AGRICULTURAL ECONOMICS AND MARKETING - REVIEW EXAM

SET 1
Select the best answer
1. An economic system in which all major decisions concerning the level of resources use, the
composition and distribution of output and the organization of production are determined by price system
is a. Socialism b. Communism c. Capitalism d. Fascism
2. Microeconomic theory studies how free-enterprise economy determines
a. The price of goods b. the price of services c. the price of economic resources d. all of the above
3. Which aspect of taxation involves the policy of economics?
a. The incidence of tax (i.e. who actually pays for the tax)
b. The effects of the tax on incentives
c. The fairness of the tax
d. All of the above
4. Which of the following is not a characteristic of economic resources?
a. Unlimited in supply c. has alternative uses
b. They command a price d. insatiable
5. When all available resources should be employed or no workers should be involuntary out of work, this
is related to the goal of
a. Economic security c. full employment
b. Economic freedom d. economic efficiency
6. An economic system characterized by public ownership of property resources and collective
determination of economic decisions through central economic planning is
a. Socialism b. Communism c. Capitalism d. Fascism
7. Which of the following criterion guides economic decisions?
a. Marginal Costs (MC) are greater than Marginal Benefits (MB)
b. Marginal Costs are lesser than Marginal Benefits
c. Both a and b
d. MC=MB
8. The word economic means household
a. decisions b. keeping c. management d. resources
9. Economics is everybody’s
a. vocation c. occupation
b. concern d. welfare
10. The most basic of economic concept is
a. desires c. scarcity
b. needs d. wants
11. While macroeconomics deals with economy as a whole, microeconomics deals with the actions of
individual
a. forms and market c. expenditures
b. enterprise d. employment
12. Scarcity is a permanent economic phenomenon, shortage is
a. limited c. short run
b. occasional d. temporary
13. The basic human needs like food, water, clothing and shelter are considered
a. psychological b. physiological c. social d. emotional
14. This refers to all things people would consume if they had unlimited resources
a. needs b. desires c. motives d. wants
15. Because resources is limited people must avoid ____ to prevent economics problems
a. choices b. desires c. motives d. extravagance
16. The value of the best alternative one gives up when a choice is made is called
a. implicit cost c. explicit cost
b. opportunity cost d. cash cost
17. The highest needs in hierarchy level is
a. esteem c. security
b. belongingness d. self-actualization
18. Man will usually satisfy
 a. basic b. social c. welfare
d. cultural needs before satisfying the higher level needs
19. Macroeconomics is not concerned with
a. The level of output of goods and services b. The general level of prices
c. The growth of income d. Individual income
20. Price support leads to persistent
a. surplus c. restriction of output
b. shortage d. none of the above
21. A price control will create a problem of
a. surplus c. restriction of output
b. shortage d. all of the above
22. The exclusive right of an inventor for the control of his invention for a period of some say, 17 years is
called a. patent c. monopoly
b. royalty d. franchise
23. The right of the property owner to designate the recipient of his property at the time of his death refers
to a. The right of ownership c. the freedom of choice
b. The right to be bequeaths d. the freedom of enterprise
24. Protection against imitators or copycats is known as
a. intellectual property rights c. patents
b. copyright d. SEC registration
25. A fee received by individuals for endorsing a product is called
a. franchise c. patent fee
b. royalty d. intellectual property rights fee
26. It is owned by two or more people who agree to pool their resources in a common fund with the aim of
sharing whatever profit (losses) they will get. Examples of which are law firms, accounting firms and
medical offices a. sole proprietorship c. corporation
b. partnership d. franchise
27. It is the selling of government-owned or controlled corporations and non-performing assets to the
private sector a. Privatization b. Corporativism c. Cooperativism d. Franchise
28. Underground economy is conducted
a. outside legal boundary b. within legal boundaries c. on parts of entry
d. outside parts of entry
29. When the current price exceeds the equilibrium price there is
a. shortage and price will rise b. shortage and price will fall
c. surplus and price will rise d. surplus and price will fall
30. When there is price floor on the price of palay
a. supply of palay increases because of the higher price
b. quantity supplied increases because of the high price
c. quantity demanded will decrease because of the high price
d. all of the above will take place
31. Capital is usually accumulated from
a. interest b. profit c. rent d. savings
32. The main source of government revenues is
a. fees b. fines c. licenses d. taxes
33. During the inflation the real value of income
a. remains unchanged b. increases c. decreases d. none of the above
34. A term created to describe a situation of simultaneous economic stagnation, high unemployment and
inflation is a. deflation b. inflation c. depression d. stagnation
35. Among the widespread unemployment is
a. income effect b. substitution effect c. supply effect d. none of the above
36. The most serious and widespread unemployment is
a. cyclical unemployment b. frictional unemployment c. hidden unemployment
d. structural unemployment
37. Severe and prolonged decline in business activity is called a change in the
a. depression b. inflation c. deflation d. stagnation
38. Changes in real wages are calculated by comparing changes in money wages with changes in the
 a. rates of profit works b. cost of living c. effort of work d. tax rate
39. Which of the following is not the source of aggregate demand?
a. exports less imports b. government expenditures c. savings d. consumption expenditures
40. GNP represents
a. market value of all intermediate goods and services produced by the economy within the year
b. market value of all final goods and services produced by the economy within the year
c. market value of all final and intermediate goods and services produced by the economy within the year
d. none of the above
41. Over a given period (1976-1980), GNP in current price in country A doubled, but prices increase by 70
percent. In country B, nominal GNP rose by only 20 percent while prices remain virtually the same. Which
of the following can be inferred?
a. The real GNP of A is now higher than that of B
b. The real GNP of B is now higher than that of A
c. The real GNP of A increases faster than that of B
d. The real GNP of B increases faster than that of A
42. In making year to year comparisons of GNP, a difference may arise between “money GNP and “real
GNP” because
a. not all production of an economy represents tangible goods
b. the nations gold supply may change
c. the average index of goods prices may change
d. the total quantity of goods may change over the years
43. Real GNP is greater that nominal GNP if
a. imports exceeds exports b. prices are falling c. exports exceeds imports d. prices are racing
44. An important difference between personal income and personal disposable income consists of
a. personal savings b. dividends c. personal taxes d. investment income
45. The phase of the cycle wherein output and employment expand to full employment is
a. peak b. recession c. tough d. recovery
46. Slope of the consumption function is called
a. Average Propensity to consume b. Marginal Propensity to consume
c. Marginal Propensity to save d. All of the above
47. Source of data relating to the measurement of prices, which measure the price of commodities at
various stage of production, is called
a. consumer price index b. producer price index c. implicit price deflator d. all of the above
48. Inflation caused by the deficiency of aggregate supply is called
a. demand pull or excess inflation b. bottleneck inflation c. cost-push inflation d. all of the above
49. Unemployment resulting from the deficiency aggregate total demand
a. frictional b. structural c. cyclical d. all of the above
50. Disposable income can either be spent on either on which two items?
a. saving and investment b. consumption and investment
c. consumption and savings d. none of the above
51. Which of the following is mostly associated with unemployment due to business recessions
a. frictional unemployment b. cyclical unemployment
c. consumption and savings d. seasonal unemployment
52. An option resorted by countries, which is done by changing the country’s exchange rate in a fixed rate
system or by increasing the number of units of s country’s currency.
a. devaluation b. depreciation c. inflation d. deflation
53. Macroeconomics may be divided into four sectors except
a. GNP sector b. Money sector c. Unemployment and Inflation sector d. Public sector
54. Refers to any activity that uses resources today allowing for greater production in the future and
hence, greater consumption
a. inventory b. investment c. saving d. deposit
55. Interest, the payment for the use of capital is commonly expressed
a. an absolute amount b. in percent
c. as a combination of percentage and absolute amount d. none of the above
56. The statement “Taxes reduce private spending and lower the equilibrium rate of “GNP” is
a. correct b. incorrect c. no basis for saying whether true or false d. all of the above
57. A minimum wage rate higher than the market wage rate results in
a. Labor b. Labor surplus c. An equilibrium in labor market d. None of the above
58. When government wishes to create excess demand for foreign exchange, it basically adopts ___ of
exchange rate
a. Devaluation b. Depreciation c. Deterioration d. Overvaluation
59. The regulatory agency responsible to register and monitor cooperative is called
a. Cooperative Development Authority b. Cooperative Development Administration
c. Cooperation and Development Agency d. All of the above
60. The extent of protection of agricultural outputs is measured by
a. National Power Corporation b. National Performance Coefficient
c. Nominal Protection Coefficient d. National Protection Cofactor
61. The main subject of GATT-WHO organization is the reduction of
a. Tariffs b. Quantitative Restrictions c. Levies
d. Subsidies imposed on agricultural products
62. The trading block where the Philippine belong is
a. Asean for Trade Association b. Asean Free Trade Asia
c. Atlantic Free Trade Association d. Association of Food and Trade Asia
63. It measures the degree given to value added of agricultural sector
a. Effective Protection Rate b. Effective Prevention Ration
c. Effective Prevention Reconnaissance
64. It provide climate for enhancing competitiveness and food security of the country
a. Hybrid Valued Corn and Crops b. High Valued Commodity Crops Act
c. High Value Commercial Crop Act d. None of the above
65. The ___ reflects the current and capital accounts of the country via-a-vis other countries
a. Balance of Payment b. Balance of Trade c. Balance of Tariffs d. Balance Sheet
66. Unlike any other government programs, infrastructures do not enhance efficiency in the agricultural
sector because it is sector neutral
a. true b. maybe c. false d. both a and b
67. Most pricing policies adopted by the government are
a. Distortionary b. Favoring urban consumers c. Support farmers d. None of the above
68. GNP can be measured through the national income category and the
a. expenditure category b. output category
c. investment type category d. consumer type category
69. Land reform is intended to place the ownership of the land in the hands of the
a. landlord b. tenant c. tiller d. lease
70. The performance of the foreign trade is not determined by
a. foreign policies b. restrictions c. demand for goods d. trade laws
71. An activity of function performed to alter the form, time, place, or possession characteristics of the
product refers to
a. marketing services b. market planning
c. good purchasing d. none of the above
72. Which one does not belong to the 4P’s of marketing?
a. product b. price c. place d. purchase
73. The point of usual first sale by farmers, typically at the farm or at the farmer’s home is called
a. point of consumption b. point of production c. point of equilibrium d. point of marginalism
74. The point where marketing ends or it is the point of last purchase or sale refers to
a. point of consumption b. point of equilibrium c. point of production d. point of breakeven
75. It is part or component of the marketing system, which includes the climatic/physical, socio-cultural,
economic, technological and legal/political factors that affects the marketing system
a. consumer subsystem b. function subsystem
c. environmental subsystem d. channel subsystem
76. An approach in the study of marketing which covers the characteristic of the product, the market
demand and supply situation at the domestic and international level, the behavior of the consumers in
relation to a specific product and prices either at the farm, wholesale or retail level is referred to us
a. institutional approach b. commodity approach c. functional approach
d. market-structure-performance approach
77. This involves the study of various agencies and function structures involved in marketing processes. It
attempts to answer “who”
a. institutional approach b. commodity approach
c. functional approach d. market-structure-performance approach
78. While advertising inform the consumers of product availability (creating awareness among them), this
marketing function on the other hand, encourage them to buy (enhancing demand). Sometimes it does
not only encourages them to buy, but also of P0.95, provision of supplementary products, free samples
etc. a. advertising b. promotion c. packaging d. selling
79. They are those individuals or business concerns that specialize in performing the various marketing
functions involved the purchase and sale of goods as they are moved from producers to consumers
a. middlemen b. merchant middlemen c. commission d. broker
80. It is a type of middlemen who takes title to and therefore, owns the products they handle. They also
buy and sell for their gain.
a. Middlemen b. Merchant middlemen c. Commission d. Broker
81. A type of middlemen who acts as representatives of their client. They do not take title to and therefore
do not own, the products they handle. They just receive their incomes in the form of fees and
commission. They sell their services to their principal, not physical goods to consumers
a. agent middlemen b. merchant middlemen c. commission d. broker
82. This agent usually not have physical control of the product. He ordinarily follows the instructions of his
principal closely and has less discretionary power in price negotiations than the commission agent
a. agent middlemen b. merchant middlemen c. commission d. broker
83. Marketing activity, which involves the sorting of products into lots or units according to one or more of
their quality attributes a. standardization b. packaging c. grading d. branding
84. This marketing function is the establishment and maintenance of uniform measurement. This function
simplifies buying and selling, since it makes the sale by sample and description
a. financing function b. risk-bearing function c. standardization function d. market intelligence function
85. A type of market where the number of buyers and sellers is sufficiently large so that no individual can
perceptibly influence price by his decisions to buy or sell. The product is also sufficiently homogeneous so
that the product of one firm is essentially a perfect substitute for that of other firm refers to
a. monopolistic market b. purely competitive c. oligopolistic market d. perfect market
86. This marketing function addresses the problem on product seasonality. This primary aim of which is to
help a. pooling b. storage c. processing d. packaging
87. This marketing service that influences the buyers and/or consumers to buy. The objective is to form
consumers what is available for purchase, especially if the product is new in the market.
a. marketing intelligence b. market research c. advertising d. branching
88. It refers to an inter-organizational system made up of a set of interdependence institutions and
agencies involved in the task of moving product from their point of production to their point of
consumption a. marketing system b. marketing origin c. marketing channel d. marketing program
89. They are products handlers who serve as the last link in the marketing channel. They have greater
utility both in rural and urban centers by selling to consumers. They occupy almost everyday.
a. merchant b. wholesalers c. retailers d. brokers
90. This refers to the differences between prices at different levels of the system. It can be also defined as
the difference between what consumer pays and what the producer receives for his agricultural
produce. It also termed as “price spreads” between farm price andretail price.
a. marketing costs b. marketing charges c. marketing margins d. mark-up
91. This refers to the cost of marketing services rendered between the prices the farmers and the
consumers. These include wages, interest on borrowed capital, land rent, building rental and the profit of
the entrepreneur who risk his capital.
a. marketing costs b. marketing charges c. marketing margins d. mark-up
92. Consists of short-term incentives to encourage purchase of sales of a product or services
a. advertisement b. publicity c. sales promotion d. selling
93. Is anything that can be offered for a market for attention, acquisition, use or consumption that might
satisfy a want or need
a. assets b. resources c. promotion d. product
94. A price reduction to reward a customer for paying bills on time
a. volume discount b. functional c. cash discount d. seasonal discount
95. Is a name, design or symbol (or a combination of these) that identifies the product of a seller.
a. design b. trademark c. brand d. advertisement
96. A pricing approach where the seller sets price in accordance with competitors
a. target profit pricing b. demand-based pricing
c. competition-based pricing d. variable pricing
97. A pricing strategy where the firm charges the same price to all costumers who seek to purchase a
good or service under similar conditions.
a. one price policy b. flexible pricing c. customary pricing d. variable pricing
98. A distribution strategy where the producer purposely limit the number of middlemen handling the
products a. intensive distribution b. selective distribution c. exclusive distributiond. extensive distribution
99. A market is usually defined as a
a. players where buyers and sellers meet to exchange goods and services
b. group of purely competing buyers and sellers
c. an activity of the buyers and sellers d. all of the above
100. 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
AGRICULTURAL MARKETING EXAM
1. Agricultural marketing consists of a series of services performed from the point of:
a. production b. consumption c. market place d. arrival
2. Services included physical functions of that transport that creates
a. place b. time c. form d. buying capacity
3. Storage functions that creates
a. time utility b. form utility c. place utility d. possession utility
4. Processing creates
a. form utility b. place utility c. time utility d. possession utility
5. Consists of group of sellers and buyers that facilitates for trading
a. supermarket b. market c. public market d. retail market
6. Responsible for bringing the products available at the right time, place and form
a. traders b. truckers c. brokers d. commission agent
7. The various stages at which products pass from the farm to the consumer is called
a. raw materials b. market channels c. marketing d. retailing
8. Characteristics of the product that affect agricultural marketing included
a. perishability b. packaging c. graded d. sorting
9. Characteristics of the consumers that affect marketing included
a. income b. height c. well travelled d. level of education
10. Characteristics of producers that affect marketing
a. small farm size b. old c. high income d. uneducated
11. Problems of agriculture different from industries
a. biological in nature b. production could be programmed
c. price makers d. products could be branded
12. Study of marketing could be done by studying the commodity called
a. functional b. commodity c. institutional d. structural approach
13. Types of traders who buys from farmers and sale directly to retailers in volume
a. wholesaler b. processors c. truckers d. commission agent
14. Types of traders who sells directly to consumers located mostly in public markets
a. wholesaler b. retailer c. commission agent d. barrio buyers
15. Refers to how the market is organized that determines the relation between the buyers and the sellers
a. structure b. behaviour c. conduct d. efficiency
16. One type of market structure is where no one buyer or seller could influence the price in the market
a. monopoly b. monopsony c. bilateral monopoly d. oligopoly
17. When there is one seller the market structure is called
a. monopoly b. monopsony c. monogamy d. monoculture
18. When there is large numbers of sellers selling differentiated products the market structure of the
market is called
a. oligopoly b. oligopsomy c. polypogopoly d. monopolistic
19. Negotiated prices could be determined through
a. bargaining b. threatening c. supply and demand d. government
20. If the individual has no power in the market in which he/she buys or sell he or she is
a. price maker b. price taker c. price setter d. price dictator
21. If he/she could dictate the price he/she is a
a. price taker b. price seeker c. price maker d. price negotiator
22. Price could also be set by the government which are considered as the minimum price
a. ceiling price b. floor price c. price map d. price tag
23. The maximum is called in the case of rice
a. price ceiling b. normal price c. price dictated by demand and supply d. price tag
24. Marketing could be improved by providing support that will inform the buyers and seller in the market
through the mass media. Thisfunction is
a. market information b. price manipulation c. price dissemination d. price monitoring
25. The difference between the price that the consumer pay for the final product and the price received by
producers for the raw product
a. marketing margin b. price margin c. profit d. marketing cost
26. Types of margin where the absolute difference between prices at two levels is constant in peso term
a. mark-up b. constant margin c. marketing cost d. relative margin
27. The difference between the price received and price paid by the different middlemen performing
different functions divided by the retail price is often referred to as
a. breakdown of consumer peso b. mark-up c. buying price- selling price
d. break-down of farmers peso
28. The cost of performing marketing services are called
a. transport cost b. marketing cost c. profit d. margin
29. Method of differentiating the products to meet the consumers’ desires is called
a. standardization b. grading c. quality control d. branding
30. Practice of making quality specification of grades uniform among buyers and sellers
a. packaging b. advertising c. standardization d. grading
31. In marketing an important consideration in locating the processing plant is to know what happens to
the weight and volume of the productafter processing. If the products gains weight the plant should be
located in the
a. market centers b. production centers c. anywhere d. cities
32. Most agricultural products have low price elasticity of demand. Elasticity of demand for rice is
generally a. less than one b. greater than one c. equal to one
d. greater than 2 because rice is a necessity
33. Some products their elasticity is relatively higher, one example of product with higher elasticity is
a. salt b. fruits c. soft drinks d. meat
34. Structure of market that farmers have to take the prices as given
a. monopoly b. oligopoly c. perfect competition d. monopsony
35. The P’s in marketing are: Whom are they the farmers markets to? What do they want or need? Who is
actually going to market the product? This P is
a. People b. Product c. Promotion d. Price
36. What is to be marketed? What the customer wants. This P is
a. people b. product c. promotion d. price
37. Where is it to be marketed? How far it is from the farm? This P is
a. place b. product c. promotion d. price
38. How much is the farmer is going to charge his/her products? This P is
a. price b. product c. promotion d. place
39. How does the farmer inform about his/her products? This P is
a. people b. product c. promotion d. place
PRODUCTION ECONOMICS
1. Yield or productivity refers to the concept of
a. Marginal product b. Isoquant c. Average product d. None of the above
2. Law of the diminishing return is embodied by the
a. Total Product curve b. The production surface c. The average product
d. None of the above
FARM MANAGEMENT EXAM
1. Ratio showing the capacity of the enterprise to repay short term of loans at short notice.
a. current b. fixed c. gross d. output
2. The market value of the output of an activity over some accounting period (usually a year), whether that
output is sold or not.
a. net income b. gross margin c. gross income d. fixed income
3. Anything of value in the possession of the farm or claims of the farm on anything of the value in the
possession of others may be classified as current assets or fixed assets
a. liabilities b. assets c. net worth d. credit
4. Statements of projected cash payments and cash receipts associated with a particular plan (usually for
a farm, but also for an activity, enterprise or enterprise
a. cash flow budget b. costs and returns c. gross margin d. net cash budget
5. Calculation of the future value of a present sum by application of the relevant rate of interest.
a. discounting b. compoundingc. rediscounting d. accounting
6. In terms of opportunity cost, is the benefit given up through having investment capital tied up in an
activity or group of activities for a period of time. It is often specified as the interest rate paid for borrowed
funds or actual amount on interest paid.
a. cost of capital b. imputed value c. shadow price d. sunk cost
7. The distribution of crops over the time and space on a farm during one production cycle.
a. cropping pattern b. seasonal pattern c. calendar of operation
8. Total physical working assets (compromising assets such as harvested and growing crops, non-
breeding livestock and stocks andmaterials) and liquid assets such as cash in hand or at the bank,
prepayments and sundry debtors.
a. current assets b. fixed assets c. crops in hand d. none of the above
9. Claims, which may have to be met within a short period of time, usually not longer than a year
a. current liabilities b. fixed liabilities c. loans d. none of the above
10. The cost of wear and tear and obsolescence associated with of implements, machinery and structures
over time. a. depreciation b. appreciation c. deterioration d. none of the above
11. Those cost which could be allocated to specific activity or enterprise
a. direct cost b. variable cost c. fixed cost d. none of the above
12. Costs that are related to the size or scale of activity a. variable cost b. fixed cost
c. non-cash cost d. none of the above
13. Cost such as the cost of depreciation of a milking parlor is attributable to the milk enterprise
a. variable cost b. fixed cost c. non-cash cost d. none of the above
14. Calculation of the present value of a future sum by application of the relevant rate of interest
a. discounting b. compoundingc. rediscounting d. accounting
15. Total assets less total liabilities, which may be segregated into farm and non-farm equity it represents
the farmer’s contribution of capitalto the economic unit.
a. equity b. equity capital c. net worth d. all of the above
16. Inputs used in production process in general terms this can be classified as land, labor and capital
and management is not usually included as it can be readily measured and land, labor and capital can
further be divided into different types.
a. factors of production b. variable costs c. cost of production d. none of the above
17. Net farm income plus other non-farm income of the family, it represents the total income available to
the farm family for all purposes
a. family earnings b. farm income c. family income d. income from all sources
18. A detailed list of activities that will be carried out on the farm over a specified period of time.
a. farm plan b. farm inventory c. budget d. none of the above
19. Data collection from a sample of farms from specified population.
a. complete enumeration b. farm survey c. interview d. farm records
20. Those costs which are not variable cost
a. fixed cost b. cash costs c. opportunity cost d. none of the above
21. The value of total output (not of any purchases of products is produced) over a specified period
(usually one year) whether the output is sold or not and including inventory charges
a. gross income b. gross output c. gross sales d. none of the above
22. Factor of production, which should be taken into account in farm financial analysis but which involved
no money transaction and thus are not recorded in the farm accounting record (if kept).
a. management b. labor c. capital d. none of the above
23. In accounting terminology, a list of all the assets owned giving their description and value at a
particular point of time in management terms, often used to describe a stock of goods kept in case of
future need, e.g. spare parts for machinery.
a. assets b. inventory c. inputs d. resources
24. Unit of labor input or requirements usually assumed to represent the work accomplished by an adult in
a normal workday or a standardized workday of eight hours.
a. labor day b. work day c. man-hour d. none of the above
25. Physical law that applies to all production processes so that the marginal product of a variable factor
eventually declines as more factor is used relative to a given amount of fixed factors
a. law of supply and demand b. law of diminishing returns
c. law of comparative advantage d. none of the above
26. Cost representing the increase in variable cost, which would occur if one or more unit of output, was
to be produced. a. marginal cost b. fixed cost c. variable cost d. opportunity cost
27. The marginal product of an input is the change in output arising from using another additional unit of
input a. marginal product b. average product c. none of the above
28. Budgeting, which relates to only part of the farm and assess the gains and losses and thus, the net
benefit of changing that part of the farm’s organization.
a. partial budget b. complete budget c. farm budget d. none of the above
29. The economic principle implying that various crops and livestock should be produced in those areas
where the physical and other resources are best suited to their production under prevailing price
relationship. a. law of comparative advantage b. law of supply and demand
c. principle of marginality d. none of the above
30. The economic principle that a farmer should trade off competing goals so long as the goal of
satisfaction from the goal receiving increased emphasis is greater than the loss in satisfaction incurred
by decreasing emphasis in the other goal or goals.
a. principle of marginality b. principle of diminishing returns
c. principle of substitution d. none of the above
31. The economic principle that one thing should be substituted for another only if the net benefit of
making such a change is positive.
a. principle of substitution b. principle of comparative advantage
c. principle of opportunity cost d. none of the above
32. The quantitative relationship between variable inputs and outputs some production processes with a
special level of fixed inputs
a. cost function b. demand function c. physical input function d. none of the above
33. The amount of output per unit of input expressed in physical or valuable terms
a. productivity b. marginality c. cost of effectiveness d. none of the above
34. The ratio of net income from an invest to the market value of the investment
a. return to capital b. return on investment c. marginal returns d. none of the above
INTERNATIONAL TRADE EXAM
1. Ultimate consumption of the division of labor
a. specializationb. trade c. self-sufficiency d. autarky
2. Says that a country tends to produce for an export those products, which it can be produced most
cheaply and to import those products, which other countries can produce most cheaply.
a. comparative advantage b. specializationc. trade d. barter
3. This represents the value of domestic resources spend in saving or earning a unit of foreign exchange
as a proportion of its actual exchange rate
a. domestic resources b. private sector cost c. private profitability d. social profitability
4. The Domestic Cost Ratio (DRC) is divided with __ to come up with the resource ratio (RCR)
a. actual exchange rate b. shadow exchange rate c. domestic currency value
d. foreign currency value
5. If the RCR coefficient is less than 1 then the economic activity has a
a. comparative advantage b. comparative disadvantage
c. neutral advantage/disadvantage d. cannot tell
6. This means that if the crop is being currently imported like yellow corn then
a. the country can earn foreign exchange if it will be exported abroad
b. the country can save foreign exchange by producing the product domestically
c. the country has no choice but to sell the products to ASEAN countries
d. the country has to join WTO to be competitive
7. On the other hand if the DRC coefficient is greater than one, it is better for the country to
a. export yellow corn b. import yellow corn c. import other feeds d. increase tariff on corn
8. Tariff is imposed on
a. an imported commodity b. an exported commodity c. persons
d. in finished goods only
9. Once tariff is imposed the price of the imported commodities will
a. decrease b. increase c. remain the same d. be uncertain
10. Shows the difference in final price of the finished goods before and after imposition
a. nominal protection b. effective protection rate c. implicit tariff d. none of the above
11. Shows by how much the value added in the industry can exceed the value added in the absence of
protection a. nominal protection b. effective protection c. implicit tariff d. none of the above
12. The effective protection rate (ECR) includes the tariff on
a. finished goods b. intermediate inputs c. luxury products d. both a and b
13. Measures the rates by which domestic price of an input or output face by producers deviates from the
world or border price a. nominal protection b. effective protection rate c. implicit tariff
d. government protection
14. The replacement of foreign production with foreign production
a. import substitution b. transfer effect c. protective effect d. revenue effect
15. The additional economic rent paid to the pre-existing domestic producers plus the rent paid to new
producers above their supply price a. import substitution b. transfer effect
c. consumption effect d. revenue effect
16. The size of the protective effect is determined by
a. elasticity of supply b. elasticity of demand
c. income elasticity of demand d. cross price elasticity of demand
17. A tariff designed for protection must provide rates of duties high enough to achieve this objective
a. the encouragement of additional domestic production which could not take place because of prevailing
cost disadvantages b. create a home market for the product
c. increase labor share to national income d. increase employment
18. The most valid reason why a government imposes tariff for protection
a. protection for industries b. creation of home market
c. raise government d. protection of infant industries
19. A direct source of monopoly profit
a. non-tariff barriers b. quota c. tariff d. dumping
20. The Philippines tariff structure at the beginning of 1980 indicated that
a. export were penalized, both a manufacturing sector and other sectors esp. agriculture
b. Agriculture receive the highest level of protection
c. export industries enjoyed the protection system
d. backward integration of the industrial structure was encourage
21. Country or group of countries with the highest non-tariff barriers imposed on the Philippines
a. Japan b. US c. Taiwan d. European or EU countries
22. The case for the protection of infant industries rests on the assumption of
a. efficiency b. inability c. latent comparative advantage d. revenue gain
23. Consists of a group of countries that have abolished al tariff among them, but maintain their individual
tariffs vis-à-vis the outside world.
a. free area trade b. customs union c. common market d. economic union
24. An example of free trade area
a. AFTA b. EEC c. WTO d. EU
25. The European Union is an example of
a. free trade area b. customs union c. common market d. economic union
26. The summary of all economic transactions between the residents of one country vis-à-vis the rest of
the world
 a. balance of payments b. balance of trade c. summary of trade d. WB-IMF accounting
27. Final adjustments made by authorities to settle imbalances in the balance of payments
a. compensatory financing b. official statements c. devaluation d. borrowing
28. The account tells whether the country had earned more than it had paid out
a. current account b. capital account c. merchandise trade account
d. official statements
29. Otherwise known as “invisibles” in the BOP account
a. merchandise trade b. non-merchandise trade c. capital account
d. official account
30. An example of an invisible trade
a. OFW remittances b. Loans and borrowing c. Foreign investments d. Export and import
31. As such there are ___ parts in the BOP account
a. two b. three c. four d. five
32. If there is a persistent BOP deficit, what usually takes place to correct the imbalance?
a. exchange rate depreciation b. exchange rate appreciation
c. import and foreign exchange control d. both a and c
33. Depreciation is an expenditure switching approach, thus it has to be accompanied
a. expenditure reducing b. expenditure enhancing c. export promotion
d. nothing will be effective
34. With depreciation
a. exports will become cheap in the eyes of the foreign buyers b. export will become expensive
c. imports will become expensive domestically d. all of the above e. both a and c
35. System of cultivation using large amounts of labor and capital relative to land area
a. agriculture b. extensive agriculture c. intensive agriculture d. farming
36. System of cultivation using small amounts of labor and capital in relation to the area of the land being
farmed a. agriculture b. extensive agriculture c. intensive agriculture d. farming
37. This implies that under this system of cultivation there are smaller land areas available
a. agriculture b. extensive agriculture c. intensive agriculture d. farming
38. The steady process by which the productive capacity of the economy is increased over time to bring
about rising levels of national income
a. economic growth b. economic development c. economic efficiency
d. economic good
39. The process of improving the quality of all human lives
a. economic growth b. economic development c. economic efficiency
d. economic good
40. The important aspect of development is
a. raising people’s living levels i.e. income and consumption level of food, medical services,
education through relevant economic processes
b. creating conditions conducive to the growth of people’s self esteem through the establishment
of social, political and economic systems that promote human dignity and respect
c. increasing people’s freedom to choose by enlarging the range of their choices e.g. increasing
varieties of consumer goods and services
d. all of the above
41.It focuses on improving the quality of life for all the earth citizens without increasing the use of the
world’s natural resources
a. sustainable development b. agricultural development
c. economic growth d. economic development
42. Development that needs of the present without compromising the ability of the future generation to
meet their needs
a. sustainable development b. agricultural development c. economic growth
d. all of the above
43. For development to be sustainable it should be
a. economically viable b. culturally appropriate c. socially acceptable d. all of the above
MACROECONOMICS EXAM
1. GNP includes
a. services of the farmers coursed through the market
 b. gains from illegal transactions arising from rice importation
c. government transfer payments d. receipts from sales of second hand tractors
2. Economists prefer to use real GNP rather than current GNP as a measure of aggregate output
because:
a. current GNP always understate actual output changes
b. real GNP adjusts current GNP for inflation
c. real GNP adjusts the unequal distribution of income
d. real GNP is always bigger than current GNP
3. In the upper loop “flow of product” approach GNP is obtained as the sum of:
a. sum of expenditures on intermediate goods and services b. value added of each firm
c. expenditures of final goods and services d. sum of income of factors of production
4. When the “ net income from abroad” is deducted from GNP, the remainder is:
a. net national product b. gross domestic product c. national income
d. disposable income
5. The “marginal propensity to consume” is the ratio of:
a. extra consumption to extra income b. total consumption to total income
c. extra consumption to total income d. total consumption to total income
6. If aggregate savings is zero, aggregate consumption must be:
a. less than income b. zero c. equal to income d. greater than income
7. The lager the MPS:
a. The smaller the multiplier b. The larger the multiplier c. The larger the MPC
d. The greater the investment by the business sector
8. The point where the C+1 line intersects the 45 degree line is called the:
a. break even income b. equilibrium income c. deflationary income d. inflationary income
9. If MPC is 9, the value of the multiplier is:
a. 4 b. 10 c. 5 d. 6.67
10. Unforeseen inflation usually blurts:
a. debtors b. profit seekersc. risk taking speculators d. fixed income workers
11. The inflation rates shows:
a. the average price level during the particular period of time
b. the price level in a given year expressed in terms of a base year
c. the percentage rate per period that prices are increasing
d. measure of the change in real output from one year to the next
12. Fiscal policy refers to government policies related to:
a. wages and prices b. government expenditures and taxation
c. money, supply, credit and interest rates d. investments
13. If the national government’s revenue exceeds expenditures, the government has a:
a. balance budget b. budget deficit c. budget surplus d. financing account
14. The budget multiplier is equal to:
a. 1/(1-mpc) b. 1 c. -mpc (1-mpc) d. 0
15. Money in a modern economy performs such functions (s) as:
a. medium of exchange b. measure of value c. standard of payments d. all of the above
16. When bank lending interest is low, the primary effect is to:
a. encourage investment b. discourage investment c. encourage savings
d. discourage consumption
17. Money supply will normally increase when:
a. the BSP increases the reserve requirement b. the government sells bond to the public
c. the BSP lowers the rediscount rates d. all of the above
18. Monetary policies refers to policies related to:
a. wages and prices b. government expenditures and taxation
c. money supply, credit and interest rates d. investments
19. The need to have money for unforeseen circumstances is known as:
a. transactions demand for money b. precautionary demand for money
c. speculative demand for money d. none of the above
20. The narrowest measure of money supply is called M1. It consists of currency in circulation plus:
a. checking deposits b. time deposits c. savings deposits
 d. the amount of outstanding government bonds
MICROECONOMICS EXAM
1. Which of the following, which is not one of the essential questions that an economy focuses on?
a. What are the goods and services to be produced?
b. When are the goods and services to be produced?
c. How are the goods and services be produced
d. For whom are the goods and the services to be produced?
Use the following supply and demand schedules to answer the next two questions
Price (Php) Quantity supplied Quantity demanded
3 30 75
4 40 70
5 50 65
6 60 60
7 70 55
8 80 50
1. When the price is Php4 this market has
a. A shortage of 45 units b. A shortage of 30 units c. A surplus of 30 units
d. A surplus of 25 units e. None of the above
2. There is a surplus of 30 units when the price equals
a. 5 b. 6 c. 7 d. 8
3. There market is in equilibrium when the price equals
a. 5 b. 6 c. 7 d. 8
4. When the price of gasoline rises 10 percent, the quantity of gasoline purchased falls by 8 percent. The
demand for gasoline is
a. perfectly elastic b. unit elastic c. elastic d. inelastic e. none of the above
5. If the income elasticity for squid balls is 0.2, then a 10 percent increase in consumer income will lead to
a a. 20 percent increase in the demand of squid balls
b. 20 percent decrease in the demand of squid balls
c. 2 percent increase in the demand of squid balls
d. 0.2 percent increase in the demand of squid balls
e. 0.2 percent decrease in the demand of squid balls
6. The satisfaction that a person receives from the consumption of goods and services is called
a. budget constraint b. consumer surplus c. income d. utility e. none of the above
7. Economic analysis that explains what happens in the economy and why, without making policy
recommendations is called
a. normative analysis b. positive analysis c. market analysis d. subjective analysis
8. Ceteris paribus means
a. “all other things equal b. “all variables are independent c. “all relationships are inverse
d. that no other assumptions are being made e. that rational self-interest is being assumed
9. The Law of Diminishing Returns states that
a. total product or output when output also increases
b. the additional output produced by the additional units of variable input (while keeping the rest of the
other inputs fixed) will tend to fall after some point because the variable input will have less and less of
the fixed inputs to work with c. the additional output from using the additional input will always
diminish d. none of the above
II. TRUE or FALSE. Write T or F
_____1.Economics is a social science that deals with the allocation of resources that are abundant in
order to satisfy unlimited wants.
_____2. Microeconomics deals with the behavior of individual economic units
_____3. When the price of the computer chips falls which lowers the cost of producing computers, the
supply of computers can be expected to
rise.
____4. As Dao-Ming-Ze’s income increases, we would expect his demand curve for haircuts (a normal
good to him) to shift to the right.
____5. The profit maximizing output of a firm in a perfectly competitive market is where marginal cost is
equal to marginal revenue and price.
_____6. Total revenue is computed by multiplying the price of an output by the quantity of output sold.
_____7. When a firm in a perfect competition, sells an output where the price is less than average cost.
Then that firm will earn a profit.
_____8. Break-even price of a firm in a perfect competition is that price at which total revenue is just
equal to total cost
_____9. The rental cost of land paid by a farmer per cropping season is example of a fixed cost
_____10. Land, labor and capital are examples of a firm’s factors of production.
AGRICULTURAL POLICY EXAM
1. Intends to encourage farmers to shift from low value, marginal crops like coconut and corn to profitable
crops like asparagus, mangoes, cutflowers etc. in order to earn much higher levels of income.
a. National and Use Act b. PD 1144 c. High Value Crops Law (RA 7900)
d. House Bill No. 01095
2. Establish the National Committee on Biosafety of the Philippines (NCBP) which is responsible for
formulating a national safety mechanism and is empowered to regulate, the entry, propagation, use and
movement of introduced as well as a genetically-modified organisms (GMOs) to protect local biological
resources, environment and human health, conduct risk assessments and monitor all on-going and
proposal initiatives involving the use of GMOs.
a. Biosafety guidelines b. RA 3601 c. EO 430 d. House Bill No. 01095
3. Guidelines which involve works related to genetic engineering activities, activities required for the
importation, introduction, field release and breeding of organisms that maybe potentially harmful to people
and the environment. a. EO 430 b. House Bill No. 01095 c. Biosafety Guidelines
d. High Value Crops Law (RA 7900)
4. Basically the consolidation and update of the existing laws on IPR governs the protection of the
intellectual creation in the country.
a. House Bill No. 01095 b. Biosafety Guidelines c. RA 8293 or the IPR Code of the Philippines
d. EO 430
5. Deals with patentability of life forms, states that plant varieties breeds or animal breeds or essentially
biological processes for the production of plants and animals are excluded from patent protection, but
extends such protection to microorganisms and non-biological and microbiological processes.
a. RA 8293 or the IPR Code of the Philippines b. Biosafety Guidelines
c. Section 22.4 of the IPR Code d. RA 3601
6. Created the National Irrigation Administration (NIA) in 1963 which is responsible for the implementation
of the irrigation integrated program of the government and the attainment of the “Irrigation Age’
a. EO 430 b. House Bill No. 01095 c. RA 3601 d. National Land Use Act
7. Amended RA 3601 to broaden its power to include the responsibility of constructing, improving,
rehabilitating and administering all national irrigation systems in the Philippines including all
communal pump irrigation projects; increase its capitalization and grant certain flexibilities toenhance its
operation as a corporate entity.
a. PD 114 b. House Bill No. 01095 c. PD 552(1974) and PD 1702(1980) d. PD 218
8. Passed in 1998, it provides for the adoption of a socialized irrigation fee, communal irrigation systems
(CIS) amortization rates and other urgent interim measures to caution the effects of El Nino and the Asian
Currency Crisis in the agricultural sectors, particularly to benefit irrigation farmer-beneficiaries.
a. House Bill No. 01095 b. PD 218 c. AO No. 17 d. Pd 114
9. Provides for the rehabilitation improvement of all irrigation facilities throughout the country amending
for the purpose Republic Act No 6978 entitled an Act to promote rural development by providing for an
accelerated program within a ten-year period for construction of irrigation projects”.
a. PD 1144 b. National Land Use Act c. House Bill No. 01095 d. PD 218
10. Provide for the physical distribution for only tenanted rice and corn lands under a system of share-
crop or lease-tenancy, whether classified as landed estate or not.
a. PD 1144 b. National Land Use Act c. PD 27 or Land Reform Code
d. RA 6657 or CARL
11. Provides for the physical redistribution of all privately-owned, agricultural lands and those under the
public domain, which are suitable to agriculture regardless of tenurial arrangement and commodity
product. The beneficiaries of the program include farm workers and farmers covering all agricultural
commodities.
a. National Land Use Act b. PD 218 c. RA 6657 or CARL d. PD 1144
12. Provides the overall framework for the rational allocation, disposition, sustainable utilization and
management of land resources for a variety of ecological and economic uses, and to prevent premature
conversion of agricultural lands.
a. PD 1144 b. PD 218 RA 6657 or CARL c. National Land Use Act d. RA 7607
13. Provides for the imposition of land conversion tax, which aims to discourage unregulated and
uneconomic conversion of agricultural lands into other uses and serves as a fiscal measure in support of
the National Land Use Act.
a. RA 6657 or CARL b. PD 218 c. Consolidation of HB Nos. 601 and 1374
d. National Land Use Act
14. Involves the adoption of national policy and guidelines that will address the concerns of one of the
most marginalized sectors of society.
a. PD 218 b. National Land Use Act
c. Magna Carta for Small Farmers or RA 7607 d. RA 6657
15. An act prescribing urgent related measures to modernized the agriculture and fisheries sectors of the
country in order to enhance theirprofitability and prepare the said sectors for the challenges of
globalization through an adequate, focused and rational delivery of necessary support services,
appropriating funs therefore and for the other purpose.
a. RA 7607 b. RA 7900 c. RA 8435 or AFMA of 1997 d. RA 6657
16. Created the Fertilizer and Pesticide Authority (FPA) on May 30, 1977 as a technically oriented agency
mandated to regulate and ensure safety in the manufacture, formulation, importation, distribution, storage,
sale, transport, use and disposal of pesticides and fertilizers to ensure their adequate supply among crop
growers and other end-users to support the food security program of the country as well as to develop
both the fertilizer and pesticide industries.
a. PD 552 b. PD 218 c. PD 1144 d. PD 1702
17. Stipulates that all pesticides intended for commercial use in the Philippines shall be registered with
the Fertilizer and Pesticide Authority. Separate registration shall be required for each active ingredient,
brand and formulation of pesticide.
a. RA 8178 b. FPA Board Resolution No. 1
c. Sec. 9 PD 1144; Article II, Sec. 1, FPA Rules and Regulations No.1, s-1977 d. PD 1144
18. Stipulates that foreign suppliers of pesticides or companies registered under the SEC as regional
liaison offices are not allowed to register pesticide products. In practice, the applicant of registrant shall be
the distributor or the local subsidiary of a foreign-based pesticide company.
a. PD 1144 b. RA 8178 c. PD 218 . PD 1702
19. Describe the basic requirements for a pesticide label including the prescribed Statements, language,
FPA control number, precautionary measures and others.
a. FPA Board Resolution No. 1 b. Pesticide Circular # 4, s-1989
c. Art V, FPA Rules and Regulations No. 1, Series of 1977, Sections 1-4, 6 & 8
d. Pesticide Circular # 5, s. 1988
20. Banned 24 pesticides products and ordered 20 products for restricted or institutional use only
a. Pesticide Circular No. 11 b. PD 218 c. Pesticide Circular # 4, s-1989
d. Art V, FPA Rules and Regulations No. 1, Series of 1977, Sections 1-4, 6 & 8
21. Issued in September 1993, banned and restricted five chemicals: organotin compounds, azymphos
ethyl, methyl parathion, endosulfan and monocrotophos. . In this Board Resolution, the FPA launched the
National Retrieval Drive under which a stock inventory of all banned and restricted pesticides is
conducted. There were already 648 “Stop sale”, “Stop move”, “Stop use” orders issued to all pesticide
handlers who were found violating this order.
a. Pesticide Circular No. 11 b. PD 1144 c. FPA Board Resolution # 1
d. FPA Rules and Regulations No.1
22. Spells out the national policy for a sound, efficient and self- sufficient energy development programs,
which promotes of indigenous and non-conventional sources.
a. Republic Act 720 b. National Land Use Act c. Non- conventional Energy Bill
d. Senate Bill No. 1519
23. Seek authority for DA to formalize intergovernmental transfer between DA and LGU in implementing
decentralized agricultural development programs.
a. FPA Board Resolution # 1 b. FPA Rules and Regulations No.1
c. Decentralization of Agricultural Development Programs d. National Land Use Act
24. An agreement on tariffs and the rules governing the conduct of international trade. The GATT
Uruguay Agreement on Agriculture features five main areas of commitment: 1) the conversion of all
quantitative restrictions imposed on agricultural products into tariffs; 2) reduction of tariff on agricultural
products; 3) reduction of domestic subsidies; 4) reduction of exports subsidies; and 5) harmonization of
sanitary and phytosanitary measures.
a. RA 8178 b. RA 720
c. General Agreement on Tariffs and Trade (GATT) d. RA 337
25. Seek to convert trade protection for rice in the form of quantitative restrictions (QRs) to ordinary
customs duties by 2005
a. Senate Bill No. 1519 b. National Land Use Act
c. Agricultural Tariffication Act (RA 8178) d. PD 1144
26. Seek to amend section 79 of the General Banking Act (RA 337) by extending the grace period for the
amortization of loans to beyond three years to increase the availability of financing long gestating and
high-value crops and to promote their production.
a. RA 720 b. RA 8178 c. Senate Bill 1519 and House Bill 6814
d. National Land Use Act
27. Otherwise known as Rural Bank Act
a. Senate Bill No. 1519 b. RA 337 c. House Bill No. 684 d. House Bill 601
AGRICULTURAL ECONOMICS AND MARKETING EXAM
SET 2 (soft bound)
1. The meaning of the word “economics” is most closely associated with the word_____.
a. Free b. Scarce c. Unlimited d. Unrestricted
2. A theory is
a. An assumption b. An “if-then proposition c. A hypothesis d. A validated hypothesis
3. A hypothesis is tested by
a. The realism of its assumption b. Its ability to predict accurately
c. Both a and b d. None of the above
4. Ina free enterprise economy, the problems of what, how and for whom to produce are solved by:
a. The planning committee b. The elected representative of the people
c. The price mechanisms d. None of the above
5. It is concerned with controlling or influencing economic behavior or its consequences
a. Normative economics b. Positive economics
c. Agricultural economics d. Policy economics
6. An economic system in which all major decisions concerning the level of resource use, the composition
and the distribution of output and the organization of the production are determined by the price system is
a. Socialism b. Communism c. Capitalism d. Fascism
7. Microeconomic theory studies how a free enterprise economy determines
a. The price of goods b. The price of services c. The price of economic resources
d. All of the above
8. Which aspect of taxation involves positive economics?
a. The incidence of tax (i.e. who actually pays the tax b. The effect of tax on incentives
c. The fairness of the tax d. All of the above
9. Which of the following is not a characteristic of economic resources?
a. Unlimited in supply b. They command a price c. Full employment
d. Economic efficiency
10. When all available resources should be employed or no workers should be involuntary out work, this
is related to the goal of
a. Economic security b. Economic freedom c. Full employment d. Economic efficiency
11. An economic system characterized by public ownership of property resources and collective
determination of economic decision through economic planning is
a. Socialism b. Communism c. Capitalism d. Fascism
12. Which of the following criterion guides economic decision?
a. Marginal Cost (MC) are greater than Marginal Benefits (MB)
b. Marginal Cost (MC) are lesser than Marginal Benefits (MB) c. Both A and B d. MC=MB
13. The word economics means household
a. Decisions b. Keeping c. Management d. Resources
14. Economics is everybody’s
a. Vocation b. Concern c. Occupation d. Welfare
15. The most basic of all economic concept is
a. Desires b. Needs c. Scarcity d. Wants
16. While macroeconomics deals with the economy as a whole, microeconomics deals with action of an
individual
a. Firms and market b. Enterprise c. Expenditures d. Employment
17. Scarcity is an economic phenomenon, shortage is
a. Limited b. Occasional c. Short run d. Temporary
18. The basic human needs like food, water, clothing and shelter are considered
a. Psychological b. Physiological c. Social d. Emotional
19. This refers to all things people would consume if they had unlimited resources
a. Needs b. Desires c. Motives d. Wants
20. Because resources are limited, people must avoid_____ to prevent economic problems
a. Choice b. Decisions c. Priorities d. Extravagance
21. The value of best alternative one gives up when a choice is made is called
a. Implicit cost b. Opportunity cost c. Explicit cost d. Cash cost
22. The highest need in the hierarchy level is
a. Esteem b. Belongingness c. Security d. Self-actualization
23. Man will usually satisfy
a. Basic b. Social c. Welfare
d. Cultural needs before satisfying the higher level needs
24. Macroeconomics is not concerned with
a. The level of output of goods and services b. The general level of prices
c. The growth of income d. Individual income
25. Economic problems arise because
a. Resources are scarce b. Human wants are insatiable
c. Most goods are scarce d. All of the above
26. The objective of rational consumer is to
a. Buys as much as his income allows of the cheapest articles
b. Avoid purchasing the most expensive commodities
c. Secure the highest level of satisfaction from his money income
d. Spread his expenditures over as many products as possible
27. A change in demand and supply
a. Is caused by the change in price
b. Is presented by a movement from one point to another on the demand or supply curve
c. Is caused by a change in any of the determinants of demand or supply other than price and is
presented by the a shift of the entire demand or supply curve d. None of the above
28. Which of the following statement is incorrect?
a. Microeconomics is primarily concerned with the problem of what, how and for whom to produce
b. Microeconomics is primarily concerned with the economic behavior decision making units
when at equilibrium c. Microeconomics is primarily concerned with the economic activities of
the household, business and the government sector d. Microeconomics is primarily
concerned with the flow of goods and services from business firms to consumers, the
composition of the flow and evaluation or pricing of the component of the flow
29. Economics is
a. Is a scientific study which deals of how individuals and society generally makes choices
b. Concerned with goods and services to satisfy human wants
c. Concerned with allocation of scarce resources d. All of the above
30. A change of quantity demanded or supplied
a. Is caused by any of the determinants of supply or demand
b. Is good of the change of price of good itself, when all other things remains unchanged and is
represented by a movement from the point to another of the demand or supply curve.
c. Is presented by the shift of the entire demand or supply curve d. None of the above
31. The market equilibrium point for a commodity is determined by
a. The market demand b. The market supply c. The balancing forces of demand and supply
 d. Any of the above
32. When an individual’s income rises (other things constant) the demand for a normal good
a. Rises b. Falls c. Remains the same d. We cannot say without additional information
33. The supply curve slopping upward because
a. Price and quantity are directly related b. Price and quantity is inversely related
c. Price and quantity are not related d. None of the above
34. The demand curve sloping downward because
a. Price and quantity are directly related b. Price and quantity is inversely related
c. Price and quantity are not related d. None of the above
35. Which of the following is also known as RA 7394, which protects consumers against hazard to health
and safety, unfair sales nets and the like
a. Toxic Substance and Nuclear Waste Control Act b. Consumers Act of the Philippines
c. Retail Trade Liberalization Act d. None of the Above
36. A price support leads to persistent
a. Surplus b. Shortage c. Restriction of output d. None of the above
37. A price control will create a problem of
a. Surplus b. Shortage c. Rationing of output d. All of the above
38. The exclusive right of an inventor for the control of his invention for a period of some say, 17 years is
called a. Patent b. Royalty c. Monopoly d. Franchise
39. The right of the property owner to designate the recipient of his property at the time of his death
a. The right of ownership b. The right to be bequeath c. The freedom of choice
d. The freedom of enterprise
40. Protection against imitators or copycats is known as
a. Intellectual property rights b. Copyright c. Patent d. SEC registration
41. A fee received by individuals for endorsing a product is called
a. Franchise b. Royalty c. Patent fee d. Intellectual property fee
42. Which of the following cannot be used as synonym for another?
a. Price system b. Command economy c. Free enterprise d. Capitalism
43. Which of the following statement is incorrect?
a. The law of supply yields a positively sloped supply curve
b. The law of demand yields a negatively demand curve
c. A shortage or surplus is observed is disequilibrium occurs in the market
d. None of the above
44. It is owned by two or more people who agree to pool their resources in a common fund with the aim of
sharing whatever profit(losses) they will get. Examples of which are law firms, accounting firms and
medical offices a. Sole proprietorship b. Partnership c. Corporation d. Franchise
45. It is the selling of government owned or controlled corporations and non-performing assets to the
private sector a. Privatization b. Corporativism c. Cooperativism d. Regulation
46. Underground economy is conducted
a. Outside legal boundaries b. Within legal boundaries c. On parts of entry
d. Outside parts of entry
-ANSWER KEYAgricultural
Economics & Marketing Review-Exam (Set1) Agricultural Marketing Exam
1. C 21. B 41. A 61. A 81. A 1. A 11. A 21. C 31. A
2. D 22. A 42. C 62. B 82. D 2. A 12. B 22. B 32. A
3. A 23. B 43. B 63. B 83. C 3. C 13. A 23. A 33. B
4. D 24. A 44. C 64. A 84. C 4. A 14. B 24. A 34. C
5. C 25. B 45. D 65. C 85. B 5. B 15. A 25. A 35. A
6. B 26. B 46. B 66. A 86. B 6. A 16. D 26. B 36. B
7. D 27. A 47. B 67. A 87. C 7. B 17. A 27. A 37. A
8. C 28. A 48. C 68. A 88. C 8. A 18. C 28. B 38. A
9. B 29. A 49. C 69. B 89. C 9. A 19. A 29. D 39. C
10. C 30. B 50. C 70. B 90. C 10. A 20. B 30. C
11. A 31. D 51. B 71. A 91. A
12. D 32. D 52. B 72. D 92. B Production Economics
13. B 33. C 53. D 73. B 93. B
14. D 34. C 54. B 74. A 94. B 1. A
15. D 35. C 55. B 75. C 95. C 2. A
16. B 36. A 56. A 76. B 96. B
17. D 37. A 57. B 77. A 97. C
18. A 38. B 58. D 78. B 98. C
19. D 39. B 59. A 79. A 99. D
20. B 40. B 60. C 80. B 100. B
Farm Management Exam International Trade Exam
1. A 11. A 21. A 31. A 1. B 11. B 21. D 31. B
2. C 12. A 22. B 32. A 2. A 12. D 22. C 32. A
3. B 13. B 23. D 33. A 3. A 13. C 23. A 33. A
4. D 14. C 24. C 34. B 4. B 14. D 24. A 34. E
5. B 15. C 25. B 5. A 15. B 25. D 35. C
6. C 16. A 26. A 6. B 16. A 26. A 36. B
7. A 17. A 27. A 7. B 17. A 27. B 37. C
8. B 18. A 28. C 8. A 18. D 28. A 38. A
9. A 19. B 29. B 9. B 19. B 29. B 39. B
10. A 20. C 30. A 10. A 20. A 30. A 40. D
Microeconomics Exam Macroeconomics Exam Agricultural Policy
1. C 11. C A. B. 1. C 11. C 21. C
2. B 12. B 1. B 1. T 2. C 12. C 22. C
3. C 13. C 2. B 2. T 3. C 13. C 23. C
4. B 14. B 3. D 3. T 4. C 14. C 24. C
5. A 15. D 4. B 4. T 5. C 15. C 25. C
6. C 16. A 5. D 5. T 6. C 16. C 26. C
7. D 17. C 6. C 6. T 7. C 17. C 27.C
8. B 18. C 7. D 7. F 8. C 18. C
9. B 19. B 8. B 8. T 9. C 19. C
10. D 20. A 9. A 9. T 10. C 20. C
10. B 10. T
Ag. Econ. & Marketing Exam Set 2 (soft bound)
1. B 11. B 21. B 31. C 41. B
2. D 12. D 22. D 32. A 42. B
3. C 13. C 23. A 33. A 43. D
4. C 14. B 24. D 34. B 44. B
5. D 15. C 25. D 35. B 45. A
6. C 16. A 26. C 36. A 46. A
7. D 17. D 27. C 37. B
8. A 18. B 28. C 38. A
9. D 19. D 29. D 39. B
10. C 20. D 30. B 40. A