SIR BRIAN’S REVIEW & TUTORIAL CENTER

1ST MONTHLY MOCK

AGRICULTURAL ECONOMICS & MARKETING

1. Economics is based on two fundamental facts. These are

a. Consumers would like to maximize their satisfaction while

producers would like to maximize profit
b. Resources are scarce while human wants are unlimited
c. Family income is limited while goods and services to buy are
limited
d. Resources are scarce, and producers use more resources
2. Which of the following best defines bulkiness in agricultural
products?

a. low price in relation to weight or volume

b. equal price in relation to weight and volume
c. high price in relation to weight and volume
d. all of the above
3. Which term best applies to a market with a single buyer?

a. monopoly
b. monopsony
c. oligopoly
d. oligopsony
4. The sloping downward of a demand curve shows an inverse
relationship between price and quantity demanded. It means:

a. as the price increases, the quantity demanded decreases

b. as the price decreases, the quantity demanded decreases
c. as the price increases, the quantity demanded increases
d. all of the above
5. Which of the following best describes the prices in a perfect
market?

a. variable
b. constantly changing
c. uniform
d. unpredictable
6. The market for farm product is under pure competition. This
means that:

a. farm products are close substitutes

b. there are a lot of similar products, each competing with one
another
c. prices of the products are held at market price
d. all of the above

7. The objective or goal of a rational producer or firm is

a. Benefit maximization
b. Sales maximization
c. Profit maximization
d. Cost maximization
8. The book which became the apostle of classical economics
written by Adam Smith

a. Principles of Political Economy

b. The Wealth of Nations
c. Essay on the Principle of Population
d. General Theory of Employment, Interest and Money
9.Anything that can be offered to a market for attention,
acquisition, use, or consumption to satisfy human needs and
wants

a. Goods
b. Service
c. Technology
d. Products
10.This is the utility created when raw materials are
transformed into products

a. Place
b. Time
c. Form
d. Possession
11. What the firm’s owners give up to use a resource

a. explicit cost
b. opportunity cost
c. implicit cost
d. variable cost
12. The process of transformation of inputs into output

a. Processing
b. Manufacturing
c. Consumption
d. Production

For the items 13-16, please refer to the narrative below.

Emmanuel bought one (1. bag of hybrid seeds from Syngenta for P
5, 000.00 and 1 bag of 0-0-60 for P 3,500.00 from a local
agricultural supply for his one (1. hectare corn field. He plans
to start sowing this early March. He hired three (3. laborers
for P 270.00 per day which will help him sow the seeds using
drilling method, assuming they can finish sowing for three (3.
days. He currently has a combined harvester which he loaned from a
nearby lending center, giving him an interest of P 1,000.00
per month. Assuming 6 months are allotted for 1 cropping of corn
production.

13. Identify the fixed cost?

a. 0-0-60
b. Syngenta
c. interest
d. Laborers
14. What is the total for variable cost?

a. 8,500.00
b. 10,930.00
c. 9,000.00
d. 9,130.00

15. What is the total cost?

a. 16,930.00
b. 10,000.00
c. 10,130.00
d. 9,500.00
16. If he has a Total Gross Income of 20,000.00. What is his net
return?

a. 3,070.00
b. 10,000.00
c. 9,870.00
d. 10,500.00
17. Which of the following is most closely approximates our
definitions of oligopoly?

a. The cigarette industry

b. The fast food chains
c. Rice farming in the region
d. Corn farming in the region

18. Higher income lowers demand of these goods

a. Normal goods
b. Inferior goods
c. Substitute goods
d. Complement goods
19. The following are factors affecting demand except:

a. consumers income
b. number of consumers
c. consumers savings
d. price of related goods
20. Denotes the consumers satisfaction out of consumption

a. substitution effect
b. consumers preference
c. income effect
d. utility
21. A study that deals with “what is ought to be” in the economy

a. microeconomics
b. normative economics
c. positive economics
d. macroeconomics
22. Payments made by government to producer without any service
or good in return

a. subsidy
b. price control
c. price support
d. fiscal policy

23. The production function shows the physical relationship

between different combinations of input and ________

a. output
b. maximum output
c. cost
d. utility levels
24. Higher indifference curves should be represented by

a. lower numbers
b. higher numbers
c. negative numbers
d. positive numbers
25. Imposing a ceiling price will entail __________ in the
market
a. inflation
b. shortage
c. surplus
d. benefit to producers
26. These are considered scarce and to be paid for and are
produced and needed by men to satisfy their wants.

a. Market goods
b. Intangible goods
c. Economic goods
d. Tangible goods

27. It is an economic system associated more with the political

system of a strong one-man or junta dictatorship.

a. Marxist
b. Feudalism
c. Fascism
d. Socialism

28. Scarcity is a permanent economic phenomenon, shortage is

a. Temporary
b. Limited
c. Occasional
d. Short run
29. People who do not have jobs as a result of sluggish economic
activity are considered as part of

a. Structural unemployment
b. The underemployed workforce
c. Cyclical unemployment
d. Frictional unemployment
30. The addition of values to a product as it moves to the
consumer is called

a. Selling
b. Distribution
c. Marketing
d. Production
31. Study of the various agencies and business structure which
perform the marketing processes

a. Commodity approach
b. Functional approach
c. Institutional approach
d. Structure-conduct-performance-approach
32. Which of the following is NOT true about monopoly?

a. Being a monopolist does not ensure the firm instant profit

b. The firm can impose any price it wants
c. The firm cannot maximize profit at the inelastic portion of the
market demand curve
d. None of the above

33. The anticipated reduction in the value of assets over time

that is brought about through physical use or obsolescence

a. Appreciation
b. Devaluation
c. Depreciation
d. Stagnation
34. In economics, this word is defined as the creation of goods
and services to satisfy human wants

a. Consumption
b. Marketing
c. Production
d. Transporting
35. The most important resource in cooperative

a. Land
b. Capital
c. Human
d. None of the above
36. The objective of a rational consumer is to
a. Buy as much as his income allows of the cheapest articles
b. Avoid purchasing the most expensive commodities
c. Spread his expenditures over as many products as possible
d. Secure the highest of satisfaction from his money income

37. The markets for factors of production is where

zs
a. household sells products and business buy products
b. businesses sell the resources and household by-products
c. household sells resources and business sell resources
d. buisness sell resources and household buy reources
38. The entrepreneurial activity that organizes the different
factors in production such as land, labor and capital is
undertaken by the: undertaken by the:

a. Manager
b. Partner
c. Stockholder
d. Capitalist
39. Which of the following enables the entrepreneur to determine
the fiscal needs of the business and the sources of the needed
funds?

a. Financial Plan
b. The environment
c. Production plan
d. Business plan
40. What is this promotional tool of door to door selling with
special offers?

a. Publicity
b. Advertising
c. Sales promotion
d. Personal selling

41. A machine bought five years ago will practically.

a. Work as new
b. Be a junk
c. Work better
d. Depreciate

42. Which does not belong to 4P' s of marketing?

a. Product
b. Price
c. Place
d. Purchase

43. Which element is important in market analysis?

a. Reduction in wages
b. Personnel
c. Activities
d. Source of venture

44. How can Filipino farmers seize the opportunity to serve a

market of 650 milion in the ASEAN community for their
agricultural products?

a. Encouraging foreigners to supply improved seeds,breeding stock

and farm chemicals.
b. Observing the local standards of primary products,both fresh and
processed.
c. Subsidizing rural credit system for farmers.
d. Effectively linking primary production into world class
competitive food supply chains.

45. The Maltusian crisis sees the planet Earth unable to produce
enough _______ for an expanding population.

a. Service
b. Grain and meat
c. Industries
d. Technology systems
46. The market equilibrium point for a commodity is determined
by

a. The balancing forces of demand and supply

b. The market demand
c. The market supply
d. All of the above

47. It refers to the length of time required to recover

the capital cost of the project
a. Payback period
b. Income years
c. Investment return
d. None of the above
48. The decision to engage in direct marketing of products is
called__?

a. market promotion
b. market analysis
c. management technique
d. market strategy
49. Period during which a borrower need not repay principal and
sometimes, interest

a. Guarantee period
b. Free period
c. Grace period
d. Non-payment period
50. The president responsible for the implementation of the
Comprehensive Agrarian Reform Program in the Philippines.

a. Joseph E. Estrada
b. Corazon C. Aquino
c. Ferdinand E. Ramos
d. Fidel V. Ramos
51. What management function deals with giving specific job
assignments and arranging structure that will support one
another?

a. Planning
b. Directing
c. Controlling
d. Organizing

52. In which process is a manager engaged when he motivates and

leads his people to achieve the objectives of the business?

a. Organizing
b. Controlling
c. Directing
d. Planning
53. What is the system or method employed to attract public
patronage or show the desirability of commercial products for
sale?

a. Pricing
b. Marketing
c. Retailing
d. Advertising
54. Which theory believes that government interference hinders
economic activities?

a. Ricardian theory
b. Scientific Management Theory
c. Keynesian theory
d. Laissez faire

55. Accounts normally written at the left side are the _______.

a. Debit
b. Assets
c. Liabilities
d. Credit
56. The first basis in pricing the product is the cost of
producing that product. Next to consider is the customer's
_______.

a. Likes and dislikes

b. Ability to pay
c. Design specifications
d. Product preference

57. What do you call that agricultural association that is

concerned with pooling savings of members and extending loans to
them at a low interest rate?

a. Agricultural labor union

b. Industrial guarantee and loan fund
c. Agricultural credit union
d. Guarantee fund for small enterprise
58. Which should NOT be considered as a threatening force in
putting up a business enterprise?

a. Initial capital
b. Market
c. Cost of production and distribution
d. Competitor
59. A book in which the records of a business are written is the
________.

a. ledger
b. special journal
c. journal
d. general ledger
60. What part of the project feasibility study considers the
manufacturing processes, plant capacity and location,
machineries required and building equipment?

a. Market study
b. Management study
c. Technical study
d. Financial study
61. The proof of equality of the debits and the credits in the
ledger is called _____.

a. Trial balance
b. Balance sheet
c. Income statement
d. Footing
62. In what part of a business plan can you find a study of the
business competitors, the supply and demand of the product, the
marketing, and projected sales?

a. Financial feasibility
b. Market feasibility
c. Production plan
d. Organizational plan

63. In planning for a new business, what should a good

entrepreneur consider first?

a. Look at the future and study the environment of their business

b. Arrange the jobs into structure that will support one another
c. Motivate and lead his people to achieve objectives.
d. Encourage qualified people to help him in his business.
64. How is the probability of success of the enterprise
determined?

a. Through feasibility study

b. Through balance sheet
c. Through crop yield
d. Through production record
65. How is the gross income of rice production computed?

a. Add the net income to the production cost

b. Combine the marketing cost and the production cost
c. Multiply the number of cavans by the cost price in pesos
d. Multiply the net income by the production cost
66. Which characteristic of an entrepreneur may not be very
necessary for him/her to be successful in his endeavor?

a. Innovativeness
b. Skills in human relations
c. Work skills
d. High education attainment

67. In selecting a location for your business, the primary

consideration is to

a. consider existing facilities

b. know your competitors
c. study the competing products
d. study your prospective customers
68. Mr. Santos is a poultry farmer who needs to pay taxes and
other accounts payable before the end of the year. In what part
of his financial statement should this be reflected?

a. Debit
b. Asset
c. Credit
d. Liabilities

69. What assistance is directed to provide information on buyers

for the products and for possible sources of materials?

a. Training
b. Financial
c. Marketing and Finance
d. Technical and technology
70. In bookkeeping the term purchase is used to identify

a. merchandise returned
b. merchandise bought
c. merchandise sold
d. unsold merchandise
71. How can the profitability of the enterprise be determined?

a. Through gross profit

b. balance sheet
c. crop yield
d. feasibility study

72. This calls for the ability to break down tasks into logical,
step-by-step activities for the job to get accomplished?

a. Networking
b. Decision making
c. Ability to achieve goals
d. Systematic planning

73. What is this promotional tool of door-to-door selling with

"special" offers?

a. Advertising
b. Sales promotion
c. Publicity
d. Personal selling

74. From a market standpoint, what is that chicken of inferior

quality? Particularly one that is thin, emaciated, or disease-
infected?

a. Left over
b. Cull
c. Surplus
d. Reject
75. What do you call those things of value that a farmer has in
his business such as cash receivables, buildings, inventories
and supplies?

a. Debits
b. Assets
c. Liabilities
d. Credits
76. What is the role of agricultural extension services in the
Philippines?

a. To provide financial assistance to farmers

b. To promote sustainable farming practices
c. To regulate agricultural exports and imports
d. To conduct market research on consumer preferences
77. Which of the following is an example of a non-tariff barrier to
agricultural trade?

a. Import quotas on agricultural products

b. Export subsidies for local farmers
c. Currency exchange rates
d. Intellectual property rights protection

78. What is the purpose of a marketing plan in agricultural

marketing?

a. To identify potential agricultural suppliers

b. To set strategic pricing for agricultural products
c. To forecast agricultural production yields
d. To outline marketing objectives and strategies

79. Which of the following is an example of a government

intervention to support agricultural prices in the Philippines?

a. Imposing import restrictions on agricultural goods

b. Implementing free trade agreements with other countries
c. Encouraging foreign direct investment in the agricultural sector
d. Promoting competition among local agricultural producers

80. What is the role of agricultural market information systems in

the Philippines?

a. To monitor and report on market prices and trends

b. To regulate agricultural marketing practices
c. To coordinate agricultural research and development
d. To enforce quality standards for agricultural products
81. Which of the following is a major challenge faced by smallholder
farmers in the Philippines?

a. Access to advanced agricultural technologies

b. Availability of agricultural land
c. Strong bargaining power in the market
d. Limited access to credit and financial services

82. What is the primary objective of agricultural insurance programs

in the Philippines?

a. To protect farmers against natural disasters and crop failures

b. To encourage the adoption of sustainable farming practices
c. To stabilize agricultural prices in the market
d. To promote agricultural exports to international markets
83. Which of the following is an example of a value-added
agricultural product?

a. Freshly harvested rice

b. Unprocessed coconut meat
c. Bottled mango juice
d. Raw sugarcane
84. What is the significance of market segmentation in agricultural
marketing?

a. It allows for the identification of potential agricultural

suppliers.
b. It helps in setting uniform prices for agricultural products.
c. It enables targeted marketing strategies to different consumer
groups.
d. It promotes fair competition among agricultural producers.
85. Which of the following factors contributes to the high rate of
post-harvest losses in the Philippine agricultural sector?

a. Advanced storage and preservation technologies

b. Efficient transportation infrastructure
c. Lack of access to proper storage facilities

d. Low levels of agricultural production

86. What is the concept of "agricultural diversification" in the
context of agricultural economics?

a. The process of specializing in a single agricultural product

b. The expansion of agricultural activities to include multiple
crops or livestock
c. The adoption of modern farming techniques and practices
d. The process of exporting agricultural products to international
markets
87. Which of the following is a primary market for Philippine
agricultural exports?

a. China
b. Japan
c. United States
d. Australia
88. What is the primary objective of agricultural cooperatives in
the Philippines?

a. To maximize profits for individual farmers

b. To negotiate fair prices and market access for their member
farmers
c. To compete with large agricultural corporations
d. To regulate the pricing of agricultural products in the market
89. What is the impact of climate change on Philippine agriculture?

a. Decreased agricultural productivity and increased vulnerability

to natural disasters
b. Increased availability of water resources for irrigation
c. Reduced reliance on imported agricultural products
d. Expansion of agricultural land due to melting glaciers
90. What is the role of the National Food Authority (NFA)s in the
Philippine agricultural sector?

a. To regulate the pricing and distribution of rice in the market

b. To promote sustainable farming practices among smallholder
farmers
c. To oversee the import and export of agricultural products
d. To provide financial assistance and credit to agricultural
producers

91. Which economic indicator is used to measure the competitiveness

of Philippine agricultural products in international markets?

a. Terms of trade
b. Gross Domestic Product (GDP.
c. Consumer Price Index (CPI.
d. Unemployment rate
92. What is the primary objective of contract farming arrangements
in the Philippines?

a. To secure a stable market for agricultural products

b. To encourage smallholder farmers to form cooperatives
c. To establish government price controls on agricultural goods
d. To regulate the import and export of agricultural products
93. Which of the following is an example of a value chain activity
in agricultural marketing?

a. Soil preparation and cultivation

b. Harvesting and post-harvest handling
c. Land ownership and tenure
d. Agricultural policy formulation
94. What is the purpose of market research in agricultural
marketing?

a. To analyze consumer preferences and trends

b. To determine the optimal crop rotation schedule
c. To enforce quality standards for agricultural products
d. To calculate the cost of agricultural inputs
95. Which of the following factors can contribute to the success of
agricultural value chain development in the Philippines?

a. Limited access to market information

b. Fragmented production and inefficient coordination among actors
c. Lack of government support and policies
d. High transportation costs and logistics challenges
96. What is the primary purpose of agricultural subsidies in the
Philippines?

a. To increase agricultural production and productivity

b. To discourage farmers from engaging in agricultural activities
c. To generate revenue for the government
d. To promote imports of agricultural products

97. Which of the following is an example of a direct cost in

agricultural production?

a. Opportunity cost of land

b. Cost of labor
c. Cost of irrigation systems
d. Cost of transportation to the market
98. What is the significance of market integration in agricultural
economics?

a. It allows farmers to specialize in a single crop for maximum

profitability
b. It ensures that prices of agricultural products are stable and
consistent
c. It promotes competition and efficiency in the agricultural market
d. It encourages the importation of agricultural goods to meet local
demand
99. Which of the following is a factor affecting agricultural labor
supply in the Philippines?

a. Government regulations on agricultural exports

b. Changes in rural-to-urban migration patterns
c. Availability of agricultural inputs
d. Currency exchange rates
100. What is the role of agricultural marketing boards in the
Philippines?

a. To regulate agricultural production and pricing

b. To provide financial assistance to farmers
c. To oversee the distribution of agricultural inputs
d. To promote agricultural research and development