1.

If a very small change in the price of good causes a huge change in the quantity
demanded, the demand for the good is
a. Perfectly elastic
b. Relatively elastic
c. Unit elastic
d. Relatively inelastic
e. Perfectly elastic

2. Costs in the long run period are not

a. Avoidable
b. Opportunity costs
c. Variable
d. A function of output
e. Fixed

3. The cost that does not vary with the quantity of output that a firm produces is
a. Total variable cost
b. Total cost
c. Average variable cost
d. Average fixed cost
e. Total fixed cost

4. Which of the following may cause a change in demand for a product

a. A change in the profitability of producing another product
b. A decrease in the cost of producing the product
c. A change in the consumer incomes
d. A change in the price of the product
e. A change in the plans of the producers

5. If beer and Pretzels are complimentary goods, then an increase in the price of
beer, all other things equal, will result in
a. A decrease in the demand for pretzels
b. A decrease in the demand for beer
c. An increase in the demand for pretzels
d. An increase in the quantity demanded of beer

6. Opportunity costs is
a. The amount of money an individual would have been willing to pay for a
good but didnt have to pay at the market price
b. The amount of money that an individual must pay fro the good that he
wants most
c. The value of the best foregone alternative that must be sacrifice when
an individual makes a choice of goods
 d. The amount of income earned during a period of time that worker is
employed

7. The satisfaction that a person receives from the consumption of goods is called
a. Budget constraints
b. Consumer surplus
c. Income
d. Utility

8. Tariff is imposed on
a. An imported commodity
b. An exported commodity
c. Persons
d. In finished goods only

9. Created the Fertilizer Pesticide Authority

a. PD 552
b. PD 218
c. PD 1144
d. PD 1702

10. The Philippine Cooperative Code of 2008 is also known as

a. RA 9520
b. RA 4569
c. RA 2568
d. RA 3254

11. Characteristics of the product that affect agricultural marketing

a. Perishability
b. Packaging
c. Graded
d. Sorting

12. When there is only one seller the markets structure is called
a. Monopoly
b. Monopsony
c. Monogamy
d. Monoculture

13. The amount of output per unit of input expressed in physical or value terms
a. Productivity
b. Marginality
c. Cost effectiveness
d. None of the above
14. The Philippine Clean Air Act of 1999
a. RA 8749
b. RA 8794
c. RA 9874
d. RA 8974

15. The Agriculture and Fisheries Modernization Act

a. RA 8235
b. RA 8335
c. RA 8435
d. RA 8535

16. Income that household are free to spend and save

a. Disposable income
b. Free income
c. Household income
d. All of the above
17. Fixed amount of tax levied from the producer
a. Fixed tax
b. Lump sum tax
c. Specific tax
d. None of the above
18. A corporation organized, owned, and controlled either totally, or partially by a
parent cooperative
a. Subsidiary
b. Joint venture
c. Holding company
d. Contract Agent
19. Involves a set price imposed by the government to enhance the welfare of the
consumer
a. Price regulation
b. Specific price
c. Marginal price
d. Minimum price
20. Which of the following does not affect supply?
a. Prices of resources
b. Technology
c. Number of producers
d. None of the above
21. Economics that answer the question what should be?
a. Macroeconomics
b. Microeconomics
c. Positive economics
d. Normative economics

22. Demand for money is primarily determined by

a. Level of real output
b. Income
c. Interest rate
d. All of the above

23. Higher income lowers the demand of these goods

a. Normal goods
b. Inferior goods
c. Substitute goods
d. Complement goods

24. The collective term that refers to the use of taxation and government to influence
the level of income
a. Budget policy
b. Income policy
c. Taxation policy
d. Fiscal policy

25. Money serves as a unit of

a. Credit
b. Account
c. Savings
d. Deposit

26. It is the policy which defends the domestic producers from foreign competition
a. Fiscalism
b. Monetarist
c. Mercantilism
d. Protectionist

27. The astronomist who encountered the quantity of money and prices
 a. John Locke
b. Copernicus
c. David Hume
d. John Law

28. A tariff expressed as a fixed percentage of a value of imported product

a. Specific tariff
b. Ad valorem tariff
c. Nominal tariff
d. Optical tariff

29. The president responsible for the implementation of Comprehensive Agrarian

Reform Program in the Philippines
a. Joseph E. Estrada
b. Corazon C. Aquino
c. Ferdinand E. Marcos
d. Fidel V. Ramos

30. Point of consumption is the point of _____ sale.

a. First
b. Second
c. Last
d. Infinite

31. The term used to describe the persistent increase in the general price level.
a. Flux
b. Inflation
c. Interest
d. Coordinate

32. If the good is inferior then

a. As its price rises, less of it will be bought
b. As its price falls, more of it will be purchased
c. As the consumers income increases less of the good will be purchased
d. As the consumers income decreases less of the commodity will be
purchased
e. If the price or income changes, no change will be induced in its
consumption
33. The satisfaction that a person receives from the consumption of goods is called
a. Budget constraints
 b. Consumer surplus
c. Income
d. Utility

34. RA 6438 is otherwise known as

a. Agriculture Code of the Philippines
b. Forestry Code of the Philippines
c. Cooperative Code of the Philippines
d. Taxation Code of the Philippines
35. It is an economic system characterized by the public ownership of property
resources and collective determination of economic decisions through central economic
planning.
a. Socialism
b. Communism
c. Fascism
d. Capitalism

36. Which of the following does not affect supply?

a. Prices of resources
b. Technology
c. Number of producers
d. None of the above

37. If a firm stops operating, the loss is equal to

a. Marginal cost
b. Opportunity cost
c. Total variable cost
d. Total fixed cost

38. A legally set price below the equilibrium price

a. Price control
b. Price floor
c. Price ceiling
d. Subsidy

39. Which item does not belong to the group?

a. Pure profit
b. Rent
c. Wage
d. Interest
40. Practice of making quality specification of grades uniform among buyers and sellers
a. Packaging
b. Advertising
c. Standardization
d. Grading