SET B
MOCKBOARD EXAMINATION
AGRICULTURAL ECONOMICS AND MARKETING
INSTRUCTION: Select the correct answer for each of the following questions. Mark only one
answer for each item by shading the box corresponding to the letter of your
choice on the answer sheet provided.STRICTLY NO ERASURE ALLOWED.
MULTIPLE CHOICE
1. Trade deficit or negative trade balance is
a. when a country imports more than it exports
b. when a country exports more than it imports
c. when a country has a balance of trader
d. none of the above
2. What is an example of an economic good?
a. Water b. Rice Cooker d. Fire d. Air
3. The economic problem " How to produce?" refers to
a. Amounts and types of commodities produced in an economy
b. Tastes and preferences of economic agents
c. Beneficiaries the choices made in a society
d. The way in which resources are combined in order to produce the commodities
4. The selling of government owned corporation
a. Cooperativism c. regulation
b. Privatization d. corporativism
5. Philippine Deposit Insurance Corporation was created by the virtue of
a. R.A. 7394 c. R.A. 7638
b. R.A. 3591 d. R.A. 7308
6. Specialized activity performed in accomplishing marketing process. It answers
“what” in the question “who does what” in marketing
a. commodity approach
b. market structure, conduct and performance approach
c. functional approach
d. institutional approach
7. He formulated the Principles of Political Economy and Taxation
a. John Stuart Mill c. David Ricardo
b. Adam Smith d. Thomas Malthus
8. Among the following, which best describes the importance of demand elasticity?
a. a fall in price induces a percentage change in the supply curve
b. a change in total revenue when prices increase or decline due to changing
quantity in demand
c. as the price increases, a percentage reduction in quantity along the demand curve
d. higher prices cause consumers to cut off good purchases
9. The following are example of merchant middlemen except
a. Contract buyers c. Wholesaler
b. Commission agent d. Grain millers
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10. A point for a commodity where market demand is equal to market supply
a. The equilibrium quantity
b.The equilibrium price
c. The market equilibrium
d. None of the above
11. ____is a law that removes quantitative restriction on rice importation but included
tariffication to protect the farmers from importation of cheap rice.
a. R.A. 11203
b. R.A. 11256
c. R.A. 11900
d. R.A. 13562
12. The value of a currency is falling and, consequently, the general level of prices for
goods and services is rising. The annual rate of change or year-on-year change in Consumer
Price Index.
a. Unemployment rate c. Inflation rate
b. Employment rate d. Underemployment
For questions 11-13, refer to the table below:
Potato (metric tons) Onion (metric tons)
Country A 800 1000
Country B 600 400
11. Which country has the absolute advantage in producing Potato?
a. Country A c. Both Country A and B
b. Country B d. Cannot be determined
12. The country with a comparative advantage in producing Potato is
c. Country A c. Both Country A and B
d. Country B d. Cannot be determined
13. The opportunity cost in producing onion in Country A is
a. 0.8 b. 1.25 c. 2.5 d. 0.4
14. Tax imposed on the gratuitous transfer of property between two or more persons who
are living at the time of the transfer
a. Donor’s tax c. Income tax
b. Real property tax d. Value-added tax
15. Agricultural Economics deals with
a. Services in agriculture
b. Principles of economics applied to crop and animal production
c. Crops and animals
d. Marketing of agricultural goods
16. Which of the following best describes the behavior of prices in the market over time
a. Fluctuating c. increasing
b. Constant d. decreasing
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17. The type of elasticity with a vertical demand curve is
a. Elastic c. inelastic
b. perfectly elastic d. perfectly inelastic
18. Which of the following is monetary policy related to:
a. wages and prices
b. Money supply, credit and interest rates
c. Government expenditures and taxation
d. Investments
19. Tax that are imposed on imported goods that is based on the quality or physical
characteristics of the product
a. Import tariffs c. Ad Valorem tariffs
b. Export tariff d. Specific duty
20. . Few sellers with interdependent pricing
a. Oligopoly c. Monopoly
b. Perfect competition d. Monopolistic competition
21. Characterized by which factors of production are owned by the government. This is
also known as command economy.
a. Fascism c. Communism
b. Capitalism d. Socialism
22. An outward shift in the production possibilities frontier may be brought about by
a. Technological improvement
b. Increase in tax
c. Giving up of one good to produce the other good
d. Fixed input and resources
23. Which of the following is not an economic goal?
a. Efficiency c. Growth
b. Equality d. Stability
For questions 24-31, refer to the statement below:
An economy A has an investment, I = 150. A survey revealed that people would like
to save 0.30 out of every additional unit of income they earn. Additionally, the autonomous
consumption among people is 100; meaning, when the income is zero, people would still
spend 100. Meanwhile, the government spending, G = 200, and the government collects a
lumpsum tax, T=150.
24. Which among the following is correct?
a. MPC = 100 c. MPS = 0.70
b. MPC = 0.30 d. MPS = 0.30
25. The consumption function is
a. C = 100 + 0.30Yd c. C = 100 – 0.30Yd
b. C = 100 + 0.70Yd d. C = 100 – 0.70Yd
26. The savings function is
a. S = -100 + 0.30Yd c. S = 100 + 0.30Yd
b. S = - 100 + 0.70Yd d. S = 100 + 0.70Yd
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27. The equilibrium level of income is
a. 150 b. 600 c. 2,000 d. 1,800
28. The equilibrium level of consumption is
a. 1,500 b. 100 c. 600 d. 0.70
29. What is the value of the multiplier/expenditure multiplier?
a. 3.33 b. 1.43 c. 0.3 d. 0.7
30. The tax multiplier is
a. 2.33 b. -2.33 c. 0.43 d. -0.43
31. Type of import tax that is based upon the weight, quantity or the physical
characteristics of the imported product expressed in the monetary unit of the importing
country.
a. import quota
b. export quota
c. Ad valorem tariff
d. specific duty
32. Refers to competitive relationship between established firms and potential entrants.
a. buyers and sellers c. economies of scale
b. product differentiation d. barriers to entry
33. The transfer of title of goods is exhibited in
a. exchange functions c. facilitating function
b. logistical functions d. physical functions
34. The following are the 4P’s of marketing except
a. Product c. Processing
b. Place d. Promotion
35. An act to promote the production, processing, marketing, and distribution of high-
valued crops providing funds therefore and for other purposes
a. RA 7900 c. RA 7394
b. RA 8175 d. RA 8425
36. The direct purchase or hiring of any factor of production is referred to as
a. Variable cost c. Fixed cost
b. Implicit cost d. Explicit cost
37. The concept of opportunity cost in a production possibilities frontier means that:
a. Production of Good A can only be increased by giving up some of Good B
b.Production of Good A can be increased by increasing the production of Good B
c. Production of Good A and B could maximize resources
d. None of the above is true
38. A unique symbol by which your customers can recognize your products and services
a. trademark b. brand c. logo d.trade name
39. An inter-organizational system made up of interdependent agencies and institutions
involved in moving the product from point of production to point of consumption.
a. market structure c. marketing
b. marketing channel d. marketing function
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40. _______________ refers to "protect our farmers by making smuggling a non bailable
offense and an act of economic sabotage".
a. R.A. 1900 b. R.A 1245 c. R.A. 10845 d. R.A. 1234
41. Which of the following would induce a change in the quantity of coffee bought in the
market?
a. The price of tea, a substitute of coffee, increases
b. The price of coffee decreases
c. A change in taste and preferences of coffee consumers
d. Coffee is linked to health-related concerns
42. It is a type of demand elasticity where at a given price, the quantity demanded could range
from zero to infinity.
a. Relatively elastic c. Relatively inelastic
b. Perfectly elastic d. Perfectly inelastic
43. Refers to the goods which satisfy similar needs or desires
a. Substitute goods. c. Complementary goods
b. Luxury goods. d. Contributory goods
44. When prices are declining over time, there is ____
a. Deflation b. Inflation c. Appreciation d. Depreciation
45. The quantities of goods and services that buyers are willing and able to purchase at
various market prices.
a. Supply schedule c. Demand curve
b. Demand d. Supply
46. Economic system profit is computed as
a. Total revenue minus taxes
b. Total revenue minus total cost (including explicit and implicit costs)
c. Total revenue minus to total explicit cost
d. Total revenue minus to total implicit cost
47. Equilibrium price will ____________ with an increase in demand and a decrease in
supply
a. remains the same b. decrease c. unknown d. increase
48. Among the following, what instruments are used for foreign exchange?
a. telegraphic transfer, bank drafts and letters of credit c. checks and dollars
b. promissory notes and bank drafts d. euro and dollar
49. The demand curve is more elastic than the supply curve, the price will converge on
the equilibrium
a. Divergent fluctuation c. Convergent fluctuation
b. Continuous fluctuation d. All of the above
50. This refers to the total supply of goods and services in an economy.
a. Investment c. Aggregate demand
b. Aggregate supply d. Divestment
51. _____________ is a kind of tax imposed upon the performance of an act, the
enjoyment of a privilege or the engaging in an occupation.
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a. Ad valorem tax c. Property tax
b. Poll tax d. Excise tax
52. A marketing activity that maintains a uniform measurement
a. risk taking c. financing
b. standardization d. market intelligence
53. A sudden shift from pork to beef consumption by Filipinos will
a. Shift the demand curve for beef rightward and beef leftward
b. Shift the demand curve for beef leftward and rice rightward
c. Induce a movement along the demand curve for pork and beef
d. All of the above is true
54. When there is a decline in the value of peso relative to US dollar, the value of peso
a.depreciates b. appreciates c. unchange d. currency
55. Characterized by no increase or decrease in the overall price level
a. Disinflation b. Inflation d. Stagnation d. Stagflation
56. A marketing process that involves the study of various agencies and its structures,
attempt to answer the question ‘who’
a. Functional c. Market performance
b. Commodity d. Institutional
57. If a good is produced in a country where its costs is least in terms of the other goods
or opportunity costs, the country has
a. absolute advantage b. production advantage
b. comparative advantage d. opportunity cost
58. What do you call the graph to illustrate the distribution of incomes?
a. Y curve c. Demand curve
b. Philip curve d. Lorenz curve
59. What is the sum of all individuals demands for a particular goods or services?
a. Market demand c. Supply
b. Demand schedule d. Market equilibrium
60. RA 6657 that covers the transfer to lands regardless of tenurial arrangements and
commodity produce is also known as
a. Comprehensive Agrarian Reform Law
b. High Value Crops Law
c. Local Government Code
d. Ecological Solid Waste Management
61. Tariffication is a form of trade restriction that is
a. Taxes are imposed on exported goods.
b. Taxes on products to earn revenue.
c. Taxes are imposed on imported goods.
d. Taxes to control prices to benefit importers.
62. A marketing activity that involves the sorting of products according to quality
a. packaging c. standardization
b. grading d. branding
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63. A market may be defined as
a. a place where buyers and sellers exchange goods or services
b. a large geographic area with sellers of goods
c. international organizations with buyers demanding products
d.any of the above is true
64. Among the following, which is best affected with inflation,
a. Debtors b. fixers c. savers d. creditors
65. Which describes an enterprise?
a. single proprietorship c. a company
b. single production d. corporation
66. What is a political-economic term referring to policies that aim to reduce government
budget deficits through spending cuts, tax increases, or a combination of both.
a. Complacency b. Austerity c. Consistency d. Compliant
67. An economic theory which explains the dynamics of an absolutely free enterprise.
a. Laissez Fair Theory
b. Theory of comparative advantage
c. Law of supply and demand
d. Keynesian Theory
68. Economics differs from other social sciences because of its focus on
a. social choices c. scarcity
b. social interactions d. social behavior
69. Comparisons of additional benefits and additional costs, usually for decision making
a. Marginal benefits c. Marginal analysis
b. Marginal costs d. Marginal product
70. An increase in the general income of people would
a. Increase price levels, quantity level constant
b. Shift the demand curve to the right
c. Shift the demand curve to the left
d. Increase quantity demanded, with price levels constant
71. If a FLORIDA bus raises its fare and commuters reach the elastic range of their
demand curve,FLORIDA’s
a. Revenue would rise c. Revenue would remain unchanged
b. Revenue would fall d. Revenue would fall as the number of commuters increases
72. . What type of utility is created when goods are made available when they are
wanted?
a. time utility c. possession utility
b. from utility d. place utility
73. Which of the following best illustrates the notion of opportunity cost
a. In rice production, the farmer spends for fertilizer, seeds, and other inputs
b. To watch a movie in cinema, one must shoulder more for transportation
c. In deciding an evening with friends, one is giving up time that could have been used
for studies.
d. In eating at a restaurant, one typically spends P100-150
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73. Advertising agencies use popular movie stars to endorse products because it is
expected that doing so will:
a. influence consumer tastes and preferences towards the product
b. strengthen the advertising industry
c. add prestige to the product, allowing the seller to increase it price
d. increase the supply of the product in the market, thus raising its demand
74. The responsiveness of quantity demanded to change in income
a. Cross-price elasticity c. Income elasticity
b. Own price elasticity d. market function
75. What happens when a floor price is set on the price of rice
a. Quantity supplied increases because of a high price
b. Quantity supplied increases because of a low price
c. Quantity supplied decreases because of a high price
d. Quantity demanded increases because of a low price
76. The supply curve is sloping upward because
a. An increase in farm inputs shift the supply curve to the left
b. When the price of the commodity increases, the quantity supplied will decrease
c. When the quantity demanded increases, the quantity supplied will also increase
d. When the price of the commodity increases, the quantity supplied will increase
77. If the demand is inelastic, an increase in price would result in
a. increase in total revenue c. maximum total revenue
b. decrease in total revenue d. cannot be determined
78. What do you call a market situation where in a small quantity of products provides
sellers some advantage in bargaining for prices with buyers?
a. Seller market c. Retailer
b. Buyer's market d. Wholesaler
79. What is Gold Standard?
a. It is the measurement of a commodity with intrinsic value
b. It is money used by individuals
c. It is a monetary measurement
d. It is a term used by an economy that uses gold as money
80. What is the cost when one makes a choice there is always an alternative to be given up?
a. Opportunity Cost c. Implicit Cost
b. Explicit Cost d. d. Cost cutting
81. This is a type of middleman which owns the product they handle
a. commission agent c. middlemen
b. broker d. merchant middlemen
For questions 82-83, given the demand and supply equations for onion,
Qd = 150 + 10P
Qs = 450 - 5P
82. The equilibrium price of Onion is:
a. 15 b. 10 c. 20 d.
25
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83. The equilibrium quantity of Onion is:
a. 320 b. 330 c. 340 d. 350
84. A market structure with only single buyer
a. Monopoly c. Monopolistic competition
b. Monopsony d. Any of the above is true
85. Considered as the father of economics who advocated Laissez-Faire theory
a. David Ricardo c. Adam Smith
b. John Stuart Mill d. Karl Marx
86. The best definition of a target market is
a. a group of sellers studying what to sell
b. a group of customers at whom the sellers specifically want to sell
c. a group of sellers willing to offer a product
d. a group of customers willing to buy
87. A type of unemployment that happens when there is a shift from traditional to modern
agriculture or about by a change in technology?
a. Frictional Unemployment c. Structural Unemployment
b. Cyclical Unemployment d. Seasonal Unemployment
88. A situation where there is available job for every person who is willing and able to work?
a. underemployment c. full employment
b. economic sabotage d. economic growth
89. This is also called price spread. It refers to the difference between what the consumers for
an agricultural product to what the producer receives
a. Marketing charges c. Marketing margin
b. Marketing cost d. Mark-up
90. The only international organization dealing with the global rules of trade
a. World Trading Organization
b. World Trade Organization
c. World Tariff Organization
d. World Tariffication Organization
91. A bookkeeping system that a government uses to measure the level of the country's
economic activity in a given time period. It is also a measurement of indicators of national
output or income like GDP and GNP.
a. National income accounting
b. Final goods
c. Fiscal policy
d. Monetary policy
92. If the cross-price elasticity of demand between meat and fish is 2.50, we can say that
a. meat and fish have elastic demand c. meat and fish are
substitute
b. meat is a normal good d. A and B are correct
93. Which of the following is not considered a market?
a. a balut vendor selling on the street
b. fruit stands along the national highway in Calamba
c. South supermarket at 10 o’clock in the evening
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d. New York coffee exchange market
94. An outward shift in the production possibilities frontier may be brought about by
a. Technological improvement
b. Increase in tax
c. Giving up of one good to produce the other good
d. Fixed input and resources
95. Fiscal policies are government policies related to:
a. wages and prices c. Government expenditures and taxation
b. Money supply, credit and interest rates d. Investment
96. ______ it is defined as meeting, the needs of present generation without
compromising the ability of future generation to meet their own.
a. Sustainable Agriculture c. Economic Growth
b. Sustainable Development d. Economic Development
96 . The equation C = 80 + 0.90Yd predicts that consumption is
a. 130 when disposable income is 100 c. 160 when disposable income is 90
b. 170 when disposable income is 100 d. None of the above
97. The major contributor to the country's gross national income is the
________________.
a. agriculture and fishery sector c. forest sector
b. service sector d. industry and manufacturing sector
98. What is Agricultural Economics?
a. A companion of services in agriculture
b. That which deals with the principles of economics to crop and animal production
c. That which deals with crops and animals
d. That which deals with marketing agricultural goods
99. Which of the following illustrates a normative economics?
a. The annual inflation rate in the Philippines rose to 6.4% in July 2022 from 6.1% in
June 2022.
b. To be able to achieve economic growth, we should invest in agriculture.
c. There is shortage of softdrinks due to low supply of refined sugar.
d. The economic growth rate of the Philippines is facing a rapid decline.
100. Stage in business cycle where there is an extreme fall in economic activity that lasts for
years, rather than just several quarters.
a. Recession c. Trough
b. Depression d. Recovery
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