Western Mindanao State University

COLLEGE OF AGRICULTURE
San Ramon, Zamboanga City

Questions for Ag.Economics Subject

Multiple Choice.
Direction. Select the option that provides the single best answer. Write your answer on your answer
sheet.

1.The meaning of the word “economics: is most closely associated with this word.
a. free b. scarce
c. unlimited d. unrestricted
2. The study of individual firms is classified as
a. cooperatives b. macroeconomics
c. microeconomics c. sociology
3. Otherwise known as Tenants' Emancipation Degreee.
a. P.D. 17 b. P.D. 27
c. P.D. 47 d. P.D. 97
4. The law that provided for the mechanisms of the implementation of the
Comprehensive Agrarian Reform Program.
a. R.A. # 131 b. R.A. # 132
c. E.O # 228 c. E.O. # 229
5. The economic study of the way economic relationships ought to be and which involve
value judgements.
a. Normative economics b. Positive economics
c. Price theory c. Production theory
6. The study that deal with the behavior of the whole economy and discusses topics like
GNP, level of employment and national income.
a. agrarian reform b. macroeconomics
c. microeconomics d. taxation
7. Economics is of Greek origin derived from the Greek word “oikonomia” which means
a. business management b. classroom management
c. crop management d. household management
8. The goal of a rational producer or firm is
a. benefit maximization b. cost maximization
c. Profit maximization c. sales maximization
9. The theory that show the technical relationship between the application of inputs or
factors of production and resulting maximum obtainable output.
a. cost function b. production function
c. profit function d. savings function
10. This law was promulgated to initiate land reforms including the abolition of share
tenancy transfer of capital to industry, and the establishment of implementing agencies.
a. R.A. #3844 b. R.A. # 4844
c. R.A. # 5844 d. R.A. # 6844
11. The Agriculture and Fisheries Modernization Act of 1997 is otherwise known as
a. R.A. # 3435 b. R.A.# 3436
c. R.A. # 8435 d. R.A # 8436
12. Which aspect of taxation below involves normative economics?
a. effect of the tax on incentives b. fairness of the tax
c. incidence of the tax d. escape of the tax

13. The social science concerned with the production, distribution, consumption and
exchange of goods and services.
a. anthropology b. economics
c. semantics d. sociology

14. System of compulsory contribution levied by a government on persons, corporations,

and property, primarily as a source of revenue for government expenses.
a. conscription b. Philanthropy
b. subsidy d. taxation
15. In public law, in its widest sense, the right or power to take private property for
public use is
a. due process of law b. easement
c. eminent domain d. injunction
16. The economic system under which private individuals and businesses carry on the
production and exchange of goods and services through a network of markets.
a. capitalism b. mercantilism
c. socialism d. syndicalism
17. An applied science which is concerned with the identification, description and
classification of economic problems in agriculture.
a. agricultural economics b. applied economics
c. normative economics d. positive economics
18. These are considered scarce and to be paid for and are produced and needed by men
to satisfy their wants
a. market goods b. economic goods
c. intangible economics d. tangible economics
19. In economics, this word is defined as the creation of goods and services to satisfy
human wants.
a. consumption b. economic goods
c. production d. tangible goods
20. From the production equation, Q- f( X1, X2, X3,); X1, X2, and X3 represent the
a. production costs b. production inputs
c. production output d. production function
21. In production this is the input considered as the organizer and coordinator of labor,
land and capital.
a. cooperative b. corporation
c. management d. firm
22. It refers to the tabular representation of the relationship between price and quantity
demanded.
a. law of demand b. demand schedule
c. law of supply d. supply schedule
23. Movements along a given demand curve are caused by changes in:
a. Income b. Tastes and preferences
c. Price d. Related goods
24. A downward shift in the demand curve will bring about:
a. an Increase in equilibrium quantity and an inrease in equilibrium price.
b. an increase in equilibrium price and increase in equilibrium quantity
c. an increase in equilibrium quantity and a decrease in equilibrium price
d. a decrease in equilibrium price and decrease in equilibrium quantity.
25. The quantity of mango bought in the market is likely to increase when:
a. the price of mangosteen increases
b. The price of mango increases
c. Mango is linked to cancer by new research
d. The general income of the population drops.
26. Which of the following will not cause a shift in the demand curve for pork?
a. a rise in the price of some goods which consumers regard as substitute.
b. a change in the price of pork
c. an increase in incomes of pork consumers.
d. a change in people's tastes with respect to pork.
27. If there is a negative relationship between the price of good X and the deand for
good Y, then:
a. Goods X and Y are substitutes
b. Goods X and Y are complements
c. Good Y is an inferior good
d. Good Y is a normal good
28. A market supply curve:
a. can be obtained by adding the supply surves of all the biggest sellers in the
market
b. always slopes down
c. tells how sellers as a group will behave in a perfectly competitive market.
d. can only be derived if the market is nationalized.
29. The difference between the change in supply and change in quantity supplied is:
a. None, thet mean the same thing
b. The first implies the shift of the supply curve upwards, while the second
implies a chnge in the slope of the supply curve.
c. The first implies a shift in the entire supply curve, while the second is just
a movement along the same supply curve.
d. The first is the movement along the same supply curve, while the second
implies a shift ot the entire supply curve.

30. In a competitive market, price is determined exclusively by:

a. The costs of producing the good in question
b. The supply of the good.
c. The decisions of both buyers and sellers in the market.
d. The interaction of tastes and demand

31. A situation where there is excess demand for goods in the market.
a. Surplus b. Shortage
c. Producer Surplus d. Consumer surplus

32. Commodities whose demand varies directly with money income refers to :
a. Substitute goods b. Complementary goods
c. Normal goods d. Inferior goods

33. The supply of a product is said to increase when

a. The supply curve shifts upward b. The supply curve shifts leftward
c. The supply curve shifts downward d. Theprice of the good increases

For item 34-35, consider the following demand and supply equations for rice:
Qd= 750-15P Qs= -150+30P
34. The quilibrium price of rice is :
a. 15 b. 5
c. 20 d. 90
35. The equilibrium quantity of rice is:
a. 45 b. 450

For questions 39 and 40 rfer to the information below:

Price Quantity Demanded
P2.00 100
P3.00 90
P4.00 70
P5.00 50

39. If price increased from P2.0 to P4.00, the elasticity of demand would be:
a.) 0.05 b. -1.14 c. -20 d. 0.53

40. Therefore, the demand for the good in number 4 is said to be:
a. elastic b. Inelastic
c. Unitary d. Perferctly elastic

41. From your answer in no. 40. , an increase in price would result in:
a. Increase in total revenue b. Decrease in total revenue
c. Maximum total revenue d. Cannot be determined

42. Which of the following would make the product elastic ?

a. It is unique b. It is very cheap
c. It has many possible uses c. It is considered a necessity
43. The short -run is :
a. a period of time shorter than one year.
b. The planning period wherein some resources are fixed.
c. The planning period wherein all resources are fixed.
d. The planning period wherein all resources are variable

44. A total product curve indicates the relationship between:

a. input and price b. input and variable cost
c. input and output d. output and price

45. An element of the production function which measures the efficiency for the use of
the variable input:
a. total product b. average product
c. marginal product d. total input

46. The stage of production which is considered to be the rational stage of production
a. Stage 1 b. stage 2
c. stage 3 d. stage

47. In the first stage of production:

a. Marginal product is increasing
b. Total product is increasing at an increasing rate.
c. Average product is increasing.
d. Average product is greater than marginal product.

48. The boundary line between stage II and stage III of production given one variable
input is set where:
a. Total product is diminishing b. Marginal product is equal to average product
c. Average product is maximum d. Marginal product is equal to zero.

49. The law of diminishing marginal productivity:

a. Specifies that the output obtained from the successive input utilization increases over
time
b. Specifies that output obtained from the successsive utilization of an input decreases
over time.
c. Specifies that as producers utilize successive units of an input, the incremental
output derived from each additional unit decreases.
d. all of the above

50. The total amount of product produced divided by the number of units an input used
is:
a. Total product b. Average Product
c. MArginal product d. none of the above

51. The addition to total output resulting from employing an additional unit of resource
is:
a. Average product b. Total product
c. marginal product d. a production function

52. When a total product falls;

a. The average product is zero b. The marginal product is zero
c. The average product is declining d. the marginal product is negative

53. The main difference between the short run and the long run is that:
a. The long run always refers to time period of one year or longer
b. In the short run, one or more inputs is fixed.
c.In the long run, only one variable can be fixed
d. In the short run all inputs are variable.

54. The cost that a firm incurs in purchasing or hiring any factor of production is referred
to as:
a. Explicit cost b. Implicit cost
 c. variable cost d. fixed cost

55. All of the following curves are U-shaped except:

a. The average variable cost (AVC) curve
b. The average fixed cost (AFC) curve
c. The average cost (AC) curve
d. The marginal cost (MC) curve
56. It is the cost that does not vary with the level of output:
a. Total Fixed cost(TFC) b. total variable cost
c. total cost d. Average fixed cost

57. Marginal cost and average and average cost are related in this way:
a. When MC is less than AC, AC is falling
b. When MC is greater than AC, Ac is falling
c. When MC is equal to AC, AC is falling
d. None of the above.

58. An example of a fixed cost is:

a. Wages of farm labourers
b. Interest payments on loan used to purchase farm machinery
c. Cost of feeds
d. Gasoline used to run the mudboat

59. Specialization an division of labor will likely to result in:

a. Economies of scale b. Diseconomies of scale
c. Law of diminishing marginal returns d. Any of the above

60. Implicit costs are:

a. Equal to total fixed costs
b. Comprised entirely of variable costs
c. Payments for self-employed resources
d. Always greater in the short run than in the long run.

61. These are actual costs or “ out of pocket “ expenses incurred in the production of
goods and services:
a. Implicit costs b. Variable cost
c. explicit costs d. fixed cost

62. As output increases, average fixed costs:

a. increase b. decrease
c. remain constant d. first increase then decrease

63. The proportion of total expenditure shared by each unit of output is:
a. TC b. MC c. AVC d. AC

64. The cost associated with producing another unit of output is:
a. TFC b. TC c. MC d. AVC

65. If a farmer harvested 2 tons of corn and the selling price of corn per kilo is P12.00,
how much is the total revenue. Sales of the farmer?
a. P20,000 b. P22, 000 c. P24, 000 d. P 26,000

66. If he has incurred a total fixed cost P 5,000.00, how much is his average fixed cost
per sack?
a. P100.00 b. P125.00` c. P150.00 d. P50.00
67. If his total variable cost incurred is P3,000.00. How much is his average variable
cost per kilo?
a. P1.50 b. P2.00 c. P75.00 d. P60,00
68. How much is his total cost incurred?
a. P3,000 b. P5,000 c. P8,000 d. 10,000
69. Which of the following would contribute most to a firm experiencing “ economies of
scale”:
 a. Rising long run average costs.
b. The law of diminishing marginal returns
c. Specialization of production within a firm
d. Deterioration of information and control within a firm

70. Economies and diseconomies of scale occur mainly because:

a. of the law diminishing returns
b. Firms in an industry must be relatively large in order to use the most efficient
productive techniques.
c. of the inherent difficulties involved in managing and coordinating a large
business enterprise.
d. The short run average total cost curve rises when marginal product is greater
that average total cost.

71. The following are currently ctegorized as communist countries, except:

a. Laos b. Cuba c. Japan d. China

72. Enterprise that utilizes high ratio of labor or capital relative to a particular land
resource.
a. Extensive
b. Subsistent
c. Intensive
d. sustainable

73. Economics as a social science:

a. How societies are governed and ruled
b. Organizes observations to recognizable patterns
c. deals with economic behavior of individuals
d. deals with the physical and environmental aspects

74. The concepts of scarcity:

a. creates a need for a system of extravagance
b. means insufficient resources to satisfy potential users
c. means not enough needs to urge production
d. creates allocation of sufficient resources to satisfy human needs.

75. The strawberries of Benguet can be bought in the supermarkets of Manila. What
utility was created in this situation?
a. Form utility c. Possession Utility
b. Time Utility d. Place utility

76. This economic decision addresses the tendency of overproduction.

a. How to produce?
b. For whom to produce?
c. How much to produce?
d. When to produce?

77. This marketing function involves the establishment and maintenance of uniform
measurement. This function also simplifies buying and selling, since it makes possible
the sale by sample and description.
A.Financing function
b.Risk-bearing
c. Market intelligence function
d. standardization

78. A price reduction to reward customers for paying bills on time.

a. volume discount
b. functional discount
c. Seasonal discount
d. Cash discount.

79. These are product handler who serve as the last link in the marketing channel.
A .retailers
 b. wholesaler
c. commission agents
d. assembler wholesaler

80. A general economic concept used in a variety of situations measuring output per unit
of input:
a. Productivity b. Efficiency c. Allocation d. Growth

81. A type of consumer goods which are goods purchased on minimum of shopping
efforts usually available in retail outlets.
a. Shopping goods
b. Convenience goods
c. Specialty goods
d. Local goods.
82. An economic decision which takes into consideration the financial resources of the
consumers.?
a. what to produce b. How much to produce?
c. when to produce d. for whom to produce?

83. Who is the current Secratary of the Department of Agriculture?

a. Jacinto Henares b. Proseso Alcala
c. Cayetano Paderanga Jr. . d. Fortunato Battad

84. Who is the current Secreatary of the Department of Agrarian Reform?

a. Rosalinda D. Baldoz b. Virgilio R. Delos Reyes
c. Gregory L. Domingo d. Cesar Purisima

85. If the economy is oprating inside the production possibilities frontier, then:
a. The resources are not fully utilized in production.
b. The economy is experiencing technical change.
c. The economy cannot produce more of one good without giving up more of the
other good.
d. All the resources are used efficient.

86. Which of the following are classified under macroeconomic problem?

a. Production cost of San Miguel Corporation
b. Per day rate of college part- time teachers
c. Gross National Product
d. Recorded profit of law firms
87. Industrial Revolution started in:
a. England b. North America
c. Great Britain d. South America
88. Economic goals includes the following except:
a. Efficiency b. Equality
c. Growth d. Stability

89. The production possibilities frontier of a country can be said to shift outward as a
result of which of the following , except?
a. Expenditures on new plants and equipment are constantly being made.
b. Increase In population
c. Better methods of production are developed
d. Increase production of goods an services.

90. The following are normative statements except:

a. international trade is not fair for third world countries
b. Trouble in the middle East endangers oil prices.
c. More subsidies should be given to farmers to increase productivity
d. Price ceiling is just fair during the rice crisis.

91. It is an economic system driven by purely self- interest of consumers and producers.
 a. Market economy b. Command Economy
b. Mixed Economy d. Communism

92. This is an economic system practiced by the former Soviet Union.

a. Planned Economy b. Controlled Economy
b. Command Economy d. All of the above

93. He is known as the father of Economics.

a. Adam Smith b. Karl Marx
c. John Maynard Keynes d. David Ricardo

94. He advocated the communist ideology.

a. Adam Smith b. Karl Marx
C. John Maynard Keynes d. David Ricardo

95. These are goods that are scarce and can be obtained through paying some amount.
a. economic goods b. normal goods
c. inferior goods d. durable goods

96. Which of the following are two fundamental conflicting problems , the reasons why
economics exist?
a. Choice and allocation
b. Limited income and limited goods
c. Scarcity and unlimited goods
d.Limited resources and unlimited wants/needs

97. This is a way on which nations uses its resources to satisfy society's wants and needs.
a. Economic system b. Politics
c. Allocation d. Freedom
98. This refers to human -made resources used to produce goods and services.
A. Land b. Labor
c. Capital d. Entrepreneurial skills/talents
99. This is an example of traditional economy in which the economic system is agrarian
in nature.
a. Communism b. Capitalism
c. Traditionalism d. Feudalism

100. Which of the following is a scope of macroeconomics?

a. Prices of individual goods and services
b. Inflation and unemployment
C. employment of individual business and industries.
d. Production in agriculture.

101. What is the probable opportunity cost of increasing three time the budget of the
Agriculture sector than the previous year?
a. Decrease in performance of other sectors
b. Improvement in the facilities and programs in Agriculture
c. Growth in the service sector
d. Increase farm subsidies.
102. Who is the current chairperson of the Professional Regulatory Council in
Agriculture?
a. Kim S. Jacinto- Henares
b. Proseso J. Alcala
c. Cayetano W. Paderanga Jr.
d. Fortunato A. Battad

103. Nazism is also termed as :

a. Natioanalist Socialism b. National Socialist
c. National Socialism d. Nationalism

104. Nazism was the ideology of the third reich in:

a. France b. Germany c. Italy d. Russia
105.This is a method of economic reasoning which invloves value judgements:
a. Positive economics c. Macroeconomics
b. Normative economics d. Microeconomics

106. The following are perceived to be more benificial, except:

a. economic growth b. Economic development
c. Population growth d. Per capita income growth

107. The following situations makes use of economic theories, except:

a. Monetary control b. Rice Production
c. Environmental Assesment d. Plant breeding

108. The global economic crisis which started in the late 2000 started in:
a. U.S.A. b. Japan
c. Europe d. China
109. William of Ockham introduced this important economic principle:
a. Allocation b. Ceteris Paribus
c. Opportunity Cost d. Absolute Advantage
110. Competition thrives in this economic system.
A, Custom economy b. Planned economy
c. Market economy d. Command Economy

111. Which economy has an absolute advantage in sugarcane production?

A. Brazil b. Philippines
c. China d. Singapore
112. Human efforts employed in production
a. Land b. Labor
c. Capital d. Entrepreneurial skills
113. Economic concepts illustrative in the prodcution possibilities curve, except:
a. Trade- off b. distribution
c. Scarcity d. Economic growth

114. An economic concept that utilizes available resources to its best and efficient use.
a. Opportunity Cost b. Ceteris paribus
c. Distribution d. Allocation

115. Government institution tasked with plotting the short term and long term
development plans of the Philippines:
a. National Economic Development Authority
b. National Economic and Development Authority
c. National Economic Development Agency
d. National Economic and Development Agency

116. It is an increase in the capacity of an economy to produce goods and services,

compared from one period of time to another.
a. Economic Development b. Economic Growth
c. Economic Growth Rate d. Technological Change

117. Economic growth is measured as the annual percentage change of_____, it has all
the advantages and drawbacks of that measure.
a. Technology b. Gross Domestic P roduct
c. Productivity d. Prices

118. Advantages are felt when there is a occurrence of economic growth, except:
a. Higher standard of living b. Growth and business confidence
c. Fiscal dividend d. Inflation risk
ci.
119. Means both more output and production and changes in technical and institutional
arrangements by which the factors of production are produced and distributed
a. economic development b. economic grwoth
c. economic growth rate c. technological change
120. The application of stock knowledge to the process of production is called____
a. wisdom b.Invention
c. innovation d. productivity
121. The ________of the economy refers to the manner in which the elemnts or units of
the system are related to one another and the whole.
a. structure b. productive capacity
c. development d. growth
122. Which one is a characteristic of a less developed country.
a. Agrarian rather than industrial b. Manufactured products are exported.
c. Developed long time ago d. Income is well distributed.

123. One of the characteristic of a developing economy, the income is _____distributed.

a. less equitably b. More inequitably
c. equitably d. none of the above

124. The following are the major sectors of the economy except
a. Agriculture b. services
c. Industry d. Trade

125. Republic Act _____is known as the Organic Agriculture Act of 2010.
a. 8435 b. 8550
c. 10068 d. 10150

126. Republic Act______ is known as Philippine Fisheries Code.

a. 8435 b.8550
C. 10068 D. 10150

127. Agriculture is the key to _______except.

a. Poverty Alleviation b. Progress
c. Profit d. Food Security

128. Agricultur in the Philippines occupies about ____ of the Philippine total land area.
A, three- fourths b. One-fourths
c. one- thirds d. one half

129. Economic growth is mesured by the anuual percentage change in _____ GDP.
a. Nominal b. Real
c. Proportional d. Money

130. Economic Growth has the formula

a. GDP1-GDP2/GNP1 b. GDP1-GNP1/GDP2
c. GDP2-GDP1/GDP1 d. GNP2-GDP1/GDP2

131. Drivers for economic growth is the accumulation of physical and _____capital.
a. Human b. Investment
c. Educational d. Political

132. One of the disadvantages for economic growth is the inflation risk. It means that
there is a quick economic growth that races______.
a. Agg. Demand higher that Agg. Supply
b. Agg. Supply is higher than Agg. Demand
c. Price higher than supply
d. agg. Demand is lower than Agg. Supply
133. Economic development means
a. Increase in output b. Changes in econonic structure
c. All of the above d. None of the above
134. Economic development is shaped not only by economic factors but also
a. Environmental factors b. Social Factors
c. Cultural conditions d. All of the above

135. It is an inefficient or unstable government, political unrest or a poor governmental

structure that retards growth.
a. labor scarcity b. political instability
c. capital deformation d. monopoly

136. Vicious cycle of poverty is characterized by

a. Low income and savings b. low production and consumption
 c. all of the above d. none of the above
137. Republic ACT 6657 of 1998 is the legal basis for the implementation of CARP is
known as
a. Agrarian Reform
b. Comprehensive Agrarian Reform Law
c. Agriculture Act
d. None of the above

138. In Simon Kuznets, Modern Economic Growth Table, there are 2 sectoral changes in
development process that are present to the economy.
a. Total Product b. Labor Force
c. All of the Above d. None of the Above
139. When there is economic development, the % in agriculture shares_____relative to
the other sector.
a. increase b. decrease
c. constant d. None of the above
140. It means increase in output or production
a. Growth b. Production
c. Development d. Acceleration

141. Development demands

a. Hard work b. Innovation
c. Motivation d. All of the above
142. A merger of firms producing goods at the same stage in the production process is
a. A horizontal merger
b. a conglomerate merger
c. an illegal merger
d. a vertical merger
143. The poorest of the developing nations are sometimes known as the
a. First World B. Second World
c. Third world d. Fourth world
144. Per capita GDP is _____in developed countries and infant mortality is _________.
a. higher , higher b. higher, lower
c. lower, higher d. lower, lower

145.The brain drain refers to

a. The movement of talented personnel from a developing country to a
developed country.
b. The absence of skilled entrepreneurs in the deveopling countries.
c. declining literacy rates.
d. the loss of human capital through the ravages of malnutrition.

146. Malthus predicted that the world population would grow at _______growth rate
while the production of food woul increase more________.
a. increasing, rapidly
b. increasing, slowly
c. constant, rapidly
d. constant , slowly

147. Third world shortages are largely a consequence of

a. the Green Revolution
b. natural limits on production
c. policy mistakes
d. exporting too much

148. The president responsible for the implementation of the Comprehensive Agrarian
Reform Program in the Philippines.
a. Corazon C. Aquino b. Joseph E. Estada
c. Ferdinand E. Marcos d. Fidel V. Ramos

149. The 1991 Consumer Act of the Philippines is also known as

a. Consumer Product Quality and Safety Law
 b. Consumer Quality and Safety Law
c. Product Quality and Safely Law
d. Product Safety and Quality Law.

150. One of the provisions of R.A. # 3571 not prohibited along public roads, plazas,
parks, school preimes or any public pleasure ground.
a. cutting of trees b. destroying of planted growing trees
c. injuries planted growing trees d. trimming trees

151. The social science concerned with the reproduction, distribution, consumption and
exchange of goods and services to satisfy human wants.
a. anthropology b. semantics
c. sociology d. economics

152. In economics, the term used to describe the persistent increase in the general price
level.
a. inflation b. flux
c. interest d. coordinate

153. Any medium of exchange that is widely accepted in payment for goods and services
and in settlement of debts.
a. bond b. foreign exchange
c.money d. stock exchange

154. One who assumes the responsibity for a business operation with the expectation of
making a profit.
a. ambassador b. consumer
c. entrepreneur d. politician

155. Represents the fraction of the labor force tha cannot find jobs.
a. employment rate b. unemployment rate
c. birth rate d. Labor Force Participation rate

156. The monetary authority in the Philippines that governs the lvel of money supply
through policies set by the Monetary Board.
a. Cental Bank of the Philippines
b. Philippine Trust Company
c. Business TruSt Corporation
d. Philippine Trust Company

157. Refers to the exchange of goods and services between one country and other
countries.
a. Expo-Filipino Trade b. International Trade
c. Domestic Trade d. Barter Trade

158. The financial arm of the Agrarian Reform Program

a. Land Bank of the Philippines b. Metrobank
c. Development Bank of the Phili. d. Bank of the Philippine Islands

159. Otherwise known as the Comprehensive Agrarian Reform Law

a. R.A 6658 b. R.A. 6656
c. R. A. 6756 d. R. A. 6657

160. Repelaed P. D. 175 and is known as the Cooperative Code of the Philippines.
a. R.A 6839 b. 6936
c. R.A. 6938 d. R.A. 6836

161. Organized the Rochdale Society of Equitable Pioneers and which gain him the title
as Father of Cooperatives.
a. Robert Roosevelt b. Robert Cruz
 c. Robert Lee d. Robert Owen

162. R.A. 7160 is also known as

a. National Government Code b. Code of Agrarian Reform
c. Local Government Code d. Agricultural Land Reform Code

163. Amended by R.A. Numbers 8421 and 8424 and also known as the expanded VAT.
a. R.A. 7716 b. R.A.7677
c. R.A. 7617 d. R.A. 7717

164. The use by the taxpayer of illegal or fraudulent means to defeat or reduce the
payment of tax
a. tax evasion b. tax exemption
c. tax avoidance d. tax transformation

165. Form of business organization created by operation of law with not less than 5 and
not more than 15 members.
a. cooperative b. partnership
c. corporation d. sole proprietorship

166. These are taxes imposed n goods exporeted from or imported into a country.
a. energy taxes b. value-added taxes
c. customs duties d. income taxes

167. The tax on the net income or the entire income realized in one taxable year.
a. income tax b. donors tax
c. value-added tax d. revenue tax

168. This act shall be known as the “High- Valu Crops Development Act of 1995”.
a. R.A. # 7900 b. R.A. # 8900
c. R.A. # 9700 d. R.A. #9800
169. Republic Act # 6938 is otherwise known as the
a. Agriculture Code of the Phils b. Cooperative Code of the Philippines
c. Forestry Code of the Philippines d. Taxation Code of the Philippines

170.This law was created to upgrade the Agriculture and Fisheries profession.
a. R.A.5435 b. R.A. 6435
c. R.A. 7435 d. R. A. 8435

171. A president's report to the nation is called

a. BONA b. MONA
c. SONA d. ZONA

172. A voluntary option under the National Service Training Program of 2001.
a. PCIC b. ACMA
c. NAPC d. ROTC

173. The food basket of the Philippines.

a. Visayas b. Mindanao
c. Luzon d. Palawan

174. A Latin phrase which means in Economics “ all other things held constant.
a. Ceteris Paribus b. Ager Cultura
c. Laissez Faire d. Palawan

175. Also known as the law of diminishing marginal productivity.

a. Law of Diminishing Returns b. Law of Diminishing Utility
c. Law of Diminishing Supply d. Law of Diminishing Demand

176. The Central Monetary authority that governs the level of money in the Philippines.
a. BSP b. GSP
c. MSP d. SSP
177. A collective term referring to the use of taxation and government spending to
inflence the level of income.
a. monetary policy b. fiscal policy
c. trade policy d. credit policy

178. A grant of immunity to particular persons or corporations from a tax which they are
obliged to pay.
a. tax avoidance b. tax amnesty
c. tax evasion d. tax exemption

179. Efficient stage of production lies at

a. Stage 1 b. stage 2
c. stage 3 d. stage 4

180. In production, output increase at a decreasing rate at

a. Stage 1 b. Stage 2
c. Stage 3 d. Stage 4
181. Also called as equal product curves.
a. demand curves b. indifference curves
c. isoquant curves d. isocost curves

182. Total Revenue is derived by using this formula (where P=Price, Q= Output)
a. P*Q b. Px Q
C. P-Q d. Q/P

183. The extra product or output added for every one extra unit of that factor added,
while other factors are held constant.
a. Average Product b. Total Product
c. Marginal Product d. Constant Product

184. The classical economist who described Economics as an inquiry into the nature and
causes of the wealth of the nation.
a. Adam Smith b. David Ricardo
c. Karl Marx D. Paul Samuelson

185. Refers to the know-hows and the physical means of transforming resources into
want satisfying form.
a. depreciation b. production
c. resources d. techniques of production

186. This is a state in which the producer maximizes output at a given total outlay. It is at
this point where the firm's isoquant is just tangent to its isocost.
a. consumer equilibrium b. market equilibrium
c. producer equilibrium d. trade equilibrium

187. The difference between total revenue and total costs

a. break even price b. marginal revenue
c. profit d. variable cost

188. Point wher profit is zero

a. break even point b. MC is constant
b. MR>MR d. MR=P

189. Cost of the self-owned, self-employed resources used by a firm in the production
process.
a. Cash cost b. explicit cost
c. fixed cost d. implicit cost

190. Value of the best forgone alternative use of the resources.

a. economic cost b. implicit cost
 b. opportunity cost c. variable cost
200. Costs that do not vary with output
a. explicit cost b. fixed cost
c. implicit cost d. variable cost

201.If the average cost of producing 10,000 units of product X is P0.50. TotAl fixed cost
is equal to
a. 2,000 b. P5,000
c. 10,000 d. P15,000
202. The additional cost incurred from producing an additional unit of output
a. marginal cost b. marginal revenue
c, total cost d. total revenue
203. It refers to the unintended effect ( beneficial or harmful) of production or
consumption on other individuals not involved inproduction or consumption.
a. externality b. pollution
c. side effects d. social cost

204. Pollution is an example of

a. economies of scale b. negative externality
c. side effects d. positive externality

205. If good X is sold at P20 per piece, total revenue earned from selling 100 units is
a. P20 b. P200
c. P2,000 d. P20,000

206. A market characterized by the presence of many buyers and sellers selling identical
products
a. monopoly b. monopolistic competition
c. oligopoly d. pure competition
207. Condition for profit maximization regardless of market structure
a. MR=MC b. P=MC
c. MR=MC d. Profit is zero

208. The price that is equal to a firm's average variable costs, wherein the firm will no
longer produce any output.
A. break-even price b. marginal price
c. market price D. shut down price

209. If the firm stops operating, the loss is equal to

a. marginal cost b. opportunity cost
c. total fixed cost d. total variable cost

210. A market characterized by the presence of only one seller

a. monobloc b. monogamy
c. monopoly d. pure competition

211. Which is characteristic of an oligopolistic industry?

a. market situation with only a few competing sellers
b. market situation with only one seller
c. market situation with one buyer
d. open market

212. Non-price competition often takes the form of

a. collusion b. homogenous products
c. price wars d. product differentiation

213. If the firm's total production costs for 20,000 units is P50,000 and if the goods are
sold at P3,000 per unit, how much is the firm's profit?
a. P10 b. P1,000
c. P10,000 d. P 100,000

214. The softdrink industry in the Philippines is an example of what market structure?
a.monopoly b. monopolistic market
 c. oligopoly d. pure competition

215. Average cost eventually increases as output increases because

a. AFC continuously decreases
b. AVC eventually increases
c. MC increases
d. MC is constant

216. Which of the following industries closely approximates the perfectly competitive
model?
a. automobile industry b. shampoo industry
c. softdrink industry d. rice farming

217. When the demand curve is elastic, marginal revenue (MR) is

a. 1 b. positive
c. negative d. zero

218. In long-run equilibrium, the pure monopolist can make pure profits because of
a. advertising b. blocked entry
c. high selling prices d. low production costs
219. The demand curve faced by a competitive firm is
a. perfectly elastic b. infinitely elastic
c. horizontal d. all of the above
220. A tax imposed upon the monopolist regardless of the output level
a. ad valorem b. lumpsum tax
c. profit tax d. specific tax

221. A formal organization of firms in an oligopolistic industry where decisions

regarding output, price, sales are made.
a. cartel b. cooperative
c. corporation d. partnership

222. Tariff barrier

a. import tax b. export tax
c. quota d. preferential trading

223. The longest and most comprehensive round of GATT negotiations

a. Uruguay round b. Manila round
c. Tokyo round d. Jakarta round
224. Forerunner of WTO
a. CEPT b. EU
c. SEATO d. GATT

225. Refers to the actual currency or various claims on it.

a. stock exchange b. foreign exchange
c. money market d. future market
226. The domestic currency price of a foreign currency.
a. foreign exchange rate b. growth rate
c. flow rate d. interest rate

227. Percentage tax of the price of imported commodity.

a. Specific tax b. property tax
c. ad valorem d. business tax
228. Foregone benefit
a. liability b. fixed cost
c. variable cost d. opportunity cost

229. ASEA' trade agreement

a. CEPT b. AFTA
c. EPZ d. NAFTA
230. Agrrement among ountries to present common trade regulations and trading front.
a. collusion b. merging
c. common market d. uniform market
231. Zero government interference in the flow of imports and exports.
 a. free trade b. duty -free
c. free flow d. barter
232. The exchange of goods and services across international boundaries.
a. regional trade b. domstic trade
c. international trade d. local trade
233. The ability of one nation to produce a commodity at a lesser cost compared to that
of another nation.
a. cost efficiency b. low labor cost
c. comparative advantage d. open economy

234. Real production costs generally fall as the scale of output increases.
a. diseconomy b. economies of scale
c. rising output d. diminishing output

235. The ratio of the price of goods exported to the price of the goods imported.
a. price ratio b. export ratio
c. import ratio d. terms of trade
236. A policy which defends domestic producers from foreign competition
a. monetarist b. protectionism
c. fiscalist d. mercantilism
237. The book which became the apostle of classical economics written by Adam Smith:
a. Inquiry into the nature and cause of the Wealth of Nations
b. Principles of Political Economy
c. Essay on the Principle of Population
d. General Theory of Employment , Interst and Money

238. Proportion of deposits that banks are mandated by the Central Bank (CB) to keep
either as vault cash or as a deposit with the CB for safekeeping is called.
a. excess reserve b. currency-deposit ratio
c. required reserves d. reserve-deposit ratio

239. Money serves as a

a. unit of account
b. medium of exchange
c. store of value and standard for deferred payment
d. all f the above

240. A summary of all its economic transactions with the rest of the world during a given
year.
a. national income b. GNP
b. balance of payments d. GDP

241. Shows the change in the nation's assets abroad and foreign assets in the nation other
than official reserve assets.
a. capital account b. current account
b. balance sheet c. inventory

242. It is a money wage expressed in terms of goods and services it can purchase.
A. real wage b. money wage
C. nominal wage d. minimum wage

243. It is the value of money a peso compared to its full value in a given base year.
a. PPP b. WPI
b. CPI d. RPI

244. These are goods purchased and resold with or without further processing
a. formal ggods b. services
c. intermediate goods d. economic goods
245. Interest bearing certificate of indebtedness.
a. notes receivables b. bonds
c. notes payables c. borrowings
246. Any paid form of nonpersonal presentation and promotion of ideas , goods or
services by an identified sponsor.
a. promotion b. publicity
c. advertisement d. personal selling

247. It is the amount of money charged for a product or service.

a. cost b. price
c. value d. profit

248. Consist of short term incentives to encourage purchse or sales of a product or

service.
a. advertisement b. publicity
c. sale promotion d. selling

249. Is a set of interdependent organizations involved in the process of making a product

or service for use or consumption by the consumer or industrial user.
a. middlemen b. wholesalers
c. distribution channel d. agents

250. Is anything that can be offered to a market for attention, acquisition, use or
consumption that might satisfy a want or need.
a. assets b. resources
c. promotion d. product

251. A price reduction to reward customers for paying bills on time.

a. volume discount b. functional discount
c. cash discount d. seasonal discount
252. Is a name, design or symbol or a combination of these) that identifies the products
of a seller or group of sellers.
a. design b. trademark
c. brand d. advertisement
253. The series of services involved in the process of moving the products from the farm
gate to the consumers.
a. exchange b. marketing c. transporting d. disbursement
254. The interest rate that Central Bank charges to commercial banks is called
a. reserve requirement b. market interest rate
c. rediscount rate d. fiat money

255. The Central Bank engages in open market purchase if it wants to

a. expand demand for money b. contract demand for money
c. expand supply of money d. contract supply of money in the economy

256. A deflationary gap exists when equilibrium output/income is

a. greater than income at full employment level
b. less than income at full employment level
c. equal to the full employment level
d. none of the above
257. An inflationary gap exists when equilibrium output/ income is
a. greater than income at full employment level
b. less than income at full emplyment level
c. equal to full employment level
d. none of the above

258. The economy has budget deficit if

a. total revenues exceed total expenditures
b. total expenditures exceed total revenues
c. total revenues and total expenditures are the same
d. none of the above
259. This represents the liabilities of the Central Bank to th Public sector in the form of
currency in circulation and to the banking sector in the form of cash reserves.
a. interest rate b. reserve money
c. rediscount rate d. time deposits
260. The “paradox of thrift” states that
a. higher savings cause a reduction in equilibrium income
b. higher savings cause equilibrium income to increase
c. higher savings does not affect equilibrium income
d. none of the above

261.A good for which demand decreases as consumer's income increases.

a. abnormal goods b. inferior goods
c. normal goods d. consumer goods

262. An improvement in technology causes supply to

a. decrease b. increase
c. stop d. remain the same
263. It is another term for fixed cost
a. overhead cost b. operating cost c. prime d. none of these

264. The reduction in average total cost as the output rises.

A. diseconomies b. economies fo scale c. savings d. income

265. Another term for variable cost

a. overhead cost b. prime cost c. sunk cost d. supplementary
305. The calculation of the Gross Domestic Product(GDP) includes only the finals goods
and services produce within the country. FINAL GOODS refer to_____.
a. Goods that are purchased for the purpose of resale and for producing other goods for
eventual sale.
b.Goods that are not purchased for the purpose of resolve nor producing other
goods for eventual sale.
c. a &b.

306. Gross Domestic Product measures the total market value of all final goods and
services produced in an economy. The underlined words mean______.
a. The quotient of the market value.
b. The product of the market value.
 c. The sum of the market value.

307. The study of how we can best increase our country’s wealth given the
available resources and how these resources are transformed by entrepreneurs
into final goods and services which we ultimately consume to satisfy our needs
and wants refers to______.
a. Microeconomics b. Macroeconomics c. Abundancy

Refer to the figure given below to answer 308-310 questions.

An economy operating at any point along the production possibilities curve
means that all its available resources are utilized and are used efficiently.

Production Possibilities
Frontier A
Guns B
C

D
E

Butter

308. Point B might become attainable if this economy:

a. becomes more efficient.
b. reduces wages.
c. improves the quality of its workforces

309 If the economy moves from Point A to point B, it will ______production of guns and
_____ production of butter.
a. increase, decrease. b. decrease, increase c. increase, increase
310. Point ____represents a combination of goods that is not currently attainable.
a. Point C b. point B c. point A

311. Suppose a tire manufacture sells tires to an automaker, is the transaction included in
the GDP?
a. No b. Yes c. Maybe

312. Adding all spending for final goods during a period of time is what kind of
approach in measuring GDP ?
a. Personal l approach b. Industrial origin approach c. the expenditure
approach

313. This approach measures GDP by adding all the income earned by households in
exchange for the factors of production during the period of time.
a. PersonaL approach b. Income approach c. expenditure approach

314. The following are the sectors included in measuring GDP using the Industrial
approach except____
A. service sector b. Agriculture, fishery and forestry c. company workers

315. Suppose the GDP rise from P30 million in 2000 to P40 million in 2009, the current
year. If the GDP deflator is 130 in 2009, what is the real GDP in 2009?
a. 30, 769.00 million b. 31, 769.00 million c. 32, 769 million

316. The following are the types of money except_______.

a. portable b. Metallic money c. Goods and services
317. It occurs when a worker moves from one job to another.
a. Structural unemployment b. Cyclical unemployment c. Frictional Unemployment

318. Caused by a mismatch between jobs offered by employees and potential workers.
a. structural unemployment b. Cyclical unemployment c. Frictional
unemployment