Agricultural Economics and Marketing – Agriculturist Exam Reviewer (Set 3)
- Question of
The following are currently categorized as communist countries, except:
- Laos
- Cuba
- Japan
- China
- Question of
This economic decision addresses the tendency of overprotection.
- How to produce?
- For whom to produce?
- How much to produce?
- When to produce?
- Question of
The concept of opportunity costs refers to the following except:
- A result of choices
- Trade-offs in all decisions
- Sufficiency of resources
- Result of allocation
- Question of
Act as the grease in the marketing machinery
- Market intelligence
- Selling
- Transportation
- All of the choices
- Question of
The shift in the production possibilities frontier results from:
- Inflation
- Changes in production techniques
- Changes in the combination of good produced
- Increase in economic resources
- Question of
This is an economic system driven by purely self-interest of consumers and producers.
- Market economy
- Mixed economy
- Command economy
- Communism
- Question of
Which of the following are two fundamental conflicting problems, the reason why economist exist?
- Choice and allocation
- Limited income and limited goods
- Scarcity and unlimited goods
- Limited resources and unlimited wants/needs
- Question of
What is the probable opportunity cost of increasing three times the budget of the Agriculture sector than the previous year?
- Decrease in performance of other sector
- Improvement in the facilities and programs in Agriculture
- Growth in the service sector
- Increase farm subsides
- Question of
The following are perceived to be more beneficial, except:
- Economic growth
- Economic development
- Population growth
- Per capita income growth
- Question of
Which economy has an absolute advantage in sugarcane production?
- Brazil
- China
- Philippines
- Singapore
- Question of
William of Ockman introduced this important economic principle:
- allocation
- Ceteris paribus
- opportunity cost
- absolute advantage
- Question of
An economic concept that utilizes available resources to its best and efficient use.
- opportunity cost
- distribution
- Ceteris paribus
- allocation
- Question of
It refers to the tabular representation of the relationship between price and quantity demanded.
- Law of demand
- Law of supply
- Demand schedule
- Supply schedule
- Question of
If there is a negative relationship between the price of good X and the demand for good Y, then:
- Goods X and Y are substitutes
- Goods X and Y are complement
- Good Y is an inferior good
- Good Y is a normal good
- Question of
Commodities whose demand varies directly with money income refers to:
- Substitute goods
- Complementary goods
- normal goods
- inferior goods
- Question of
Which of the following is least likely to have an elastic demand?
- Gasoline
- Imported wine
- Cars
- Jewelries
- Question of
Which of the following would make the demand for a product elastic?
- it is unique
- it is very cheap
- it has many possible uses
- it is considered a necessity
- Question of
The stage of production which is considered to be rational stage of production:
- Stage 1
- Stage 2
- Stage 3
- Stage 4
- Question of
The addition to total output resulting from employing an additional unit of resource is:
- Average product
- Total product
- Marginal product
- A production function
- Question of
Marginal cost and average cost are related in this way:
- When MC is less than AC, AC is falling
- When MC is greater than AC, AC is falling
- When MC is equal to AC, MC is at a minimum
- None of the choices
- Question of
These are actual costs or “out of pocket” expenses incurred in the production of goods and services:
- implicit costs
- variable costs
- explicit costs
- fixed costs
- Question of
He is widely regarded as father of modern economics.
- James Naismith
- Heinrech Anton de Bary
- Adam Smith
- Question of
Economies and diseconomies of scale occur mainly because:
- of the law diminishing returns
- Firms in an industry must be relatively large in order to use the most efficient productive techniques
- of the inherent difficulties involved in managing and coordinating a large business enterprise
- The short run average total cost curve rises when marginal product is greater than average total cost
- Question of
In the Philippines, national income is done and maintained by what office/agency?
- Department of Budget and Management
- Department of Trade and Industry
- Department of Finance
- National Economic Development Authority (NEDA)
- Question of
Economists prefer to use real GNP than current or nominal GNP as a measure of aggregate output because
- Current GNP always understates actual output changes
- Real GNP adjusts current GNP for inflation
- Real GNP adjusts for the unequal distribution of income
- All of the choices
- Question of
Given the following equations: S = -25 + 0.4Y; G = 20; I = 15; T = 0 Suppose the Nominal GDP in 2009 was 500 billion pesos and the CPI was 125, then the real GDP must be:
- P 125 billion
- P 499 billion
- P 300 billion
- P 500 billion
- Question of
An extremely high inflation known as
- stagflation
- super inflation
- Megainflation
- Hyperinflation
- Question of
Economics is a ___ science.
- biological
- social
- environmental
- agricultural
- Question of
A negative inflation rate or declining prices is known as
- Deflation
- Reinflation
- Disinflation
- Preinflation
- Question of
An economic system often associated with Hitler’s Germany , Mussolini’s Italy , and the militaristic government of Japan all before the end of the second world war.
- socialism
- fascism
- capitalism
- communism
- Question of
Fiscal policies are government policies related to:
- wages and prices
- Money supply, credit and interest rates
- Government expenditures and taxation
- Investment
- Question of
The bulk of government spending is a accounted for by
- maintenance and operating expenses
- debt service
- personal services
- capital outlay
- Question of
By open market operations we mean the actions of the government to:
- Increase or decrease government spending
- Increase or decreases taxes
- Buy and sell government securities of bonds
- Buy and sell investment goods and services
- Question of
This is a phase in the business cycle when economic prosperity is experienced
- recessional phase
- peak phase
- expansion phase
- trough phase
- Question of
A field in international economics which focuses on real transactions that involve a physical movement of goods or a tangible commitment of economic revenues is:
- International Finance
- International Trade
- Production economics
- Marketing economics
- Question of
The economic framework which has been defined by GATT-WTO calls for the expansion and stabilization of world trade through the following except one:
- Tariffication of quantitative restrictions
- Reduction of domestic price and export subsidies
- Increase tariffs on all agricultural products
- Market access commitments and harmonization of sanitary and phyto-sanitary measures
- Question of
These are taxes imposed as a fraction of the value of the imported goods (i.e. 20% of the important value).
- Import tariffs
- Ad Valorem tariffs
- export tariffs
- all of the choices
- Question of
As a result of tariff imposition, the imposing country suffers from efficiency losses which include the following:
- Production distortion losses
- Consumption distortion losses
- Production distortion losses and consumption distortion losses
- Question of
Trade liberalization is the result of the following except one:
- tariff reduction
- elimination of production subsidies
- elimination of export subsidies
- limited flow of goods from abroad
- Question of
The following are forms of trade restrictions except one:
- tariff
- Quota
- Import licenses
- Subsidy
- Question of
The expenditures of the domestic economy on imported goods are called:
- imports
- exports
- investment income
- transfer payments
- Question of
When a country engages in international transactions, it always involves at least two kinds of currencies. The value of domestic currency relative to the foreign currency is called:
- foreign exchange rate
- domestic exchange rate
- foreign exchange
- none of the choices
- Question of
The fixed exchange rate, on the other hand is determined by:
- forces of supply and demand through foreign exchange
- the demand for a particular currency alone
- the supply for a particular currency alone
- the government through the Central Bank
- Question of
When the Central Bank of the Philippines devaluates its currency against the US dollar, it means that:
- the value of the peso increases against the dollar
- the value of the peso declines relative to the dollar
- the value of the peso remains the same
- none of the choices is correct
- Question of
The opposite of devaluation is called:
- evaluation
- revaluation
- depreciation
- appreciation
- Question of
When the Philippine currency depreciates against the US dollar due to forces of supply and demand, it means that:
- the value of the peso increases against the dollar
- the value of the peso declines relative to the dollar
- the value of the peso remains the same
- none of the choices is correct
- Question of
The opposite of depreciation is called:
- evaluation
- revaluation
- depreciation
- appreciation
- Question of
When evaluation or depreciation occurs, it means that:
- the foreigners have to lay more for the devalued currency
- the foreigners have to pay less for the devalued currency
- the foreigners have to pay the same for the devalued currency
- the foreigners cannot determine how much to pay for the devalued currency
- Question of
When the exchange rate (P/S) increases, the value of the peso relative to the dollar becomes:
- stronger
- weaker
- remains the same
- cannot be determined
- Question of
It is an increase in the capacity of an economy to produce goods and services, compared from one period of time to another.
- Economic Development
- Economic Growth
- Economic Growth rate
- Technological Change
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