AND MARKETING PRE-TEST 2024

1. Of the following, economics may best be defined as the study of:

a.) How to allocate the family income

b.) How to maximize profit

c.) How resources are used to produce goods and services

to be allocated among individuals in the society

d) Why resources are scarce as they are

2. Economics differs from other social sciences because of its focus on:

a.) Social choices

b.) Social interactions

c.) Social behavior

d.) Scarcity

3. Scarcity in economics refers basically to:

a.) Monopolization of existing supplies of goods

b.) Monopolization of produced goods

c.) Monopolization of outlets to sell goods

d.) None of the above

4. Which one of the following is not an economic good:

a.) Sunlight

b.) A space satellite

c.) Free parking on the street

d.) A free city concert in the park

5. Which of the following is a normative statement?

a.) A guaranteed annual income will have a distinctive effect. on work

b.) If price controls are removed the energy shortage will be

somewhat alleviated

c.) Price controls on food and gasoline are only fair

d.) The minimum wage law causes unemployment among teenagers

6. Factors of production are:

a) Input

b.) Only land and capital

c.) Outputs

d.) Any organization which does not include labor.

7. The organization is based primarily on the manner by which benefits and the
factors of
production are owned, managed and owned.

a.) Business

b.) System

c.) Economic System

d.) Economics

8. In economics it refers to the process of putting inputs to its best use.

a) Wants the best use

b.) Allocation of goods.

c.) Efficiency

d.) Utility

9. Which of the following are classified under microeconomic problem?

a.) The Philippines balance of payments

b.) The general inflation rate

c.) The unemployment rate of government employees,

d) All of the above

10. The economic problem "what to produce?" refers to:

a.) Amounts and types of commodities produced in an

economy

b.) Beneficiaries from the choices made in a society

c.) Tastes and preferences of economic agents

d.) The way in which resources are continued to produce the commodities

11. Which of the following best describes the term "opportunity cost"?

a.) Price paid for goods and services

b.) Costs of producing goods and services

c.) Value of best foregone alternative

d.) Benefits derived from a good or service

12. If the economy is operating inside the production

possibilities frontier, then:

a.) All the resources are used efficiently

b.) The economy cannot produce more of one good without giving up more of the
other good

c.) The economy experienced technical change

d.) The resources are not fully utilized in production

13. Technological improvements will cause:

a.) An inward shift in the production possibilities frontier

b.) An outward shift in the production possibilities frontier

c.) The economy to specialize in the production of one

good
d.) The production possibilities frontier to become a straight line

14. The production possibilities frontier is concave (bowed out) from below
because:

a.) The principle of increasing opportunity cost

b.) Of the law of diminishing returns

c.) Of the principle of division of labor

d.) Produce resources are scarce and transferable among industries

15. Which of the following must be held constant in drawing up a production

possibilities frontier?

a.) The total of resources

b.) The quantity of money

c.) Price

d.) The allocation of resources among alternative uses

16. A shift of the production possibilities frontier results from:

a.) Unemployment

b.) Inflation

c.) Changes in production techniques

d.) Changes in the combination of goods produced

17. The production possibilities of a country can be said to shift

outward because of which of the following?

a.) Expenditures on new plants & equipment are constantly being made

b.) The population increases

c.) Better methods of production are developed

d.) All of the above

18. A type of coop in which members are natural person:

a.) Primary

b.) Secondary

c.) Apex organization

d.) Tertiary

19. The English economist who argued that because the population would
eventually diminish the
ability of the world to feed itself and based his argument on the thesis that
populations grow in
such a way as to overtake the development of sufficient land for crops.

a.) Thomas Malthus

b.) Adam Smith

c.) David Ricardo

d.) John Maynard Keynes

20. The founder of socialism.

a. Robert Owen

b. Robert Loodom

c. Julia Roberts

d. Robert Parish

21. An agrarian based economic system in which the control of the land and the
specialization of
class roles is strictly structured.

a. Socialism

b. Feudalism

c. Fascism

d. Mixed Economy
22. In economics these are intangible things used to satisfy human wants and
needs

a. Services

b. goods

c. stocks

d. all of the above

23. A partner based on his contribution that provides assets to be utilized as the
starting capital of
the business.

a capitalist partner

b capitalist-industrial partner

c. industrialist partner

d. all of the above

24. Economics is born because of

a. Economy

b. business

c. scarcity

d. capital

25. A situation when prices of commodities are generally increasing.

a. inflation

b. recession

c. discrimination

d. unemployment

26. The father of credit union/credit cooperatives

a. Charles Howarth
b. Frederic Raiffeisen

c. Robert Owen

d. Louis Blanc

27. These are certificates of ownership in a corporation

a services

b. goods

c. stocks

d. all of the above

28. The ex-officio chairman of the cooperative Education and Training Committee.

a. Election Committee Head

b. Cooperative Manager

c. Chairman of the Board of Directors

d. Vice-Chairman of the Board of Directors

29. One of the common economic goals of countries in which people would like to
have a high
standard of living and have more goods and services.

a. Economic Security

b. Economic Development

c. Economic Freedom

d. Economic Growth

30. He was a founder of the Cambridge School of Economics and was popular for
explaining the
principle of demand and supply using the concept of marginal utility.

a. William Jevons

b. Carl Menger
c. Alfred Marshall d. Milton Friedman

31. Free goods becomes economic goods when:

a. It is processed

b. Used for self interest

c. It is bought

d. Becomes scarce or limited

32. He is known as the father of Economics.

a. Adam Smith

b. Karl Marx

c. John Maynard Keynes

d. David Ricardo

33. The highest policy making body of a cooperative.

a. Board of Directors

b. Election Committee

c. General assembly

d. Audit and Inventory

34. Cooperatives are born because of the members. needs of

a. Financial

b. human

c. service

d. social

35. The father of cooperativism.

a. Charles Howarth
b. Robert Owen

c. Frederic Raiffeisen

d. Louis Blanc

36. The highest policy making body of a cooperative.

a. Board of Directors

b. Election Committee

c. General assembly

d. Audit and Inventory

37. Cooperatives are born because of the members. needs of

a. Financial

b. human

c. service

d. social

38. The father of cooperativism.

a. Charles Howarth

b. Robert Owen

c. Frederic Raiffeisen

d. Louis Blanc

39. The simplest and the most common form of business organization.

a. Corporation

b. Sole Proprietorship

c. Cooperatives

d. Partnership
40. Person who do business in capitalism.

a. communist

b. capitalist

c. stockholder

d. all of these

41. The term used to refer to the owners of a cooperative.

a. stockholders

b. member patrons

c. partners

d. all of the choices

42. The following are examples of business doing partnership. except:

a. law firm

b. medical clinic

c. accounting firm

d. credit union

43. These are goods that are scarce and can only be obtained through paying
some amount.

a. Economic goods

b. Normal goods

c. Inferior goods

d. Durable goods

44. This is a method of economic reasoning which involves value judgments.

a. Positive economics
b. Normative economics

c. Macroeconomics

d. Microeconomics

45. The following are perceived to be more beneficial, except:

a. Economic growth

b. Economic development

c. Population growth

d. Per capita income growth

46. This refers to human-made resources used to produce goods and services

a. Land

b. Labor

c. Capital

d. Entrepreneurial skills

47. This is an economic system driven by purely self-interest of consumers and

producers.

a. Market economy

b. Mixed economy

c. Command economy

d. Communism

48. The following are normative statements, except:

a. International trade is not fair for third world countries

b. Trouble in the Middle East endangers oil prices

c. More subsidies should be given to farmers to increase productivity

d. Price ceiling is just fair during the rice crisis

49. The study of economics is based on the following foundations, except:

a. Allocation

b. Self-interest

c. Scarcity

d. Choice

50. The concept of scarcity:

a. Creates a need for a system of extravagance b. Means insufficient resources to

satisfy potential

b. users

c. Means not enough needs to urge production

d. Creates allocation of sufficient resources to satisfy human needs

51. The first known successful cooperative.

a. Penny Capitalist

b. Friendly Societies

c. Rochdale Pioneers

d. None of these

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

a. Prices of individual goods and services

b. National income

c. Employment of individual business and industries

d. Production of individual industries

53. The following measures promotes economic freedom except:

a. Provision of legal structure and law-enforcement system

b. Personal choice

c. Government control

d. Voluntary exchange,

54. The full membership of the cooperative duly assembled for the purpose of
exercising all the
rights and performing all the obligations pertaining to cooperatives as provided by
the cooperative
code.

a. Board of Directors

b. Committees

c. General Assembly

d. None of the Choices

55. One of the common goals of countries which state that a country must use
fewer amount of
resources in producing more output.

a. Economic Growth

b. Economic Efficiency

c. Economic Freedom

d. Economic Security

56. The amount of net surplus allocated for cooperative education.

a. Not more than 10%

b. Equal to 10%

c. not less than 10%

d. all of the choices

57. A situation when people who are willing and able to work cannot find a job.

a. inflation
b. discrimination

c. recession

c. unemployment

58. Which of the following does not belong to the group?

a. sunlight

b. birthday gift

c. water from the sea

d. air

59. He advocated the idea of communism.

a. Adam Smith

b. Karl Marx

c. John Maynard Keynes

d. Thomas Malthus

60. The minimum number of persons required to form a cooperative.

a. 1

b. 2-5

c. 4

d. 15

61. This is the stage of the product life cycle where promotional effort of a firm
becomes even more intensive. In addition to advertisements and publicity, sales
promotions of various forms are used in promotion.

A. growth stage

B. maturity stage

C. Introduction Stage
D. informative stage

62. Which of the following is NOT included in the group of products categorized as
semi-processed agricultural products?

A. Buntal fiber

B. leather

C. ube powder

D. fresh eggs

63. When can you consider that a farmer's product mix is wide?

A. There are several products within each line

B. There are a lot of product lines

C. The product being produced are related

D. There is only one product line

64. Which of the following is NOT included among the reasons why branding is not
commonly observed in agriculture?

A. Farmers cannot afford to brand their product.

B. Agricultural products are perishable.

C. Lack of differentiation

D. None of the above

65. Which of the following phases of marketing uses refrigerated vans as the
packaging material?

A. At farm

B. at long distance

C. at final destination

D. transport and storage

66. What is the most common pricing method used in agricultural products?
A. Competitive pricing

B. Unit pricing

C. penetration pricing

D. psychological pricing

67. Which of the following pricing strategies set the price of the product so low so
that the market is unattractive to competitors?

A. Penetration pricing

B. extension pricing

C. skimming the market

D. Pre-emptive pricing

68. Which of the following is considered as indirect marketing

A. Producer to consumer

B. wholesaler to retailer

C. retailer to consumer

D. producer to middlemen to consumer

69. Which of the marketing channel options is best described by the activities
concerned with changes in ownership like negotiation, buying and selling, and risk
taking?

A. Producer to consumer

B. wholesaler to retailer

C. retailer to consumer

D. producer to middlemen to consumer

70. If the middlemen collect the products of the producers, his job is best described
as:

a. equalizing
b. sorting and grouping

c. concentrating

d. dispersing

71. Who are the individuals or groups who undertake the initial task of assembling
produce from the farmers or from the remote areas?

a. retailers

b. rural traders

c. wholesalers

d. commission agents and brokers

72. The person or business enterprise that sells primarily to household consumers
for non-business use are referred to as

a. retailers

b. specialized and integrated enterprise

c. wholesalers

d. commission agents

73. Which of the following terms is defined as the personal and/or impersonal
process of assisting a prospective customer to buy a commodity?

a. customer education

b. advertisement

c. distribution

d. promotion

74. Most agricultural products are promoted by:

a. word-of-mouth

b. publicity
c. mass media advertisement

d. none of the above

75. Which of the following are examples of the sales promotion?

a. bonuses

b. lotteries

c. premiums

d. all of the above

76. The following are parts of the marketing mix strategies. EXCEPT:

a. Product

b. Pricing

c. Distribution

d. Advertising

77. Maya Farms produces feeds used as input in their piggery Ind poultry farms.
Pork and poultry products are either sold fresh or used as raw materials in their
meat processing plant. Hogs and chicken wastes on the other hand are used to
produce methane in their biogas plant which in turn supplies the electrical needs of
the whole farm. Maya Farm is an example of what type of product mix?

a. Wide

b. Deep

c. Consistent

d. None of the above

78. Mang Juan produces crops of different kind. He is producing fruits, plantation
crops, staples and vegetables. What type of product mix Mang Juan is into?

a. Wide

b. Deep

c. Consistent
d. None of the above

79. The following are objectives in pricing EXCEPT:

a. Determine Cost

b. Determine Demand

c. Determine Supply

d. None of the above

80. It is a budget setting for advertising where a specific amount is allocated per
unit of the product produced.

a. Percentage of Sales

b. Competitor's Expenditure

c. Unit of Sale

d Task Method

81 It is an advertising that aims to create primary demand.

a. Persuasive

b. Informative

c. Convincing

d. Distortive

82. It is the route along which a product and its title or rights or ownership flow
from production to consumption.

a. Flow of Distribution

b. Logistic System

c. Distribution System

d. Marketing Channel
83 It answers to the objective of maximization of the market consumption for a
product.

a. Distribution

b. Marketing

c. Allocation

d. Retailing

84. A producer wants to reach large geographic area in marketing his products.
What type of marketing strategy he may apply?

a. Direct

b. Indirect

c. Perfect Competition

d. Retailing

85. Cindy wanted to obtain larger volume disposal of her product per unit of
purchase. What type of pricing strategy will she adopt?

a. Unit Pricing

b. Penetration Pricing

c. Tie-in Pricing

d. Brice Lining

86. A group of men are moving vegetables from their farms to consumers in the
city. Which activity best describes what these group of men performing?

a marketing

b. producing

c. processing

d. creating

87. Which of the following does not support/complement our definition of a markel.
a. A place where buyers and sellers meet to exchange goods
and services

b. buyers and sellers may use telephone, mail or telegrams to

transact

c. A market has three elements- buyers, sellers and consumers C

d. In order for a market transaction to be completed both the buyer and seller must
agree at a particular price

88. Putting or establishing of infrastructures will effect faster movement of

products from

a. deficient to sufficient areas

b. sufficient to deficient areas

c. sufficient to other sufficient areas

d. deficient to other deficient areas

89. Organization of small farmers by pooling their resources will help a lot in
increasing their capability like

a. putting their own communication facilities

b. putting their own processing and canning plants

c. higher bargaining power in tying up with other agencies

d. no correct answer

90. Which of the following best defines bulkiness in agricultural products?

a. low in price in relation to weight or volume

b. equal price in relation to weight volume

c. high price in relation to weight or volume

d. all of the above

91. When price is high, farmers have less to sell, and when prices are low, they
have lots to sell. Which of these characteristics indicates that agricultural products
need proper
storage?

a. demanded and profitable

b. bulky and movable

c. seasonal and perishable

d. seasonal and bulky

92. Which of these products affects marketing efficiency?

a. Infrastructure

b. Risk

c. income

d. Society

93. Which of the following phrase best describes perishability of

agricultural products?

a. easily spoiled transported

b. easily transported

c. easily stored

d. easily sold

94. Which of the following factors explain the farmers' dependence on middlemen?

a. traditional marketing practice

b. poor cash position of the farmers.

c. characteristics of consumers

d. number of producers

95. Which of the following factors can help farmers decide what to produce, when,
how to price their products and how to handle them efficiently?

a. adequate marketing support services

b. adequate market information

c. knowledge of traditional agricultural practices

d. knowledge of entry points of agricultural marketing

96. How does commodity approach to agricultural marketing differ from other
approaches?

a. it is middlemen-oriented

b. it is profit-oriented

c. it is product-oriented

d. it is market-oriented

97. Which of the following is the aim of risk-bearing function?

a. establishes and maintain uniform measurements

b. advances money to carry on the various aspects of marketing

c. accepts the possibility of loss in the marketing of a product

d. make goods available for sale

98. Jose and Mario depended solely on butchering live animals (pigs & cows) into
meat for livelihood. In this case what function are they performing?

a. storage function

b. transportation function

c. standardization function

d. processing function

99. Zen owns a grocery store. She buys and sells in volume but she also sells to
the ultimate customers but not in significant manner. What do you call Zen?

a. wholesaler

b. broker

c. retailer
d. contract buyer

100. Nonits has a poultry and livestock project. In selling his produce, he lets Jovit
contact buyers, arrange for the term of sale and collect the payment. Out of the
payment, Jovit deducts his fees and remits the balance of the principal to Nonits.
What type of middlemen is Jovit?

a. merchant

b. agent

c. wholesaler

d. retailer