AGRICULTURAL ECONOMICS AND MARKETING

1. Economics may be defined as:

a. The study of activities involving money and exchange transactions among people
b. The study of the allocation of scarce resources to the production and distribution of
goods and services
c. The study of wealth
d. The study of men in their ordinary business life, earning and enjoying a living
e. All of the above

2. The law of demand asserts that

a. There is someone, somewhere who has a use of anything

b. People will spend a constant peso amount for a good that is in demand
c. If people want something, they can always get it
d. The quantity of a good people will want to buy and the price they must pay for
it are inversely related
e. All of the above

3. The word “ demand” is used in economic theory to refers to

a. The amounts people are willing to buy at various prices

b. Those wants or needs that are urgent or pressing
c. Needs of both household and business firms
d. Wants are economic in character rather than social, cultural or spiritual
e. All of the above

4. Given two goods X and Y, being on the production possibility frontier curve means that

a. It is impossible to produce any more X

b. It is impossible to produce any more Y
c. More X can be produced only by doing without some Y
d. Population is in equilibrium
e. If society becomes more productive in producing Y, then we have more Y but no more X

5. The PPF of a country can be said to shift outward as a result of the following, which if any is
the wrong explanation

a. Expenditures on new plants and equipment are constantly being made

b. The population increases
c. Better methods of production are developed
d. New oil fields are made
e. All of the above are valid explanation

6. Shift in the PPF results from

a. Unemployment
b. Inflation
c. Changes in production techniques
d. Changes in the combination of goods produced
e. Changes in consumer’s tastes

7. A shortage of OPEC oil raises by virtue of

a. The law of diminishing marginal utility

b. The law of elastic demand
c. Downward sloping demand curve
d. All of the above
e. None of the above

8. An increase in the price will tend to lower quantity demanded because:

 a. Suppliers will supply only the smaller amount
b. Some individuals will no longer purchase the good
c. Individuals cut back their purchases of the goods
d. A and B
e. B and C

9. If E was the old equilibrium in the market for pork, and E` the new one, describe what most
likely caused the change

a. Consumer income rose causing a supply shift

b. Bad weather caused a supply shift
c. Consumer income rose causing a demand shift
d. Supply and demand both shifted
e. None of the above are plausible descriptions

10.When we say that a price in a competitive market is “too high for equilibrium” we mean that
(given an upward sloping supply curve)

a. No producer can cover his costs of production at that price

b. Quantity supply exceeds quantity demanded at that price
c. Producers are leaving the industry
d. Consumers are willing to buy all the units produced at that price
e. Quantity demanded exceeds quantity supplied at that price

11.A drought will probably:

a. Cause rice suppliers to move up along their supply curves to a higher price
b. Induce greater demand for rice, yielding a higher price
c. Cause people to reduce their demand
d. Induce upward and leftward shift in rice’s supply curve
e. Lower the price of the substitute of rice

12.Which of the following statements in incorrect (assuming an upward-sloping supply curve)

a. If supply shifts to the left and demand remains constant, equilibrium price will rise
b. If demand shifts left and supply increases, equilibrium price will rise
c. If supply shifts right and demand shifts left, equilibrium price will fall
d. If demand shifts right and supply shifts left, price will rise
e. If supply shifts right and demand remains constant, equilibrium price will fall

13.If the demand schedule is P=100-4Q and the supply schedule P=40+2Q, the equilibrium price
and quantity demanded are

a. P=60, Q= 10
b. P= 10, Q= 6
c. P= 40 , Q= 6
d. P= 20, Q = 20
e. None of the above

14.Supply of a given good will be affected by

a. Change in the demand for the good

b. A change in the consumer preference
c. A change in the technology with a resultant effect on the cost of production
d. Introduction of new consumers into the market
e. None of the above

15.An increase in supply will lower price unless

a. Demand is perfectly inelastic

b. Demand is perfectly elastic
c. It is followed by an increase in quantity demanded
d. It is followed by an decrease in demand
e. Both demand and supply are highly elastic
16.Whenever total revenue remains the same after a change in price, the elasticity of demand is

a. Greater than 1
b. Less than 1
c. Equal to 0
d. Equal to 1
e. Equal to infinity

17.If a very small change in the price of good causes a huge change in the quantity demanded, the
demand for the good is

a. Perfectly elastic
b. Relatively elastic
c. Unit elastic
d. Relatively inelastic
e. Perfectly elastic

18.At any equilibrium demand, choices for Q1 and Q2 satisfy :

a. MU1=MU2
b. MU1/Q1=MU2/Q2
c. MU1/P1=MU2/P2
d. P1=P2
e. None of the above

19.If the good is inferior then

a. As its price rises, less of it will be bought

b. As its price falls, more of it will be purchased
c. As the consumer’s income increases less of the good will be purchased
d. As the consumer’s income decreases less of the commodity will be purchased
e. If the price or income changes, no change will be induced in its consumption

20.To be in equilibrium (i.e to maximize satisfaction), the consumer must:

a. Purchase no inferior goods

b. Equalize the marginal utilities of the last unit produced of every commodity
c. Be sure that the prices of all commodities are proportional to their total utilities
d. Be sure that the price of each good is equal to the marginal utility of money
e. Allocate income so that the last centavo spent on each good gives the same
amount of marginal utility as the last centavo spent on every other good

21.If I get 8 units of total utility (TU) from 2 oranges, 6 of TU from 3 oranges, and 5 of TU from 4
oranges, I obey the law of diminishing marginal utilities because

a. 8-6 > 6-5

b. 4-3 = 3-2
c. TU > MU
d. MU > TU
e. MU = TU

22.The price of good X is P1.50 and that of good Y, P1.00. A particular consumer who evaluates
the marginal utility of Y to be 30 units, and is in equilibrium with respect to purchase of X and
Y, must consider the marginal utility of X to be

a. 15 units
b. 20 units
c. 30 units
d. 45 units
e. None of the above

23.If the prices of goods, A B and C are equal, which of the following should a consumer do to
maximize his utility.
 a. Divide his budget equally among these commodities
b. Regard these commodities as providing equal satisfaction value
c. Buy quantities of each which make total utilities equal
d. Buy these commodities in quantities needed to make their marginal utilities
equal
e. None of the above

24.What will happen to the supply and demand curves for price if the government imposed the
ceiling price for milled price

a. Supply shifts to the left

b. Supply shifts to the right
c. Demand shift to eh left
d. Both supply and demand shifts to the left
e. None of the above

25.The government imposes a 50% increase in agricultural wages. How will this affect the price of
rice?

a. Price remains the same

b. Price decreases because of increase in supply
c. Price increases because of increase in demand
d. Price increases because of a shortage
e. None of the above

26.Costs in the long run period are not

a. Avoidable
b. Opportunity costs
c. Variable
d. A function of output
e. Fixed

27.If marginal costs lies below the average cost then

a. Average total costs must be falling

b. Marginal cost must be falling
c. Average fixed cost must be falling
d. Average total cost must be rising
e. Marginal cost must be rising

28.A production function

a. Is the relationship between physical inputs and the costs of the inputs
b. Is the technological relationship between the quantity of inputs employed and
the qty of output produced
c. Is the sociological relationship between the society and the environment affected by the
production
d. Is the same as the law of variable proportions

29.According to the law of diminishing marginal returns, as more units of variable factor are
applied to a fixed mix of other factors

a. At some point output will decrease

b. At some point total cost will decline
c. Beyond some point marginal revenue will decrease
d. At some point the additions to total output will begin to decline
e. At some point marginal physical product will increase

30.Which curve passes through the minimum point of the average total cost curve

a. The total fixed cost curve

b. The long-run average total cost curve
c. The demand curve
d. The marginal cost curve
 e. The average variable cost

31.The cost that does not vary with the quantity of output that a firm produces is

a. Total variable cost

b. Total cost
c. Average variable cost
d. Average fixed cost
e. Total fixed cost

32.If marginal physical product is 8 units and the average physical products is 4 units,

a. Average physical product will increase by 4 units

b. Marginal physical product will decrease by 4 units
c. Marginal physical product will decrease by 2 units and average physical product will
increase by 2 units
d. Marginal physical product will decrease
e. Average physical product will increase

33.Which of the following will not change with the level of output

a. Total costs
b. Total variable cost
c. Marginal cost
d. Total fixed cost
e. Average cost

34.A change in a firms fixed cost

a. Will change the TVC curve

b. Will change the AVC curve
c. Will change the MC curve
d. Will change the AFC curve
e. Will change the MC curve but not the AVC curve

35.In the long run,

a. All of a firm’s resources are variable

b. New technology cannot be introduced
c. At least one of the firm’s resources cannot be varied
d. None of the firm’s resources are variable

36.Which of the following is not held constant when constructing a demand curve for good X

a. Consumer income
b. Consumer taste
c. Price of good X
d. Price of other good
e. Consumer expectation

37.Which of the following may cause a change in demand for a product

a. A change in the profitability of producing another product

b. A decrease in the cost of producing the product
c. A change in the consumer incomes
d. A change in the price of the product
e. A change in the plans of the producers

38.When economist say the supply of a product has decreased, they mean that

a. A smaller quantity will be produced at any price

 b. The price is too high for equilibrium
c. A greater quantity will be produced at any price
d. The price is too low for equilibrium
e. Demand was to high for producers to make profit

39.In which of the following statements are the term demand, supply, quantity demanded, and
quantity supplied used correctly

a. Changes in demand and supply cause changes in the eqm price

b. If the demand rises, supply rises
c. Oranges are cheaper in Florida and demand is greater in Florida
d. When the quantity demanded exceeds supply, the eqm price will rise
e. All these choices are correct

40.If demand decreases but supply increases, we can say that

a. We require more information to determine the movement in price and qty

b. Equilibrium price will decrease but eqm quantity is indeterminate
c. Eqm price will rise, but eqm quantity is indeterminate
d. Eqm quantity will rise, but eqm price is indeterminate

41.Assume the demand for watermelon is downward-sloping. An increase in price from P30 to P40

a. Could have been caused by an increase in supply

b. Will cause larger quantity of watermelon to be demanded
c. Will cause the demand to decrease
d. Will cause a smaller quantity of watermelons to be demanded

42.If a natural disaster destroy’s Davao fruit crop, then

a. The supply of fruit will remain unchanged but the demand will decrease
b. The price of fruit will drop because people will consume less
c. The supply of fruit will decrease, causing the equilibrium price to increase and
the equilibrium quantity to decrease
d. The supply of fruit will decrease, causing the equilibrium price to decrease and the
equilibrium quantity to increase

43.If beer and Pretzels are complimentary goods, then an increase in the price of beer, all other
things equal, will result in

a. A decrease in the demand for pretzels

b. A decrease in the demand for beer
c. An increase in the demand for pretzels
d. An increase in the quantity demanded of beer

44.Which of the following will not cause the demand for ice cream to change

a. A change in population size

b. A change in the price of ice cream
c. A change in consumers preference
d. A change in consumers income

45.It is now profitable for farmers to produce wheat than corn, we can expect

a. The price of wheat to rise

b. The supply of corn to increase
c. The quantity demanded for wheat to decrease
d. The demand of wheat to increase
e. The supply of corn to decrease

46.From the point of equilibrium, which of the following would most likely result in a surplus?
 a. If demand shifted to the right
b. If the government kept price greater than the eqm price
c. If supply shifted to the left
d. If the government kept the price below the eqm price
e. If the qty demanded was greater than the qty supplied

47.A change in supply will not caused by

a. Changes in the profitability of producing other products

b. An improvement in technology
c. A change in the price of inputs
d. A change in the number of producers
e. An increase in the number of consumers

48.If an increase in the price of product X cause a decrease in the demand for the product Y, we
can conclude that

a. They are substitute

b. The price of Y will increase
c. They are compliments
d. The quantity supplied for Y will increase

49.When economist say the demand for a product has increased, they mean that

a. Consumers are willing and able to purchase more at any given price
b. The demand curve has shifted to the left
c. Consumers would be willing and able to pay less to receive the same quantity

50.Which of the following is held constant when constructing a PPF for the economy?

a. The combination of goods purchased

b. The opportunity costs
c. The amount of resources
d. The amount of goods produced

51.If society begins by producing 3 units of X and 4 units of Y then changes production so that it is
now producing 4 units of X and 4 units of Y and we know that that the quantity of resources
were unchanged and that technology did not change, then

a. Society has moved along the PPF

b. Resources were being fully utilized at 3 units of X and 4 units of Y
c. 3 units of X and 4 units of Y is a combination that is best represented by a
point inside the PPF
d. 3 units of X and 4 units of Y is a combination that is best represented by a point outside
of the PPF

52.Opportunity costs is

a. The amount of money an individual would have been willing to pay for a good but didn’t
have to pay at the market price
b. The amount of money that an individual must pay fro the good that he wants most
c. The value of the best foregone alternative that must be sacrifice when an
individual makes a choice of goods
d. The amount of income earned during a period of time that worker is employed

53.Which of the following is most basic to economics

 a. Profits
b. Scarcity
c. Supply and demand
d. Business and government activities

54.A positive (nonzero) price for a good means

a. The good is scarce

b. There is shortage
c. The good is in surplus
d. None of the other choices

55.The demand for goods like table salt and toothpicks tend to be

a. Elastic
b. Perfectly elastic
c. Unitary elastic
d. Inelastic

56.Total revenue will decrease if price

a. Rises and demand is inelastic

b. Rises and demand is unit elastic
c. Falls and demand is elastic
d. Falls and demand is unit elastic
e. Rises and demand is elastic

57.If demand is inelastic, a change in the price

a. Will change the quantity in the same direction

b. Will change total revenue in the same direction
c. Will change total revenue in the opposite direction
d. Will not change quantity
e. Will not change revenue

58.When the price of a good falls from P10 to P5, quantity demanded increases from 50 to 100
units per month. The elasticity is

a. 0.5
b. 2.0
c. 1.0
d. 10.0

59.A negatively sloping straight-line demand curve

a. Is inelastic
b. Is elastic
c. Is unit elastic
d. Is perfectly inelastic
e. Has a different price elasticity of demand at every point along it

60.Price elasticity of demand is more likely to be greater than 1 if

a. Consumers have long time to adjust to a price change

b. The product is a necessity
c. Demand is inelastic
d. There are few close substitute for the product
e. Total revenue declines in response to a price reduction

61.If price increases from P6 to P8 and quantity demanded decreases from 18 to 12, the price
elasticity is

a. .467
b. 1.4
c. 2.14
 d. 5
e. 5.0

62.The local public transportation system raised rates and was surprised to be faced with declining
revenues. What is true?

a. The demand for public transportation is elastic

b. The demand for public transportation is inelastic
c. The demand for public transportation is positively slope
d. The demand for public transportation is unitary elastic

Price (PhP) Quantity Quantity

Supplied Demanded
3 30 75
4 40 70
5 50 65
6 60 60
7 70 55
8 80 50

63.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

64.There is a surplus of 30 units when the price equals

a. 5
b. 6
c. 7
d. 8

65.This market is in equilibrium when the price equals

a. 5
b. 6
c. 7
d. 8

66.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

67.The satisfaction that a person receives from the consumption of goods is called

a. Budget constraints
b. Consumer surplus
c. Income
d. Utility

68.Economic analysis that explains what happens in the economy and why, without marking policy
recommendation is called

a. Normative analysis
b. Positive analysis
 c. Market analysis
d. Subjective analysis

69.Ultimate consumption of the division of labor

a. Specialization
b. Trade
c. Self-sufficiency
d. Autarky

70.Says that a country tends to produce for exports those products which it can produce most
cheaply and to import those product which other countries can produce most cheaply

a. Comparative advantage
b. Specialization
c. Trade
d. Barter

71.This represents the value of domestic resources spent in savings or earnings a unit of foreign
exchange as a proportion of its actual exchange rate

a. Domestic resource costs

b. Private resource cost
c. Private profitability
d. Social profitability

72.The Domestic Cost ratio (DCR) is divided with the__to come up with the resource ratio (RCR)

a. Actual exchange rate

b. Shadow exchange rate
c. Domestic currency value
d. Foreign currency value

73.If the RCR coefficient is less than one (1) then the economic activity has a

a. Comparative advantage
b. Comparative disadvantage
c. Neutral advnatge/ disadvantage
d. Cannot tell

74.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 product to ASEAN countries
d. The country has to join WTO to be competitive

75.On the other hand if the DCR 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

76.Tariff is imposed on

a. An imported commodity
b. An exported commodity
c. Persons
d. In finished goods only

77.Shows the difference in the final price of the finished good before and after imposition

a. Nominal protection
b. Effective protection rate
 c. Implicit tariff
d. None of the above

78.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 rate
c. Implicit tariff
d. Government protection

79.The effective protection rate (EPR) includes the tariff on

a. Finished good
b. Intermediate inputs
c. Luxury products
d. Both a and b
80.Measures the rate 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

81.The replacement of foreign production with domestic production

a. Import substitution
b. Transfer effect
c. Protective effect
d. Revenue effect

82.The additional economic rent paid to the pre-existing domestic producers plus the rent paid to
new producers above their supply curve

a. Import substitution
b. Transfer effect
c. Consumption effect
d. Revenue effect

83.The size of the protective effect is determined by the

a. Elasticity of supply
b. Elasticity of demand
c. Income elasticity of demand
d. Cross price elasticity of demand

84.A tariff designed for protection must provide rates of duties high enough to achieve this
objectives

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 the labor share to national income
d. Increase employment

85.A direct source of monopoly profit

a. Non-tariff barriers
b. Quota
c. Tariff
d. Dumping

86.The Philippine tariff structure at the beginning of the 1980’s indicated that
 a. Exports were penalized, both manufacturing and other sectors esp agriculture
b. Agriculture received the highest level of protection
c. Export industries enjoyed the protection system
d. Backward integration of the industrial structure was encouraged

87.The case for the protection of infant industries rests on the assumption of

a. Efficiency
b. Inability
c. Latent comparative advantage
d. Revenue gain

88.Consist of a group of countries that have abolished all tariff among themselves but maintain
their individual tariffs vis-a vis the outside world

a. Free trade area

b. Customs union
c. Common market
d. Economic union

89.Final adjustments made by authorities to settle imbalances in the balance of payment

a. Compensatory financing
b. Official settlement
c. Devaluation
d. Borrowing

90.Otherwise known as the “invisibles” in the BOP account

a. Merchandise trade
b. Non-merchandise trade
c. Capital account
d. Official settlement

91.Depreciation is an expenditure switching approach, thus it has to be accompanied with what

kind of policy

a. Expenditure reducing
b. Expenditure enhancing
c. Export promotion
d. Nothing will be effective

92.With depreciation

a. Exports will become cheap in the eyes of the foreign buyers

b. Exports will become more expensive
c. Imports will become more expensive domestically
d. All of the above
e. Both a and c

93.Intends to encourage farmers to shift from low value, marginal crops to profitable crops

a. National Land Use Act

b. PD 1144
c. RA 7900
d. HB No. 01095

94.Establish the National Committee on Biosafety of the Philippines (NCP)

a. Biosafety Guidelines
b. RA 3601
c. EO 430
d. HB No 01095

95.Consolidation and update of all existing laws on IPR

 a. HB No 01095
b. EO 568
c. RA 8293
d. EO 430

96.Created the National Irrigation Administration (NIA)

a. EO 430
b. RA 4585
c. RA 3601
d. RA 7859

97.Created the Fertilizer Pesticide Authority

a. PD 552
b. PD 218
c. PD 1144
d. PD 1702

98.Seeks to convert trade protection for rice in the form of quantitative restrictions (QR) to
ordinary customs duties by 2005

a. Senate Bill No 1519

b. National land use Act
c. RA 8178
d. PD 4658

99.Otherwise known as the “Rural Bank Act”

a. RA 337
b. RA 4586
c. RA 2568
d. RA 8954

100. Calculation of the future value of a present sum by application of the relevant rate of
interest

a. Discounting
b. Compounding
c. Rediscounting
d. Accounting

101. Yield or productivity refers to the concept of

a. Marginal product
b. Isoquant
c. Average product
d. None of the above

102. Law of the diminishing returns is embodied by the

a. Total product curve

b. The production surface
c. The average product
d. None of the above

103. Ratio showing the capacity of the enterprise to repay short term loans at short notice

a. Current
b. Fixed
c. Gross
d. Output
104. 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 income
c. Gross margin
d. Fixed income

105. The largest insurance company in the world that went bankrupt because of the economic
recession

a. Lehmann Brothers
b. AIG
c. Morgan Stanley
d. Meryll Lynch

106. The Philippine Cooperative Code of 2008 is also known as

a. RA 9520
b. RA 4569
c. RA 2568
d. RA 3254

107. Free Trade means _______

a. Government restricts entry of identified goods

b. Level of taxing is mutual in untaxed
c. Goods come in untaxed
d. Goods are all imported

108. Recent Bank runs into bankruptcy because of

a. Corruption
b. Mismanagement
c. Flight of capital
d. Loss of capital

109. Cooperatives established by farmers failed to thrive well because

a. Cooperative activities are poorly managed and implemented

b. Members distrusts their cooperative officials
c. Seed money for cooperatives shared by senators are poorly administered
d. Farmers were used to dole outs

110. Anything of value in the possession of the farm or claims of the farm on anything of
value in the possession of others may be classified as current or fixed assets

a. Liabilities
b. Assets
c. Networth
d. Credit

111. Agricultural marketing consists of a series of services performed from the point of

a. Production
b. Consumption
c. Market place
d. Arrival

112. To the point of

a. Production
b. Consumption
c. Farm
 d. Market

113. Services include physical functions of transport that creates

a. Place
b. Time
c. Form
d. Buying utility

114. Storage function that creates

a. Time utility
b. Form utility
c. Place utility
d. Possession utility

115. Processing creates

a. Form utility
b. Place utility
c. Time utility
d. Possession utility

116. Consist of a group of sellers and buyers with facilities of trading

a. Supermarket
b. Market
c. Public market
d. Retail market

117. Responsible for bringing the products available at the right time, place and form

a. Traders
b. Truckers
c. Brokers
d. Commission agent

118. The various stages at which product pass from the farm to the consumer is called

a. Raw materials
b. Market channels
c. Marketing
d. Retailing

119. Characteristics of the product that affect agricultural marketing

a. Perishability
b. Packaging
c. Graded
d. Sorting

120. Characteristics of the consumers that affect marketing included

a. Income
b. Height
c. Well traveled
d. Level of education

121. Problems of agriculture different from industries

a. Biological in nature
b. Production could be programmed
c. Price makers
 d. Products could be branded

122. Study of marketing could be done by studying the commodity called

a. Functional
b. Commodity
c. Institutional
d. Structural approach

123. Type of traders who buys from farmers and sell directly to retailers in volume

a. Wholesalers
b. Processors
c. Trucker s
d. Commission agent

124. Type of traders who sells directly to consumers located mostly in public markets

a. Whoelsalers
b. Retailer s
c. Commission agents
d. Barrio buyers

125. Refers to how the market is organized that determines the relationship between buyers
and sellers and among buyers and among sellers

a. Structure
b. Behavior
c. Conduct
d. Efficiency

126. One type of market structure is where no buyer or seller could influence the price in the
market

a. Monopoly
b. Monopsony
c. Bilateral monopoly
d. Oligopoly
e. Perfectly competitive

127. When there is only one seller the markets structure is called

a. Monopoly
b. Monopsony
c. Monogamy
d. Monoculture

128. When there is a large number of sellers selling differential products the market structure
of the market is called

a. Oligopoly
b. Olygopsony
c. Polypogopoly
d. Monopolistic

129. Negotiated prices could be determined through

a. Bargaining
b. Threatening
c. Supply and demand
d. Government

130. If the individual has no power in the market in which he/she buys or sell he or she is a

a. Price maker
 b. Price taker
c. Price setter
d. Price dictator

131. If he/she could determine or dictate the price he /she is a

a. Price taker
b. Price seeker
c. Price maker
d. Price negotiator

132. 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

133. The maximum is called as in the case of rice

a. Price ceiling
b. Normal price
c. Price dictated by demand and supply
d. Price tag

134. Marketing could be improved by providing support which will inform the buyers and
sellers in the market through the mass media. The function is

a. Market information
b. Price manipulation
c. Price dissemination
d. Price monitoring

135. The difference between the price that consumers pay for the final product and the price
received by producers for the raw product

a. Market margin
b. Price margin
c. Profit
d. Marketing costs

136. Type of margins where the absolute difference between prices at two levels is constant
in peso terms

a. Mark up
b. Constant margin
c. Marketing cost
d. Relative margin

137. The difference between the price received and prices paid by the different middlemen
performing different functions divided by the retail price is often referred to as

a. Breakdown of consumer peso

b. Buying price-selling price
c. Mark-up
d. Breakdown of farmer’s peso

138. The cost of performing marketing services are called

a. Transport cost
b. Marketing costs
c. Profit
d. Margin

139. Method of differentiating the product to meet consumers desires is called

 a. Standardization
b. Grading
c. Quality control
d. Standardization

140. Practice of making quality specification of grades uniform among buyers and sellers

a. Packaging
b. Advertising
c. Standardization
d. Grading

141. In marketing an important consideration in locating the processing plant is to know what
happens to the weight or volume of the product after processing. If the product gains weight,
the plant should be

a. Market centers
b. Production centers
c. Anywhere
d. Cities

142. Most agricultural products have low price elasticity of demand. Elasticity of demand for
rice is generally

a. Less than one

b. Greater then one
c. Equal to one
d. Greater than 2 because rice is necessity

143. Some products their elasticities are relatively higher, one example of the product with
higher elasticity is

a. Salt
b. Fruits
c. Softdrinks
d. Meat

144. Structure of market that farmers have to take price as given

a. Monopoly
b. Oligopoly
c. Perfect competition
d. Monopsony

145. The P’s in marketing are : Who are they the farmers markets to? What do they want or
need ? Who is actually going to market the peoduct? This P is

a. People
b. Product
c. Promotion
d. Product

146. What is going to be marketed? Is what the consumers wants? This P is

a. People
b. Product
c. Promotion
d. Product

147. Where is to be marketed? How far is it from the farm? This P is

a. Place
 b. Product
c. Promotion
d. Product

148. How much is the farmer going to charge for his/her products? This P is

a. Price
b. Product
c. Promotion
d. Product

149. How does farmers inform people about his/her product? This P is

a. People
b. Product
c. Promotion
d. Product

150. The amount of output per unit of input expressed in physical or value terms

a. Productivity
b. Marginality
c. Cost effectiveness
d. None of the above

END OF EXAMINATION FOR AGRICULTURAL ECONOMICS AND MARKETING

Answer key