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1. Which of the following can be classified under

macroeconomic problem? 9. Studies revealed that margarine is an inferior good.
a. the Philippines balance of payment Therefore, an increase in income will result in:
b. the yearly inflation rate a. an increase in demand for margarine
c. the annual salaries of government employees b. a shift to the left of the demand curve for margarine
d. all of the above c. a shortage of margarine
d. an increase in the supply of margarine
2. The economic problem “For whom to produce” refers to:
a. the amounts and types of commodities produced 10. If there is a negative relationship between the price of
b. the beneficiaries from the choices made in a society Good A and the demand for Good B, then:
c. the tastes and preferences of economic agents a. Goods A and B are substitutes
d. the way in which resources are combined in order to b. Goods A and B are complements
produce the commodities c. Good B is an inferior good
d. Good B is a normal good
3. Which of the following best describes the term
“opportunity cost”? For question Nos. 61-62, refer to the following:
a. price paid for goods and services Given the demand and supply equations for banana:
b. costs of producing goods and services Qd= 25 – 0.4P
c. value of best foregone alternative Qs= 20 + 0.6P
d. benefits derived from a good or service Where: Qd= quantity demanded of banana
Qs= quantity supplied of banana
4. The production possibilities of a country can be said to P= price per piece of banana
shift outward as a result of which of the following:
a. Expenditures on new plants & equipment are constantly 11. The equilibrium price of banana is:
being made a. 5 c. 22.50
b. the population increases b. 4 d. 9
c. better methods of production are developed
d. all of the above 12. The equilibrium quantity of banana is:
a. 20 c. 23
5. A change in which of the following will NOT change the b. 16 d. 22.50
demand for rental housing?
a. family size 13. If the demand schedule is written as P= 100-4Q; and the
b. rental prices supply schedule as P= 40 +2Q, the equilibrium price and
c. incomes of consumers quantity are:
d. growth in the community a. P=60 ; Q=10 c. P= 40; Q= 6
b. P=10; Q= 6 d. P= 20; Q= 20
6. An increase in price will lead to a lower quantity demanded
because: 14. If the economy is fully employed, an upward shift in the
a. suppliers will supply only the smaller amount demand schedule for broccoli alone:
b. some individuals purchase more of the good a. cannot change the output for broccoli
c. individuals cut back their purchases of the good b. will lead to a gradual fall in the price of broccoli
d. A and B c. will lead to an increase in the quantity of broccoli supplied
7. The quantity of coffee bought in the market is likely to with consequent reductions in the supply of other
increase when: commodities
a. the price of tea increases d. will lead to inflation with no alteration in the output of
b. the price of coffee increases other commodities
c. coffee is linked to cancer by new research
d. the general income level of the population drops 15. “Coffee to me is an essential- I’ve got to have it no matter
what the price.” This implies that for that particular individual
8. Which of the following will not cause a shift in the demand from whom this statement was quoted, his demand for
curve for beef? coffee is:
a. a rise in the price of some goods which consumers regard a. cross price elastic c. price inelastic
as substitute for beef b. price elastic d. perfectly price elastic
b. a change in the price of beef
c. an increase in incomes of beef consumers 16. Which of the following is LEAST likely to have an elastic
d. a change in people’s tastes with respect to beef demand?
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a. Rice c. cars c. proceed with the price increase as inelasticity of demand

b. Imported wine d. jewelries indicates higher revenue with price increases
d. none of the above
17. A purely competitive industry is characterized by:
a. many small firms 25. Under what condition will demand be likely elastic
b. intensive advertising a. a newly marketed product
c. government intervention b. perishable product
d. the existence of franchises and patents c. a product has many uses
d. all of the above
18. the Law of Diminishing Marginal Productivity:
a. specifies that the output obtained from the successive 26. The price at which the quantity per unit of time that
input utilization increases over time buyers want is just equal to the quantity the sellers want to
b. specifies that output obtained from the successive sell:
utilization of an input decreases over time a. equilibrium price c. selling price
c. specifies that as producers utilize successive units of an b. buying price d. none of the above
input, the incremental output derived from each additional
unit decreases 27. Amount of money needed to acquire goods and their
d. all of the above accompanying services:
a. utility c. price
19. The total amount of product produced divided by the b. value d. money
number of units of input used:
a. total product c. marginal product 28. one of the essential functions of price:
b. average product d. none of the above a. tells producers what and how much to produce
b. allocates productive resources to the production of goods
20. The series of services involved in moving the product and services consumers demand
from the point of production to the point of consumption. c. guides goods and services through the channels of trade
a. marketing operations c. marketing channels d. all of the above
b. marketing d. marketing functions
29. A simple bargaining process between individual buyers
21. A system of buyers and sellers with facilities for trading and sellers for each transaction
with each other: a. collective bargaining
a. pure competitive market b. individual negotiation
b. public market c. administered pricing
c. market d. both and b
d. supermarket
30. Direct marketing is advisable if
22. Acts as the grease in the marketing machinery: a. The total sales volume is small
a. selling b. the market is scattered
b. transportation c. the product commands a high value per unit
c. market intelligence d. the product is highly perishable
d. all of the above
23. A movement along a demand curve means: 31. The major factor that influences the existence of market
a. a change in price channels
b. a change in quantity a. product delivery c. increased efficiency
c. a change in demand b. structure d. organized transaction
d. a change in quantity demanded
32. Reason why marketing costs differ among agricultural
24. A farmer is contemplating of increasing the price of his products:
mango from P18 to P22 per kg when his harvest totaled to a. increased processing c. perishability
100 kgs. What will you advise him if the price elasticity of b. bulkiness d. all of the above
demand for mango is 0.78?
a. do not increase price as a 1% in price will result to a 0.78% 33. Products that are produced in approximately fixed
decrease in quantity demanded proportions like coconut oil and desiccated coconut from
b. discontinue production as this will lead to less mangoes coconut
sold in the market a. Joint products c. substitutes
b. complements d. competing products
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b. income effect d. income elasticity of demand

34. A component of the marketing margin that refers to the
returns to the various factors of production used in providing 43. Other things being equal, an increase in the per capita
the processing and marketing services rendered between the income of consumers will result in
farmers and consumers a. a change in quantity demanded
a. marketing costs c. processing costs b. a change in demand
b. net return d. marketing charges c. an increase in demand
d. a decrease in demand
35. Different components of marketing margin:
a. Marketing costs (or return to the factors of production in 44. if the elasticity of demand is less than 1, an increase in
providing the processing and marketing services); marketing own price of commodity will result in:
charges (or returns to the various agencies or institutions a. an increase in total revenue
involved in marketing) b. a decrease in total revenue
b. Marketing costs and transportation costs c. no change in total revenue
c. transportation and processing costs d. a decrease in the value of the elasticity of demand
d. marketing and storage costs
45. When the price of palay increases, total revenue of the
36. Costs of storing agricultural products farmer also increases. From this, we can correctly conclude
a. depreciation, repairs, insurance against loss that the demand for palay is:
b. quality deterioration and shrinkage in volume a. perfectly inelastic c. unitary elastic
c. amount of capital invested in the stored products plus b. elastic d. inelastic
handling fee
d. all of the above 46. Given assumption for the Law of Demand to work:
a. Price is the only determining factor
37. Grading and standardization can result in economic b. Income, price of related goods and population affect
efficiency since it quantity demanded
a. increases the level of competition in the market c. expectation of future prices and income determine
b. increases the meaningfulness of price quotations quantity demanded
c. limits the time and expense of bargaining about price and d. all of the above
quality for each transaction
d. only A and B 47. Example of a merchant middleman
a. Wholesaler c. Broker
38. The most important risk involved in the storage of food b. Retailer d. Both A and B
products
a. physical loss c. product deterioration 48. Component of the marketing mix which considers the
b. price change d. insect & rodent damage product/service specifications/features and quality
a. Price c. Product
39. Marketing efficiency measures: b. Promotion d. Place
a. pricing efficiency and operational efficiency
b. economic efficiency and technological efficiency 49. Component of the marketing mix which considers the
c. marketing margins, input-output measurements and market channels of the product/service:
evaluation of loss and waste in the market a. Price c. Product
d. Both A and B b. Promotion d. Place

40. Service output requirement 50. The most simple and practical form of promotional
a. delivery time c. product variety strategy:
b. lot size d. all of the above a. Product discounts c. Word-of-mouth
b. Advertisements d. Social media
41. Demand for the finished products. E.g. dressed chicken, is
called:
a. primary demand c. consumer demand
b. derived demand d. A and C

42. Desire for a product together with the capacity to buy

that product
a. demand c. effective demand