AGRICULTURAL ECONOMICS AND MARKETING

1. The series of services involved in moving the product from the point of production to the point of
consumption
a. Selling b. merchandizing c. marketing d. marketing operations
2. The point of production is the
a. Point of first sale
b. Point of last sale
c. Point where seeding occurs
d. Point where transplanting takes place
3. This is the point where the farm price is established
a. Point of first sale
b. Point of last sale
c. Point of production
d. Point of consumption
e. Both a and c
f. Both b and d
4. The point of consumption is the
a. Point of first sale
b. Point of last sale
c. Point where food is ingested
d. Point where food is digested
5. At this point, transaction occurs between the traders and the consumers and where retail price is
established
a. Point of production
b. Point of consumption
c. Wholesale point
d. Farm gate
6. Marketing functions performed on or for a product that will alter its time, place, form or possession
characteristics
a. Marketing
b. Marketing operations
c. Marketing services
d. Marketing system
7. A system of buyers and sellers with facilities for trading with each other
a. Purely competitive market
b. Public market
c. Market
d. Supermarket
8. A market is defined as
a. A place where buyers and sellers exchange goods or services
b. A large geographic area where supply and demand forces set prices
c. Informal organizations where buying and selling maybe done by almost anyone at almost any time
in relatively small lots
d. All of the above
9. Which of the following is not considered a market
a. A balut vendor selling on the street.
b. Fruit stands along the national highway in Calamba
 c. South supermarket at 10 o’clock in the evening
d. New York Coffee exchange market
10. One who buys commodities from the market
a. Consumer b. customer c. mother d. decision-maker
11. Marketing is productive because
a. Products are highly perishable
b. Of seasonality of production
c. Services involve a lot of money
d. In creates utility
12. Type of utility created when products are made available when they are most wanted by consumer
a. Place utility
b. Form utility
c. Time utility
d. Possession utility
13. This is a complex system within which various subsystems interact with each other and with the
different marketing environments
a. Marketing channels
b. Marketing systems
c. Marketing
d. Market\
14. One characteristic of a marketing system
a. It has goals to achieve, e.g. employment, price stability, etc.
b. it has components or participants that perform its functions
c. it has institutional arrangements
d. it has spatial and temporal dimensions
e. all of the above
15. it is concerned with minimizing market imperfection
a. producer subsystem
b. functional subsystem
c. environmental subsystem
d. channel system
16. Consists of the initiators of production like Ka Juan, a rice farmer, and Dole Corp.
a. Producer subsystem
b. Flow subsystem
c. Channel subsystem
d. Functional subsystem
e. Consumer subsystem
17. Characteristics unique to agricultural products which pose a problem in marketing
a. Perishability
b. Bulkiness
c. Seasonality of production
d. Non-homogeneity
e. All of the above
18. A problem area in marketing agricultural products
a. Product characteristics
b. Number of producers
c. Consumers characteristics
d. Reflecting demand
e. All of the above
19. There _____ major approaches to the study if agricultural marketing
a. Three b. four c, five d. six
20. This approach covers consumer preferences, demand and supply analysis, product characteristics and
price behavior
a. Commodity approach
b. constitutional approach
c. ‘functional approach
d. Industrial organizations approach
e. Market efficiency or analytical approach
21. Study of the various agencies and business structure which perform the marketing process
a. Commodity approach
b. Structure – conduct – performance approach
c. Functional approach
d. Institutional approach
22. A middleman who takes little to and therefore owns the product he handles
a. Merchant middleman
b. Agent middleman
c. Private trader
d. Market intermediary
23. Example of merchant middleman
a. Wholesaler
b. Retailer
c. Broker
d. Both a and b
24. Middleman who receives his income in the form of fees and commissions
a. Commission agent
b. Broker
c. Both a and b
d. Processor
25. Known as viajeros
a. Wholesaler
b. Assembler-wholesaler
c. Financer-wholesaler
d. Assembler-wholesaler
26. One type of middleman in agricultural marketing which I modern times have increasingly increased its
functions for changing product forms to buying raw materials to wholesaling the finished product to
retailers
a. Processors and manufacturers
b. Facilitative organizations
c. Wholesalers
d. Assembler-wholesaler
27. Do not directly participate in marketing processes but furnish the physical facilities for the handling of
products and bringing buyers and sellers together, e.g auction markets
a. Facilitative organization
b. Public market
c. Supermarket
d. Terminal market
28. A major specialized activity performed in accomplishing the different marketing processes
a. Marketing system
 b. Marketing machinery
c. Marketing function
d. Marketing institutions
29. A marketing process
a. Concentration
b. Dispersion
c. Equalization
d. All of the above
30. Approach to the study of agricultural marketing that attempts to answer “what” in the question “who
does what”
a. Commodity approach
b. Functional approach
c. Institutional approach
d. Structure-conduct-performance approach
31. Activities involved in the transfer of little of goods. This is where the price determination takes place in
marketing
a. Exchange functions
b. Physical functions
c. Facilitating functions
d. None of the above
32. Activities that involve handling, movement and physical change of the commodity
a. Exchange functions
b. Physical functions
c. Facilitating functions
d. Marketing functions
33. Acts as the grease in the agricultural marketing machinery
a. Exchange functions
b. Physical functions
c. Facilitating functions
d. Marketing functions
34. Enables the smooth performance of both the physical and facilitating functions
a. Grading and standardization
b. Storage
c. Buying
d. Transportation
35. The advancing of money to carry on the various aspects of marketing
a. Financing
b. Risk bearing
c. Market intelligence
d. Demand creation
36. Deals with the organization of a market as it influences the nature of competition and pricing market
a. Market structure
b. Market conduct
c. Market performance
d. Industrial organization
37. A dimension of market structure
a. Degree of buyer and seller concentration
b. Degree of product differentiation
c. Condition of entry to the market
 d. All of the above
e. None of the above
38. Type of market structure where there is only one buyer in the market
a. Perfectly competitive market
b. Monopoly
c. Monopsony
d. Oligopoly
39. The behavior pattern of a firm in the industry
a. Market structure
b. Market conduct
c. Market performance
d. Industrial organization
40. Trucking arrangement, credit marketing tie-up and method of payment are examples
a. Market structure
b. Market conduct
c. Market performance
d. None of the above
41. Economies of scale, capital requirement, government rules and regulations and inherent technical
relationships in the industry are dimensions of
a. Product differentiation
b. Seller concentration
c. Barrier to entry
d. Market conduct
42. The appraisal of how much the economic resource of the industry’s market behavior deviates from the
best possible contribution it can make to achieve relevant socio-economic
a. Market conduct
b. Market structure
c. Market performance
d. Market efficiency
43. A dimension of market performance
a. Market share analysis
b. Firm’s product policy
c. Market efficiency
d. Marketing practices
44. An intern-organization system make up of interdependent agencies and institutions involve task of
moving products from the point of production to the point of consumption
a. Marketing system
b. Marketing channels
c. Agricultural machinery
d. Wholesalers and retailers
45. The major factor that influence the existence of marketing channels
a. Product delivery
b. Transportation
c. Pricing and profit
d. Product requirement
46. Marketing channels vary according to the
a. Type of commodity handled
b. Time
c. Location
 d. All of the above
47. To facilitate the proper functioning of the market channels subsystem. It is important that channel
members must have a mutual understanding of their
a. Type of client served
b. Territory served
c. Marketing functions performed
d. All of the above
48. The structure of the channel is determined by service output requirements given in terms of
a. Market decentralization
b. Lot size
c. Delivery time
d. Product delivery
e. All of the above
f. None of the above
49. Direct marketing is advisable if
a. The total sales volume is small
b. The market is scattered
c. The product commands a high value per unit
d. The product is highly perishable
50. Convenience goods
a. Require intermediaries
b. Unique and customized
c. Staples
d. A and c
51. The type of organization which handles the product through two o more steps in the processing or
marketing processes.
a. Forward integration
b. Backward integration
c. Vertical integration
d. Horizontal integration

For the following questions, please refer to the given figure:

52. The given marketing channel has ______ product flows
a. 11 b. 9 c. 5 d. 8
53. The simplest product flow is
a. F-CB-R-C
b. F-WR-R-C
c. AW-WR-C
d. F-WR-C
54. The ultimate link to the consumers in this system is the
a. Retailer
b. Wholesaler-retailer
c. Contract buyer
d. Both a and b
55. The proportion handled by the assembler-wholesaler is
a. 25% b. 54% c. 58% d. 48%
56. The contract buyer handles ______ of the volume sold by the farmer
a. 58% b. 25% c. 83% d. 17%
57. Assuming that the farmer handles 1000 kgs, the total volume handled by the contact buyer will be
a 580 kgs b. 250 kgs c. 170 kgs d. none of the above
58. The volume handled by the farmers represent their
a. Total production
b. Production + imports
c. Production + consumption
d. Marketable surplus
59. The price spread can be expressed as
a. Pr-Pf
b. Pw-Pf
c. Pf-Pr
d. Pf-Pw
60. Different components of marketing margin
a. Marketing costs and marketing charges
b. Marketing costs and transportation costs
c. Transportation costs and processing costs
d. Marketing costs and storage costs
61. A component of the marketing margin that refers to the returns to the various factors of production used
in providing the processing and marketing services rendered between the producers and consumers
a. Marketing costs
b. Net return
c. Processing costs
d. Marketing changes
62. A series of figures representing the absolute margins of different types of middlemen assignable to
different marketing functions divided by the retail price
a. Percentage margin
b. Constant margin
c. Percentage mark-up
d. Breakdown of the consumer peso
63. The absolute difference in price or absolute margin divided by the selling price
a. Percentage margin
b. Percentage mark-up
c. Price spread
 d. Marketing margin
64. Demand for the finished product e.g., dressed chicken
a. Primary demand
b. Derived demand
c. Consumer demand
d. Both a and c
65. A way of estimating marketing margins
a. Selecting a specific load of a good and tracing it through the marketing system
b. Comparing prices at different levels of marketing
c. Gross sales less purchases divided by the number of units handled
d. All of the above
66. Reason why marketing costs differ among agricultural products
a. Increased processing
b. Bulkiness
c. Perishability
d. All of the above

A yellow corn farmer from the South sold his produce to an assembler wholesaler at P4.00 per kg and
later sold this to a miller at P4.40 per kg. After milling the corn, the miller sold this to a wholesaler at
P5.10 per kg. The latter disposed this to a retailer at P5.60 per kg who later sold the milled corn to
livestock producers at P6.00 per kg.

67. The price spread of this commodity is

a. P0.40 per kg
b. P1.60 per kg
c. P6.00 per kg
d. P2.00 per kg
68. The farmer’s share is
a. 93%
b. 67%
c. 7%
d. 8%
69. The percentage margin at the miller’s level is
a. 21.6%
b. 25%
c. 9.8%
d. 13.7%
70. The absolute marketing margin of the farmer is
a. P0.40 per kg
b. P1.60 per kg
c. P2.00 per kg
d. 0
71. The wholesaler’s percentage mark-up is
a. 8.9%
b. 9.8%
c. 1.96%
d. 7.1%
72. Marketing efficiency measures
a. Pricing efficiency and operational efficiency
 b. Economic efficiency and technological efficiency
c. Marketing margins, input output measures and evaluation of loss and waste in the market
73. Maximization of the output input ratio
a. Marketing efficiency
b. Marketing costs
c. Marketing operation
d. Satisfaction
74. In this ratio the resources used in moving the products from the point of production
a. Input
b. Output
c. Satisfaction
d. Costs
75. Type of efficiency that is concerned with improving the operation of the buying, selling and pricing
aspects of the marketing process
a. Marketing efficiency
b. Operational or technological efficiency
c. Pricing or economic efficiency
d. Input-output measurement
76. Type of efficiency that focus on reducing the costs of the inputs assuming that the essential nature of
the output and services remain unchanged
a. Operational efficiency
b. Pricing efficiency
c. Technological efficiency
d. None of the above
77. Plant that gain weight during processing
a. Market oriented
b. Material oriented
c. Foot loose industries
d. None of the above
78. An example of a material oriented industry
a. Breweries
b. Soft drink bottlers
c. Bakeries
d. Buko pie
79. Area where efficiency may be developed
a. Improved marketing methods
b. Economies of scale
c. Location of the business
d. All of the above
80. The space dimension of marketing whose primary concerns is to move products from the farm
processor to the costumer
a. Transportation
b. Storage
c. Assembly
d. Buying
81. The time and costs involved in moving products from the farm to processing and consuming centers will
influence
a. Location of production centers
b. Market area served
 c. Qualities and sizes of products shipped to market
d. The form of product marketed
e. All of the above
82. Explains why perishable products are located near consumption centers
a. Cheaper costs of transporting raw product
b. Cheaper costs of transporting manufactured products
c. Lower storage costs
d. Lower processing costs
83. For a single consuming center for a farm product, the price received by the farmers will be
a. Pa-ta = Pb – tb
b. Pa – Pb = ta – tb
c. Pf = Pm –f(D)
d. None of the above
84. The law of market areas asserts that the boundary between any two markets in the locus or for which
the site prices for shipments made to the competing markets are equal. This can be expressed as
a. Pa-ta =P-tb
b. Pa – Pb = ta-tb
c. Pf = Pm-f(D)
d. Both a and b

Aling Sidra wants to sell 600 kgs of onion either to San Antonio or San Leaonardo which are 15 kms
away from Cabanatuan City, respectively. The costs of transporting onions to San Antonio P0.50/kg/km
while it costs P1.00/kg/km to San Leonardo. Onions sold in San Antonio fetch a P10/kg while in San
Leonardo, P8/kg

85. Where will Aling Sidra sell her onions?

a. San Leonardo
b. San Antonio
c. Cabanatuan
d. Gapan
86. This is because it will yield her a site price of
a. P5/kg
b. P3/kg
c. P2/kg
d. P4/kg
87. It will also provide Aling Sidra
a. A net profit of P3000
b. A net profit of P1800
c. Transport cost of P5/km
d. Transport of P10/km
e. 88.
 Given the following information on the price structure of potatoes per 100 kgs
SIZE QUALITY
Grade AA grade AB grade BB
Pesos/100 kgs
Large 1400 1300 1200
Medium 1300 1200 1200
Small 1200 1100 1000

if the transportation costs are P300 and P400 from area A and B respectively, and other
marketing costs are P750 and P850 respectively

88. The total costs of marketing will be

a. P1050 and P1250 markets A and B, respectively
b. P700 for market A and P1600 for market B
c. P1150 for market A and P1250 for market B
d. None of the above
89. The producer will supply market B with\
a. All sizes and quality of potatoes
b. No small, grade BB potatoes
c. Only: large Grade AA, Grade AB and medium Grade AA
d. Only small Grade BB
90. The producer will supply market A with
a. All sizes and quality of potatoes
b. Only large Grade AA, Grade AB and Grade BB, medium Grade AA, AB
c. All sizes and quality of potatoes except small Grade BB potatoes
d. Only small Grade BB
91. Producers shoulder any increase in transportation cost in the short run because of
a. Inelastic supply in the short run
b. Elastic supply of agricultural products in the short run
c. Consumer’s resistance
d. None of the above
92. Storage makes products available when they are most wanted by consumers thus creates this kind of
utility
a. Place utility
b. Time utility
c. Form utility
d. Possession utility
93. The primary objective of storage
a. To balance supply and consumption
b. Time required for performing various marketing functions
c. Need for carry over into the following season
d. Sporadic demand for agricultural products
94. Cost of storing agricultural products
a. Depreciation, repairs, insurance against loss
b. Quality deterioration and shrinkage in volume
c. Amount of capital invested in stored products
d. Handling fee, electricity consumed
e. All of the above
f. A, bl and d only
95. The most important risk involved in the storage of food products
a. Physical loss
b. Price changes
c. Product deterioration
d. Insect and rodent damage
96. A way of approximating the cost of storage is through
a. Seasonal change in price
b. Cyclical price variation
c. Long term changes in prices
d. Random change in prices
97. It is generally profitable to store products when
a. Demand is elastic
b. There is a short crop of perishable price inelastic products
c. There is a short crop for grain products that will be used as feed
d. None of the above
98. Place where the products that are low in value or that have a large amount of waste to be removed
before they are marketed are stored most advantageously
a. Within trade channel
b. On farms
c. Terminal markets
d. Warehouses
99. Results in prices that reflect consistent quality and thus will reward farmers who produce top quality
products
a. Storage
b. Transportation
c. Grading and standardization
d. Processing
100. The sorting of products according to one or more of their quality attributes like size, weight,
shape, color, etc.
a. Grading
b. Classification
c. Standardization
d. Categorization
101. The practice of making the quality specification of grades uniform among buyers and sellers and
from place to place and across time
a. Grading
b. Quality control
c. Standardization
d. Discipline
102. Grading and standardization can result to efficiency since it
a. Increases the level for competition in the market
b. Increases the meaningfulness of price quotations
c. Limits the time and expense of bargaining about price and quality for each transaction
d. All of the above
e. Only a and b
103. Grading and standardization enhances operational efficiency with the reduction in costs
attributes to
a. Increased ability and potentially to buy and sell based on description alone
b. Specialization of marketing functions
 c. Enlarged marketing areas caused by uniform grading
d. Reduced expensive promotion and advertising of agricultural products
e. All of the above
104. This consists of people, equipment and procedure to gather sort, analyze, evaluate and
distribute needed, timely and accurate information to marketing decision makers
a. Marketing information system
b. Management information system
c. Record system
d. Marketing research
105. These are three steps to attaining the objectives of this system. The first step is
a. Undertaking marketing research
b. Assessing information needs
c. Developing information
d. Distributing information
106. Basic question in organizing data concern the following
a. When and where
b. How and what
c. Who and why
d. All of the above
107. When is concerned with
a. How to organize for market intelligence and how the data are derived
b. how frequent is the data needed for timeliness
c. the sources of information, centers of trade and origin and destination of trade
d. purchasing investment and policy planning
108. supply and demand, volume flows, prices, units, product form and historical forecasts are the
concerns of
a. what
b. when
c. who
d. where
109. sources of primary data
a. Farmers or growers
b. Input suppliers
c. Traders
d. All of the above\
110. These data are good for studying trends and at a broad level of aggregation
a. Primary data
b. Secondary data
c. Trade data
d. Production data
111. In analyzing demand for the commodity, what do you need to know
a. Demand centers
b. Direct estimate for potential markets
c. Historical data
d. Derived demand
e. All of the above
112. In analyzing supply, what data are needed
a. Direct estimate of potential markets
b. Production, imports and carry over stock
 c. Production capacity of suppliers
d. Both b and c
113. This is concerned with the centers of trade, origin of trade and destination of trade and should
be included in the marketing intelligence
a. Geographic flow of goods
b. Transport and freight considerations
c. Commodity flow of goods
d. Market specifies
114. For the market information system to be effective and efficient, this must be complimented with
what marketing function
a. Financing
b. Risk-bearing
c. Demand creation
d. Grading and standardization
115. That price at which the quantity per unit of time that buyers want is just equal to the quantity that
sellers want to sell
a. Equilibrium price
b. Buying price
c. Selling price
d. Support price
116. Amount of money needed to acquire goods and their accompanying services
a. Utility
b. Value
c. Price
d. Money
117. One of the essential functions of price
a. Tells producers what and how much to produce
b. Allocates productive resources to the production of goods and services consumers demand
c. Guides goods and services through the channels of trade
d. All of the above
118. The price differentials in perfectly competitive markets are those caused by differences in
a. Time, form, and location of the product
b. Promotion and advertisement
c. Marginal cost and revenue
d. Input and output prices
119. Price will tend to rise in response to
a. A sharp decrease in population with no change in supply
b. A cost reducing technology, demand unchanged
c. An increase in income with no change in supply
d. None of the above
120. An improvement in production technology and a simultaneous increase in population will result
a. Increase in the equilibrium price
b. Decrease in equilibrium price
c. No change in equilibrium price
d. None of the above
121. Type of price fluctuation associated with the long run term changes in the factors affecting
supply and demand
a. Seasonal price variation
b. Annual price variation
 c. Trend
d. Cycle
122. For cyclical behavior of price and quantity to occur as exemplified by the Cobweb model, what
condition must be satisfied
a. A time lag between the decision to produce and actual production
b. Production plans are based on future prices
c. Current prices are mainly a function of future supply
d. All of the above
123. Give rise to a convergent Cobweb cycle in price and quantity
a. Elastic supply
b. Elastic demand
c. Inelastic supply
d. B and c
124. The process by which buyers and sellers arrive at a specific price for a given lot of production in
a given condition
a. Price determination
b. Price discovery
c. Pricing strategies
d. Price expectation
125. A mechanism of discovering prices
a. Seasonal price variation
b. Annual price variation
c. Auction market
d. Pricing strategy
126. A simple bargaining process between individual buyers and sellers for each transaction
a. Collective bargaining
b. Administered bargaining
c. Individual bargaining
d. Progressive bargaining
127. Prices established in organized markets approximate equilibrium prices when
a. Number of transaction is large
b. There are few buyers and sellers
c. There is government intervention
d. There are no market information

For the following numbers, use the following given information

B = 3.14 Y= 10.7 X=2

128. The estimated intercept is

a. 18.26
b. 7.56
c. 4.42
d. 8.70
129. The resulting trend equation for bangus using the above information is
a. Ψ=4.41
b. Ψ=10.7 +3.14
c. Ψ=7.56 +3.14X
d. Ψ= 4.42 + 10.7X
130. The slope explains the
 a. Average price increase per year amounting to P4.42 per kg
b. Average price increase per year amounting to P3.14 per kg
c. Average price increase per year amounting to P7.56 per kg
d. None of the above
131. Using the equation the predicted average farm price for bangus in year 2004 where 1991 = 1
a. 40.82
b. 48.38
c. 45.20
d. 79.78
132. This particular problem made use of a technique to predict or project future prices and this is
known as
a. Simple linear regression analysis
b. Demand analysis
c. Statistical analysis
d. Seasonal indices
133. What is used in describing the seasonal variation in prices
a. Seasonal indices
b. Trend
c. Cycles
d. Average
134. A pricing strategy of setting the highest initial price that customers really desiring the product are
willing to pay
a. Skimming pricing
b. Penetration pricing
c. Prestige pricing
d. Loss leader pricing
135. This pricing strategy sets a low initial price on a new product to appeal immediately to the mass
market
a. Skimming pricing
b. Penetration pricing
c. Prestige pricing
d. Loss leader pricing
136. Setting prices at or near equal to those in other source
a. Competitive pricing
b. Formula pricing
c. Psychological pricing
d. Unit pricing
137. Pricing items in units of two or more
a. Tie-in pricing
b. Unit pricing
c. Psychological pricing
d. Price lining
138. Offering two or more classes of the same product at different prices, e.g large eggs for P3.00
medium for P2.50 and small for P2.00
a. Unit pricing
b. Price lining
c. Special pricing
d. Psychological pricing
139. Pricing items in 5’s say P99.95 is used to
 a. Attract customers
b. Retain old customers
c. Create a low price image
d. All of the above
140. Pricing items in 5’s say P99.95 is a pricing strategy called
a. Price lining
b. Psychological pricing
c. Special pricing
d. Unit pricing
141. Anything that can be offered to a market for attention, acquisition, use or consumption that
satisfies a want or a need
a. Product
b. Design
c. Label
d. Style
142. Any activity of benefit that one party can offer to another that is essentially intangible and does
not result in the ownership of anything
a. Product
b. Service
c. Utility
d. Style
143. Refers to the problem solving services or core benefit the consumers are really buying when
they obtain a product
a. Core product
b. Actual product
c. Augmented product
d. Product
144. The offering of additional services and benefits such as warranty or parts, toll free telephone
number to call if customers have a problem or questions is referred to as
a. Service
b. Core products
c. Actual products
d. Augmented product
145. Two broad classification of products
a. Consumer and industrial products
b. Convenience and specialty products
c. Materials and parts’
d. Shopping and unsought products
146. Type of consumer products that are usually bought frequently, immediately and with a minimum
of comparison and buying effort
a. Shopping product
b. Convenience product
c. Specialty product
d. Unsought product
147. Type of consumer goods that the customer in the process of election and purchase
characteristically compares on such basis as quality, suitability, quality, price and style
a. Convenience
b. Shopping
c. Specialty
 d. Unsought
148. A customer product with unique characteristics or brand identification for which a significant
group of buyers is willing to make a special purchase effort
a. Convenience product
b. Specialty product
c. Shopping product
d. Unsought product
149. Type of product sought by individuals and organizations for further processing or for use in
conducting business
a. Consumer product
b. Industrial product
c. Emergency product
d. Staple
150. Installations and equipments are examples of
a. Industrial product
b. Material product
c. Capital items
d. Supplies and services
151. The ability of the product to perform its functions
a. Quality
b. Feature
c. Design
d. Style
152. Product quality covers
a. Level and consistency
b. Durability and reliability
c. Feature and design
d. Style and design
153. A name, term, sign symbol or design or a combination intended to identify the goods or services
of one seller group of sellers and to differentiate them from competitors
a. Brand
b. Package
c. Label
d. Name
154. The activities of designing and producing the container or wrapper for a product
a. Packaging
b. Branding
c. Labeling
d. Styling
155. A part of the package that identifies the product or brand, who made it, where it was made, its
content, how to use it, etc…
a. Label
b. Brand name
c. Manufacturer
d. Nutritional content
156. A brand name is a symbol to make the product
a. Easy to recognize
b. To convey a meaning
c. Competitive
 d. A and b
157. In more developed marketing systems, packages are mainly used for
a. Market penetration and competitiveness
b. Containing the produce
c. Product protection
d. Communication
158. In determining what type of packaging to use, it is necessary to include
a. Product requirement
b. Marketing system
c. Personal preference
d. All of the above
159. Ultimate consummation of the division of labor
a. Specialization
b. Trade
c. Self-sufficiency
d. Autarky
160. Says that a country tends to produce for export those products which it can produce most
cheaply and to import those products which other countries can produce most cheaply
a. Comparative advantage
b. Specialization
c. Trade
d. Barter
161. Comparative effectiveness of labor
a. Absolute cost advantage
b. Comparative cost advantage
c. Comparative advantage
d. Domestic resource cost
162. Comparative cost advantage
a. Ricardo
b. Smith
c. Mill
d. Bruno
163. This represents the value of domestic resources spent in saving or earning a unit of foreign
exchange expressed as a proportion of its actual exchange rate
a. Domestic resource cost
b. Private resource cost
c. Private profitability
d. Social profitability
164. The Resource Cost Ratio (RCR) is divided with the _____ to come up with the domestic
resource cost ratio (DCR)
a. Actual exchange rate
b. Shadow exchange rate
c. Domestic currency value
d. Foreign currency value
165. If the DCR coefficient is less than one (1) then the economic activity has a
a. Comparative advantage
b. Comparative disadvantage
c. Neutral advantage/disadvantage
d. Cannot tell
166. Using above situation, 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 cave foreign exchange by producing the product domestically
c. The country has no choice but to sell the product to the ASEAN countries
d. The has to join WTO to be competitive
167. 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
168. Tariff is imposed on
a. An imported commodity
b. An exported commodity
c. Persons
d. On finished goods only
169. Once, tariff is imposed, the price of the imported commodity will
a. Decrease
b. Increase
c. Remain the same
d. Be uncertain
170. Shows the difference in the final price of the finished good before and after tariff imposition
a. Nominal protection
b. Effective protection rate
c. Implicit tariff
d. None of the above
171. Show 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
172. The effective protection rate (EPR) includes the tariff on
a. Finished good
b. Intermediate inputs
c. Luxury products
d. Both a and b
173. Measures the rate by which domestic price of an input or output faced by producers deviates
from the world or border price
a. Nominal protection
b. Effective protection rate
c. Implicit tariff
d. Government protection
174. The replacement of foreign production with domestic production
a. Import substitution
b. Redistribution effect
c. Protective effect
d. Government revenue
175. The additional economic rent paid to the pre-existing domestic produces plus the rent paid to
new producers above their supply price
 a. Import substitution
b. Transfer effect
c. Protective effect
d. Revenue effect
176. 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
177. A tariff designed for protection must provide rates of duties high enough to achieve this
objective
a. Encouragement of additional domestic production which could not take place because of
prevailing cost disadvantage
b. Create a home market for the product
c. Increase labor share to national income
d. Increase employment
178. The most valid reason why a government imposes a tariff for protection
a. Protection of industries
b. Creation of home market
c. Raise government revenue
d. Protection of infant industries
179. A direct source of monopoly profit
a. Non-tariff barriers
b. Import quota
c. Tariff
d. Dumping
180. The Philippine tariff structure of the beginning of the 1980’s indicated that
a. Exports were penalized, both in 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
181. Country or group of country with the highest non-tariff barriers imposed on the Philippines
a. Japan
b. US
c. Taiwan
d. European or EU countries
182. The case of protection of infant industries rests on the assumption of
a. Efficiency
b. Inability to compete
c. Latent comparative advantage
d. Revenue gain
183. Consist of a group of countries that have abolished all tariff among themselves but maintain
their individual tariffs vis-à-vis the outside world
a. Free trade area
b. Customs union
c. Common market
d. Economic union
184. An example of a free trade area
a. AFTA
 b. EEC
c. WTO
d. EU
185. The European Union is an example of a
a. Free trade area
b. Customs union
c. Common market
d. Economic union
186. The summary of all economic transaction between the residents of one country vis-à-vis the rest
of the world
a. Balance of payment
b. Balance of trade
c. Summary of trade
d. WB-IMF accounting
187. Final adjustments made by authorities to settle imbalances in the balance of payments
a. Compensatory financing
b. Official settlements
c. Devaluation
d. Borrowing
188. This account tell whether the country had earned more than it had paid out
a. Current account
b. Capital account
c. Merchandise trade account
d. Official settlements
189. An example of invisible trade
a. OFW remittance
b. loans and borrowings
c. Foreign investment
d. Export and import
190. As such there are ______ parts in the VOP account
a. Two
b. Three
c. Four
d. Five
191. 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
192. 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
193. Republic Act 7607 mandated BPI as the sole agency to promote use of organic fertilizer and
integrated pest management, among others is also known as
a. Consumer Act of 1992
b. Magna Carta for Small Farmers
 c. Philippine Omnibus Power Bill
d. Crop Insurance Law
194. The Agri-agra Law mandates all commercial banks to allocate 25% of their total loanable fund to
agriculture sector and prohibit them to use these funds to buy government securities as amended is
also known as
a. Presidential Decree No. 717
b. Presidential Decree No. 777
c. Presidential Decree No. 171
d. Presidential Decree No. 117
195. Republic Act 8175 is also known as
a. Philippine Irrigation Act
b. Revised Charter of the Philippine Crop Insurance Corporation Act
c. Comprehensive Agrarian Reform Law of 1988
d. The Philippine Omnibus Power Bill
196. Through CARP, which is not the priority of DAR for acquisition and re distribution
a. Rice and Corn Lands under PD 27
b. Tenanted lands
c. Landholdings above 50 hectares
d. All alienable and disposable public agricultural lands
197. The High Value Crop Development Act of 1995 promotes the production, processing, marketing
and distribution of high valued crops is also known as
a. Republic Act 9700
b. Republic Act 7700
c. Republic Act 7900
d. Republic Act 9900
198. The Omnibus Power Bill ordains the __________ as the implementing agency
a. Department of Justice
b. Department of Agriculture
c. Department of Energy
d. Department of Natural Resources
199. Plant Quarantine Law prevent the introduction of exotic pests in the country and prevent further
spread of plant pests already existing from infested to pest free areas is also known as
a. Presidential Decree No. 1433
b. Presidential Decree No. 1344
c. Presidential Decree No. 1434
d. Presidential Decree No. 1343
200. The act which strengthens the seed quality control among others is the National Seed Industry
Development Act. This act is also known as
a. Republic Act 7308
b. Republic Act 8307
c. Republic Act 7300
d. Republic Act 3300