ECONOMICS, MARKETING AND

FARM MANAGEMENT
1. The key players in the chain of activities that connect food and
agriculture are the farmer/fishermen, intermediaries, the food
processors and the consumers. The producers interest is focused on
getting produce at:

a. minimum price, limited quantities

b. minimum price, unlimited quantities
c. maximum price, limited quantities
d. maximum price, unlimited quantities

Answer: d
2. The key players in the chain of activities that connect food and
agriculture are the farmer/fishermen, intermediaries, the food
processors and the consumers. The traders and retailers interest is
focused on getting produce at:

a. low purchase price, unlimited quantities c. low purchase price,

limited quantities
b. low purchase price, high quality d. low purchase price,
low quality

Answer: b
3. These key players has the same interests on purchasing
produce at low price at high quality except one:

a. Consumers c. Farmers
b. Manufacturers d. Intermediaries

Answer: c
4. In agricultural and food marketing processes has three sets of
functions of a marketing system, namely the exchange function,
the physical function and the facilitating function. The exchange
function involves the following except:

a. buying c. processing
b. selling d. storage

Answer: c
5. In agricultural and food marketing processes has three sets
of functions of a marketing system, namely the exchange
function, the physical function and the facilitating function. The
physical function involves the following except:

a. financing c. processing
b. transportation d. standardization

Answer: a
6. In agricultural and food marketing processes has three
sets of functions of a marketing system, namely the
exchange function, the physical function and the facilitating
function. The facilitating function involves the following
except:

a. risk bearing c. financing

b. market intelligence d. standardization

Answer: d
7. A name, term, symbol, or design or combination of these
which is intended to differentiate products or services from
those of competitors.

a. brand image c. brand

b. brand named. brand loyalty

Answer: c
8. The recently added link between producer and consumer is:

a. commodity traders c. scientists

b. processors d. retailers

Answer: c
9. A form of communication which a sponsor pays to have
transmitted via mass media such as television, radio, cinema
screens, newspapers, magazines and/or direct mail. It is intended
to both inform and persuade.

a. mass media c. information dissemination

b. advertising d. promotional activity

Answer: b
10. A system of trade in commodities in which prospective
buyers and sellers are brought together under the auspices of an
independent auctioneer who invites bids for the products or
produce offered for sale.

a. barter c. trading
b. marketing d. auction

Answer: d
11. The set of attributes, characteristics and benefits which a
brand is perceived to possess.

a. brand image c. brand

b. brand name d. brand loyalty

Answer: a
12. It is which at a given selling price, sales volumes are just
sufficient to cover the organizations fixed and variable costs.

a. surplus c. breakeven point

b. profit d. return of investment

Answer: c
13. Objective characteristics used to describe populations, such
as age, income, education and geographical location.

a. demographics c. characteristics
b. profile d. description

Answer: a
14. The tendency to repeatedly buy a particular brand on a high
percentage of possible purchase occasions.

a. brand image c. brand

b. brand name d. brand loyalty

Answer: d
15. This is the most difficult to achieve in the case of most
agricultural marketing parastatals because they generally have
social objectives that have overshadowed any commercial
objectives. Potential investors may have little interest in being
saddled with the residual social objectives, where these exist.

a. Full privatization c. Privatization of non-core assets

and functions
b. Partial sale of equity d. Privatization of management

Answer: a
16. The strategy of pursuing several market segments with
particular marketing mixes tailored to the needs of each segment.

a. marketing c. marketing concept

b. unified marketing d. differentiated marketing

Answer: d
17. It employs short-term incentives, such as free gifts, money-
off coupons, product samples etc., and its effects also tend to be
short-term.

a. sales promotionc. public relations

b. Advertising d. personal selling

Answer: a
18. Brand names which are literal and explicit in conveying some
tangible characteristic of the product. An example would be
‘Sweet Cure Bacon’ which denotes a bacon with a sweet taste.

a. brand name c. brand image

b. denotative brand name d. brand figure

Answer: b
19. This can involve the sale or lease of some manufacturing and
distribution activities (e.g. collection, testing/grading, delivery to
low density/rural markets), engaging in joint-ventures with
private enterprise, etc.

a. Full privatization c. Privatization of non-core assets

and functions
b. Partial sale of equity d. Privatization of management

Answer: c
20. Unbranded products is also termed as

a. all-purpose products c. common products

b. unknown products d. generic products

Answer: d
21. Variables such as social class, personality and life style
(attitudes, interests and opinions) which can be used to segment
markets.

a. demographics c. personal information’s

b. psychographics d. bio- data

Answer: b
22. A brand or part of a brand that to which a seller has a legally
enforceable, exclusive, right to use.

a. brand image c. trademark

b. brand name d. icon

Answer: c
23. Intermediaries acting to make marketing systems more
efficient by buying a variety of products, in fairly large
quantities, and selling these items on to other businesses who
require relatively small quantities of a variety of goods.

a. retailers c. wholesalers
b. agents d. assemblers

Answer: c
24. A set of numbered vertical bars appearing on the labels or
packs of goods and which can be read by scanner systems.
These numbers and bars constitute a code containing such
information as country of origin, supplier, product category,
product size, pack type and price.

a. unified product price c. bar code

b. unified product code d. unified delivered pricing

Answer: b
25. It is the advantage of sales promotion:

a. gains attentions and has instant effect

b. permits flexible presentation and gains immediate
response
c. appropriate for reaching mass audience, allows direct
appeal and control over the message
d. has a high degree of believability when done well.

Answer: a
26. The ownership of state assets to be retained by the state but
management privatized by way of contract.

a. Full privatization c. Privatization of non-core assets

and functions
b. Partial sale of equity d. Privatization of management

Answer: d
27. It is the percentage of the final weighted average selling price
taken by each stage of the marketing chain.

a. marketing indexc. marketing percentage

b. marketing average d. marketing margin

Answer: d
28. A marketing communication that is the most visible element
of the communications mix because it makes use of the mass
media, i.e. newspapers, television, radio, magazines, bus
hoardings and billboards.

a. sales promotionc. public relations

b. advertising d. personal selling

Answer: b
29. It may be possible to sell part of the equity of a state owned
company. Equity may be sold privately to particular groups, e.g.
producers of the raw material, staff members of the enterprise,
indigenous people etc.

a. Full privatization c. Privatization of non-core assets

and functions
b. Partial sale of equity d. Privatization of management

Answer: b
30. It is the organization's communications with its various
publics. These publics include customers, suppliers, stockholders
(shareholders, financial institutions and others with money
invested in the business), employees, the government and the
general public.

a. sales promotionc. public relations

b. advertising d. personal selling

Answer: c
31. It is the advantage of public relations:

a. gains attentions and has instant effect

b. permits flexible presentation and gains immediate response
c. appropriate for reaching mass audience, allows direct appeal
and control over the message
d. has a high degree of believability when done well.

Answer: d
32. It is described as an interpersonal influence process involving
an agribusiness' promotional presentation conducted on a
person-to-person basis with the prospective buyer.

a. sales promotionc. public relations

b. advertising d. personal selling

Answer: d
33. It is the advantage of personal selling:

a. gains attentions and has instant effect

b. permits flexible presentation and gains immediate response
c. appropriate for reaching mass audience, allows direct appeal
and control over the message
d. Has a high degree of believability when done well.

Answer: b
34. It is the advantage of advertising:

a. gains attentions and has instant effect

b. permits flexible presentation and gains immediate response
c. appropriate for reaching mass audience, allows direct
appeal and control over the message
d. has a high degree of believability when done well.

Answer: c
35. An industry's trade association may organize fairs and
exhibitions which offer its members the opportunity to
communicate with a well defined target audience.

a. bonus purchases c. trade allowances

b. trade shows and exhibitions d. cooperative advertising/
promotions

Answer: b
36. The exogenous factor of the buyers behavior includes
all except:

a. attitudes c. social status

b. culture d. reference groups

Answer: a
37. The endogenous factor of the buyers behavior includes all
except:

a. family c. self-concept
b. needs and motives d. personality

Answer: a
38. A fertilizer manufacturer's NPK production facility carries
fixed costs of $500,000. Assume that the variable cost of
production, per bag of NPK, is $10 and that the company is
considering selling to wholesalers at $20. The company needs to
sell how many units to break-even?

a. 5,000 units c. 50,000 units

b. 55,000 units d. 500,000 units

Answer: c
BREAK EVEN ANALYSIS

A fertilizer manufacturer's NPK production facility carries fixed costs of

$500,000. Assume that the variable cost of production, per bag of NPK, is $10
and that the company is considering selling to wholesalers at $20. It can be
shown that, given these figures, the company needs to sell 50,000 bags of NPK
before it breaks even
39. Reason why middlemen are commonly employed by
producers:

a. they provide wider market exposure

b. few producers have sufficient capital to market directly
c. producers can usually earn a higher return on investment
by employing available capital in activities other than
those of direct marketing
d. all of the above

Answer: d
40. Gap between producers and consumers are short, straight
transactions between the two groups can take place.

a. retail institutions c. wholesalers

b. direct marketing systems d. sales agents and brokers

Answer: b
TYPES OF DISTRIBUTION SYSTEM
41. It makes the marketing systems more efficient by buying a
variety of products, in fairly large quantities, and selling these
items on to other businesses who require relatively small
quantities of a variety of goods.

a. retail institutions c. direct marketing systems

b. wholesalers d. sales agents and brokers

Answer: b
42. Its function is to facilitate distribution by bringing buyers and
sellers together.

a. merchants c. marketers
b. wholesalers d. sales agents and brokers

Answer: d
43. Colombian flower producers grow long stemmed carnations
for the North American market and short stemmed carnations for
the European market. It is referred to as:

a. Market specialization c. product concentration

b. Selective specialization d. product specialization

Answer: b
44. An agricultural merchant may be offered 24 packs of
pesticide for the price of 20. This type of promotional activity is:

a. bonus purchases c. trade allowances

b. cash incentives d. cooperative advertising/promotions

Answer: a
45. Growers in Ivory Coast specializing in banana production
which is then exclusively sold into French wholesale markets.
It is referred to as:

a. Market specialization c. product concentration

b. Selective specialization d. product specialization

Answer: c
46. This includes a wide range of outlets such as merchants,
equipment dealers (in the case of farmers), department stores,
supermarkets and smaller grocery stores. They are
characterized by their dealing with the end user of the product
or service.

a. retail institutions c. wholesalers

b. direct marketing systems d. sales agents and brokers

Answer: a
47. A marketing margin is the percentage of the final weighted
average selling price taken by each stage of the marketing chain.
The buying price from the farmer is $0.50 per kg, the weighted
average wholesale selling price is $0.90 per kg and the weighted
average retail price is $1.17 per kg. What is the total marketing
margin in the problem?

a. 53% c. 55%
b. 54% d. 57%

Answer: d
Computing Marketing Margins
48. An agricultural merchant wishing to run a local campaign
may obtain assistance from one or other of his/her main
suppliers.

a. bonus purchases c. trade allowances

b. trade shows and exhibitions d. cooperative advertising/
promotions

Answer: d
49. These are incurred by farmers when they take their produce
to the market and by traders as they move the produce down the
marketing chain to the consumer.

a. transport costs c. cargo cost

b. vehicle cost d. truck cost

Answer: a
50. In China vegetable traders do not handle other products, not
even fruit. The reverse is also true: Chinese fruit traders do not
handle vegetables. It is referred to as:

a. Market specialization c. product concentration

b. Selective specialization d. product specialization

Answer: d