AGRICULTURAL ECONOMICS AND MARKETING b.

support price
c. price control
d. market price
1. Which type of utility is created when products are made available to the area where they are
most wanted? 7. They are middlemen who act only as representatives of their clients
a. form a. merchant middlemen
b. time b. agent middlemen
c. place c. contract buyers
d. possession d. commission men

2. A group of men are moving vegetables from their farms to consumers in the city. Which activity 8. Which of the following explain the farmers dependence on middlemen
best describes what these group of men is performing. a. traditional marketing practice
a. marketing b. poor cash position of the farmers
b. producing c. characteristics of consumers
c. processing d. number of producers
d. creating
9. Study of the various agencies and business structure which perform the marketing process
3. Which of the following is considered as the point of consumption? a. commodity approach
a. point of transaction b. institutional approach
b. point of concentration c. functional approach
c. point of last sale d. structure-conduct-performance approach
d. point of transportation
10. Ramon is one of the many farmers producing rice. He wants to sell his products but the price is
4. They are considered as “actors” in the system who perform vital functions but sometimes they low. If he is going to demand for a higher price, no one will buy his produce. In what type of
get the ire of the producers, consumers and government. market does he belong?
a. producer subsystem a. perfect competition
b. environmental subsystem b. monopoloy
c. channel subsystem c. oligopoly
d. functional subsystem d. monopolistic competition

5. Which of the following best defines bulkiness in agricultural products? 11. Which term best applies to a market with a single buyer?
a. low price in relation to weight or volume a. monopoly
b. equal price in relation to weight and volume b. monopsony
c. high price in relation to weight and volume c. oligopoly
d. all of the above d. oligopsony

6. Ceiling price is imposed as a 12. Which term shows the quantity of goods / services placed by the seller in the market at
a. minimum price alternative prices, cet. Par.?

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 a. demand a. price
b. supply b. promotion
c. price c. processing
d. utility d. product

13. The sloping downward of a demand curve shows an inverse relationship between price and 19. Floor prices are referred to as:
quantity demanded. It means: a. market price
a. as the price increases, the quantity demanded decreases b. special price
b. as the price decreases, the quantity demanded decreases c. support price
c. as the price increases, the quantity demanded increases d. all of the above
d. all of the above
20. The market for farm product is under pure competition. This means that:
14. Which of these factors greatly influence seasonal fluctuations in price? a. farm products are close substitutes
a. storage b. there are a lot of similar products, each competing with one another
b. risk charges involved in holding the product c. prices of the products are held at market price
c. credit facilities d. all of the above
d. all of the above
21. The application of economic principles and theories in agriculture:
15. Which of the following best describes the prices in a perfect market? a. production economics
a. variable b. microenomics
b. constantly changing c. agricultural economics
c. uniform d. normative economics
d. unpredictable
22. If the price of output is P15.50 / unit, what is the total value of the product if production is 150
16. Which of the following refers to information gathered directly or first hand such as interviews units.
and surveys? a. P2, 325.00
a. primary data b. P 0.68
b. secondary data c. P 232.50
c. both a and b d. P 165.50
d. all of the above
23. A curve showing the different combinations of inputs that will yield the same level of output.
17. Functional approach in marketing includes the following, except one: a. isocost line
a. exchange functions b. isoquant
b. marketing functions c. indifference curve
c. physical functions d. budget line
d. facilitating functions 24. A curve showing the different combinations of goods / service that will yield that same level of
satisfaction
18. The essential 4Ps of marketing are the following except one: a. isocost line

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 b. budget line 32. Cost of self-owned resources
c. indifference curve a. variable cost b. explicit cost
d. isoquant c. implicit cost d. fixed cost

25. A function showing the physical relationship of combinations of inputs and maximum output of a 33. The budget line shows the different combinations of goods / service that will yield the same
certain technology, putting prices aside. a. utility b. output
a. cost function c. expenditure d. cost
b. production function
c. utility function 34. The change in cost per unit change in output
d. consumption function a. average cost b. marginal cost
c. value of total product d. total cost
26. A field of economics that deals with the study of individual economic units operating within the
economy 35. The following are properties of indifference curve except
a. microeconomics a. convex to the origin
b. marcoeconomics b. intersect each other
c. production economics c. negatively sloped
d. agricultural economics d. higher indifference curves represent higher levels of satisfaction
36. The price level at which demand is equal to supply
27. A good of which the demand decreases as consumer income increases a. market price b. ceiling price
a. substitute good b. complementary good c. support price d. floor price
c. inferior good d. normal good
37. The equality of demand and supply will result to:
28. Cost per unit of output a. market surplus
a. marginal cost b. average cost b. market shortage
c. total cost d. variable cost c. market equilibrium
d. market disequilibrium
29. The change in output per unit change in input
a. average cost b. total product 38. Given the demand and supply functions:
c. marginal product d. value of total product P = 40 – ½ Qd P = -5 + ½ Qs
The market price is:
30. The cost that does not vary with output a. P16.50
a. variable cost b. short-run cost b. P7.50
c. fixed cost d. total cost c. P27.50
d. 17.50
31. A production period for which some of the inputs are fixed
a. short run b. long run 39. The equilibrium quantity of no. 41 is
c. one cropping period d. one year a. 60
b. 45

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 c. 35 c. income effect
d. 47 d. utility

40. Total product is 150 kgs when labor is 5 units and capital is 10 units. The average product for 46. A study that deals with “what is ought to be” in the economy
labor is a. microeconomics
a. 30 b. normative economics
b. 50 c. positive economics
c. 3 d. macroeconomics
d. 15
47. Payments made by government to producer without any service or good in return
41. Using the same condition in No. 42, the average product for capital is a. subsidy b. price control
a. 5 c. price support d. fiscal policy
b. 10
c. 15 48. The production function shows the physical relationship between different combinations of input
d. 30 and ________
a. output b. maximum output
42. When output is increased from 75 to 82, total cost also increases from 150 to 164. The average c. cost d. utility levels
cost when the output is 75 is
a. 3.00 49. Higher indifference curves should be represented by
b. 2.00 a. lower numbers b. higher numbers
c. 0.50 c. negative numbers d. positive numbers
d. 1.50
50. Imposing a ceiling price will entail __________ in the market
43. Using the condition in No. 43, the marginal cost is a. inflation b. shortage
a. 1.50 c. surplus d. benefit to producers
b. 2.00
c. 3.00 51. Imposing a floor price will entail __________
d. 0.50 a. deflation b. surplus
c. shortage d. benefits to consumers
44. The following are factors affecting demand except:
a. consumers income 52. Profit is realized when the price of the product is
b. number of consumers a. equal average cost
c. consumers savings b. greater than average cost
d. price of related goods c. average cost is equal to marginal cost
d. marginal cost is equal to marginal revenue
45. Denotes the consumers satisfaction out of consumption
a. substitution effect 53. Output per unit of input
b. consumers preference a. marginal product b. average product

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 c. total product d. maximum product d. total product

54. Resources that are scare relative to their uses 61. The following are characteristics of pure competition except
a. free resource b. natural resource a. product homogeneity
c. economic resources d. human resources b. no artificial restraints
c. difficulty to enter the market
55. Resources that are abundant relative to their uses d. many buyers and sellers
a. free resources b. economic resources
c. natural resources d. human resources
62. High value commercial crops law
56. The following are determinants of supply except a. RA 6900
a. price inputs b. climatic factors b. RA7900
c. technology d. price related products c. RA 8435
d. RA 6657
57. When the price of substitute goods increases, the market price will
a. remain the same 63. Established the National Irrigation Administration
b. increase a. RA 6900
c. decrease b. RA7900
d. need support c. RA 3601
d. RA 6657
58. The income of consumers increases at the same time that the climate is favorable for the
production of an inferior good. In such a case, the market price will 64. Inputs that vary with output
a. remain the same a. economic resources
b. increase b. labor
c. decrease c. variable inputs
d. need control d. fixed inputs

59. The minimum price set by legal authorities in the market 65. A point where revenue is equal to cost
a. ceiling price a. optimum point
b. floor price b. least cost point
c. equilibrium price c. break-even point
d. price control d. equilibrium point

60. The various quantities of goods that sellers / producers are willing to place at the market at 66. Economics is a
different price levers, cet. Par. a. natural science
a. demand b. physical science
b. supply c. social science
c. maximum output d. exact science

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 76. If the net income from abroad is positive, GNP is
67. Demand is perfectly elastic when elasticity is a. lower than GDP b. greater than GDP
a. infinity b. greater than zero c. equal with GDP
c. zero d. less than one d. low

68. Demand is perfectly inelastic when elasticity is equal to 77. The best way to compare national output
a. infinity b. zero a. nominal GDP
c. greater than zero d. less than one b. GDP per capita
c. Nominal GNP
69. Which of the following has a negative effect on supply d. Real GDP
a. favorable climate b. technology
c. price of inputs d. price of joint product 78. A social welfare indicator
a. nominal GDP
70. Additional satisfaction derived from consuming an additional unit of goods or services b. GDP per capita
a. total utility b. marginal utility c. nominal GNP
c. average utility d. ordinal utility d. real GDP

71. A branch of economics that deals with the economy as a whole 79. Composed of savings plus consumption
a. macroeconomics b. economics a. national income
c. microeconomics d. agricultural economics b. disposable income
c. net national income
72. Calculates the GDP by summing all expenditures on final goods and services d. personal income
a. income approach b. expenditure approach
c. value – added approach d. aggregate approach 80. The rate of change in consumption per unit change in income
a. expenditure
73. Which one is not included in the measurement of GDP b. budget
a. government expenditures b. investment c. marginal propensity to consume
c. income of overseas workers d. household consumption d. consumption

74. Policy that has something to do with the government expenditure and taxation 81. The prolonged and deep recession
a. fiscal policy b. monetary policy a. business cycle
c. expansionary policy d. contractionary policy b. inflation
c. depression
75. The market value of all final goods and services that a country’s resources produce per unit time d. stagflation
regardless of where the output is produce
a. GDP b. GDP per capita 82. Which one is not included in the measurement of GNP
c. Real GDP d. GNP a. salaries of government officials
b. income of Filipino singers in abroad

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 c. market value of intermediate goods c. balanced budget d. budget cut
d. income of laborers 90. The normal short term ups and down of the economy
a. economic cycle b. seasonal cycle
83. GDP using current prices c. business cycle d. price cycle
a. real GDP
b. GDP per capita 91. The most liquid asset
c. nominal GDP a. land b. corporate bonds
d. nominal GNP c. money d. buildings and machineries

84. Expenditure of the firm 92. The meaning of the word “economics” is most closely associated with the word
a. consumption a. free b. unlimited
b. inventory c. scare d. restricted
c. investment
d. value of capital stock 93. In a free enterprise economy, the problems of what, how and for whom to produce are solved by
a. planning committee b. the elected representative of the people
85. Part of the disposable income not spent by households c. the price mechanism d. none of the above
a. saving
b. borrowing 94. The word economics means household
c. dis-saving a. decisions b. keeping
d. consumption c. management d. resources

86. The sum of the marginal propensity to consume and the marginal propensity to save is 95. The value of the best alternative one gives up when a choice is made is called
a. equal to one a. implicit cost b. opportunity cost
b. greater than one c. explicit cost d. cash cost
c. zero
d. less than one 96. When the current price exceeds equilibrium price
a. there is shortage and price will rise
87. Increase in the overall price level b. there is a shortage and price will fall
a. deflation c. there is surplus and price will rice
b. inflation d. there is surplus and price will fall
c. stagflation d. hyper inflation
97. Which of the following adequately defines inflation
88. A curve showing the relationship of unemployment and inflation rate a. increase in aggregate output level and services
a. indifference curve b. production possibility frontier b. increase in the general level of prices
c. Phillips curve d. aggregate demand curve c. rising prices of output of goods
d. declining prices of output
89. Government revenues exceed its expenditure
a. budget surplus b. budget deficit

148
98. Unemployment caused by the business cycle is known as d. Protect the government
a. cyclical unemployment
b. structural unemployment 105. Which is not an example of a quantitative restriction?
c. frictional unemployment a. Limiting imported rice up to 500 sacks per month.
d. none of the above b. 5% ad valorem duty on imported wines
c. Government sets the volume of natural rubber to be exported up to 1000 tons
99. Capital is usually accumulated from
d. A and C.
a. interest
b. profit
c. rent 106. Which is not common between international and domestic trade?
d. savings a. Desire for profit
b. Objects of Exchange
100. Manipulation of the public budget government spending and tax collections to achieve full c. Currency d. All of the above
employment is called
a. monetary policy 107. If the peso value of the US dollar increases, then the value of the peso
b. fiscal policy a. Appreciates b. Depreciates
c. public policy c. Stable d. None of the above
d. economic policy
108. If the peso value of the dollar decreases, then the value of the dollar in terms of peso
101. An example of a foreign exchange in the Philippines is: a. Appreciates b. Depreciates
a. Peso value of US dollar b. Peso value of Yen
c. Stable d. None of the above
c. Phil peso d. US dollar

102. Which is an example of a specific duty? 109. Which is not an important base for international trade?
a. P50.00 duty on the import value of an automobile a. Price differences b. Stage of Economic Growth
b. 15% duty on the import value of textile c. Stage of Economic Development d. Population Distribution
c. P10.00 duty on the import value of a can of sardines
110. Which is a characteristic of a Free Trade Area?
d. P5.oo duty per sack of wheat
a. Group of countries which have common trade policies
b. Group of countries which have common currency
103. When the Philippines exports natural rubber to US, the transaction is settled in terms of:
a. Phil Peso b. US dollar c. Group of countries which, eliminates trade restrictions among themselves.
c. Gold d. None of the above d. All of the above

104. Protectionists policies are designed /imposed to: 111. Free trade is a basic concept in international exchange which means
a. Eliminate trade barriers a. Absolute no trade restrictions
b. Eliminate trade discrimination b. No government restrictions in any form in trade
c. Protect domestic industries c. Minimum government interference in trade

149
 d. No trade. COUNTRY B 8 5

112. US has a comparative advantage in producing aircrafts, it implies that

a. US cannot produce anything but aircraft
116. Based on the table above, which among the two countries have a comparative advantage in
b. US should specialize in producing aircrafts terms of Banana Production?
c. US is the sole producer of aircraft a. Country A b. Country B
d. All of the above c. Country A and B
d. None of the above

117. Country B has comparative advantage in

113. Which is not true in International Trade? a. Banana
a. It increases the usefulness of the goods subject to trade. b. Banana and Pine apple
b. It eliminates price differences among different markets. c. Pine apple d. None of the above
c. It increases the cultural awareness of the people.
d. Patterns of trade depends on which country has a comparative advantage in producing a 118. What is the opportunity costs of producing banana in country A?
a. 1.25 banana b. 1.60 pineapple
good.
c. 0. 625 banana d. 0.80 pineapple

114. The dominance of the US dollar as an international currency- widely accepted as payments in 119. What is the opportunity costs of producing pine apple in country B?
international transactions can be traced way back from the a. 1.25 pineapple
a. Gold Standard b. 1.60 banana
b. Great Depression c. 0. 625 pine apple
c. WW2 d. 0.80 banana
d. None of the above
120. This is created when products are made available in places where they are most wanted.
a. Product Utility
115. In a customs union, trade barriers are eliminated between
b. Place Utility
a. Member countries only
c. Price Structure d. All of the above
b. Member countries and the world outside
c. World outside only 121. What theory on international specialization supports the idea that a good will be produced
d. All of the above only in countries where the costs is least in terms of real resources.
a. Theory of Comparative Advantage
BANANA PINE APPLE b. Theory of International Specialization
c. Theory of Absolute Advantage
COUNTRY A 10 8 d. None of the above

122. An English economist who proposed the theory of comparative advantage on 1817.

150
 a. John Maynard Keynes b. Adam Smith c. Global Quota d. Allocated Quota
c. David Ricardo d. None of the above
123. Countries specialize on the production of goods where they have 131. The series of services involved in moving the product from the point of production to the point
a. Absolute advantage b. Comparative advantage of consumption is
c. Strategic location d. Abundant resources a. marketing operations b. marketing functions
c. marketing d. marketing channels
124.The world’s monetary system years way back in WWII was based on
a. Silver b. Diamonds 132. Desire for a product together with the capacity to buy that product
c. Gold d. None of the above a. income effect b. demand
c. income elasticity of demand d. effective demand
125. These are some of the other possible bases for international specialization except
a. Differences in consumer preferences 133. Acts as the grease in the marketing machinery
b. Differences in Environmental Endowments a. selling b. transportation
c. Location c. market intelligence d. all of the above
d. Economies of Scale
134. An example of a merchant middleman
126. It refers to any policies and practices that interfere with the free flow of trade among nations. a. Wholesaler b. Broker
a. Trade restrictions b. Trade policies c. Retailer d. Both A and B
c. Trade d. None of the above
135. One whop buys commodities from the market
127. In a two-good, two country model, the opportunity cost of producing good X is a. Consumer b. Mother
a. Good X b. Good Y c. Customer d. Decision-maker
c. Good X and Y
d. None of the above 136. Other things being equal, an increase in the per capita income of consumers will result in
a. a change in quantity demanded
128. A favorable trade exists when b. a change in demand
a. Imports exceeds imports c. an increase in demand
b. Exports exceeds Imports d. a decrease in demand
c. Imports equal exports d. None of the above
137. Makes possible the smooth performance of both the exchange and physical functions
129. These are restrictions imposed by one country on the volume and kind of goods that may be a. buying b. market intelligence
allowed to enter or leave the country. c. selling d. transportation
a. Quota b. Tariff
c. Exchange control 138. A component of the marketing margin that refers to the returns to the various factors of
d. Marks of Origin production used in providing the processing and marketing services rendered between the
farmers and consumers
130. The minimum quantity of a product that is destined to other countries. a. marketing costs b. processing costs
a. Import Quota b. Export Quota c. net return d. marketing charges

151
 a. Commodity approach
139. Price will tend to rise in response to b. Institutional approach
a. a sharp decrease in population with no change in supply c. Functional approach
b. a cost reducing technology, demand unchanged d. Structure-conduct-performance approach
c. an increase in income with no change in supply
d. none of the above
146. The behavior pattern of a firm in the industry
140. The price at which the quantity per unit of time that buyers want is just equal to the quantity a. Market conduct b. Market performance
that sellers want to sell c. Market structure d. Pure competitive
a. equilibrium price
b. selling price 147. Does not obtain title to the goods bought
c. buying price a. Commission agent b. Merchant
d. none of the above c. Broker d. Wholesaler-Retailer

141. A series of figures representing the absolute margins of different types of middlemen or 148. A pricing strategy that uses odd-even centavo
assignable to different marketing functions divided by the retail price a. Premium pricing b. Psychological pricing
a. percentage margin c. Tie-in pricing
b. percentage mark-up d. Price skimming
c. constant margin
d. breakdown of the consumer peso 149. The purpose of advertising is to
a. Convince and sell b. Make publicity
142. The simplest product flow is c. Give discount
a. Farmer-Contract Buyer-Retailer-Consumer d. Inform and persuade
b. Farmer-Wholesaler/Retailer-Retailer-Consumer
c. Agent Wholesaler-Wholesaler/Retailer-Consumer 150. The silent salesman in a store is
d. Farmer-Wholesaler/Retailer-Consumer a. Packaging b. Seller
c. Branding d. Entrepreneur
143. The ultimate link to the consumers in this system is the
a. Retailer b. Both A and B 151. A government policy that has something to do with taxes and government spending
c. Wholesaler/Retailer d. None of the above a. fiscal policy b. monetary policy
c. income policy d. supply-side policy
144. One of the essential functions of price
a. Tells producers what and how much to produce 152. The word economics is closely associated with the word
b. Allocates productive resources to the production of goods and services a. problem of scarcity or resource
c. Guides goods and services through the channels of trade b. problem of source
d. All of the above c. problem of allocation of resources d. all of the above

145. Study of the various agencies and business structure which perform the marketing processes 153. Functional approach in marketing is classified as follows except one

152
 a. income approach 161. This marketing functions’ major concerns are the most and time it takes to move the products
b. physical function from the farm to the processing and consuming centers
c. marketing function d. facilitating function a. storage function
b. transportation function
154. Calculates GDP as the sum of all expenditures of final good and services c. processing function d. grading and standardization
a. income approach b. expenditure approach
c. value – added approach 162. The following are some of the factors that affect the marketing of farm products except
d. saving approach a. heavy cost of transaction
b. lack of storage facilities
155. The following are characteristics of an indifference curve except c. variation in quality d. political problems
a. An IC lies above and to the right of another represents preferred combinations of
commodities 163. The market value of all final goods and service produced within a given period of time by
b. ICs are negatively sloped factors of production located within the country
c. ICs are positively sloped a. Gross Domestic Product
d. ICs never intersect b. Net National Product
c. Gross National Product
d. GDP per capita
156. Marketing rests on the following core concepts except one:
a. needs b. transaction 164. The essential 4Ps of marketing are the following except one
c. satisfaction d. weather a. price b. promotion
c. processing d. product
157. The impact of a pure price change on the quantity demanded of a certain commodity
a. substitution effect b. elasticity effect 165. Cost does than not change as output increases. Also known as “sunk cost” or “overhead cost”
c. budget effect d. income effect a. total cost b. total fixed cost
c. marginal cost d. average cost
158. The following are kinds of market structures except one:
a. monopoly b. duopoly 166. The primary aims of this marketing function is to help balance supply and consumption or to
c. tripoly d. monopsony balance periods of plenty and periods of scarcity brought about by the seasonal characteristics
of farm products
159. A product – oriented rather than a market – oriented approach of agricultural marketing a. storage function
a. institutional approach b. commodity approach b. transportation function
c. functional approach d. marketing approach c. processing function d. grading and standardization

160. Considered as the founder of modern macroeconomics 167. This marketing function includes all the essential manufacturing activities that change the basic
a. John Maynard Keynes form of the product
b. Economics a. storage function
c. Government Section d. Microeconomics b. transportation function
c. processing function d. grading and strandardization

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 175. This utility is one of the important factors that influences the utility of the goods
168. For exchange potential to exist, one condition must be satisfied a. form utility b. place utility
a. There are at least two parties c. time utility d. service utility
b. Each party is not free to accept or reject the exchange offer
c. Each party believes it is undesirable to deal with the other party 176. This explains the relationships of variable input and fixed input in the production process
d. Each party is incapable to deliver and communicate a. law of diminishing return
b. law of supply
169. Represents the spending of households and private non – profit institutions of goods and c. law of supply and demand
services d. law of demand
a. consumption b. investment
c. disposable income d. expenditure approach 177. If the aggregate consumption function is C = 15, 000 + 0.65 Y, the marginal propensity to save
is
a. 0.65 b. 0.35
170. Pure competition market was characterized by the following except one c. 0.75 d. 0.80
a. The product is homogenous
b. There is perfect mobility of resources 178. A period when there is a rapid increase in the overall price level
c. There are many buyers and sellers of a product a. hyperinflation
d. There is a limited control price b. stagflation
c. inflation
171. A period of which the real GDP declines d. sustained inflation
a. inflation
b. recession 179. The ratio of unemployed work force to the total labor force of a country
c. depression d. deflation a. unemployment
b. unemployment rate
172. One of the disadvantages of a corporation is c. disguised unemployment
a. It has a permanent life d. frictional unemployment
b. It permits easily the transferability of ownership of interest
c. It has limited liability 180. A curve showing the negative relationship of inflation rate and unemployment rate
d. It is not easy to organize a. unemployment rate b. labor demand curve
c. Philips curve d. business curve
173. Purchase of firms and additions to inventory
a. consumption b. investment 181. The ratio at which a country can trade domestic products for imported products
c. expenditure d. purchases a. comparative advantage
b. absolute advantage
174. The investment multiplier c. terms of trade d. exchange rate
a. 1/mps b. 1/mpc
c. –mps/mps d. –mps/mpc 182. When government revenues equals government spending

154
 a. net budgetary position a. cost – oriented pricing
b. budget surplus b. competition – oriented pricing
c. balance budget c. demand – oriented pricing
d. balance budget multiplier d. supply – oriented pricing
183. The normal short term ups and downs in the country
a. business cycle b. recession 189. It is concerned with the study aggregate economic behavior such as output, employment,
c. cyclical unemployment money and the general price level
d. seasonal price behavior a. positive economics b. macroeconomics
c. microeconomics
If output of milk and corn by a worker in countries A and B are as follows: d. normative pricing

Country Sacks of Liters of Milk 190. Willingness of the consumer to buy goods and services
Corn a. supply b. demand
c. wants d. needs
A 5 8
B 4 2 191. Willingness of the producer to produce more or less goods and services in the market
a. supply b. demand
c. wants d. needs
184. Country A has the absolute advantage of producing:
a. corn b. milk 192. The price of one country currency in terms of another country’s currency
c. both corn and milk d. none of the above a. foreign exchange b. exchange rate
c. balance of payment d. terms of trade
185. Referring to the table, country B has the comparative advantage of producing
a. corn b. milk 193. Known as the Comprehensive Agrarian Reform Law
c. both corn and milk d. none of the above a. RA 1144
b. RA 7900
186. The act of obtaining a desired product from someone by offering something in return c. RA 8435
a. transaction b. grading d. RA 6657
c. exchange d. labeling
194. Middlemen are classified on the following except one
187. Many business set their price largely or even wholly on the basis of money used or cost in a. agent middlemen b. merchant middlemen
producing the goods c. processors and manufacturer d. exchange middlemen
a. cost – oriented pricing 195. A trading systems where goods are exchanged for another good
b. competition – oriented pricing a. goods market b. international trade
c. demand – oriented pricing c. barter trade d. domestic trade
d. supply – oriented pricing
196. It is an association of individuals for the purpose of performing for the group essential
188. Pricing is based chiefly on what is competitions are charging economic services otherwise handled by other persons

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 a. corporation b. cooperative c. Total Cost d. Marginal Cost
c. partnership d. sole proprietorship
204. Cost of self owned, self employed resources
197. The monetary authority of the Philippines a. Total Fixed Costs
a. Secretary of Finance b. Bangko Sentral ng Pilipinas b. Total Variable Costs
c. Monetary Board c. Explicit Cost d. Implicit Cost
d. President of the Philippines
205. The payment for the non-owners of the firm. Also known as expenditure cost.
198. All currencies other than domestic currency of a given country a. Total Fixed Costs
a. foreign exchange b. Total Variable Costs
b. dollar c. Explicit Cost d. Implicit Cost
c. exchange rate d. hard currency
206. Locus of points, each point representing a combination of two which will yield the same level
199. The sorting of products into lots or units according to one or more of their quality attributes to of output for the produce
meet the consumers various desires, taste and preference a. Isoquant b. Isocost Curve
a. grading c. Indifference Curve d. Budget line
b. standardization
c. packaging d. labeling 207. The least cost combination is where
a. Isoquant is below the isocost line
200. The country’s merchandise exports minus its merchandise imports b. Isoquant is above the isocost line
a. balance trade b. balance of payment c. Isoquant is tangent to the isocost line
c. terms of trade d. free trade d. Isoquant is parallel to the isocost line
208. Increase in income would tend to decrease the demand for a product. This product is
201. The practice of making the quantity specification of grades uniform among buyers and sellers a. Normal goods b. Inferior goods
from place to place and time to time c. Capital goods d. Free goods
a. grading
b. packaging 209. Goods which satisfy similar needs or desires
c. standardization a. Luxury goods b. Capital goods
d. labeling c. Complementary goods
d. Substitute goods
202. Segmentation of the market in terms of individual group traits
a. Geography b. Demographic 210. Goods which are use together to satisfy human wants
c. Psychographic a. Luxury goods b. Capital goods
d. All of the above c. Complementary goods
d. Substitute goods
203. Costs which business can be controlled in the short run by changing level of production
a. Total Fixed Cost 211. Improvements in technological advancement would tend to
b. Total Variable Cost a. Increase supply

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 b. Isocost Curve a. Selling
c. Constant supply b. Marketing
d. None of the above c. Merchandising
d. Marketing operations
212. Price of raw materials will increase. Supply will
a. Increase 219. The point of production is the
b. Decrease a. Point of first sale
c. Constant supply b. Point where seeding occurs
d. None of the above c. Point of last sale
d. Point where transplanting takes place
213. Increase is quantity demand is influenced by
a. Increase in price 220. This is the point where the farm price is established
b. Decrease in price a. Point of first sale
c. Decrease in population b. Point of production
d. Decrease in income c. Point of last sale
d. Both a and c
214. A legislated minimum price that consumers can pay for designated products
a. Floor price b. Ceiling price 221. At this point, transaction occurs between the traders and the consumers and where retail price
c. Constant price d. Price elasticity is established
a. Point of production b. Wholesale point
215. A kind of elasticity of demand where there is greater change in quantity demanded as a c. Point of consumption d. Farmgate
response to the change in price 222. A system of buyers and sellers with facilities for trading with each other
a. Elastic b. Unitary elasticity a. Purely competitive market b. Public market
c. Inelastic c. Supermarket d. Market
d. Perfectly elastics demand
223. A market may be defined as
216. There is equal change in price and quantity demanded a. A point where buyers and sellers exchange goods and services
a. Elastic b. A large geographic area where supply and demand forces set prices
b. Unitary elasticity c. Informal organizations where buying and selling maybe done by almost anyone at almost
c. Inelastic anytime in relative small lots
d. Perfectly elastic demand d. All of the above

217. Locus of points, each point representing a bundle of two commodities, from which a consumer 224. Which of the following is not considered a market
derives the same level of satisfaction of utility a. A balut vendor selling in the street
a. Isoquant b. Indifference map b. Sugni supermarket at 10:00 in the evening
c. Isoquant map d. Indifference curve c. Fruits stand along the national highway in Makilala
d. New York Stock Exchange
218. The series of services involved in moving the product from the point of consumption

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225. One who buys commodities from the market 233. Also called as GNP at current prices
a. Consumer b. Customer a. consumer price index b. real GNP
c. Mother c. Nominal GNP d. Deflator
d. Decision – makr
234. Suppose that the consumer price index for 2000, 2001 and 2002 are 100, 110, 125,
226. This is a complex system within which various subsystems interact with each other and with respectively. This implies that the general price level in 2002 is higher than that of 2000 by:
the different marketing environments a. 25 pesos b. 25 percent
a. Marketing channels b. Marketing system c. 15 percent d. 10 pesos
c. Marketing d. Market
235. Which of the following is not a component of GNP?
227. Characteristics unique to agricultural products which pose a problem in marketing a. Consumption expenditures b. Exports less imports
a. Perishability b. Bulkiness c. Investment d. Investment
c. Seasonality of production
d. All of the above 236. The marginal propensity to consume is the ratio of
a. Extra consumption to extra income
228. A middlemen who takes title and therefore owns the product he handles b. Total consumption to total income
a. merchant middlemen b. agent middlemen c. Extra consumption to total income
c. private trader d. market intermediary d. Total consumption to extra income

229. Middlemen who receives his income in the form of fees and commissions 237. A family spends P2, 000.00 on consumption goods when its income is zero and P6, 000.00
a. Commission agent b. Broker when its income is P6, 000.00. Assuming a linear consumption function, what is the family’s
c. Both a and b d. processor autonomous consumption equal to
a. P 6, 000.00 b. P 2, 000.00
230. Approach to the study of agricultural marketing that attempts to answer “what” in the c. P 3, 000.00 d. P1, 000.00
questions “who does what”
a. Commodity approach b. Functional approach 238. It is the slope of the consumption function
c. Institutional approach a. Marginal propensity to save
d. Structure-conduct-performance b. Marginal propensity to consume
c. Average propensity to consume
231. The advancing of money to carry on the various aspects of marketing d. Average propensity to save
a. financing b. risk bearing
c. market intelligence d. demand creation 239. The equation C = 80 + 0.90Yd predicts that consumption is
a. 130 when disposable income is 100
232. Transactions wherein one party is not obliged to deliver a good or service in return for the b. 170 when disposable income is 100
payment c. 160 when disposable income is 90
a. gross national product b. intermediate goods d. None of the above
c. gross domestic product d. transfer payment
240. If C = 75 + 0.80 Yd

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 a. the mpc is 75 b. the mps is 0.80
c. the mps is 0.20 d. none of the above 249. In terms of birth order, an entrepreneur is usually the
a. first born b. middle child
241. The value of the multiplier in No. 240 above is c. youngest d. birth order is not important
a. 2 b. 3
c. 4 d. 5 250. The civil status of an entrepreneur is usually
a. married b. single
242. If the national government’s revenues exceeds expenditures, the government has c. widowed d. separated
a. Balanced budget b. Budget surplus
c. Budget deficit d. Financing account 251. The following are the qualities of an entrepreneur except
a. self – confident b. hardworking
243. Which of the following is consistent with a tight (contractionary) monetary policy c. high risk taker d. creative
a. Low interest rates
b. High reserve requirement 252. An entrepreneur is usually
c. Subsidized interest rates to borrowers a. life of the party b. a boring company
d. An increase in money supply c. known not to go to parties d. known to fit in crowd

244. The main motivation of the entrepreneurship’s high ego and need to achieve is greatly affected 253. Entrepreneurs usually have a tendency to fall in love with new
by the individual’s relationship with the ___________. a. ideas b. employees
a. spouse b. mother c. financial plans d. all of the above
c. father d. children
254. Entrepreneurs are known to be at their best as
245. Entrepreneurs and venture capitalists usually a. business managers b. capitalists
a. get along well b. are the best of friends c. planners d. doers
c. are ordinary friends d. disagree with one another
255. Entrepreneurs commonly put up
246. Entrepreneurs are most often a. service – oriented business b. manufacturing company
a. men b. women c. construction companies d. a variety of business
c. lesbian d. does not matter
256. The main motivation of an entrepreneur for starting a business would be to have
247. He introduces the term “entrepreneur” and was known as the Father of the Theory of a. money b. fame
Entrepreneurship c. independence d. power
a. Say .b. Smith
c. Walker d. Cantillon 257. The success of an entrepreneurial venture greatly depends on
a. capital b. luck
248. The government assistance program to entrepreneurship includes the following except c. hardwork d. all of the above
a. Taxes b. education and training
c. financial d. input 258. The first important business venture of an entrepreneur occurs during the individual’s

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 a. 20’s b. teenage years a. backbone of the economy b. develop new markets
c. 30’s d. 40’s c. empowers individuals d. innovate goods and services

259. The inclination of the individual to be entrepreneurial commonly manifests during the 268. Disadvantages of becoming an entrepreneur
individual’s a. complete responsibility b. benefit financially
a. 20’s b. teenage years c. reach one’s full potential d. control of destiny
c. 30’s d. 40’s
269. An enterprising fellow whose innovation commences within an organization itself and whose
260. The educational attainment of an entrepreneur during his first important business venture impacts may extend beyond the organization to which he or she is directly a part.
a. high school b. some college a. intrapreneur b. ultrapreneur
c. college graduate d. master’s degree c. multipreneur d. none of these

261. The following are the ten important entrepreneurial traits except 270. A characteristics that gets an entrepreneur going and moving
a. perseverance b. self-motivation a. self – motivation b. patience
c. courage d. goal setting c. self – awareness d. drive

262. A theory that explains that government should not interfere in the market 271. An idea that is worth a business, except:
a. Keynessian b. Laissez Faire a. need / want driven b. product driven
c. Kaldor d. Ricardian c. money savings d. time saving driven
272. An entrepreneurial quality believing that a person can do better than what other people do.
263. An enterprise whose capitalization is less than P50, 000.00 a. risk taker b. personal responsibility
a. Micro enterprise b. Small enterprise c. self-confident d. achievement – oriented
c. Cottage enterprise d. Medium enterprise
273. Entrepreneurs are more concerned with people rather than tasks
264. The following are stimulants to creativity except a. The statement is true
a. freedom b. recognition b. The statement is false
c. pressure d. curiosity c. The statement is partly true and partly false
d. none of these
265. The practical way of seeking opportunities
a. spend time using imagination b. practice mind setting 274. A decrease in the number of sellers shifts the demand curve to the
c. both a and b d. none of these a. right b. ownward
c. left d. none of the choices
266. He first formally recognized the necessity of entrepreneurship for production and asserted that
there are 4 factors of production 275. If the cost of production of chicken increases, supply will
a. Walker b. Smith a. increase b. remain constant
c. Marshall d. Say c. decrease d. it depends

267. The socio – economic contribution of entrepreneurship 276. Which of the following is true?

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 a. the supply of inputs used affects the supply of the good c. the amount of a commodity available for sale
b. the lower the price of a good, the smaller the quantity that will be offered by the supplier d. the consumers’ desires for a commodity
c. the lower the price of a good, the bigger the quantity that will be demanded by the buyer
d. all of the above 284. A positive cross price elasticity implies that the goods are
a. substitute goods b. normal/superior goods
277. ___________________ is the situation where the quantity supplied exceeds the quantity c. complementary goods d. inferior goods
demanded of a good or service.
a. market equilibrium b. shortage 285. If demand is _____________ neither an increase or decrease in price will affect the seller’s
c. surplus d. ceiling price e. floor price total revenue.
a. inelastic b. unitary elastic
278. An increase in consumer’s income, ceteris paribus, will cause the demand for beef to c. elastic d. perfectly elastic
a. increase b. remain the same
c. decrease d. none of these 286. The more important the good is in the consumption basket, the more _______________ the
good is.
279. They are responsible in the production of final products to be distributed in the economy a. perfectly inelastic b. unitary elastic
a. households b. both households and firms c. elastic d. inelastic
c. firms d. it depends
287. Goods for which demand decreases when incomes increase; are normally bought when
280. The sector in the economy which are called as resource owners because they own the factors income levels are low
of production a. substitute goods b. normal/superior goods
a. government b. foreign countries c. complementary goods d. inferior goods
c. households d. firms
288. Based on elasticity coefficients, rice, sugar, electricity and infants’ milk have elasticities which
281. Which of the following could not cause an increase in the supply of mango? are less than one. Therefore, these are
a. an increase in the price of mango b. new variety planted a. luxury goods b. inferior goods
c. a decrease in the price of coffee d. good weather conditions c. essential/necessity goods d. normal/superior goods

282. The law of demand suggests an inverse relationship between the price of the product and the 289. It measures the percentage change in quantity demanded of one good to the percentage
quantity of the product change in the price of the related good.
a. because as the price of the good increases, quantity demanded for the good also increases. a. price elasticity b. cross-price elasticity
b. because as the price of the good increases, quantity demanded for the good decreases. c. income elasticity d. arc elasticity
c. because as the price of the good decreases, quantity demanded for the good remains the
same. 290. At a given price, quantity supplied may change infinitely.
d. because regardless of price changes, quantity demanded for the good decreases. a. elastic b. unitary elastic
283. A demand schedule shows c. inelastic d. perfectly elastic
a. the various quantities of commodities producers are willing to offer for sale at various prices
b. the various quantities of commodities consumers are willing to buy of a good at various 291. The minimum limit beyond which the price is not allowed to fall and is geared to protect the
prices sellers

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 a. ceiling price b. market price 300. Unemployment, interest rates, inflation and other aggregates are studied in what major
c. floor price d. equilibrium price division of economics?
a. microeconomics b. positive economics
292. It is an assumption that other things are held constant. c. macroeconomics d. normative economics
a. demand b. ceteris paribus
c. supply d. equilibrium 301. A market structure characterized by one buyer in the market
a. monopoly b. purely competitive market
293. It reflects the positive relationship between the quantity of goods and/or services to its own c. monopolistic competition d. monopsony
price
a. law of demand b. law of demand and supply 302. What best answers the basic question of “how to produce” in economics?
c. law of supply d. supply a. Value of a resource b. technology
c. Amount of goods d. population size
294. The determinant that will not shift either demand or supply
a. technological change b. price of the good itself 303. In a simple economy, firms produce goods and services for sale, households return the favor
c. expectations d. price of related goods through___________.
a. factor services b. factor payments
295. Which of the following product pairs would you expect to be substitutes? c. capital payments d. good/service payments
a. gasoline & cars b. camera & film
c. bread and butter d. coffee & tea 304. Communism and fascism are specific types of economic systems under___________
a. command economy b. mixed economy
296. If the consumer’s demand for a commodity decreases when his income increases, the product c. capitalism d. socialism
is a(n)
a. luxury goods b. inferior goods 305. The economic problem that refers to the nature of goods and services the economy should
c. essential/necessity goods d. normal/superior goods produce
a. What goods should we produce? b. How are those goods produced?
297. It presents the graphical illustration of price and quantity supplied. c. For whom do we produce those goods? d. How much should be produced?
a. supply schedule b. supply curve
c. demand schedule d. demand curve 306. What kind of income land can earn?
a. Interest b. Salary
298. Chocolate has an elastic demand. Its coefficient is c. Profit d. Rent
a. greater than 1 b. equal to 1
c. less than 1 d. equal to 0 307. If a price ceiling below the equilibrium price is imposed on corn, the likely result will be:
a. a lower equilibrium price for corn as the supply shifts out
299. What is the major concern addressed in economics? b. a higher equilibrium price for corn as the demand curve shifts out
a. What goods should we produce? b. How are those goods produced? c. a shortage of corn as the price keeps the market from reaching equilibrium
c. For whom do we produce those goods? d. Solving the problem of scarcity d. a surplus of corn as the price keeps the market from reaching equilibrium
308. It is characterized by a market which many independent sellers selling a homogeneous
product.

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 a. monopoly b. purely competitive market a. substitute goods b. normal/superior goods
c. monopolistic competition d. monopsony c. complementary goods d. inferior goods

309. An economic system characterized by ownership and management of property resources by 316. A locus of points representing different bundles of goods and services, each of which yields the
the government and collective determination of economic decisions through central economic same level of total utility.
planning is a. indifference map b. budget line
a. socialism b. capitalism c. indifference curve d. isoquant curve
c. communism d. fascism
317. An increase (decrease) in money causes a parallel outward (backward) shift in the budget line.
310. The Greek word oikonomia or oikonomos means household a. true b. it depends
a. decisions b. management c. false d. none of the choices
c. keeping d. resources
318. The consumer has an income of P 1,000.00, facing prices of rice = P30.00 per kilo and price of
311. It is said to be the most difficult type of business especially when it comes to decision making. meat = P140.00/kilo. How many kilos of meat shall be bought if the consumer will spend P
a. sole proprietorship b. unlimited partnership 210.00 for rice?
c. limited partnership d. corporation a. 4.46 b. 5.64
c. 6.64 d. 55.4
Use the equations below to answer items 313 - 314. 319. Which of the following is not TRUE?
a. No output can be produced with zero workers.
Qs = 20 + 2P Qd = 100 -8P b. Output increases at an increasing rate at stage I.
c. The boundary of stage I and II is the point where AP=MP.
312. What is the equilibrium price (Pe) and quantity (Qe)? d. Total product never declines.
a. Pe = 20, Qe = 60 b. Pe = 8, Qe = 36
c. Pe = 6, Qe = 80 d. Pe = 10, Qe = 70 Answer 321-322 with the table below.

313. If a price ceiling which is below the equilibrium price be fixed at P 6.00 what will happen to Units Total Average Marginal Fixed Variable Total
quantity levels? of product Product product cost cost cost
a. Qs and Qd will decrease b. Qs will decrease & Qd will increase cook (Q)
c. both quantity levels will increase d. Qs will increase & Qd will decrease (input)
0 0 (1)
314. An increase in the price of good X from P 5.00 to P 8.00 causes the demand for good Y to 20 4000 20 20 10,000 10, 000 20,000
decrease from 1000 to 700 units. Using arc elasticity (midpoint), what is the price elasticity of 40 10000 250
demand for X?
-0.76
c.0.56 d. -0.16 320. Fixed cost for 10000 units is
a. 30,000 b. 20,000
315. An increase from P 30.00 to P 40.00 of good A will cause the demand for good B to increase c. 10,000 d. 15,000
from 45,000 to 50,000 units. What is the relationship of goods A and B?

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321. Marginal product for (1) is 17. B 64. C 111. B 158. C
a. 20 b. 200 18. C 65. C 112. B 159. B
c. 4000 d. 400
19. C 66. C 113. B 160. A
322. Which of the following is not TRUE? 20. D 67. A 114. C 161. B
a. AVC is U-shaped. 21. C 68. B 115. A 162. D
b. Short run marginal cost (SMC) curve crosses both AVC and ATC at their minimum points 22. A 69. C 116. B 163. A
c. When MP is increasing, SMC is decreasing. 23. B 70. B 117. B 164. C
d. In the long run, there is only one fixed input in the production. 24. C 71. A 118. A 165. B
25. B 72. B 119. C 166. A
323. What the firm’s owners give up to use a resource
a. explicit cost 26. A 73. C 120. B 167. C
b. opportunity cost 27. D 74. A 121. A 168. A
c. implicit cost 28. B 75. D 122. C 169. A
d. variable cost 29. C 76. B 123. A 170. D
30. C 77. D 124. C 171. B
ANSWER KEY
31. A 78. B 125. A 172. D
(AGRICULTURAL ECONOMICS AND MARKETING)
32. C 79. A 126. A 173. B
1. C 48. A 95. B 142. D 33. C 80. C 127. B 174. A
2. A 49. B 96. D 143. C 34. B 81. C 128. B 175. A
3. C 50. B 97. C 144. D 35. B 82. C 129. A 176. A
4. C 51. B 98. A 145. B 36. A 83. C 130. B 177. B
5. A 52. B 99. D 146. A 37. C 84. C 131. C 178. C
6. C 53. B 100. B 147. A 38. D 85. A 132. B 179. B
7. B 54. C 101. D 148. B 39. B 86. A 133. D 180. C
8. B 55. A 102. D 149. D 40. A 87. B 134. A 181. C
9. B 56. D 103. B 150. A 41. C 88. C 135. A 182. C
10. A 57. B 104. C 151. A 42. B 89. A 136. B 183. A
11. B 58. C 105. B 152. A 43. B 90. C 137. C 184. B
12. B 59. B 106. C 153. A 44. C 91. C 138. D 185. B
13. A 60. B 107. B 154. B 45. D 92. C 139. B 186. C
14. D 61. C 108. B 155. C 46. C 93. C 140. A 187. A
15. C 62. B 109. C 156. B 47. A 94. C 141. A 188. B
16. A 63. C 110. C 157. D 189. B 223. D 257. B 291. C

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190. C 224. D 258. C 292. B 222. D 256. C 290. D
191. A 225. A 259. B 293. C
192. B 226. A 260. C 294. B
193. D 227. D 261. D 295. D
194. C 228. A 262. B 296. B
195. C 229. A 263. A 297. B
196. B 230. B 264. D 298. A
197. C 231. A 265. A 299. D
198. A 232. B 266. C 300. C
199. A 233. C 267. C 301. D
200. A 234. B 268. A 302. B
201. C 235. A 269. B 303. D
202. B 236. A 270. A 304. A
203. D 237. B 271. B 305. A
204. D 238. B 272. C 306. D
205. C 239. B 273. B 307. C
206. A 240. C 274. D 308. B
207. C 241. B 275. C 309. C
208. B 242. B 276. D 310. B
209. D 243. B 277. C 311. B
210. C 244. C 278. A 312. B
211. A 245. B 279. C 313. B
212. B 246. A 280. C 314. A
213. B 247. D 281. A 315. A
214. A 248. D 282. B 316. C
215. A 249. A 283. B 317. A
216. B 250. A 284. A 318. B
217. D 251. C 285. B 319. D
218. B 252. D 286. C 320. C
219. A 253. D 287. D 321. B
220. A 254. B 288. C 322. D
221. D 255. B 289. B 323. C

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