Agriculture Exams (Agri Econ) – Page 2

#21. Marginal cost and average cost are related in this way:
A When MC is equal to AC, MC is at a minimum
B When MC is greater than AC, AC is falling
C When MC is less than AC, AC is falling
D None of the above
Answer: When MC is less than AC, AC is falling
#22. These are actual costs or “out of pocket” expenses incurred in the production of goods and services:
A implicit costs
B variable costs
C fixed costs
D explicit costs
Answer: explicit costs
#23. If a man has incurred a total fixed cost of P5, 000.00, how much is his average fixed cost per sack?
A P100.00
B P150.00
C P125.00
D P50.00
Answer: P125.00
#24. Economies and diseconomies of scale occur mainly because:
A Firms in an industry must be relatively large in order to use the most efficient productive techniques
B Of the inherent difficulties involved in managing and coordinating a large business enterprise
C of the law diminishing returns
D The short run average total cost curve rises when marginal product is greater than average total cost
Answer: Of the inherent difficulties involved in managing and coordinating a large business enterprise
#25. In the Philippines, national income is done and maintained by what office/agency?
A Department of Trade and Industry
B Department of Budget and Management
C National Economic Development Authority (NEDA)
D Department of Finance
Answer: National Economic Development Authority (NEDA)
#26. Economists prefer to use real GNP than current or nominal GNP as a measure of aggregate output because
A All of these
B Real GNP adjusts for the unequal distribution of income
C Current GNP always understates actual output changes
D Real GNP adjusts current GNP for inflation
Answer: Real GNP adjusts current GNP for inflation
#27. Suppose the Nominal GDP in 2009 was 500 billion pesos and the CPI was 125, then the real GDP must be:
A P 125 billion
B P 499 billion
C P 500 billion
D P 300 billion
Answer: P 499 billion
#28. The consumption function/equation C = 20 + .90 Yd predicts that consumption is:
A 100 when Yd is 90
B 90 when disposable income (Yd) is 100
C 110 when Yd is 100
D 180 when Yd is 200
Answer: 90 when disposable income (Yd) is 100
#29. Based from # 16, if C = 20 + .90Yd, the equation saving function is:
A S = 20 - .9Yd
B S = 0 + .Yd
C S = -20 + .10Yd
D S = .9 + 20 Yd
Answer: S = -20 + .10Yd
#30. The equilibrium level of income (Y) is:
A 100
B 120
C 200
D 150
Answer: 150
#31. The value of the multiplier is:
A 1.6
B 3.0
C 2.5
D 2.0
Answer: 2.0
#32. Fiscal policies are government policies related to:
A wages and prices
B Money supply, credit and interest rates
C Investment
D Government expenditures and taxation
Answer: Government expenditures and taxation
#33. The bulk of government spending is a accounted for by
A capital outlay
B maintenance and operating expenses
C personal services
D debt service
Answer: personal services
#34. By open market operations we mean the actions of the government to:
A Increase or decrease government spending
B Buy and sell investment goods and services
C Buy and sell government securities of bonds
D Increase or decreases taxes
Answer: Buy and sell government securities of bonds
#35. This is a phase in the business cycle when economic prosperity is experienced
A recessional phase
B peak phase
C expansion phase
D trough phase
Answer: expansion phase
#36. 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:
A Production economics
B International Finance
C International Trade
D Marketing economics
Answer: International Trade
#37. The economic framework which has been defined by GATT-WTO calls for the expansion and stabilization of world trade through the following except one:
A Market access commitments and harmonization of sanitary and phyto-sanitary measures
B Increase tariffs on all agricultural products
C Reduction of domestic price and export subsidies
D Tariffication of quantitative restrictions
Answer: Increase tariffs on all agricultural products
#38. These are taxes imposed as a fraction of the value of the imported goods (i.e. 20% of the important value).
A All of these
B Ad Valorem tariffs
C export tariffs
D Import tariffs
Answer: Ad Valorem tariffs
#39. As a result of tariff imposition, the imposing country suffers from efficiency losses which include the following:
A any of the above may be true
B a and b
C Production distortion losses
D Consumption distortion losses
Answer: a and b
#40. Trade liberalization is the result of the following except one:
A tariff reduction
B elimination of export subsidies
C limited flow of goods from abroad
D elimination of production subsidies
Answer: limited flow of goods from abroad