POST TEST | AGRICULTURAL ECONOMICS

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

a. Consumers would like to maximize their satisfaction while producers would

like to maximize profit

b. Resources are scarce while human wants are unlimited

c. Family income is limited while goods and services to buy are

limited

d. Resources are scarce and producers use more resources

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

a. low price in relation to weight or volume

b. equal price in relation to weight and volume

c. high price in relation to weight and volume

d. all of the above

3. Which term best applies to a market with a single buyer?

a. monopoly

b. monopsony

c. oligopoly

d. oligopsony

4. The sloping downward of a demand curve shows an Inverse relationship

between price and quantity demanded. It means:

a. as the price increases, the quantity demanded decreases

b. as the price decreases, the quantity demanded decreases

c. as the price increases, the quantity demanded increases

d. all of the above

5. Which of the following best describes the prices in a perfect market?

a. variable

b. constantly changing

c. uniform

d. unpredictable

6. The market for farm product is under pure competition. This means that:

a. farm products are close substitutes

b. there are a lot of similar products, each competing with one another

c. prices of the products are held at market price

d. all of the above

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

a. Benefit maximization

b. Sales maximization

c. Profit maximization

d. Cost maximization

8. The book which became the apostle of classical economics written by

Adam Smith

a. Principles of Political Economy

b. The Wealth of Nations

c. Essay on the Principle of Population

d. General Theory of Employment, Interest and Money

9. Anything that can be offered to a market for attention, acquisition, use, or

consumption to satisfy human needs and wants

a. Goods

b. Service
c. Technology

d. Product

10. This is the utility created when raw materials are transformed

a. Place

b. Time

c. Form

d. Possession

11. What the firm's owners give up to use a resource

a. explicit cost

b. opportunity cost

c. implicit cost

d. variable cost

12. The process of transformation of inputs into output**

a. Processing

b. Manufacturing

c. Consumption

d. Production

13. Identify the fixed cost:

a. 0-0-60

b. Syngenta

c. interest

d. Laborers

14. What is the total for variable cost?

a. 8,500.00

b. 10,930.00

c. 9,000.00

d. 9,130.00

15. What is the total cost?

a. 16,930.00

b. 10,000.00

c. 10,130.00

d. 9,500.00

16. If he has a Total Gross Income of 20,000.00. What is his net return?

a. 3,070.00

b. 10,000.00

c. 9,870.00

d. 10,500.00

17. Which of the following is most closely approximates our definitions of

oligopoly?

a. The cigarette industry

b. The fast food chains

c. Rice farming in the region

d. Corn farming in the region

18. Higher income lowers demand of these goods

a. Normal goods

b. Inferior goods
c. Substitute goods

d. Complement goods

19. The following are factors affecting demand except:

a. consumers income

b. number of consumers

c. consumers savings

d. price of related good

20. Denotes the consumers satisfaction out of consumption

a. substitution effect

b. consumers preference

c. Income effect

d. utility

21. A study that deals with "what is ought to be" in the econorny

a. microeconomics

b. normative economics

c. positive economics

d. macroeconomics

22. Payments made by government to producer without any service or good

in return

a. subsidy

b. price control

c. price support

d. fiscal policy
23. The production function shows the physical relationship between
different combinations of input and

a. output

b. maximum output

c. cost

d. utility levels

24. Higher indifference curves should be represented by

a. lower numbers

b. higher numbers.

c. negative numbers.

d. positive numbers

25. Imposing a ceiling price will entail in the market

a. inflation

b. shortage

c. surplus

d. benefit to producers

26. These are considered scarce and to be paid for and are produced and
needed by men to satisfy their wants.

a. Market goods

b. Intangible goods

c. Economic goods

d. Tangible goods

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

strong one-man or junta dictatorship.

a. Marxist
b. Feudalism

c. Fascism

d. Socialism

28. Scarcity is a permanent economic phenomenon, shortage is

a. Temporary

b. Limited

c. Occasional

d. Short run

29. People who do not have jobs as a result of sluggish economic activity are
considered as part of

a. Structural unemployment

b. The underemployed workforce

c. Cyclical unemployment

d. Frictional unemployment

30. The addition of values to a product as it moves to the consumer is called

a. Selling

b. Distribution

c. Marketing

d. Production

31. Study of the various agencies and business structure which perform the
marketing processes

a. Commodity approach

b. Functional approach

c. Institutional approach
d. Structure-conduct-performance approach

32. Which of the following is NOT true about monopoly?

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

b. The firm can impose any price it wants

c. The firm cannot maximize profit at the inelastic portion of the market
demand curve

d. None of the above

33. The anticipated reduction in the value of assets over time that is brought
about through physical use or obsolescence

a. Appreciation

b. Devaluation

c. Depreciation

d. Stagnation

34. In economics, this word is defined as the creation of goods and services
to satisfy human wants

a. Consumption

b. Marketing

c. Production

d. Transporting

35. The most important resource in cooperative

a. Land

b. Capital

c. Human

d. None of the above

36. The objective of a rational consumer is to

a. Buy as much as his income allows of the cheapest articles

b. Avoid purchasing the most expensive commodities

c. Spread his expenditures over as many products as possible

d. Secure the highest of satisfaction from his money Income

37. The markets for factors of production is where

a. household sells products and business buy products

b. businesses sell the resources and household by-products

c. household sells resources and business sell resources

d. business sell resources and household buy resources

38. Which of the following will be determined in the market for goods and
services?

a. managers salary

b. the price of equipment used in manufacturing firm

c. the price of a 30-hectare farmland

d. the price of a new pair of leather shoes

39. In this circular flow diagram

a. resources flow counterclockwise

b. money flows counterclockwise

c. goods and services flow clockwise

d. household are in the supply side of the market

40. In the same diagram,

a. household spend income in the market for factors of production

b. firms supply resources to the household

c. household receive income through the market for factors of production

d. household produce goods

41. Which form of monopoly regulation is most advantageous for the

consumer?

a. price control

b. specific tax

c. vat

d. all of the above are equal

42. The form of economic integration that removes all barriers on trade
among members but each nation retains its own tariff rates against non-
members

a. Custom union

b. Economic market

c. Economic union

d. Free trade area

43. A study of a proposed project to indicate whether the proposal is

attractive enough to justify more detailed preparation

a. Feasibility study

b. Market study
c. Technical study

d. Financial study

44. It is a measure of profitability relative to the capital invested in the

business. It is also called return to capital and is the most popular indicator
of profitability.

a. Net present value

b. Return of investment
c. Gross margin

d. All of the above

45. The exchange of goods and services across international boundaries.

a. Regional trade

b. Domestic trade

c. Local trade.

d. International trade

46. The market equilibrium point for a commodity is determined by

a. The balancing forces of demand and supply

b. The market demand

c. The market supply

d. All of the above

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

a. Payback period

b. Income years

c. Investment return

d. None of the above

48. Individuals or business concerns that specialize in performing the various

marketing functions involved in the purchase and sale of goods as they move
from producers to consumers

a. Merchant middlemen

b. Middlemen

c. Processors and manufacturers

d. Wholesalers
49. Period during which a borrower need not repay principal and sometimes,
interest

a. Guarantee period

b. Free period

c. Grace period

d. Non-payment period

50. The president responsible for the implementation of the Comprehensive

Agrarian Reform Program in the Philippines.

a. Joseph E. Estrada

b. Corazon C. Aquino

c. Ferdinand E. Marcos

d. Fidel V. Ramos.

51. Which of the following is NOT a characteristic of agricultural markets in

the Philippines?

a. High degree of market integration

b. Seasonality in production and prices

c. Limited access to credit for farmers.

d. Strong government intervention in price setting

52. The concept of "value chain" in agricultural economics refers to:

a. The total monetary value of all agricultural products in the country

b. The process of adding value to agricultural products through processing

and marketing activities

c. The chain of command within agricultural organizations

d. The distribution of agricultural resources among different

regions
53. In the context of agricultural marketing, what does "price elasticity of
demand" measure?

a. The responsiveness of quantity demanded to changes in price

b. The percentage change in quantity supplied due to changes in price

c. The impact of government policies on agricultural prices

d. The profitability of agricultural products in the market

54. Which of the following government agencies in the Philippines is

primarily responsible for agricultural marketing and development?

a. Department of Agriculture (DA)

b. National Economic and Development Authority (NEDA)

c. Department of Trade and Industry (DTI)

d. Agricultural Credit Policy Council (ACPC)

55. Which of the following factors is NOT considered a driver of agricultural

productivity in the Philippines?

a. Access to modern agricultural technologies.

b. Availability of agricultural inputs

c. Climate change impacts

d. Government subsidies for farmer

L
56. What is the main objective of agricultural marketing in the Philippines?

a. To maximize profits for agricultural producer

b. To ensure fair and efficient allocation of agricultural resources

c. To promote international trade of agricultural products d. To reduce the

reliance on imported agricultural goods

57. Which of the following is an example of direct marketing in the

agricultural sector?

a. Selling produce through a farmers' market

b. Exporting agricultural products to foreign markets

c. Selling crops to a wholesaler

d. Engaging in contract farming with a large corporation

58. The concept of "food security" refers to:

a. The availability of a variety of food options in the market

b. The self-sufficiency of a country in agricultural production

c. The ability of individuals and communities to access sufficient and

nutritious food

d. The level of agricultural trade surplus a country has with its trading
partners

59. What is the role of agricultural cooperatives in the Philippines?

a. To provide financial assistance and credit to small-scale farmers

b. To regulate agricultural prices in the market

c. To promote competition smong agricultural producers

d. To enforce government policies on agricultural production

60. Which of the following is an example of a non-price determinant of

agricultural supply?

a. Changes in the cost of agricultural inputs

b. Government subsidies for farmers

c. Shifts in consumer preferences

d. Fluctuations in exchange rates

61. Which government agency in the Philippines is responsible for setting

agricultural policies and regulations?

a. Bureau of Agricultural and Fisheries Standards (BAFS)

b. Philippine Statistics Authority (PSA)

c. National Food Authority (NFA)

d. Agricultural Training Institute (ATI)

62. What is the primary objective of agricultural price support programs in

the Philippines?

a. To stabilize agricultural prices and incomes for farmers

b. To promote agricultural exports to international markets

c. To discourage excessive agricultural production

d. To reduce the cost of agricultural inputs for farmers

63. Which of the following is an example of a marketing strategy used to

promote agricultural products in the Philippines?

a. Conducting market research to identify consumer preferences

b. Providing training and technical assistance to farmers

c. Implementing import restrictions on agricultural goods

d. Establishing agricultural cooperatives for small-scale farmers

64. Which economic concept is used to measure the efficiency of resource

allocation in agricultural markets?

a. Producer surplus

b. Price elasticity of demand

c. Consumer surplus

d. Economic efficiency

65. Which of the following is NOT a major constraint to

agricultural development in the Philippines?

a. Limited access to credit and financing options

b. Lack of agricultural infrastructure and post-harvest facilities

c. Abundant natural resources and fertile land

d. Climate change and environmental challenges

66. What is the primary goal of agricultural policy in the

Philippines?

a. To achieve food self-sufficiency and reduce import dependence

b. To prioritize the export of agricultural products for economic growth

c. To promote sustainable agricultural practices and environmental

conservation

d. To maintain stable agricultural prices for consumers

67. Which of the following factors can contribute to agricultural market

failures?

a. Perfect competition among agricultural producers

b. Efficient information dissemination and transparency in

pricing

c. Externalities and environmental impacts of agricultural

activities

d. High levels of market integration and connectivity

68. Which government agency in the Philippines is responsible for

implementing agricultural land reform programs?

a. Department of Agriculture (DA)

b. Department of Agrarian Reform (DAR)

c. National Economic and Development Authority (NEDA)

d. Department of Trade and Industry (DTI)

69. Which of the following is a characteristic of a perfectly competitive

agricultural market?

a. A small number of large agricultural firms dominating the market

b. Barriers to entry that prevent new agricultural producers from entering the
market
c. Homogeneous agricultural products and perfect information among buyers
and sellers

d. Government price controls and interventions to stabilize agricultural prices

70. What is the role of agricultural marketing cooperatives in the Philippines?

a. To provide technical assistance and training to agricultural producers

b. To negotiate better prices and market access for their member farmers

c. To enforce quality standards for agricultural products in the market

d. To facilitate international trade of agricultural goods

71. Which economic indicator is used to measure the profitability of

agricultural production?

a. Gross Domestic Product (GDP)

b. Consumer Price Index (CPI)

c. Agricultural Price Index (API)

d. Return on Investment (ROI)

72. Which of the following factors can affect the demand for
agricultural products in the Philippines?

a. Changes in agricultural production techniques and technology

b. Government regulations and policies on agricultural exports

c. Fluctuations in consumer income and purchasing power

d. Availability of agricultural inputs and resources

73. What is the significance of value-added activities in agricultural

marketing?

a. They increase the price of agricultural products in the market.

b. They improve the quality and safety of agricultural products.

c. They create employment opportunities in rural areas.

d. They reduce the environmental impact of agricultural

production.

74. Which marketing channel involves the direct sale of agricultural products
from farmers to consumers?

a. Wholesale markets

b. Retail outlets

c. Farmers' markets

d. Export markets

75. Which of the following factors is a key determinant of agricultural price

volatility in the Philippines?

a. Stable weather patterns

b. Efficient supply chain management

c. Global market trends

d. High levels of government intervention

76. What is the role of agricultural extension services in the Philippines?

a. To provide financial assistance to farmers

b. To promote sustainable farming practices

c. To regulate agricultural exports and imports

d. To conduct market research on consumer preferences

77. Which of the following is an example of a non-tariff barrier to agricultural

trade?

a. Import quotas on agricultural products

b. Export subsidies for local farmers

c. Currency exchange rates

d. Intellectual property rights protection

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

a. To identify potential agricultural suppliers

b. To set strategic pricing for agricultural products

c. To forecast agricultural production yields

d. To outline marketing objectives and strategies

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

support agricultural prices in the Philippines?

a. Imposing import restrictions on agricultural goods

b. Implementing free trade agreements with other countries

c. Encouraging foreign direct investment in the agricultural sector

d. Promoting competition among local agricultural producers

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

Philippines?

a. To monitor and report on market prices and trends

b. To regulate agricultural marketing practices

c. To coordinate agricultural research and development

d. To enforce quality standards for agricultural products

81. Which of the following is a major challenge faced by smallholder farmers

in the Philippines?

a. Access to advanced agricultural technologies

b. Availability of agricultural land

c. Strong bargaining power in the market

d. Limited access to credit and financial services

82. What is the primary objective of agricultural insurance programs in the
Philippines?

a. To protect farmers against natural disasters and crop failures

b. To encourage the adoption of sustainable farming practices

c. To stabilize agricultural prices in the market

d. To promote agricultural exports to international markets

83. Which of the following is an example of a value-added agricultural

product?

a. Freshly harvested rice

b. Unprocessed coconut meat

c. Bottled mango juice

d. Raw sugarcane

84. What is the significance of market segmentation in agricultural

marketing?

a. It allows for the identification of potential agricultural

suppliers.

b. It helps in setting uniform prices for agricultural products.

c. It enables targeted marketing strategies to different consumer groups.

d. It promotes fair competition among agricultural producers

85. Which of the following factors contributes to the high rate of post-harvest
losses in the Philippine agricultural sector?

a. Advanced storage and preservation technologies

b. Efficient transportation infrastructure

c. Lack of access to proper storage facilities

d. Low levels of agricultural production

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

a. Change in the modernity.

b. Change in access to productive resources

c. Higher level of agriculture external inputs

d. Improved level of agricultural population

87. Which of the following is a primary market for Philippine agricultural

exports?

a. China

b. Japan

c. United States

d. Australia

88. What is the primary objective of agricultural cooperatives in the

Philippines?

a. To maximize profits for individual farmers

b. To negotiate fair prices and market access for their member farmers

c. To compete with large agricultural corporations

d. To regulate the pricing of agricultural products in the market

89. What is the impact of climate change on Philippine agriculture?

a. Decreased agricultural productivity and increased vulnerability to natural

disasters

b. Increased availability of water resources for irrigation

c. Reduced reliance on imported agricultural products

d. Expansion of agricultural land due to melting glaciers

90. What is the role of the National Food Authority (NFA) in the Philippine
agricultural sector?
a. To regulate the pricing and distribution of rice in the market

b. To promote sustainable farming practices among smallholder

farmers

c. To oversee the import and export of agricultural products

d. To provide financial assistance and credit to agricultural producers

91. Which economic indicator is used to measure the competitiveness of

Philippine agricultural products in international markets?

a. Terms of trade

b. Gross Domestic Product (GDP)

c. Consumer Price Index (CPI)

d. Unemployment rate

92. What is the primary objective of contract farming arrangements in the

Philippines?

a. To secure a stable market for agricultural products

b. To encourage smallholder farmers to form cooperatives

c. To establish government price controls on agricultural goods

d. To regulate the import and export of agricultural products

93. Which of the following is an example of a value chain activity in

agricultural marketing?

a. Soil preparation and cultivation

b. Harvesting and post-harvest handling

c. Land ownership and tenure

d. Agricultural policy formulation

94. What is the purpose of market research in agricultural marketing?

a. To analyze consumer preferences and trends

b. To determine the optimal crop rotation schedule

c. To enforce quality standards for agricultural products

d. To calculate the cost of agricultural inputs

95. Which of the following factors can contribute to the success of

agricultural value chain development in the Philippines?

a. Limited access to market information

b. Fragmented production and inefficient coordination among

actors

c. Lack of government support and policies

d. High transportation costs and logistics challenges

96. What is the primary purpose of agricultural subsidies in the Philippines?

a. To increase agricultural production and productivity

b. To discourage farmers from engaging in agricultural activities

c. To generate revenue for the government

d. To promote imports of agricultural products

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

production?

a. Opportunity cost of land

b. Cost of labor

c. Cost of irrigation systems

d. Cost of transportation to the market

98. What is the significance of market integration in agricultural economics?

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

b. It ensures that prices of agricultural products are stable and consistent

c. It promotes competition and efficiency in the agricultural market

d. It encourages the importation of agricultural goods to meet local demand

99. Which of the following is a factor affecting agricultural labor supply in the
Philippines?

a. Government regulations on agricultural exports

b. Changes in rural-to-urban migration patterns

c. Availability of agricultural inputs

d. Currency exchange rates

100. What is the role of agricultural marketing boards in the

Philippines?

a. To regulate agricultural production and pricing

b. To provide financial assistance to farmers

c. To oversee the distribution of agricultural inputs

d. To promote agricultural research and development