AGUSAN DEL SUR STATE COLLEGE OF AGRICULTURE AND TECHNOLOGY

Bunawan, Agusan del Sur

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TEST QUESTIONNAIRE
Elective 1 ( Agricultural Economics with Land Reform and Taxation)
Midterm/Final Examination

Name: _____________________________ Date: _________________

Year/Section: _______________________ Permit Number: ________
Instructor: __________________________ Score: ________________

I. Multiple Choice. Identify the letter of the choice that best completes the statement or answers the question.

____ 1. It is said to exist when prevailing price of a commodity is above the equilibrium price.

a. shortage c. producer surplus

b. surplus d. consumer surplus

____ 2. A decrease in the supply of good A can be systematically caused by ____________.

a. an increase in the prices of other commodities c. a decrease in the price of inputs important to the
production of this good.

b. an increase in the price of inputs important to d. expectation of lower prices

the production of this good.

____ 3. The supply of a product is said to increase when ________________.

a. the supply curves shifts upward c. the supply curve shifts downward

b. the supply curve shifts leftward d. the prices of good increases

For the next four (4) items, consider the following demand and supply equations for buko pie.

Qd = 750 - 15P Qs = -150 + 30P

4. The equilibrium price of buko pie is ______________.

a. 15 c. 20

b. 5 d. 90

____ 5. The equilibrium quantity of buko pie is ____________.

a. 45 c. 4.5

b. 450 d. canot be determined

____ 6. Surplus of buko pies will occur if ____________________

a. its price will be higher than the equilibrium c. there will be additional buko pie outlets.
price.

b. its price will be lower than the equilibrium d. there will less buko pie outside.
price.

____ 7. Shortages of buko pies will occur if ___________________________.

a. its price will be higher than the equilibrium c. there will be additional buko pie outlets.
price.

b. its price will be lower than the equilibrium d. there will be less buko pie outlets.
price.

____ 8. All of the following are factors that causes the supply curve to change, EXCEPT
 AGUSAN DEL SUR STATE COLLEGE OF AGRICULTURE AND TECHNOLOGY
Bunawan, Agusan del Sur
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TEST QUESTIONNAIRE
a. technological change c. government policy

b. number of sellers d. change in income

____ 9. What is the difference between a change in supply and a change in quantity supplied?

a. nothing, they mean the same thing. c. the first implies a shift in the entire supply curve,
while the second is just a movement along the
same supply curve.

b. the first implies a shift of the supply curve d. the first implies a movement along the same
upwards, while the second implies a change in the supply curve, while the second implies a shift in
slope of the supply curve. the entire supply curve.

____ 10. A false reason to explain why supply curve slopes upward and to the right is:

a. introduction of new technology c. expanded production may require the use of

inferior resources.

b. people are willing to pay at higher price for more d. expanded production brings in less efficient, high
goods. cost producers.

____ 11. If you were a government official and wanted to raise the price of soybean without imposing a
price support, which of the following actions you would take?

a. take soybean from government storage and sell it c. try to lower the price of milk.
in an open market.

b. encourage farmers to use more fertilizer on their d. encourage farmers to grow less soybean.
soybean-growing land.

____ 12. It is the legal minimum price imposed by the government on certain goods and services.

a. price ceiling c. equilibrium price

b. producer surplus d. price floor

____ 13. It is imposed by the government to protect consumers from abusive producers or sellers who take
advantage of the situation.

a. equilibrium price c. price ceiling

b. price floor d. consumer surplus

____ 14. It is the specification by the government of minimum or maximum prices for certain goods and
services, when the government considers it disadvantageous to the producer or consumer.

a. price controls c. price ceilings

b. price floors d. price equilibrium

____ 15. Which of the following is the central problem of economics?

a. Allocation c. Unlimited Wants

b. Factors of Production d. Scarcity

____ 16. 2. Which of the following refers to all natural resources which are given by, and found in nature?

a. Land c. Capital

b. Labor d. Entrepreneurship
 AGUSAN DEL SUR STATE COLLEGE OF AGRICULTURE AND TECHNOLOGY
Bunawan, Agusan del Sur
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TEST QUESTIONNAIRE
____ 17. Which of the following refers to the attainment of goals and objectives?

a. Efficiency c. Equity

b. Effectiveness d. Equality

____ 18. Which of the following is the correct translation of ceteris paribus?

a. All other things held constant c. All else equal

b. All things unchanged d. All of the above

____ 19. Which of the following economic system wherein key enterprises are owned by the state?

a. Mixed Economy c. Traditional Economy

b. Socialism d. Command Economy

____ 20. Which of the following is NOT true about distribution?

a. It is a process of allocation.

b. It is a process of apportioning.

c. It deals with unlimited resources.

d. It is done for the utilization of household, and the rest of the world.

____ 21. When did agricultural economics begin?

a. 18th Century c. 20th Century

b. 19th Century d. 21st Century

____ 22. Which of the following is an agricultural contribution to a country's development?

a. Food c. Rural Welfare

b. Foreign Exchange d. All of the above

____ 23. Which of the following branches of agricultural economics studies the economic management of
the country?

a. Microeconomics c. Macroeconomics

b. Agricultural Marketing d. Agricultural Production Economics

____ 24. Which of the following branches of agricultural economics deals with organization and operation?

a. Farm Management c. Agricultural Marketing

b. Macroeconomics d. Agricultural Production Economics

____ 25. Which of the following is NOT true about agricultural marketing?

a. It covers the services involved in moving an agricultural product from the farm to the concumer.

b. It is the art of managing a farm successfully as measured by the test of profitableness.

c. It involves numerous interconnected activities from planning, to production, advertising and sale.

d. It is the acts of buying supplies, equipment, and paying labor.

 AGUSAN DEL SUR STATE COLLEGE OF AGRICULTURE AND TECHNOLOGY
Bunawan, Agusan del Sur
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TEST QUESTIONNAIRE
____ 26. Which of the following shows the importance of agricultural economics?

a. It seeks relevance between cause and effect in agriculture.

b. It provides answers to the problems of agriculture and agribusiness

c. Agricultural economists have a major role in understanding the complication involved in the
foundation of systems.

d. All of the above.

____ 27. Which of the following is NOT a concern of Macroeconomics?

a. Monetary & Fiscal policy c. National income

b. Household demand d. Taxation

____ 28. What term is used to refer to a person who organizes, manages, and assumes the risks of the firm,
taking a new idea/product, and turning it into a successful business?

a. Businessman c. Entrepreneurship

b. Manager d. Entrepreneur

____ 29. The Father of Economics .

a. W. Parieto c. Karl Marx

b. Adam Smith d. J. Robinson

____ 30. The price mechanism of the "invisible hand" is conceptualized by :

a. Parieto c. Smith

b. Robinson d. Marx

____ 31. Which of the following is the best example of a firm's objective function?

a. To maximize profits c. to engage in ethical behaviour

b. To minimize costs d. both a & b are correct

____ 32. Which of the following factors of production are not properly matched with its factor payments.

a. land - profits c. Capital - interest

b. Labor - wage d. all are properly matched

____ 33. Which of the following terms means "all other things equal"?

a. Post Hoc, Ergo Propter Hoc c. Ceteris Paribus

b. Fallacy of Composition d. None of the above

____ 34. Which of the following statements about the study of economics is false?

a. Microeconomics is the study of the c. Economics is the science that deals with the
economicbehavior of individual economic allocation of limited resources to satisfy
decision makers. unlimited human wants.

b. Macroeconomics is the study of how an tire d. all of the above statements are true.
national economy performs.
 AGUSAN DEL SUR STATE COLLEGE OF AGRICULTURE AND TECHNOLOGY
Bunawan, Agusan del Sur
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TEST QUESTIONNAIRE
____ 35. Opportunity cost

a. is the value of the next best alternative not c. should be ignored when decision involves sunk
chosen. costs.

b. is irrelevant when actual accounting costs can be d. is the same as economic cost.
easily determined.

____ 36. Another term for equilibrium would be

a. a point of infinite supply c. a point of stability

b. a point of insatiable wants d. a point of scarcity

____ 37. The price of good A falls and the demand for good B decreases. Goods A and B are

a. cannot be determined c. complements

b. substitutes d. normal goods

____ 38. An indifference curve is a curve that shows the various combinations of two goods that:

a. have identical prices c. have different prices

b. provide the consumer equal total utilities d. provide he consumer equal marginal utilities

____ 39. An economist that popularize "utilitarianism".

a. Adam smith c. Jeremy Bentham

b. John Maynard Keynes d. David Ricardo

____ 40. What do sellers do if they expect the price of goods they have for sale to increase dramatically in
the near future?

a. sell the goods now and try to invest the money instead of resupplying

b. sell the goods now but try to get the higher price for them

c. store the goods until the price rises

d. store the goods indefinitely regardless of when the price rises

____ 41. Which of the following is the best example of the law of supply?

a. A sandwich shop increases the number of sandwiches they supply every day when the price is increased.

b. A food producer increases the number of acres of wheat he grows to supply a milling company.

c. A catering company buys a new dishwasher to make their work easier.

d. A milling company builds a new factory to process flour to export.

____ 42. What factor has the greatest influence on elasticity and inelasticity of supply?

a. profit c. labor

b. time d. financing
 AGUSAN DEL SUR STATE COLLEGE OF AGRICULTURE AND TECHNOLOGY
Bunawan, Agusan del Sur
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TEST QUESTIONNAIRE
____ 43. What is the main goal of the government's fiscal policy?

a. to have budget surplus c. to produce a balanced budget

b. to have budget deficit d. to maintain a stable economy

____ 44. How do banks create money?

a. by getting permission to print money from c. by selling off bank property

Central Bank

b. by paying interest to their customers d. by loaning out money that borrowers place in
their checking accounts

____ 45. What is a required reserve ratio?

a. the amount of money that the Central bank does c. the interest banks charge each other
not let banks borrow

b. the reserves that the Central bank requires banks d. the money kept by the government
to keep from the money deposited

____ 46. When a farm worker loses his job after the harvest, it is an example of

a. frictional unemployment c. structural unemployment

b. seasonal unemployment d. cyclical unemployment

____ 47. If the unemployment rate is 6% and the number of unemployed is 12 million, the number of
employed person is equal to

a. 300 M c. 188 M

b. 220 M d. 200 M

____ 48. A business cycle reflects changes in economic activity, particularly real GDP. The stages of a
business cycle in order are

a. contraction, expansion, peak, trough c. peak, contraction, trough, expansion

b. expansion, peak, contraction, trough d. trough, expansion, peak, contraction,

____ 12. If MPS is equal to 0.3, MPC is equal to

a. .75 c. .70

b. .85 d. .65

____ 50. Which of the following people is considered part of the labor force?

a. an army sergeant c. a person who has lost a job but is looking for one

b. a 14-year old with an after-school job d. a mother raising her children at home
 AGUSAN DEL SUR STATE COLLEGE OF AGRICULTURE AND TECHNOLOGY
Bunawan, Agusan del Sur
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TEST QUESTIONNAIRE

____ 51. What is the main goal of government's fiscal policy?

a. to have a budget surplus c. to produce a balanced budget

b. to have a budget deficit d. to maintain a stable economy

____ 52. Which of the following is part of a contractionary fiscal policy?

a. increase the required reserve ratio c. decrease discount rate

b. increase tax rate d. sell government securities

____ 53. Which of the following actions would the Central Bank take to fight inflation?

a. increase government spending c. increase the money supply

b. raise taxes d. reduce the money supply

____ 54. What is the major source of tax revenue for local governments?

a. inheritance taxes c. property taxes

b. income taxes d. sales taxes

____ 55. Comparative advantage is the ability of a country to

a. have more physical capital than another c. produce a good at a lower opportunity cost than
another country

b. produce everything its people need and want d. borrow more money from other countries

____ 56. The factor payment for land is ?

a. wage c. profit

b. rent d. salary

____ 57. It is a branch of economics that deals with aggregate output.

a. agricultural economics c. microeconomics

b. macroeconomics d. international economics

_____ 58. It is an integral set of measures designed to eliminate obstacles to economic and social development
arising out of defects in the agrarian structure.
a. Agrarian reform c. Land reform
b. DAR d. CARP
_____ 59. What Executive Order signed by President Arroyo to rename the Department of Land Reform to
Department of Agrarian Reform?
a. EO 564 c. EO 465
b. EO 456 d. EO 654
_____ 60. Which of the following laws established the 70 – 30 sharing arrangement?
a. RA 55 c. Commonwealth Act No. 4054
b. Commonwealth Act No. 4113 d. RA 34
 AGUSAN DEL SUR STATE COLLEGE OF AGRICULTURE AND TECHNOLOGY
Bunawan, Agusan del Sur
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TEST QUESTIONNAIRE
_____ 61. It is concerned with the total development of the farmer’s economic, social and political
transformation.
a. Agrarian Reform c. AFMA
b. Land Reform d. DA
_____ 62. An act strengthening the Comprehensive Agrarian Reform Program.
a. RA 6657 c. RA 9700
b. RA 6389 d. RA 1199
_____ 63. It is the lead implementing agency of Comprehensive Agrarian Reform Program.
a. DAR c. DA
b. DENR d. BFAR
_____ 64. What year did President Corazon C. Aquino signed Comprehensive Agrarian Reform Law?
a. 1973 c. 1998
b. 1988 d. 1963
_____ 65. Which of the following is the retention limit for landowners under Republic Act 9700?
a. Below 3 hectares c. not exceeding 3 hectares
b. Above 5 hectares d. not exceeding 5 hectares
_____ 66. The following are the lands not subject to retention limits, EXCEPT
a. Roads c. school sites
b. Bridges d. agricultural lands
_____ 67. A three hectares of land may be awarded to each child of the landowner, if a child has what
qualifications?
a. At least 18 years old and directly managing the farm.
b. At least 17 years old and actually tilling the land.
c. At least 15 years of age and actually tilling the land.
d. At least 21 years of age and directly managing the farm.
68. The DAR logo has two colors, yellow represents ________________________.
a. Fertility and productivity c. hope and productivity
b. Hope and golden harvest d. fertility and golden harvest
69. On the other hand, green stands for __________________________.
a. Fertility and productivity c. hope and productivity
b. Hope and golden harvest d. fertility and golden harvest
_____ 70. How much is the Interest per annum paid by the land beneficiaries to the LBP?
c. 10% c. 6%
d. 8% d. 12%
_____ 71. Which of the following DOES NOT belong to the importance of land reforms?
a. Increase food production.
b. Increase efficiency and productivity of the farmers.
c. Enhance the living conditions of the poor farmers.
d. Increase unemployment.
72. Awarded land can be transferred or conveyed through ______________________.
a. Hereditary succession
b. Selling
c. giving/returning back to the government
d. all of the above
 AGUSAN DEL SUR STATE COLLEGE OF AGRICULTURE AND TECHNOLOGY
Bunawan, Agusan del Sur
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TEST QUESTIONNAIRE

____ 73. A fiscal policy that enables the government among other things to generate revenues for its many
programs and activities. A means of government in increasing its revenue under authority of the law, purposely
used to promote welfare and protection of citizenry.
a. Taxation c. Monetary policy
b. Land reform program d. Philippine Constitution

____ 74. The following are the attributes and characteristics of tax, except.
a. It is enforced contribution c. It is generally payable in cash
b. It is designed to regulate conduct d. it is proportionate in character

____ 75. A tax imposed on documents, instruments, loan agreements and papers evidencing the
acceptance, assignment, sale or transfer of an obligation, rights or property incident thereto.
a. Value-added tax c. Documentary stamp tax
b. Estate tax d. Capital Gains tax

____ 76. The following are the individual who should pay tax, except.
a. Resident citizen c. Charitable institution
b. Non-resident citizen d. Corporations

____ 77. It is considered as the lifeblood of the government, without which, it cannot subsist. It is a fee or
charged imposed by the government on income, wealth, property and profit of persons and business. It can also
be levied on commodities and services that people file.
a. Toll c. Tax
b. Penalty d. Debt

___ 78. A tax on the privilege of transmitting one's property of property rights to another or others
without adequate and full valuable consideration.
a. Gift or donors tax c. Estate Tax
b. Real property tax d. Capital Gains tax

____ 79. It aims to make the current system simplier, fairer and more efficient. Reduce poverty rate from
26% and 17% uplifting about 10 million Filipinos from poverty and eradicate extreme poverty, provide equal
opportunities through inclusive economic and political institutions and achieve high income status.
a. TRAIN Law c. Local Government Code
b. The Philippine Constitution d. None of the above

____ 80. He/She has the power to veto any particular item or items in an appropriation, revenue or tariff
bill but the veto shall not affect the item or items to which he/she does not object.
a. Congress c. Chief Justice
b. President d. All of the above

____ 81. This refers to transferring wealth from the richer sections of society to poorer sections.
a. Revenue c. Repricing
b. Redistribution d. Representation

____ 82. A theory that states that demands and receive taxes from the subjects of taxation within its
jurisdiction so that it may be enabled to carry its mandate into the effect and perform the functions of government
and the citizen pays from his property the portion demanded that he may be secured in the enjoyment of the
benefits of organized society.
a. Necessity Theory c. Law of Demand
b. Benefits-Protection Theory d. All of the above
 AGUSAN DEL SUR STATE COLLEGE OF AGRICULTURE AND TECHNOLOGY
Bunawan, Agusan del Sur
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TEST QUESTIONNAIRE
II. Matching Type. Match the terms below with the given statements. Write the letter of the correct
answer. NO ERASURES.

a. Consumer surplus j. Labor

b. Marginal rate of Substitution k. Budget line

c. Satisfaction l. labor intensive

d. Indifference curve m complements

e. Profit n. elastic demand

f. Production o. perfectly inelatic demand

g. Economic good p. inferior

h. Utility q. substitute

i. Marginal Cost r. equilibrium

____ 83. shows the various combinations of two products that can be purchased by the consumer with his
income, given the prices of the product.
____ 84. rate at which a person will give good y to get more of good x at the same time remain indifferent.
____ 85. An economic activity which combines the factors of production like land,labor, capital and
entrepreneurship.
____ 86. The cost of producing one additional unit of output.
____ 87. the difference between the total amount that a person is willing and able to pay for a good and
service and the total amount that was actually paid.
____ 88. Goal of consumer.
____ 89. The satisfaction or pleasure that an individual gets from the consumption of a good or service.
____ 90. A technology that utilizes more labor resources than capital resources.
____ 91. good which is both useful and scarce.
____ 92. Income elasticty (ei) = - 0.9
____ 93. cross -price elasticity (exy) = -2
____ 94. Elasticity of demand (ed) = 0
____ 95. Coffee and juice
____ 96. state of balance
____ 97. foregone value of the best alternative
____ 98. Capital
____ 99. Owner-manager of a business
____ 100. An economic question.

III. Problem Solving.

61. When the price of ketchup rises by 16%, demand for hot dogs falls by 2%.
Calculate the cross-price elasticity of demand. Are the goods complements or substitutes? Show
your solution . ( 5 pts) .

62. Illustrate/Graph market equilibrium using the data below: Label the curves properly and indicate
equilibrium point. ( 5 pts)

Price (Pesos) Quantity Supplied Quantity demanded

15 0 14

20 5 12

25 10 10

30 15 8

35 20 6

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