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