of leather shoes
d. Federation
b. Manager's salary
351. Any price lower ATC but higher than AVC is C. The price of equipment used In a manufacturing firm
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 d. The price of a 30 hectare farmland a. Bureau of Freshwater and Aquaculture Resources
357. The interest rate that Central Bank charges to commercial banks is called b. Bureau of Freshwater and Agricultural Resources
a. Reserve requirement C. Bureau of Fisheries and Aquatic Resources
b. Market interest rate d. All of the above
C. Flat money 362. Which item does not belong to the group?
d. Rediscount rate a. Adjusted GNP

358. It refers to any activity that uses resources today allowing for greater b. Nominal GNP
C. GNP at current price
production in the future, and hence greater consumption
d. Unadjusted GNP
a. Inventory
363. The strawberries of Benguet can be bought in the supermarkets of Manila.
b. Savin9
C. Investment What utility was created in this situation?
d. Deposit a. Form utility
359. A cooperative's proceeds, usually called net savings, are returned to members b. Time utility
in proportion to their use of the cooperative-that is, according to the amount they c. Possession utility
d. Place utility
bought or sold to the cooperative.
364. This marketing function involves the establishment and maintenance of uniform
a. Patronage refund
measurement. This function also simplifies buying and selling, since it makes
b. Shares
possible the sale by sample and description.
C. Dividend
a. Financing function
d. Stocks b. Risk- bearing
360. Using marginal approach the firm will maximize profit or minimize losses by C. Market intelligence function
produdng at the point where: d. Standardization function
a. Total revenue = total cost 365. Interest, the payment for the use of capital is commonly expressed
b. Marginal cost = marginal product a. In absolute amount
C. Marginal revenue = marginal cost b. As a combination of percentage and absolute amount
d. Marginal cost = marginal utility C. In percent
e. Marginal revenue = price of the output d. None of the above
361. The agency which is mainly responsible to promote the welfare of fishery sector
is

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366. An association of local cooperatives in which the local associations elect a board C. Storage
of directors to govern the central association, with the locals retaining their d. Packaging
autonomous character 371. A minimum wage rate higher than the market wage rate results in
a. Credit union a. Labor
b. Corporation b. An equilibrium in the labor market
C. Labor surplus
C. Cartel
d. None of the above
d. Federation
372. The ownership interest of a company's members or stockholders as
367. Marginal revenue = Average product = Price of output is true for:
distinguished from that of bond holders or lenders; total assets less total liabilities
a. Monopolistic competition a. Dividend
b. Imperfect competition
b. Equity
C. Oligopoly
C. Share
d. Perfect competition
368. The program which is only focused to redistribute lands to eligible farmers is d. Interest
known as 373. A situation in which the absolute value of the price elasticity coefficient is less
a. Comprehensive Reform Program than one
b. Land Reform Program a. Elastic demand
C. Cooperative Development Administration b. Inelastic demand
d. Cooperative and Development Agency C. Kinked demand curve
369. Which item does not belong to the group? d. Perfectly elastic demand
a. Real GNP 374. The main subject of GATT-WTO organization is the reduction of
b. GNP at constant price a. Levies
C. Adjusted GNP b. Tariffs

d. Unadjusted GNP C. Quantitative restrictions

d. Subsidies imposed on agricultural products
370. This marketing function addresses the problem of product seasonality. The
375. It is a better indicator of the performance of an economy among different time
primary aim of which is to help balance the period of plenty to the period of
Scarcty periods
a. Money GNP
a. Pooling
b. Processing b. Real GNP

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 C. Nominal GNP b. Consumption
d. Unadjusted GNP C. Demand
376. It is one type of middleman in agricultural marketing whose function, in modern d. Superior goods
times, have increased from challenging product forms to buying raw materials to 381. It measures the degree given to value added of agricultural sector
wholesaling the finished product to retailers a. Effective Prevention Ration
a. Assembler-wholesaler b. Effective protection Reconnaissance
b. Processors and manufacturers C. Effective Protection Rate
d. None of the above
C. Wholesalers
382. The variation (up and down) in national income is affected by
d. Fadlitative organization
a. Savings
377. The change in equilibrium income as a result of a one-peso change in the
b. Population
autonomous component of aggregate expenditure is called
C. Investment
a. Multiplier
d. All of the above
b. Marginal propensity to consume
383. The change in consumption spending that arises from a one-peso change in
C. Marginal propensity to save
disposable income is called
d. None of the above
a. Marginal propensity to save
378. Which of the following groups is not penalized by inflation?
b. Marginal propensity to consume
a. Savers
b. Creditors C.Multiplier
C. Debtors d. None of the above
d. Fixed money income groups 384. A point outside the produ ction possibility frontier indicates that given the
379. A sum of money taken out of a corporation's net profits and paid to technology and resources available, this combination is
shareholders based on their equity investment a. Unattainable
a. Dividend b. Attainable but inefficient
C. Unattainable but best for society
b. Equity
d. Attainable and is best for society
C. Share
385. A cooperative organized to create a source of loanable funds for useful
d. Interest purposes and to educate its member in financial matters.
380. The satisfaction obtained from the goods and services that consumer consumes a. Exdusive cooperative
a. Utility
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 b. Bargaining cooperative b. Transaction demand
C. Consumer cooperative C. Precaution ary demand
d. Credit union d. None of the above
386. Savings is an increasing function of 391. Marginal utility
a. Income a. Is the extra satisfaction from the consumption of one more of he some
b. Investment good or service
C. Interest b. Is tile extra output a firm obtains when it adds ano er units of labor
d. Consumption C.Explainswhy product supply curves are upsloping
d. Typically rises as successive units ofa good are consumed
387.The reflects the current and capital accounts of a country vis-à-vis other
392. A statement showing the assets, liabilities, and net worth (or owner equity) of a
countries
a. Balance of trades business on a spedified date, usually the end of the year.
b. Balance of payments a. Ledger
C. Balance of tariffs b. Balance sheet
d. Balance sheet C. Record notebook
388. Using the income approach in calculating the national income, which one is not d. Record keeping
induded 393. A schedule which shows the various amounts households plan to save at
a. Wage various levels of income is referred to as
b. Profits
a. Consumption function
C. Interest b. Investment function
d. Depredation
C. Savings function
389. It is a marketing activity which involves the sorting of products into lots or units
d. Demand function
according to one or more of their quality attributes 394. It provides dimate for enhancing competitiveness and food security of the
a. Standardization
country
b. Packaging a. High Valued Commodity Crops Act
C. Grading b. High Value Commercial Crops Act
d. Branding C. High Valued Corn and Crops
390. Asset demand for money is also known as d. All of the above
a. Speculative demand

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395. Using the product or expenditure approach in calculating the GNP, which one is C. Farm supply cooperative
not induded d. Exclusive cooperative
a. Household consumption expenditures 400. Strengthened the implementation of CARP
b. Net exports a. RA 7905
C. Government purchase of goods and services b. RA 7906
d. Indirect business taxes C. RA 7907
396. A marketing function which does not only encourage consumers to buy, but d. RA 7908
also to encourage them to buy more than what they need. 401. Most pricing policies adopted by the government are
a. Advertising a. Favoring urban consumers
b. Packaging b. Distortionary
Support farmers
C. Selling
d. All of the above
d. Promotion
402. Consumption is influenced by several factors except the
397. This represents the liabilities of the Central Bank to the public sector in the form
a. Technology
of currency in circulation and to the banking sector in the form of cash reserves
b. Rate of interest
a. Interest rate
b. Rediscount rate C.Pricelevel
d. Taxes
C. Reserve money
d. Time deposit 403. They are those individuals or business concerns that specialize in performing
398. Every time the government in our a deficit, it must borrow from the following the various marketing functions involved in the purchase and sale of goods as they
except from the are moved from producers to consumers
a. Religious sector a. Processors
b. Private sector b. Middlemen
C. Public sector C. Farmers
d. Foreign sector d. Consumers
399. A cooperative whose sole or principal function is to bargain for terms of sale. It 404. The proportion by which the public hold money in the form of cash or deposits
does not handle the actual products as an operating cooperative does. is called
a. Bargaining cooperative a. Reserve-deposit ratio
b. Consumer cooperative b. High-Ppowered money

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 C. Rediscount rate a. F-WR-C
d. Currency-deposit ratio b. F-CB-R-C
405. The legal method to reduce taxes owed to the government is called a tax C. F-AW-WR-C
a. Loophole d. F-WR-R-C
b. Rebate 411. The monetary base of an economy is called
C. Evasion a. Reserve-deposit ratio
d. Incentive b. Currency-deposit ratio
406. Is similar to a function: flow desaribes the movement reated by the C. High-powered money
performance of function in the channel of distribution. d. Rediscount rate
a. Market flow 412. Evident where th ere are variations in price in different parts of the world. For
b. Market distribution example rarity value, or where shipping costs increase price.
C. Market link a. Promotional Pricing
d. Market line b. Geographical Pricing
407. The most common indicator of changes in the general price level is C. Product bundle pricing
a. Inflation rate d. Value Pricing
b. Interest rate 413. GDP represents the:
C. Consumer price index a. Market value of all goods and services produce by the economy at a given
d. Deflation rate
year
408. Land reform is intended to place the ownership of land in the hands of the b. Market value of intermediate goods and services produce by the economy
a. Landlord at a given year
b. Tiller C. Market value of all final goods and services produced by the economy at a
C. Tenants given year
d. Lease d. Market value of all consumer goods and services produced by the economy
409. Investment is determined by the following factors at a given year
a. Interest rate 414. All these agencdes are involved in improving agricultural production except the
b. Marginal efficiency of investment(MEI) a. Court of Agrarian Relation
C. Price level b. Department of Environment and Natural Resources
d. Both a &b C. Department of Agrarian Reform
410. The simplest product flow is d. Department of Trade and Industry
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415. Real income includes 420. The nominal GDP and the real GDP in a given year, except the base year,
a. Legal services differs because:
b. Television a. Of the exclusion of intermediate goods
C. Foods b. Of changes in the price level
d. All of the above C. Of improvement in technology
416. The volume handled by the farmers represents their d. Of changes in the stock of capital
a. Marketable surplus 421. For the country to be industrialized, the strategy should be
b. Total production a. Export-based
b. Import-based
C. Production + consumption
C. Business-based
d. Production + imports
417. Money-serves as a d Agri-based
e. All of the above
a. Store of value and standard for deferred payment 422. It refers to the exchange of goods and services between one country and other
b. Unit of account countries
C. Medum of exchange a. Selling
d. All of the above b. International trade
418. It is a tax based on a percentage of income that varies inversely with the level c. Exchange rate
of in come d. Barter system
a. Progressive tax 423. It is a type of middleman who takes title to and therefore, owns the products
b. Proportional tax he handles. He also buys and sells for his gain.
C. Regressive tax a. Middleman
d. All of the above b. Commission agent
419. Pridng to promote a product is a very common application. There are many C. Broker
examples of promotional pricing induding approaches such as BOGOF (Buy One
d. Merchant middlenman
Get One Free). 424. Proportion of deposits that banks are mandated by the Central Bank (CB) to
a. Promotional Pricing keep either as vault cash or as a deposit with the CB for safekeeping is called
b. Geographical Pricing a. ExcesS reserves
C. Product bundle pricing b. Currency-deposit ratio
d. Value Pricing C. Reserve-deposit ratio
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 d. Required reserve d. Production
425. When a government wishes to create excess demand for foreign exchange, it 430. Fred is able to help negotiate the purchase process, while uniting buyers and
basically adopts of exchange rate sellers. They greatly value his expertise, and he doesn't have to buy the products
a. Overvaluation in order to resell them. Fred is a
b. Devaluation a. Broker
C. Depreciation b. Commission merchant
d. Deterioration C. Truck wholesaler
426. Here sellers combine several products in the same package. This also serves to d. Drop shipper
move old stock. Videos and cds are often sold using the bundle approach. 431. The "Paradox of Thrift" states that
a. Promotional Pricing a. Higher savings cause equilibrium income to increase
b. Geographical Pricing
C. Product bundle pricing
b Higher savings cause a reduction in equilibrium income
C. Higher savings does not affect equilibrium income
d. Value Pricing d. None of the above
427. An example of non-current produ ction is 432. The regulatory agency responsible to register and monitor cooperative is called
a. Purely financial transaction a. Cooperation and Development Agency
b. Underground economy b. Cooperative Development Authority
C. Second hand goods CCooperative Development Administration
d. All of the above d. All of the above
e. Both a and b 433. This approach is used when the marketer wants the consumer to respond on an
428. If a country has a positive balance of trade emotional, rather than rational basis. For example 'price point perspective' 99
a. Its imports exceeds exports in value cents not one peso.
b. Its exports exceeds imports in value a. Psychological Pricing
C. Its debts have been paid b. Product Line Pricing
d. It has no deficit
C. Optional product pricing
429. It concerns with the allocation of economic resources among countries
d. Captive product pricing
a. Internation al trade
b. Internation al economics 434. An example of illegal transaction
a. Sale of illegal drugs
C. Economic nationalism
b. Gambling
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 C. Prostitution b. Premium Pricing
d. All of the above C. Economy Pricing
435. The performance of the foreign trade is not determined by d. Price Skimming
a. Foreign policies 440. The curve that plots the relation ship between the quantity of a good consumed
b. Demand for goods
and income.
C. Restridtions
a. Income consumption curve
d. Trade laws
436. It refers to the control of resources of the country by its own people to ensure b. Engel curve
its own utilization primarily for their own interest and enjoyment C. Production curve
a. Economic Liberalism d. Produt possibility frontier
b. Internation al trade 441. Which do not belong to the group?
C. Patriotism a. Imports
d. Economic nationalism b. Exports

437. Which among the following transactions should be included in the computation C. Taxes
of GNP? d. Savings
442. The arm of the government that oversees trade, industry, and investment
a. Sale of second-hand automobile
activities is the
b. Sale of agricultural products like vegetables and cereals
Philippine Trade Training Center
C. Sale of marketable securities like bonds and stocks
b. Philippine International Trading Corporation
d. None of the above
C. Department of Tourism
438. The extent of protection of agricultural outputs is measured by
d. Department of Trade and Industry
a. National Power Corporation 443. The process of transferring the output of a produ ction process to the different
b. National Performance Coeffident
sectors of the economy.
C. National Protection Cofactor
a. Marketing
d. Nominal Protection Coefficient
b. Distribution
439. Charge a high price because you have a substantial competitive advantage.
C. Transportation
However, the advantage is not sustainable. The high price tends to attract new
d. Selling
competitors into the market, and the price inevitably falls due to increased supply.
444. The phase of the business cycle wherein output is at its highest and
a. Penetration Pricing
employment expands to full employment.
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 a. Peak 449. Which of the following expresses how changing prices affect households?
b. Trough a. CPI
C. Recovery b. GDP deflator
d. Recession C. PPI
445. A demand for wage increase can cause d. All of the above
a. Demand-pull inflation 450. An investment is not acceptable if Benefit Cost Ratio is
b. Both Demand-pull inflation and cost-push inflation a. One
C. Cost-push inflation b. Greater than one
d. None of the above C. Positive
446. The trading block where the Philippines belongs is d. Less than onee

a. ASEAN Free Trade Area 451. It is the utilization of goods and services
b. ASEAN for Trade Association a. Consumerism
C. Atlantic Free Trade Association b. Satisfaction
d. Assocation of Food and Trade Asia C. Distribution
447. This is a no frills low price. The cost of marketing and manufacture are kept at d. Consumption
a minimum. Supermarkets often have econ omy brands for soups, spaghetti, etc. 452. The reserve held by the bank over and above the legal reserve
a. Penetration Pricing a. Required reserve
b. Premium Pricing b. Excess reserve
C. Price Skimming C. Interest rates
d. None of the above
d. Economy Pricing
453. It measures the degree given to value added of agricultural sector
448. When an economy undergoes basic structural changes like trends towards
a. Effective Prevention Ration
traditional agriculture to modern industry, transformation of rural sectors into b. Effective Protection Rate
urban units, replacement of small scale & cottage industries by large scale C. Effective Protection Reconnaissance
manufacturing units, and introduction electricity or others. d. None of the above
a.Seasonal Unemployment 454. The price charged for products and services is set artificially low in order to gain
b.Cydlical Unemployment market share. Once this is achieved, the price is increased. This approach was
C.Disguised Unemployment used by France Telecom and Sky TV.
d.Structural unemployment a. Penetration Pricing
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 b. Premium Pricing b. Structural unemployment
C. Price Skimming C. Cyclical unemployment
d. Economy Pricing d. Underemployment
455. A situation where the productivity of the working force is very low because thee 460. It is a money wage expressed in terms of the goods and services it can
number of workers is more than what is optimally desirable purchase.
a. Seasonal Unemployment a. Money wage

b. Cydical Unemployment b. Real wage

C. Disguised Unemployment C. Nominal wage
d. Minimum wage
d. Structural unemployment
456. If changes in business inventory is negative 461. The reflects the current and capital accounts of a country vis-a-vis
other countries.
a. It adds to GDP
a. Balance of Trade
b. It had no impact on GDP
b. Balance of Payment
C. Net investment declines
C. Balance of Tariffs
d. It reduces GDP
d. Balance Sheet
457. Cooperation among APEC members based on the following except
462. Use a high price where there is uniqueness about the product or service. This
a. Common funding
approach is used where a substantial competitive advantage exists. Such high
b. Equal partnership
C. Shared responsibility prices are charge for luxuries such as Executive/business flights.
d. Mutual respect a. Penetration Pricing
458. The process of creating surplus b. Premium Pricing
a. Production c. Price Skimming
b. Wealth-getting d. Economy Pricing
C. Utilization 463. A condition that will exist in such productive activities which can be undertaken
d. Consumption only during a specific season.
459. The problem of unemployment exists when people who are willing and able to a. Seasonal Unemployment
work could not find jobs. What type of unemployment is caused by a deficiency of b. Cyclical Unemployment
aggregate or total demand? C. Disguised Unemployment
a. Frictional unemployment d. Structural unemployment
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464. If volume of actual economic activity stays the same during the consecutive b. EO No. 406, June 14, 1990
years but inflation of 10% occurs, C. EO No. 405, June 14, 1990
a. Real GDP increases d. EO No. 404, June 14, 1990
b. Nominal GDP increases 469. Most pricing policies adopted by the government are
C. Nominal GDP is constant a. Favoring urban consumers
d. Real GDP is constant b. Distortionary
e. Any of the above C. Support farmers
465. The important liberalization program of the Philippines is a result of the countryy d. None of the above
joining the 470. Is the provision of resources by one party to another party where that second
a. GATT party does not reimburse the first party immediately, thereby generating a debt
b. APEC and instead arranges either to repay or return those resources (or material(s) of
C. ASEAN equal value) at a later date. It is any form of deferred payment.
d. OPECc a. Credit
e. All of the above b. Market Output
466. The income arising from entrepreneurship is
a. Profit C.Market chain
d. Raw resources
b. Rent
471. Adding indirect business taxes to national income equals
C. Salary
a. Domestic income
d. Wage
b. Net national product (NNP)
467. This is a group of policies where public budget, government spending and tax C. Personal disposable in come (PDI)
collections are manipulated to achieve full employment d. Personal income
a. Agricultural policy 472. It seek to modernize the Philippine Agriculture for the country to compete in
b. Fiscal policy the global market
C. Business policy a. GATT
d. Monetary policy b. Geneva round
468. Accelerated the acquisition and distribution of agricultural lands, pasture lands, C. AFMA
fishponds, agro-forestry lands and other lands of the public domain suitable d. APEC
for agriculture. 473. The basic foundation economics is
a. EO No. 407, June 14, 1990 a. Scarcity of resources
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 b. Unlimited wants 478. Study of the causal relationships that exist in economics, no value judgments
c. Society are involved.
d. Both a & b a. Positive economics
474. It measures the change in the equivalent level of in come due to a change in the b. Normative economics
aggregate expenditures C. Objective functions
a. Balance budget multiplier d. All of the above
b. Marginal propensity to consume 479. The provisions of the WTO came from the results of negotiations under the
C. Multiplier a. Geneva round
d. Marginal propensity to save b. Morocco round
475. It is the value of money a peso compared to its full value in a given base year. C. Uruguay round
a. WPI d. None of the above
b. PPP 480. Crude oil is one of the primary inputs to production for it runs factory machines
C. CPI and equipment. An increase in its price in the world market will result to what type
d. RPI of inflation?
a. Cost push inflation
476. It is an assurance by the seller of the quality of performance of a product.
a. Product liability b. Demand pull or excess demand inflation
C. Demand shift inflation
b. Product warranty
d. None of the above
C. Product life
481. Vested in the Land bank of the Philippines the responsibility to determine land
d. Product license
valuation and compensation for all lands covered by CARP
477. A decrease in the general price level or a rise in the purchasing power of
a. EO No. 407, June 14, 1990
money.
b. EO No. 406, June 14, 1990
a. Inflation C. EO No. 405, June 14, 1990
b. Depression d. EO No. 404, June 14, 1990
C. Deflation 482. It is the management's legal responsibility for defective produdts that cause
d. Economic growth injury to consumers.
Product liability
b. Product warranty

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 C. Product life Economic goods
d. Product license d. Intermediate goods
483. The ratio of the tax to a payer's income 488. It is a process in which a firm tries to create perception in a consumer's mind as
a. Tax burden to where a given product or brand fits in relation to competing products or brand.
b. Taxable in come a. Product imitation
C. Lost income b. Product deletion
d. Government money C. Produdt positioning
d. Product cannibalization
484. A technique for solving maximization and minimization problems where the 489. A decrease in the general price level or a rise in the purchasing power of
function operated upon is linear and is subjected to linear constraints money.
a. Linearly homogenous production function Inflation
b. Limit pricing b. Depression
C. Linear programming C. Deflation
d. All of the above d. Economic growth
485. The dedared policy in the promotion and development of organic agriculture in
490. The difference between a firm's total receipts and its total cost when total
the Philippines
receipts exceed total costs, in cluding as costs the alternative costs of all resources
a. Executive order No. 581 used.
b. Executive order No. 481
a. Total revenue
C. Executive order No. 477
b. Marginal revenue
d. Executive order No. 488
C. Fixed cost
486. Under public ownership is stressed more than private ownership
d. Profits
a. Capitalism
491. An act providing for the development and promotion of the organic agriculture
b. Socalism
in the Philippines and for other purposes
C. Communism a. RA 8435
d. All of the above b. RA 10068
487. These are goods purchased and resold with or without further processing C. RA 1947
a. Formal goods d. RA 10000
b. Services
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