AGRICULTURAL ECONOMICS AND MARKETING

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RB CAGMAT REVIEW CENTER 4. Which documents provides a detailed description of the

agribusiness?
a. Business plan c. Feasibility study
Review for Licensure Examination for Agriculturist 2016 b. Project study d. Project proposal

5. From the point of equilibrium, which of the following

SIMULATED PRE-BOARD EXAMINATION IN AGRICULTURAL would most likely result in a surplus?
a. If demand shift to the right
ECONOMICS AND MARKETING
b. If the government kept price greater than
the equilibrium price
NAME ___________________________SCORE ________ c. If supply shifted to the left
d. If the government kept the price below the
equilibrium price
GENERAL DIRECTIONS e. If the quantity demanded was greater than the
quantity supplied.
1. This 9-page test booklet contains 200 multiple choice
6. Which refers to an economic change through business
test questions (MCQ). Examinee should manage to use
venture?
three (3) hours allotted to the test.
a. Innovation c. Resource
2. Some questions are of the CORRECT ANSWER TYPE
b. Opportunity d. Project
which means there is a correct answer and all other
choices are wrong. Other questions are of the BEST
7. The positive (non zero) price of a good means_______
ANSWER TYPE which means all choices are correct but
a. The good is scarce
one is certainly the best. Hence they require careful
b. There is shortage
analysis of the choices.
c. The good is in surplus
3. Select the correct/ best answer for each of the following
d. None of the above
questions.
4. Select only one answer for each item by encircling the
8. The Philippine economy indices are closely related to the
letter of your choice.
rise and fall of the________
5. Encircling two or more letters will invalidate your
a. Stock exchange c. US Dollars
answer. There is only one answer to each question.
b. World Bank d. Treasury Bonds
6. In case you find no correct answer, please encircle
9. The Uruguay Round which is the most ambitious round of
option “e”.
GATT negotiations seek to expand world trade based
7. There will be penalty for wrong answers marked.
on_______
a. Absolute advantage theory
a. There are four alternatives to every question. b. Revealed absolute advantage
For each question for which a wrong answer has c. Comparative advantage
been given by the examinee, one third, (0.33) of d. Comparative disadvantage
the marks assigned to that question will be
deducted as penalty 10. Which among the following best describe economic
b. If the examinee gives more than one answer, it resources?
will be treated as a wrong answer even if one of a. Resources are infinite
the given answers happens to be correct and b. Resources are finite
there will be the same penalty as above to that c. Resources are unlimited
question. d. There is abundance of resources
c. If a question is left blank, i.e., no answer is
given by the examinee, there will be a penalty 11. Which of the following will lead to more output at lower
for that questions as well. prices?
8. Use pencil no. 1 only. a. A decrease in supply
9. Strictly NO ERASURES ALLOWED b. A decrease in demand
10. Examinee should refrain from leaving the room while the c. An increase in supply
examination is in progress. d. An increase in demand
11. When using calculator for computation, use calculator
that is prescribed by the Professional Regulations 12. The consolidation and update of all existing laws on
Commissions (PRC) Intellectual Property Rights is embodied in________
12. Passing percentage is 75% or an examinee should get at a. HB No 1095 c. RA 8293
least 150 correct answers. b. EO 568 d. EO 430
13. Any form of cheating is strictly prohibited and will not be
tolerated. 13. The opening of a fertilizer factory in a province requires
14. Turn off all cellular phones and other electronic devices environmental clearance from what government agency?
during the examination. a. DENR c. DTI
15. Listen to other instructions from the Room Watcher. b. DA d. DOLE
EXAMINATION STARTS HERE 14. To be in equilibrium ( to maximize satisfaction), the
consumer must _________
1. Agrarian reforms means remedying the defects in the a. Purchase no inferior goods
distribution and utilization of the land in the hope of b. Equalize the marginal utilities of the last unit
increasing its productivity to________ produced of every commodity
a. To improve the economy of the country c. Be sure that the process of all commodities are
b. To raise the standard of living of the people proportional to their utilities
c. To improve the traditional forms of agriculture d. Be sure that the price of each good is equal to
d. To improve the agriculture sector. the marginal utility of money
e. Allocate income so that the last centavo
2. A change in a firms fixed cost_______ spent on each good gives the same amount
a. Will change the TVC curve of marginal utility as the last centavo spent
b. Will change the AVC curve on every other good.
c. Will change the MC curve
d. Will change the AFC curve 15. What do you call the agricultural association that is
concerned with the pooling of savings of members and
3. Who is the President of the Philippines who is behind the extending loans to them at a low interest rate?
economic agenda known as “ The Philippines 2000” ? a. Guarantee fund for small enterprise
a. Joseph Estrada c. Ferdinand Marcos b. Agricultural credit union
b. Fidel Ramos d. Gloria M. Arroyo c. Agricultural cooperative
d. Agricultural guarantee and loan fund

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16. No country will experience economic progress unless she 28. Which of the following best describes the nature of
is part of world organization. In what international characteristics of human needs?
organization this saying is true? a. Human needs are limited
a. United Nations c. GATT b. All human needs are attainable
b. World Bank d. International Monetary Fund c. Human needs are unlimited
d. Human needs are unattainable
17. The market value of the output of an activity over some
accounting period ( usually a year) whether that output is 29. A sum of money which is paid for the use of roads,
sold or not. bridges and the like, of a public nature.
a. Net income c. Gross margin a. Tax c. Toll
b. Gross income d. Fixed income b. Penalty d. Assessment

18. Which of the following is NOT a basic principle guiding the 30. Low agricultural productivity in developing countries is
cooperative movement? mainly caused by__________
a. Open membership a. Shortage of inputs including land
b. Democratic control b. Migration from rural areas to urban areas
c. Unlimited interest to capital c. A lack of effective demand for food products
d. Patronage refund d. Over investments in farm equipment

19. How are hogs sold in auction markets?

a. Per kilo of live weight 31. The PPF of a country can be said to shift outward as a
b. Per head and per kilo of meat result of the following, which if any is the wrong
c. Per kilo of meat explanation?
d. Per head a. Expenditures on new plants and equipment are
constantly being made
20. The greenhouse effect is the phenomena by which of the b. The population increases
following? c. Better methods of production are developed
a. Biological diversity is dominant in agricultural d. New oil fields are made
production e. All of the above are valid explanation
b. The globe’s water pollution affects plankton
c. The earth’s atmosphere traps infrared 32. The Keynesian remedy for unemployment is
radiation to__________
d. Climatic changes occur naturally in the forest a. Decrease aggregate demand
b. Reduce tax rate or lower interest rates
21. He is the British economist known for his revolutionary c. Decrease government spending
theories on the causes of prolonged unemployment? d. Decrease private consumption and investments
a. John Maynard Keynes
b. David Ricardo 33. Which of the following is NOT a factor of production as
c. John Stuart Mill the term is used by economist?
d. Adam Smith a. Workers in a supermarket
b. Aircraft owned by an airline
22. Privatization refers to___________ c. Cash in an bank account
a. The sale of public companies to the public sector d. Farmland
b. The sale of private companies to the private
sector 34. Which concepts described the relationship between
c. The sale of public companies to the private peanut butter and jelly?
sector a. They are substitute
d. The sale of private companies to the public b. They are interdependent
sector. c. They are interchangeable
d. They are complement
23. All productive activities are based on____________
a. Distribution c. Exchange 35. The principle income of__________business is sales.
b. Consumption d. Marketing a. Service c. Investments
b. Manufacturing d. Trading

24. Because of substitution effect on demand, when the price 36. Accounts normally written at the debit side are
of coffee increases_______ the__________
a. People will use less cream and sugar a. Asset c. Liabilities
b. People will be able to afford less coffee because b. Investments d. Accounts
their buying power has decreased
c. People will drink tea instead 37. The sector with an indispensable role in national
d. Producers will use less costly coffee bean and economic development is the_______________
other ingredients. a. Public sector
b. Private sector
25. Many observed that________________ c. Business sector
a. Rich countries abuse their power d. Agriculture sector
b. Countries that are economically stable are greed
c. Countries with no economic problems become 38. What is the tool of door-to-door selling with “special”
world leaders offers made by sales representative?
d. Countries with poor economy are a. Advertising c. Publicity
subservient to the rich b. Sales promotion d. Personal selling
39. An increase in imports of consumer goods is most likely
26. The government imposes a 50% increase in agricultural to have been caused by a________
wages. How will this affect the price of rice? a. Rise in direct taxation
a. Price remains the same b. Rise in household savings
b. Price decreases because of increase in supply c. Fall in exchange rate
c. Price increases because of increase in demand d. Rise in household disposable income
d. Price increases because of shortage.
40. Market economy is to capitalism while command
27. The cost that does not vary with the quantity of output economy is to_____
that a firm produces is_________ a. Communism
a. Total variable cost b. Centralized capitalism
b. Average variable cost c. Socialism
c. Average fixed cost d. Mercantilism
d. Total fixed cost

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41. One of the major functions of taxes is to finance real 52. Which marketing strategy consists of selling a particular
government expenditure this can simply stated items at low rates, or is given away free, to boost the
as__________ sales of another complementary item or service?
a. To raise revenues a. Freebee marketing c. Close range
b. To secure economic price stability marketing
c. To promote economic development b. Free sample marketing d. Content marketing
d. To engaged in foreign business
53. Which of the following will lead to more output at lower
42. A drought will probably___________ prices?
a. Cause rice suppliers to move up along their a. A decrease in supply
supply curves to a higher price b. A decrease in demand
b. Induce greater demand for rice, yielding a c. An increase in supply
higher price d. An increase in demand
c. Cause people to reduce their demand
d. Induce upward and leftward shift in rice’s 54. Which is the identification of possible negative external or
supply curve internal conditions or events that will eventually affect
e. Lower the price of the substitution of rice the business enterprise?
a. Critical risk analysis
43. The policy that has been the most successful in b. Capital requirement
increasing agricultural output in developing countries c. Financial report
is__________ d. SWOT
a. Import substitution
b. Produce market boards 55. The Law of the Diminishing Returns is embodied by
c. Land reforms the_________
d. Mechanization a. Total product curve
b. The production surface
44. What is the theory of management analysis through c. The average product
experience? d. Demand curve
a. Role model approach
b. Situational approach 56. The unemployment rate is the________
c. Empirical approach a. Employed plus unemployed divided by the
d. Decision theory approach labor force
b. Total employment divided by population
45. The capacity of an economy to generate and sustain an c. Labor force divided by population
annual increase in its GNP at rates of perhaps 5 to 7 % or d. Unemployed divided by employed
more is known as________
a. Lewis model 57. Which of the following characteristics is/are most likely
b. Sustainable economic model found in developing countries?
c. Harrod-Domar growth model a. High population growth rates
d. Dualism b. Large number of people living in poverty
c. Very traditional methods of agricultural
46. The distribution of resources is determined by_______ production
a. The initial distribution of resources d. All of the above
b. The supply and demand for productive purposes e. None of the above
c. Both A and B
d. None of the above 58. The political event that greatly affected the course of
events in the turn of the 21st century is_____________
47. The ceiling price is imposed as a/n_________ a. Effects of globalization in trade
a. Minimum price c. Support price b. The effects of innovations in Asia and the Pacific
b. Price control d. Market price c. The Rise of China
d. Climate change
48. Anything of value in the possession of the farm or claims
of the farm on anything of value in the possession of 59. What is the only benefit derived from tariff imposition?
others may be classified as current or fixed assets. a. Government revenues
a. Liabilities c. Net worth b. Good foreign relations
b. Assets d. Credit c. High quality imported products
d. All of the above
49. What does the law of demand state?
a. As income increases, people consume more of 60. Economics may be defined as________
all goods. a. The study of activities involving money and
b. The demand for a good increase with the exchange transactions among people
number of consumers in the market b. Study of the allocation of scarce resources to the
c. As the price of the goods decline, production and distribution of goods and
consumers purchase more of that good services
d. The supply of a good increase in proportion to c. The study of wealth
the demand for it. d. The study of men and their ordinary business
life, earnings and enjoying a living
50. The Philippine tariff structure at the beginning of the e. All of the above
1980’s indicated that__________
a. Export was penalized, both manufacturing 61. What will solve poverty caused by capitalism?
and other sectors especially agriculture a. Fascism c. Socialism
b. Agriculture received the highest level of b. Communism d. None of the above
protection
c. Export industries enjoyed the protection system 62. What has made world business fast?
d. Backward integration of the industrial structure a. Internet
was encouraged. b. Computers
c. Modern technology
51. A book in which the records of a business are written. d. Information and communication technology
a. General ledger c. Journal
b. Ledger d. Special Journal 63. The Philippine National Bank has used an icon for its
advertisement. It is____________
a. The dragon c. The eagle
b. The hawk d. The falcon

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64. Which of the following is most basic to 75. If the RCR coefficient is less than 1 then the economic
economics___________ activity has_________
a. Profits a. Comparative advantage
b. Scarcity b. Comparative disadvantage
c. Business and government activities c. Neutral advantage
d. Supply and demand d. Cannot tell

65. The type of cooperative that encourages fund and thrift 76. If an increase in the price of product X cause an decrease
among its members in order to avail of loans. in the demand for the product Y, we can conclude
a. Service cooperatives that___________
b. Consumers cooperatives a. They are substitute
c. Credit cooperatives b. The price of Y will increase
d. Producers cooperatives c. They are compliments
d. The quantity supplied for Y will increase
66. Embargoes prohibit trade with other countries. It means
that ___________ 77. Which law which intends to encourage farmers to shift
a. A country can ban a foreign nation’s import from low value, marginal crops to profitable crops?
b. A country can ban export to other countries a. National Land Use Act
c. A country cannot trade with other country b. PD 1144
d. All of the above c. RA 7900
d. HB 1095
67. In which of the following statements are the term
demand, supply and quantity demanded, and quantity 78. In selecting the location for your business, the primary
supplied used correctly. consideration is to__________
a. Changes in demand and supply cause a. Know your competitors
changes in the equilibrium price b. Study your prospective consumers
b. If the demand rises, supply rises c. Consider existing facilities
c. Mango are cheaper in Cebu and demand is d. Study the competing products
greater in Cebu
d. When the quantity demanded exceeds supply, 79. What is “ Dumping” ?
the equilibrium price will rise. a. The exporter charges lower prices in the
e. All of the above choices are correct foreign market than in the domestic market
b. The exporter charges higher prices in the foreign
market than in the domestic market
68. Which of the following is an example of a price floor? c. The exporter charges the same price in the
a. Minimum wages foreign and in the domestic market.
b. Rent control
c. Restricting petrol prices 80. Which of the following scenario best describe
d. All of the above globalization?
a. Industrialization of both developed and
69. What law created the Fertilizer and Pesticide Authority developing nations
(FPA) ? b. Movements of goods and money from one
a. PD 552 c. PD 1144 money to another
b. PD 218 d. PD 1702 c. Sharing of nations information with another
country
70. Cooperatives can eventually put up banks of their own. d. Movement of money, goods, information
What are the evidence of success? and people across nations
a. Cooperative are not heavily taxed
b. Opening of rural banks is allowed on cooperative 81. What will be the best solution for the crops to reach the
concept market to prevent them to be rotten easily during rainy
c. Several rural banks started as cooperatives season?
d. Many banks in Metro Manila and Bulacan started a. Ask middlemen to intervene
out as cooperatives. b. Conducting seminars to farmers
c. Constructing farm to market roads
71. The NEDA is under the _____________ d. Putting up cooperatives.
a. Department of Trade and Industry 82. The following are components of current accounts except
b. Department of Finance _______
c. Securities and Exchange Commission a. Mercandise trade
d. Office of the President b. Transfer payment
c. Investments income
72. Which of the following would best indicate economic d. Assets
growth? An index of______
a. Company profile 83. Payments of international transactions can be carried out
b. Shared profits through the use of the following instruments except
c. GDP ______
d. Consumer spending a. Cable or telegraphic transfer
b. Letter of credit
73. What is the factor that regards person, things or quality c. Bank drafts
as useful variable in an enterprise? d. Personal checks
a. Liabilities c. Asset
b. Stock d. Bond 84. When a country engages in international transactions, it
always involved at least two kinds of currencies. The
74. If the good is inferior____________ value of domestic currency relative to the foreign
a. As its price rises, less of it will be bought currency is called___________
b. As its price falls, more of it will be purchased a. Foreign exchange rate
c. As the consumer’s income increases less of b. Foreign exchange
the good will be purchased c. Domestic exchange rate
d. As the consumer’s income decreases less of the d. International exchange rate
commodity will be purchased
e. If the price or income changes, no change will 85. What law created the National Irrigation Administration
be induced in its consumption. (NIA) ?
a. EO 430 c. RA 3601
b. RA 4585 d. RA 7859

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86. The burden of a tax falls more heavily on the sellers in
the market when_________
a. Both supply and demand are elastic
b. Both supply and demand are inelastic
c. Demand is inelastic and supply is elastic
d. Demand in elastic and supply is elastic
98. When an entrepreneur builds an enterprise in the rural
areas, he/she contributes to________
a. Making the community popular
b. Providing competition to other business
c. More equitable distribution of income
d. Offering new experience

87. He introduced an economic system based on individual 99. An effective tool for identifying and evaluating possible
self-interest that would be led as if by an “ Invisible products or services for the entrepreneur is___________
Hand” to achieve the greatest good for all, and posited a. Customer profile
the division of labor as the chief factor in economic b. Market survey
growth. c. Product analysis
a. John Maynard Keynes d. SWOT analysis
b. David Ricardo
c. John Stuart Mill 100. A decrease in the supply of calamansi will result
d. Adam Smith in which of the following?
a. More calamansi sold at a higher price
88. When the price of gasoline rises 10%, the quantity of b. More calamansi sold at a lower price
gasoline purchased fall by 8%. The demand for gasoline c. Fewer calamansi sold at a higher price
is_________ d. Fewer calamansi sold at a lower price
a. Perfectly elastic c. Elastic
b. Unit elastic d. Inelastic 101. What is the difference between the price that
consumer pay for the final product and the price received
89. According to the law of demand, the price and quantity by producers for the raw product?
demanded_________ a. Market margin c. Profit
a. Are inversely related b. Price margin d. Marketing cost
b. Are directly related
c. Are proportional to each other 102. What is the term used to designate the illicit sale
d. Depend on one another at the equilibrium price. of commodities in violation of government rationing and
price-fixing
90. An increase in the price will lower the quantity demanded a. Cartel c. Black market
because___________ b. Unfair trade practice d. Hoarding
a. Suppliers will supply only the smaller amount
b. Some individuals will no longer purchase the 103. The legal method to reduce tax owed to the
good government is called_________
c. Individuals cut back their purchases of the a. Loophole c. Incentive
goods. b. Rebate d. Evasion
d. B and C
e. All of the above 104. Problem of agriculture different from other
industries.
91. If a consumer is acting rationally, we meant a. Biological in nature
that____________ b. Production can be programmed
a. They will always buy the products in the market c. Price makers
that are cheapest d. Products could be branded
b. They seek to weight up the cost and
benefits of each choice they make 105. It measures the change in the equivalent level
c. They serve a proportion of the monthly income of income to a change in the aggregate expenditure
rather than spend it all a. Marginal propensity to consume
d. They wont take a job that pays low wages. b. Multiplier
c. Balance budget multiplier
92. What are economic obligations of the organization? d. Marginal propensity to save
a. Goods c. Equities
b. Liabilities d. Assets 106. It shows how much the value added in the
absence of protection.
93. The price of the good falls from P10 to P5, and quantity a. Nominal protection
demanded increases from 50 to 100 units per month. The b. Effective protection rate
elasticity is________ c. Implicit tariff
a. 0.5 c. 1.0 d. Government protection
b. 2.0 d. 10.0
107. He was a major figure in the development of
94. The shift in PPF results from which of the following? classical economics and is credited as the first person to
a. Unemployment systematize economics.
b. Inflation a. John Maynard Keynes
c. Changes in production techniques b. David Ricardo
d. Changes in the combination of goods produced c. John Stuart Mill
e. Changes in consumer’s tastes d. Adam Smith

95. Which of the following is/are not beneficiaries of the 108. The following are factors that determine the best
CARP? time in taking a farm inventory EXCEPT?
a. Agricultural lessees and share tenants a. The time when the amount of factors and
b. Seasonal farm workers supplies on hand is at the lowest point
c. Non-regular farm workers b. The time when income tax returns are due
d. All of the above c. When there is little essential work to be done
on the farm
96. Negotiated prices could be determined through________ d. The time when the amount of growing
a. Bargaining c Supply and demand crops is at the highest.
b. Threatening d. Government
109. What is most likely the effect of a tariff imposed
97. If depreciation occurs_______________ on the importing country for a particular good?
a. Exports will become cheap in the eyes of the a. Raises the price of goods
foreign buyers b. The price remains the same
b. Exports will become more expensive c. Lowers the price of the good
c. Imports will become more expensive d. Cannot be determined.
d. A and C
e. All of the above

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110. The total amount of tax you pay divided by your 121. Which economic system state that the consumer
total income is the________ determine the goods and services to produce?
a. Marginal tax rate a. Advanced market economy
b. Average tax rate b. Pure command economy
c. Total tax rate c. Pure market economy
d. Proportional tax rate d. Mixed economy

111. It is a multilateral agreement on tariff and rules 122. The supply of a product has decreased. This
governing international trade and is concerned a mean that_______
paradigm shift from restricted and protectionism into a. A smaller quantity will be produced at any
freer and more liberalized trade is____________ price
a. GATT c. UR b. The price is too high for equilibrium
b. WTO d. QRS c. A greater quantity will be produced at any given
price
112. The additional economic rent paid to the pre- d. The price is too low for equilibrium
existing domestic producers plus the rent paid to new e. Demand was too high for producers to make
producers above their supply curve is_________ profit
a. Import substitution
b. Transfer effect 123. A shortage of OPEC oil raises virtue
c. Consumption effect of____________
d. Revenue effect a. The law of diminishing marginal utility
b. The law of elastic demand
113. Cooperatives established by farmers failed to c. Downward sloping demand curve
thrive well because_________ d. All of the above
a. Cooperative activities are poorly managed e. None of the above
and implemented
b. Members distrusts their cooperative officials 124. What do you call the calculation of the future
c. Seed money for cooperatives shared by senators value of a present sum by application of the relevant rate
and congressman are poorly administered of interest.
d. Cooperatives are pre-requisite for rural banks a. Discounting c. Rediscounting
b. Compounding d. Accounting
114. According to the law of diminishing marginal
returns, as more units of variable factor are applied to a 125. Two products are said to be complimentary
fixed mix to other factors_____________ when the production of one________
a. At some point output will decrease a. Brings forth an additional to the other
b. At some point total cost will decline b. Does not result in either addition to or reduction
c. Beyond some point marginal revenue will in other
decrease c. Brings forth a reduction to the other
d. At some point the additions to total output d. Replaces the other.
will begin to decline
e. At some point marginal physical products will 126. What theory viewed the process of development
increase as a series of successive stages through which all
countries must pass?
115. These are taxes imposed as a fraction of the a. Linear stage theory
value of the imported goods. b. Neoclassical model
a. Import tax c. Ad valorem tax c. International dependency theory
b. Export tax d. Excise tax d. Structural change theory

116. In the long run__________________ 127. Which of the following statement/s is incorrect?
a. All of a firm resources are variable ( assuming an upward-sloping supply curve)
b. New technology cannot be introduced a. If supply shifts to the left and demand remains
c. Al least one the form’s resources cannot be constant, equilibrium price will rise
varied b. If demand shifts left and supply decrease,
d. None of the firms resources are available equilibrium price will rise
c. If supply shifts right and demand shifts left,
117. When the Philippine currency depreciates equilibrium price will fall
against the US dollar due to forces of supply and d. If demand shifts right and supply shifts left,
demand, it means that________ price will rise
a. The value of the peso increases against the e. If supply shifts right and remains constant,
dollar equilibrium price will fall.
b. The value of the peso declines relative to
the dollar 128. If marginal cost lies below the average cost
c. The value of the peso remains the same then________________
d. The value of the peso increase against the a. Average total cost must be falling
Japanese yen. b. Marginal cost must be falling
c. Average fix cost must be falling
d. Average total cost must be rising
118. It measures the rate by which domestic price of e. Marginal cost must be rising
an input or output face by producers deviates from the
world or border price. 129. Globalization refers to the implementation of
a. Nominal protection free trade on a global scale which is carried out
b. Effective protection rate though_________
c. Implicit tariff a. Trade restriction
d. Government protection b. Trade protection
c. Trade liberalization
119. Marginal revenue (MR) is equal to the_______ d. Trade management
a. Price of output
b. Price of input 130. If demand decreases but supply increases, what
c. Marginal cost happens to the equilibrium price?
d. Fixed cost a. We require more information to determine the
movement in price and quantity
120. The Philippine Cooperative Code of 2008 is also b. Equilibrium price will decrease but
known as___________ equilibrium quantity is indeterminate
a. RA 9520 c. RA 2568 c. Equilibrium price will rise, but equilibrium
b. RA 4569 d. RA 3254 quantity is indeterminate

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d. Equilibrium quantity will rise but equilibrium 142. Command economy is to public ownership :
price is indeterminate market economy is to___________
a. State ownership
131. The replacement of foreign production with b. Government ownership
domestic production is______ c. Private ownership
a. Import substitution d. Public ownership
b. Transfer effect
c. Protective effect 143. Any price lower than minimum AVC
d. Revenue effect is___________
a. Shut down case
132. Taxes imposed by the local government such as b. Loss minimization
cities, municipalities and provinces. c. Open case
a. Local tax c. Property tax d. Profit maximization
b. Excise tax d. Regressive tax
144. Increasing advertising of a product leads
133. It shows the difference in the final price of the to____________
finished good before and after imposition. a. Increase price levels , quality levels constant
a. Nominal protection b. Shift the demand curve to the right
b. Effective protection rate c. Shift the demand curve to the left
c. Implicit cost d. Increase quantity demanded, with price levels
d. Implicit tariff constant

134. Who was the Philippine president who promoted

the national policy on “ Austerity” during his term.
a. Diosdado Macapagal
b. Manuel Roxas 145. What sector is the major contributor to the
c. Carlos Garcia Philippine economy?
d. Ramon Magsaysay a. Service sector
b. Agriculture and forestry sector
135. What part of the project feasibility study c. Mining sector
considers the manufacturing process, plant capacity and d. Manufacturing sector
location ,machineries required and building equipment.
a. Management study 146. What is the largest employer in the Philippines?
b. Market study a. San Miguel Corporation
c. Financial study b. Del Monte Philippines
d. Technical study c. Dole Philippines
d. Purefoods Corporation
136. A negatively sloping straight-line demand curve e. Philippine Government
_____________
a. Is inelastic 147. Which of the following is a threat to agribusiness
b. Is elastic success?
c. Is unit elastic a. Scarcity of service
d. Is perfectly inelastic b. Inadequate quality control
e. Has a different price elasticity of demand at c. Rising cost
every point along it. d. Small capital

137. Income elasticity of a normal good such as 148. What opportunities are available to Filipino
milk___________ farmers who are members of the different cooperatives?
a. Will have a negative value a. Loan packages for purchase for working
b. Will have a positive value animals, tractors and fertilizers.
c. May have a negative or positive value b. Loan package for irrigation pumps
d. Is not defined. c. Loan packages for seedling and fertilizers
d. Loan packages for the educational expenses of
farmers
138. Yield or productivity refers to the concept
of__________ 149. Which among the following is an example of an
a. Marginal product implicit cost?
b. Isoquant a. Salaries paid to the hired farm workers
c. Average product b. Costs of seeds and fertilizers
d. None of the above c. Depreciation cost of self-owned jeep used
as delivery vehicle in the farm
139. Demand for finished product is considered d. Land rent
______
a. Primary demand 150. In general terms, efficiency, refers
b. Derived demand to__________
c. Consumer demand a. The volume of resources utilized in the farm
d. Both A and C business
e. Both A and B b. The ratio of total liabilities to total assets in the
business
140. What type of market exist in the computer c. The net farm income generated by the farm
software industry? business
a. Differentiated competition d. The volume of production generated per
b. Pure competition unit of resource utilized in the farm
c. Shared monopoly business
d. Pure monopoly
151. What Philippine government agency is in the
141. The following except one are basic questions brink of dissolution after 25 years after its creation or
addressed by an economic system. when its objective are met?
a. What goods and services to produce a. Department of Agriculture
b. For whom and how much to produce b. City Agriculture Office
c. How to produce c. Department of Agrarian Reform
d. What goods and services to trade d. National Poverty Commission

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152. The Philippine economy can also be measured 163. An enforced proportional contribution form
through___________ owners of land peculiarly benefited by public
a. Barrowing rates improvements.
b. The rise and fall of dollar exchange rates a. Tax c. Penalty
c. Inflation b. Fee d. Assessment
d. Lending rates
164. Mr. Santos is a poultry owner who needs to pay
153. When 5 or more people decided to go into a taxes and other accounts payable before the end of the
business and form a corporation, they year. In what part of the financial statement this be
become__________ reflected?
a. Partners a. Asset c. Liabilities
b. Proprietors b. Debit d. Credit
c. Incorporators
d. Speculators 165. Which of the following is not a major
macroeconomic objective of the government?
154. The most common cause of depreciation of land a. Sustained economic growth
value is________ b. A fall in the level of price of crude oil
a. Depletion of fertility c. A high level of employment
b. Erosion d. Low and stable inflation
c. Presence of weeds
d. Pollution 166. When the purchasing power of peso decreases/
weakens, this is a clear manifestation of__________
155. The demand for goods like table salt and a. Inflation
toothpick tend to be_________ b. Economic crisis
a. Elastic c. Artificial money hoarding
b. Perfectly elastic d. Recession
c. Unitary elastic
d. Inelastic 167. The case for the protection of infant industries
rests on the assumption of____________
156. What does the law of supply state? a. Efficiency
a. Producers supply goods in proportion to the b. Inability
demand for them c. Latent comparative advantage
b. The supply of a good is a function of the d. Revenue gain
resources available to produce it
c. As the price of the good increases, 168. The law of demand states that_______
producers offer more of it for sale a. There is someone, somewhere who has a use of
d. The supply of a good depends upon the number anything
of people who wish to purchase it. b. People will spend a constant peso amount for a
good that is in demand
157. Which of the following is also known as the “ c. If people want something, they can always get it
Invisibles” in the BOP account? d. The quantity of a good people will want to
a. Merchandise trade buy and the price they must pay for it are
b. Non-merchandise trade inversely related
c. Capital account
d. Official settlement 169. A sudden shift from rice to corn consumption by
Filipinos will___________
158. The economic framework which has been a. Induce a movement along the demand curve for
defined by GATT-ATO call for the expansion and corn and rice
stabilization of world trade through the following EXCEPT b. Shift the demand curve for rice upward and corn
one__________ downward
a. Tarrification and quantitative restriction c. Shift the demand curve for corn upward
b. Reduction of domestic price and export subsidies and rice downward
c. Increase tariffs on all agricultural products d. Nothing happens
d. Market access commitments and harmonization
of sanitary and phyto-sanitary measures 170. If E was the old equilibrium in the market for
pork, and E’ the new one, describe what most likely
159. What is the systematic manner of recording the caused the damage?
financial operations of an agribusiness? a. Consumer income rose causing a supply shift
a. Journalizing c. Bookkeeping b. Bad weather caused a supply shift
b. Accounting d. Compounding c. Consumer income rose causing a demand
shift
160. The word economics comes from the Greek d. Supply and demand both shifted
word__________which means “ management household” e. None of the above are plausible description
a. “ Eikonomia”
b. “Eikonomiya” 171. Supply of a given good will be affected
c. “ Oikonomia” by_____________
d. “ Oikonomiya” a. Change in the demand for the good
b. A change in the consumer preference
161. Which of the following will cause the supply of c. A change in the technology with a resultant
microcomputers to increase? effect on the cost of production
a. An increase in the price of inputs such as d. Introduction of new consumers into the market
computer chips
b. An increase in the demand for computers 172. Which of the following is NOT a requirement for
c. A decrease in the demand for mainframe economic development?
computer a. Tropical climate
d. A decrease in taxes on the computer b. Natural resources
industry c. An adequate capital base
d. Technological advances
162. An increase in supply will lower price unless
____________ 173. What is the most important factor to be
a. Demand is perfectly inelastic considered by a retailer?
b. Demand is perfectly elastic a. Preparation of sales receipt
c. It is followed by an increase in quantity b. Pricing of different items
demanded c. Attending to the needs of the customer
d. It is followed by decrease in demand d. Packing and re-packing the items
e. Both demand and supply are highly elastic
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174. What law which is the consolidation and update 185. The demand curve shows the graphic
of all existing laws on IPR? relationship between which two variables?
a. HB No 01095 c. RA 8293 a. The price of a good and consumers income
b. EO 568 d. EO 430 b. The price of a good and quantity of it
purchased
175. In recession, the level of national output c. Consumer’s income and the quantity of a good
________ purchased
a. Rises at a decreasing rate d. The opportunity cost of a good and the quantity
b. Falls of it purchased.
c. Is rising
d. Rises at an accelerating rate 186. Which of these problems affects market
efficiency?
176. What is the setback of free trade in meat? a. Infrastructure c. Income
a. Farmers meat are not saleable b. Producer d. Society
b. Farmers are competitive
c. Farmers set back is so great to recover 187. Trade Liberalization is the result of the following
d. Farmers thrive because of cooperatives EXCEPT?
a. Tariff reduction
177. In marketing, an important consideration in b. Elimination of production subsidies
locating the processing plant is to know what happens to c. Elimination of export subsidies
the weight or volume of the product after processing. If d. Limited flow of goods from abroad
the product gains weight, the plant should be
at________ 188. It is the choice between alternative uses of a
a. Market centers given quantity of resources.
b. Production center a. Opportunity cost
c. Cities b. Trade off
d. Anywhere c. Economic choice
d. Scarcity
178. Which of the following is the first agribusiness
company to be publicly listed in the Philippine Stock 189. How do you call the people who take over a
Exchange? business started by someone else and use their own
a. Del Monte Philippines ideas to make it successful?
b. Tyson Agriventures a. Capitalist
c. Dole Philippines b. Franchisees
d. Calata Corporation c. Incorporators
d. Speculators
179. What activities are required to convert
production inputs to outputs? 190. The best way to avoid buying on installment is
a. Assembly c. Manufacturing by____________
b. Operations d. Technology a. Borrowing
b. Credit buying
180. The demand for labor is____________ c. Saving
a. Likely to increase with decreases on d. Withholding consumption
resources price
b. A direct relationship between resources price 191. Advertising that promotes the product of an
and quantity demanded industry rather than the product of an individual firm is
c. A derived demand called_________
d. Always unitary elastic a. Persuasive advertising
b. Competitive advertising
181. This is a pricing strategy to gain more customers c. Informative advertising
while maintaining / holding the present ones. d. Generic advertising
a. Unit pricing c. Special pricing
b. Price lining d. Psychological pricing 192. According to the law of supply, price and
quantity supplied are_________
182. In the Philippines, ____________helps the a. Proportional to one another
Philippine peso to recover its purchasing power against b. Proportional to the quantity demanded
the dollar. c. Influenced by income and the availability of
a. World Bank substitutes
b. Central Bank d. Directly related to one another
c. Philippine National Bank
d. International Monetary Fund 193. Economic analysis that explains what happens in
the economy and why, without making policy
183. One of the problems on the Agrarian Reform recommendation is called_______
efforts is its delay in its implementation primarily because a. Normative analysis
of the urbanization of municipalities. Cite the main b. Positive analysis
problem of this problem. c. Market analysis
a. Limited land area resulted in converting public d. Subjective analysis
lands to subdivisions
b. Agricultural lands were converted to residential 194. In what part of the business plan can you find a
lands study of the business competitors, the supply and
c. Coordination of DAR, DA and DILG is met demand of the product, the marketing and projected
d. Agricultural lands were sold to industrial sales.
establishment a. Production plan
b. Financial feasibility
184. What do you call the expenditures of foreigners c. Market feasibility
on domestically produced goods? d. Organizational plan
a. Imports c. Investment income
b. Exports d. Transfer of payment 195. Which characteristic of an entrepreneur may not
be very necessary for him/her to be successful in his/her
endeavor?
a. Skills in human relations
b. Innovativeness
c. High educational attainment
d. Work skills

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196. Because oil is a necessity and has no good

substitute, the demand for it is likely to be_______
a. Price inelastic
b. Price elastic
c. Unitary elastic
d. Perfectly elastic

197. Which practice is employed when eateries use

vegetables they grow?
a. Linkage
b. Forward integration
c. Backward integration
d. Horizontal integration

198. What makes possible the exchange of goods and

services with other countries?
a. Agreements c. Money
b. Credits d. Trade

199. If price increases from P6 to P8 and quantity

demanded decreases from 18 to 12, the price elasticity
is_______
a. 0.467 c. 2.14
b. 1.4 d. 5

200. A series of quality management and assurance

standard which defines the elements required to achieve
a quality system regardless of the product or the
technology used.
a. ISO 9000
b. Good Agricultural Practice (GAP)
c. HACCP
d. Good Management Practice

BONUS QUESTIONS ( 1 PT EACH)

1. Arsenio M. Balicasan is currently NEDA Secretary

General. Who is the first Filipina to hold the
position as NEDA Secretary General?_________
2. Who is the Chairman of the Board of Agriculture
?_________________
3. Specifically what section in the AFMA states the
creation of Board of Agriculture and the conduct
of the Licensure Examinations
4. The speech delivered by the President during the
opening of the annual regular session of the
legislative house
5. According to the Philippine Constitution, what
Department shall receive the highest allocated
budget?
1) SOLITA MONSOD 2) FORTUNATO BATAD 3) SEC 75
4) SONA 5) EDUCATION

END OF EXAMINATION IN AGRICULTURAL ECONOMICS AND

MARKETING

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