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1. An economic resource that is considered as a

AGRICULTURAL “free gift of nature”.

ECONOMICS & MARKETING a.

b.
Labor
Land ability
FINAL COACHING c. Capital
d. Entrepreneurial

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RATIONALE
1. An economic resource that is considered as a
“free gift of nature”. a. Labor → human resource, not free (i.e., salary and
benefits)
a. Labor b. Land ability → from nature
b. Land ability c. Capital → involves financial resources
c. Capital d. Entrepreneurial → involves several skills that can be
d. Entrepreneurial developed (e.g., management, leadership,
communication)

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2. Underground economy is conducted 2. Underground economy is conducted

a. Within legal boundaries a. Within legal boundaries

b. Outside legal boundaries b. Outside legal boundaries
c. On parts of entry c. On parts of entry
d. Outside parts of entry d. Outside parts of entry

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RATIONALE
3. The locus of points each of which represents
Underground economy - not subject to government oversight;
a bundle of goods that can be purchased if
hence outside legal boundaries the entire money is spent is called ______.
a. Within legal boundaries a. Indifference curve
b. Outside legal boundaries b. Budget line
c. On parts of entry c. Isoquant
d. Outside parts of entry d. Supply curve

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RATIONALE
3. The locus of points each of which represents
a bundle of goods that can be purchased if a. Indifference curve → line showing all combinations of two
the entire money is spent is called ______. goods which give EQUAL UTILITY.
b. Budget line → line showing combination of goods given an
a. Indifference curve EQUAL INCOME/MONEY.
b. Budget line c. Isoquant → line showing all combination of two factors that
c. Isoquant produce EQUAL OUTPUT.
d. Supply curve d. Supply curve → line showing CORRELATION between the cost
and the quantity supplied.

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RATIONALE RATIONALE

Indifference curve Budget line Isoquant curve Supply curve

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4. The business activity of selling goods and 4. The business activity of selling goods and
services to the final consumer. services to the final consumer.

a. Wholesaling a. Wholesaling
b. Selling b. Selling
c. Distribution c. Distribution
d. Retailing d. Retailing

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RATIONALE
5. A type of middlemen who buy, take title, and
a. Wholesaling → buying goods from the producer and selling to a resell the products they handle
retailer for a higher price
b. Selling → any transaction which money is exchanged for a
good or service a. Wholesaler
c. Distribution → process of spreading the product throughout the b. Retailer
marketplace. c. Merchant middlemen
d. Retailing → the business activity of selling goods and
d. Financier-wholesaler
services to the final consumer

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RATIONALE
5. A type of middlemen who buy, take title, and
resell the products they handle a. Wholesaler → example of merchant middlemen; includes
viajeros (assembler wholesaler) and bodegeros/
cuartajeras (financier-wholesaler)
a. Wholesaler
b. Retailer → example of merchant middlemen
b. Retailer
c. Merchant middlemen → includes contract buyers,
c. Merchant middlemen
grain millers, wholesalers, and retailers
d. Financier-wholesaler
d. Financier-wholesaler

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6. A latin phrase which means in economics “all 6. A latin phrase which means in economics “all
things held constant” things held constant”

a. Ager cultura a. Ager cultura

b. Ceteris paribus b. Ceteris paribus
c. Laissez faire c. Laissez faire
d. None of the above d. None of the above

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RATIONALE
7. When AC is at minimum
a. Ager cultura → «cultivation on farm»
b. Ceteris paribus → «all things held constant» a. TVC is maximum
c. Laissez faire → abstention by governments from b. AVC = MC
interfering in the activities of the free market. c. MC = AC
d. None of the above d. AFC is minimum

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RATIONALE
7. When AC is at minimum
MC = Marginal Cost
a. TVC is maximum AC or ATC = Average
b. AVC = MC (Total) Cost
c. MC = AC AVC = Average
d. AFC is minimum Variable Cost
P = Price
Q = Quantity

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8. The cost incurred by a firm in buying inputs is 8. The cost incurred by a firm in buying inputs is
called: called:

a. Implicit cost a. Implicit cost

b. Explicit cost b. Explicit cost
c. Variable cost c. Variable cost
d. Opportunity cost d. Opportunity cost

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RATIONALE
9. Which is the following cost declines as output
a. Implicit cost → cost as a result of a decision leading to lower increases?
income (e.g., day-off of employees)
b. Explicit cost → measurable by a firm (e.g., inputs, hiring of a. Average variable cost
employees) b. Average total cost
c. Variable cost → cost that changes in proportion to how a firm c. Average fixed cost
produces
d. Total fixed cost
d. Opportunity cost → «when a decision is made; something is
given up»

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RATIONALE
9. Which is the following cost declines as output
increases?
a. Average variable cost
b. Average total cost
a. Average variable cost
c. Average fixed cost
b. Average total cost d. Total fixed cost
c. Average fixed cost
d. Total fixed cost

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10. Homogeneous product means that: 10. Homogeneous product means that:
a. The product of one seller is a perfect complement a. The product of one seller is a perfect complement
for another seller’s product for another seller’s product
b. The product of one seller is a perfect substitute for b. The product of one seller is a perfect substitute
another seller’s product for another seller’s product
c. The product of each seller is different c. The product of each seller is different
d. The product of each seller is unique d. The product of each seller is unique

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RATIONALE
11. This is known as rice tariffication law
a. The product of one seller is a perfect complement for another
seller’s product → e.g., coffee A and sugar B; hence they are a. RA 11302
NOT homogeneous b. RA 11320
b. The product of one seller is a perfect substitute for another
c. RA 11023
seller’s product → e.g., generic medicine A and generic
medicine B d. RA 11203
c. The product of each seller is different → NOT homogeneous
d. The product of each seller is unique → NOT homogeneous

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RATIONALE
11. This is known as rice tariffication law
a. RA 11302
b. RA 11320
a. RA 11302
c. RA 11023
b. RA 11320
d. RA 11203 → Rice Tariffication Law; approved on February 14,
c. RA 11023 2019
d. RA 11203 Tariffication – lifting of all existing quantitative restrictions such
as quotas or prohibitions imposed on agricultural products and
placing these with tariffs

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12. It is an assurance by the seller of the quality 12. It is an assurance by the seller of the quality
of performance of a product of performance of a product

a. Product liability a. Product liability

b. Product warranty b. Product warranty
c. Product life c. Product life
d. Product license d. Product license

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RATIONALE
13. Which of the following is not true about
a. Product liability → the manufacturer is held liable for placing a monopoly?
defective product into the consumer a. Being a monopolist does not ensure the firm gets
b. Product warranty → e.g., in gadgets and appliances, it instant profit
includes repair and replacement of defective parts b. The firm can impose any price it wants
c. Product life → amount of time from being introduced into the c. The firm cannot maximize profit at the inelastic
market until it is taken off.
portion of the market demand curve
d. Product license → permission from the firm (licensor) to
manufacture and sell its products d. None of the above

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RATIONALE
13. Which of the following is not true about
monopoly? a. Being a monopolist does not
ensure the firm gets instant
a. Being a monopolist does not ensure the firm gets profit → TRUE
instant profit b. The firm can impose any
b. The firm can impose any price it wants price it wants → FALSE
c. The firm cannot maximize
c. The firm cannot maximize profit at the inelastic profit at the inelastic portion
portion of the market demand curve of the market demand curve
→ TRUE
d. None of the above d. None of the above

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RATIONALE
14. A shift in the entire supply curve as a result of
a. Being a monopolist does not changes in other factors affecting supply.
ensure the firm gets instant
profit → TRUE
b. The firm can impose any a. Change in quantity supplied
price it wants → FALSE b. Change in supply
c. The firm cannot maximize
c. Both a and b
profit at the inelastic portion
of the market demand curve d. None of the above
→ TRUE
d. None of the above

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RATIONALE
14. A shift in the entire supply curve as a result of
changes in other factors affecting supply. a. Change in quantity
supplied → Qs, X-
axis in a supply curve
a. Change in quantity supplied b. Change in supply
b. Change in supply → shift of the
c. Both a and b ENTIRE supply
curve
d. None of the above
c. Both a and b
d. None of the above

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15. Refers to family or tribal group, which in the 15. Refers to family or tribal group, which in the
absence of trade, produces the level of goods absence of trade, produces the level of goods
and service equal to their consumption. and service equal to their consumption.
a. Autarky a. Autarky
b. Barter System b. Barter System
c. Autorky c. Autorky
d. None of the above d. None of the above

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RATIONALE
16. Product-oriented rather than marketing
function-oriented study of marketing
a. Autarky → state of self-relaince
b. Barter System → exchange of goods and services
in the absence of using money a. Commodity approach
c. Autorky → wrong spelling of «autarky» b. Institutional approach
d. None of the above c. Production approach
d. None of the above

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RATIONALE
16. Product-oriented rather than marketing
function-oriented study of marketing a. Commodity approach → commodity means product
b. Institutional approach → focused on various agencies
a. Commodity approach and business structures
b. Institutional approach c. Production approach → mass production model, aims to
c. Production approach streamline production process
d. None of the above d. None of the above

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17. The Phillips curve shows the relationship 17. The Phillips curve shows the relationship
between inflation and _____. between inflation and _____.

a. Interest rate a. Interest rate

b. Wage rate b. Wage rate
c. Budget deficit c. Budget deficit
d. Unemployment d. Unemployment

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RATIONALE
18. Process in which a firm tries to create a perception
a. Interest rate in consumer’s mind as to where a given product or
b. Wage rate brand fits in relation to competing products or
c. Budget deficit
d. Unemployment brand.
Phillips curve – claims that
a. Product and brand positioning
inflation and unemployment b. Product and brand cannibalization
have inverse relationship (i.e.,
economic growth comes
c. Product and brand deletion
inflation) d. Evaluation of product and brand performance

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RATIONALE
18. Process in which a firm tries to create a perception
in consumer’s mind as to where a given product or a. Product and brand positioning → e.g., «For the young and young-at-
brand fits in relation to competing products or heart» (Disney)
brand. b. Product and brand cannibalization → displacement of company’s older
products caused by introduction of a new product (e.g., iphone 12 vs iphone
a. Product and brand positioning 11)
b. Product and brand cannibalization c. Product and brand deletion → discontinuing a brand from a firm’s portfolio
c. Product and brand deletion (e.g., LG phones out of the market)
d. Evaluation of product and brand performance → assessment of
d. Evaluation of product and brand performance manufactured product’s suitability and safety

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19. It is the combination of inflation and 19. It is the combination of inflation and
stagnation characterized by high rates of stagnation characterized by high rates of
unemployment. unemployment.
a. Inflation a. Inflation
b. Stagflation b. Stagflation
c. Deflation c. Deflation
d. Recession d. Recession

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RATIONALE
20. The lowest point of real GDP at the end of
recession is known as _____.
a. Inflation → rate of change in prices over time
b. Stagflation → stagnation+inflation
a. Peak
c. Deflation → negative inflation
b. Recession
d. Recession → significant decline in economic activity
c. Trough
throughout a country or state.
d. Recovery

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RATIONALE
20. The lowest point of real GDP at the end of
recession is known as _____.
a. Peak
b. Recession
a. Peak
c. Trough
b. Recession
d. Recovery
c. Trough
d. Recovery

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21. An indirect tax expressed as a fixed amount 21. An indirect tax expressed as a fixed amount
per unit of the good or resource being taxed per unit of the good or resource being taxed
rather than varying with price rather than varying with price
a. Ad valorem tax a. Ad valorem tax
b. Specific tax b. Specific tax
c. Tariff c. Tariff
d. Lump sum tax d. Lump sum tax

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RATIONALE
22. Total cost is equal to:
a. Ad valorem tax → excise tax based on selling price (e.g., 12%
VAT)
b. Specific tax → fixed amount per unit of a good/service (e.g., a. TFC + TVC
Php 10 per packet of cigarettes) b. TFC – TVC
c. Tariff → tax on imports and/or exports c. TFC X TVC
d. Lump sum tax → fixed amount of taxation regardless of the d. TFC / TVC
amount/price of the good/service (i.e., does not increase)

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RATIONALE
22. Total cost is equal to:

Total Cost (TC) = Total Fixed Cost (TFC) + Total

a. TFC + TVC Variable Cost (TVC)
b. TFC – TVC
c. TFC X TVC
d. TFC / TVC

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23. Which of the following is not true about price 23. Which of the following is not true about price
ceiling? ceiling?

a. The maximum price policy a. The maximum price policy

b. The upper limit of price b. The upper limit of price
c. Effective above equilibrium price c. Effective above equilibrium price
d. None of the above d. None of the above

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RATIONALE
24. Study of the casual relationships that exist in
a. The maximum price economics, no value judgments are involved.
policy → True
b. The upper limit of a. Positive economics
price → True
c. Effective above
b. Normative economics
equilibrium price → c. Objective functions
False d. All of the above
d. None of the above

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RATIONALE
24. Study of the casual relationships that exist in
economics, no value judgments are involved.
a. Positive economics → «what is»
a. Positive economics b. Normative economics → «what is ought to be»
b. Normative economics c. Objective functions
c. Objective functions d. All of the above
d. All of the above

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25. Non-price competition often takes the form of: 25. Non-price competition often takes the form of:

a. Product differentiation a. Product differentiation

b. Collusion b. Collusion
c. Homogeneous products c. Homogeneous products
d. Price wars d. Price wars

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RATIONALE
26. This is unpaid media exposure about a firm or
a. Product differentiation → e.g., fastest internet service, its product and service
most gas-efficient vehicle, creamiest instant coffee
b. Collusion → when rival firms agree to «work together» a. Public relation
resulting to higher profits b. Publicity
c. Homogeneous products→ e.g., vegetables, fruits, grains c. Sale promotion
d. Price wars → price competition; price cuts to increase d. Advertisement
share of the market

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RATIONALE
26. This is unpaid media exposure about a firm or
its product and service a. Public relation → not
unpaid
b. Publicity → e.g.,
a. Public relation
trends in news and
b. Publicity social media
c. Sale promotion c. Sale promotion → not
d. Advertisement unpaid
d. Advertisement → not
unpaid

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27. The price that is equal to a firm’s average 27. The price that is equal to a firm’s average
variable costs, wherein the firm will no longer variable costs, wherein the firm will no longer
produce any output produce any output
a. Shut down price a. Shut down price
b. Break-even price b. Break-even price
c. Marginal price c. Marginal price
d. Market price d. Market price

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RATIONALE
28. It is defined as the price paid for personal
service in production
a. Shut down price
→ MC=AVC a. Wage
b. Break-even price b. Interest
→MC=AC c. Profit
c. Marginal price d. Dividend
d. Market price

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RATIONALE
28. It is defined as the price paid for personal
service in production a. Wage → also known as salary
b. Interest → monetary charge for the privilege of borrowing
a. Wage money
b. Interest c. Profit → monetary benefit when revenue exceeds the
c. Profit cost of production
d. Dividend d. Dividend → monetary benefit paid to shareholders for
their investment

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29. Which is not true at market equilibrium? 29. Which is not true at market equilibrium?

a. Surplus equals shortage a. Surplus equals shortage

b. Quantity demanded is equal to quantity supplied b. Quantity demanded is equal to quantity supplied
c. The price that consumers are willing to pay is equal c. The price that consumers are willing to pay is equal
to the price that sellers are willing to accept to the price that sellers are willing to accept
d. All of the above d. All of the above

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RATIONALE
30. Point where profit is zero
a. Surplus equals shortage
→non-existent at equilibrium
b. Quantity demanded is equal to a. MC is constant
quantity supplied b. Break even
c. The price that consumers are
willing to pay is equal to the c. MR>MC
price that sellers are willing to d. MR=P
accept
d. All of the above

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RATIONALE
30. Point where profit is zero

a. MC is constant a. MC is constant
b. Break even b. Break even →
c. MR>MC MC = AC
d. MR=P c. MR>MC
d. MR=P

93 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 94 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

31. A vertical supply curve can be associated with 31. A vertical supply curve can be associated with

a. Long run supply curve a. Long run supply curve

b. Short run supply curve b. Short run supply curve
c. Perfectly elastic supply c. Perfectly elastic supply
d. Perfectly inelastic supply d. Perfectly inelastic supply

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RATIONALE
32. Monopolistic competition might also be
a. Long run supply referred to as:
curve
b. Short run supply a. Pure competition
curve b. Perfect competition
c. Perfectly elastic c. Market competition
supply d. Imperfect competition
d. Perfectly inelastic
supply

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RATIONALE
32. Monopolistic competition might also be
referred to as: a. Pure competition → very many firms, homogeneous
product (e.g., agriculture)
a. Pure competition
b. Perfect competition → pure competition
b. Perfect competition
c. Market competition → includes perfect and imperfect
c. Market competition
competition
d. Imperfect competition
d. Imperfect competition → many firms, differentiated
product (e.g., pharmacy, grocery stores)

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33. Marginal revenue = Average Revenue = Price of 33. Marginal revenue = Average Revenue = Price of
output is true for: output is true for:
a. Monopolistic competition a. Monopolistic competition
b. Imperfect competition b. Imperfect competition
c. Oligopoly c. Oligopoly
d. Perfect competition d. Perfect competition

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RATIONALE
34. Use a high price where there is uniqueness about the
product or service. This approach is used where a
a. Monopolistic substantial competitive advantage exists. Such high
competition prices are charge for luxuries such as business flights.
b. Imperfect competition
c. Oligopoly a. Penetration pricing
d. Perfect competition b. Premium pricing
→ P=AR=MR=D c. Price skimming
d. Economy pricing

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RATIONALE
34. Use a high price where there is uniqueness about the
product or service. This approach is used where a
a. Penetration pricing → lower price during the initial offerring of a
substantial competitive advantage exists. Such high product/service (e.g., promos for new ice cream flavor)
prices are charge for luxuries such as business flights. b. Premium pricing → e.g., business flights, iphone,
a. Penetration pricing macbook
b. Premium pricing c. Price skimming → highest initial price then lowers over time
c. Price skimming (e.g., gadgets)
d. Economy pricing d. Economy pricing → low price with low production costs (e.g.,
low-cost airlines like Cebu Pacific)

105 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 106 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

35. An investment is not acceptable if Benefit Cost 35. An investment is not acceptable if Benefit Cost
Ratio is ___. Ratio is ___.
a. 1 a. 1
b. Greater than 1 b. Greater than 1
c. Positive c. Positive
d. Less than 1 d. Less than 1

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RATIONALE
36. GDP is equal to:
Benefit Cost Ratio (BCR) – relationship between the
relative costs and benefits of a proposed project, in monetary
a. Wages + rent + interests + profit
or qualitative terms.
b. Wages –rent – interests – profit
c. Wages + rent – interest + profit
• BCR > 1 → expected to deliver positive outcome
d. All of the above
• BCR < 1 → costs outweigh the benefits; should not be
considered

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RATIONALE
36. GDP is equal to:
Gross Domestic Product (GDP) – total monetary value of
all goods and services produced within a country’s borders.
a. Wages + rent + interests + profit
GDP is equal to...
b. Wages –rent – interests – profit
a. Wages + rent + interests + profit
c. Wages + rent – interest + profit
b. Wages – rent – interests – profit
d. All of the above
c. Wages + rent – interest + profit
d. All of the above

111 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 112 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

37. GNP is equal to: 37. GNP is equal to:

a. GDP + net factor income from abroad a. GDP + net factor income from abroad
b. GDP - net factor from abroad b. GDP - net factor from abroad
c. GDP x net factor income from abroad c. GDP x net factor income from abroad
d. GDP / net factor income from abroad d. GDP / net factor income from abroad

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RATIONALE
38. The goods that have similar function or use so
Gross National Product (GDP) – total monetary value of all goods that when price of one changes, the demand for
and services produced by the country’s citizens (e.g., Filipinos in PH the other good changes in the same direction
and Filipinos in other countries).
GNP is equal to... a. Complements
a. GDP + net factor income from abroad b. Substitutes
b. GDP - net factor from abroad
c. Supplements
c. GDP x net factor income from abroad
d. GDP / net factor income from abroad d. Independent goods

115 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 116 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

RATIONALE
38. The goods that have similar function or use so
that when price of one changes, the demand for
the other good changes in the same direction a. Complements - ↑P good A, ↓demand for good B
b. Substitutes - ↑P good A, ↑demand for good B
a. Complements c. Supplements
b. Substitutes d. Independent goods → zero cross elasticity of
c. Supplements demand
d. Independent goods

117 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 118 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

39. It is the sum total of all operations involved in the 39. It is the sum total of all operations involved in the
manufacture and distribution of farm supplies, manufacture and distribution of farm supplies,
production activities on the farm, storage, processing, production activities on the farm, storage, processing,
and distribution of farm commodities and items made and distribution of farm commodities and items made
from them. from them.
a. Agricultural economics a. Agricultural economics
b. Agricultural marketing b. Agricultural marketing
c. Agri-business c. Agri-business
d. Agricultural entrepreneurship d. Agricultural entrepreneurship

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RATIONALE
40. Which among the following transactions should
a. Agricultural economics → study of allocation, distribution, and be included in the computation of GNP?
utilization of resources by farming
b. Agricultural marketing → covers production, effective
a. Sale of second-hand automobile
distribution, and exchange of agricultural goods
c. Agri-business → sum total of all operations involved in…of b. Sale of agricultural products like vegetables and
farm commodities cereals
d. Agricultural entrepreneurship → involves farmer’s ability to enter c. Sale of marketable securities like bonds and stocks
new phases of agriculture d. None of the above

121 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 122 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

RATIONALE
40. Which among the following transactions should
be included in the computation of GNP? a. Sale of second-hand automobile → second-hand items are not
included in GNP computation to avoid double counting
a. Sale of second-hand automobile b. Sale of agricultural products like vegetables and cereals →
b. Sale of agricultural products like vegetables and these products are often subject to further processing
cereals c. Sale of marketable securities like bonds and stocks → not
c. Sale of marketable securities like bonds and stocks included in GNP computation
d. None of the above d. None of the above

123 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 124 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

41. This law amended RA 10068, also known as 41. This law amended RA 10068, also known as
Organic Agriculture Act Organic Agriculture Act

a. RA 11115 a. RA 11115
b. RA 11155 b. RA 11155
c. RA 11551 c. RA 11551
d. RA 11511 d. RA 11511

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RATIONALE
42. There are 8 attached bureaus under the
a. RA 11115 Department of Agriculture
b. RA 11155
c. RA 11551 a. True
d. RA 11511 → Act amending RA 10068 of 2010 b. Probably true
Salient points: c. False
• Signed on Dec. 23, 2020 d. Probably false
• Recognition of Participatory Guarantee System as another
organic certification scheme.
127 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 128 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

RATIONALE
42. There are 8 attached bureaus under the
Department of Agriculture
a. True → ATI, BAFS, BAI, BAR, BFAR, BPI, BSWM,
BAFE
a. True b. Probably true
b. Probably true c. False
c. False d. Probably false
d. Probably false

129 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 130 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

43. Current DA secretary 43. Current DA secretary

a. Piñol a. Piñol
b. Dar b. Dar
c. Gorgonio c. Gorgonio
d. Mula d. Mula

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RATIONALE
44. In 2021, _______ was approved by DA for direct
use as food, feed, and for processing.
a. Piñol → former DA secretary
b. Dar → current DA secretary a. Bt corn
c. Gorgonio → DA Usec. for Administration and b. RR soybeans
Finance c. Golden rice
d. Mula → current BAFS Director d. A and B

133 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 134 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

RATIONALE
44. In 2021, _______ was approved by DA for direct
use as food, feed, and for processing. a. Bt corn → approved in 2003
b. RR soybeans → approved in 2007
a. Bt corn
c. Golden rice → approved together with bt eggplant
b. RR soybeans
in 2021
c. Golden rice
d. A and B
d. A and B

135 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 136 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

45. Agriculture and Fisheries Modernization Act is 45. Agriculture and Fisheries Modernization Act is
also known as: also known as:

a. RA 8543 a. RA 8543
b. RA 8435 b. RA 8435
c. RA 8354 c. RA 8354
d. RA 8453 d. RA 8453

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RATIONALE
46. Also known as Philippine Fisheries Code of 1998:
a. RA 8543
b. RA 8435 → AFMA of 2007; «...prescribing urgent
a. RA 8550
related measures to modernize agriculture
b. RA 8505
sectors of th country...»; mandates the creation
c. RA 8055
of PRC Board of Agriculture
d. RA 5805
c. RA 8354
d. RA 8453

139 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 140 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

RATIONALE
46. Also known as Philippine Fisheries Code of 1998:
a. RA 8550 → codifies all fishery laws and aims to
promote maximum sustainable yield and ensure
a. RA 8550 ecological balance of fishery areas.
b. RA 8505 b. RA 8505
c. RA 8055 c. RA 8055
d. RA 5805 d. RA 5805

141 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 142 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

47. EO 430 mandated the creation of ___________. 47. EO 430 mandated the creation of ___________.

a. Philippine Rice Research Institute a. Philippine Rice Research Institute

b. Agricultural Training Institute b. Agricultural Training Institute
c. Bureau of Agriculture and Fisheries Standards c. Bureau of Agriculture and Fisheries Standards
d. National Committee on Biosafety of the Philippines d. National Committee on Biosafety of the Philippines

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RATIONALE
48. Participatory Guarantee System for organic
agriculture is a/an________.
a. Philippine Rice Research Institute → EO 1061 (1985)
b. Agricultural Training Institute → EO 116 (1987) a. Locally-focused assurance system
c. Bureau of Agriculture and Fisheries Standards → RA b. Third-party certification scheme
8435 (1998) c. Internationally-focused quality system
d. National Committee on Biosafety of the Philippines d. None of these
→ EO 430 (1990)

145 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 146 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

RATIONALE
48. Participatory Guarantee System for organic
agriculture is a/an ________. a. Locally-focused assurance system → «membership-
based» certification scheme built on the foundation,
a. Locally-focused assurance system
social network, and knowledge exchange
b. Third-party certification scheme
b. Third-party certification scheme
c. Internationally-focused quality system
c. Internationally-focused quality system
d. None of these
d. None of these

147 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 148 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

49. RA 7308 mandated the creation of ______. 49. RA 7308 mandated the creation of ______.

a. SRA a. SRA
b. PCA b. PCA
c. PCC c. PCC
d. NSIC d. NSIC

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RATIONALE
50. Economics is a ________ science.

a. SRA → EO 18 (1986)
b. PCA → PD 232 (1973) a. Social
c. PCC → RA 7307 (1992) b. Biological
d. NSIC → RA 7308 (1992) c. Physical
d. All of the above

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RATIONALE
50. Economics is a ________ science.
a. Social → economics uses scientific methods to
a. Social build theories that can help explain the behavior
b. Biological of individuals, groups, and organizations
c. Physical b. Biological
d. All of the above c. Physical
d. All of the above

153 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 154 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

51. An economic system in which all major decisions 51. An economic system in which all major decisions
concerning the level of resource use, the composition, concerning the level of resource use, the composition,
distribution of output, and organization of production are distribution of output, and organization of production are
determined by the price system is _____. determined by the price system is _____.
a. Socialism a. Socialism
b. Communism b. Communism
c. Capitalism c. Capitalism
d. Fascism d. Fascism

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RATIONALE
Use the equations below for item 52:
Qs = 20 + 2P Qd = 100 – 8P
a. Socialism → individuals can own personal property but the government
owns the industrial and production capacity
b. Communism → all economic resources are publicly owned and controlled
52. What is the equilibrium price (Pe) and quantity (Qe)?
by the government a. Pe = 20, Qe = 60
c. Capitalism → all economic decisions are determined by the price b. Pe = 6, Qe = 80
system c. Pe = 8, Qe = 36
d. Fascism → associated to authoritarianism and nationalism, opposes
d. Pe = 10, Qe = 70
modernization

157 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 158 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

RATIONALE
Use the equations below for item 52:
Qs = 20 + 2P Qd = 100 – 8P
Let:
52. What is the equilibrium price (Pe) and quantity (Qe)? Qs = Qd
a. Pe = 20, Qe = 60
b. Pe = 6, Qe = 80 To determine the value of Pe:
c. Pe = 8, Qe = 36 20 + 2P = 100 – 8P
d. Pe = 10, Qe = 70 → 10P = 80
→ Pe = 8

159 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 160 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

RATIONALE
53. Extra income earned from producing an
additional unit of output is called _______.
To determine the value of Qe:
Qe = Qd = Qs = 20 + 2P
a. Marginal cost
Qe = Qd = Qs = 20 + 2(8)
b. Marginal product
Qe = Qd = Qs = 36
c. Marginal revenue
Hence, Pe = 8, Qe=36
d. All of the above

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RATIONALE
53. Extra income earned from producing an
additional unit of output is called _______. a. Marginal cost → extra cost for every additional unit
of output
a. Marginal cost b. Marginal product → extra product for every
b. Marginal product additional unit of input
c. Marginal revenue c. Marginal revenue → extra income for every
d. All of the above additional unit of output
d. All of the above

163 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 164 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

54. Which form of monopoly regulation is most 54. Which form of monopoly regulation is most
advantageous for the consumer? advantageous for the consumer?

a. Price control a. Price control

b. Lump-sum tax b. Lump-sum tax
c. Per-unit tax c. Per-unit tax
d. All of the above d. All of the above

165 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 166 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

RATIONALE
55. Unemployment caused by the business cycle is
known as:
a. Price control → can be imposed in the form of price
ceiling or price floor a. Cyclical unemployment
b. Lump-sum tax Taxes can be passed down to the
c. Per-unit tax
d. All of the above
}
consumers hence they may not be an
effective tool for the consumers’ welfare
b.
c.
d.
Structural unemployment
Frictional unemployment
None of the above

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RATIONALE
55. Unemployment caused by the business cycle is
known as: a. Cyclical unemployment → «cycle»
b. Structural unemployment → mismatch between skills
a. Cyclical unemployment
that workers have
b. Structural unemployment
c. Frictional unemployment → voluntary employment
c. Frictional unemployment transitions
d. None of the above d. None of the above

169 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 170 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

56. It is owned by two or more people who agree to pool their 56. It is owned by two or more people who agree to pool their
resources in a common fund with the aim of sharing resources in a common fund with the aim of sharing
whatever profit (losses) they will get. Examples of which whatever profit (losses) they will get. Examples of which
are law firms, accounting firms, and medical offices. are law firms, accounting firms, and medical offices.
a. Sole proprietorship a. Sole proprietorship
b. Partnership b. Partnership
c. Corporation c. Corporation
d. Franchise d. Franchise

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RATIONALE
57. The most economical stage of production is:
a. Sole proprietorship → single owner
b. Partnership → two or more people
c. Corporation → entity that is separate and distict from its a. Stage I
owners; with legal personality b. Stage II
d. Franchise → binding contract between the franchisor and c. Stage III
franchisee d. None of the above

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RATIONALE
57. The most economical stage of production is:
a. Stage I → irrational since the total
product is not maximized
a. Stage I b. Stage II → also known as rational
b. Stage II stage or «economic region»
c. Stage III c. Stage III → irrational since the prod’n
d. None of the above is less than Stage II but with higher
inputs/costs
d. None of the above

175 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 176 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

Use the hypothetical table for items 58 and 59: Use the hypothetical table for items 58 and 59:
Output Total Total cost Profit Marginal Marginal Output Total Total cost Profit Marginal Marginal
revenue Revenue cost revenue Revenue cost
0 0 400 -400 - - 0 0 400 -400 - -
100 400 1000 -600 4 6 100 400 1000 -600 4 6
200 800 1300 -500 4 3 200 800 1300 -500 4 3
300 1200 1500 -300 4 2 300 1200 1500 -300 4 2
400 1600 1600 0 4 1 400 1600 1600 0 4 1

58. The total fixed cost is: 58. The total fixed cost is:
a. 0 a. 0
b. 400 b. 400
c. 100 c. 100
d. 3600 d. 3600

177 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 178 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

Output Total Total cost Profit Marginal Marginal

RATIONALE revenue Revenue cost Use the hypothetical table for items 58 and 59:
0 0 -400 - - Output Total Total cost Profit Marginal Marginal
400 revenue Revenue cost
100 400 1000 -600 4 6
0 0 400 -400 - -
200 800 1300 -500 4 3
100 400 1000 -600 4 6
300 1200 1500 -300 4 2
200 800 1300 -500 4 3
400 1600 1600 0 4 1
300 1200 1500 -300 4 2
400 1600 1600 0 4 1
a. 0
59. The firm breaks even at _____ units of output.
b. 400 → even at zero output, the firm should spend 400 as part
a. 400
of total fixed cost
b. 900
c. 100 c. 0
d. 3600 d. 300 and 400

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Output Total Total cost Profit Marginal Marginal

Use the hypothetical table for items 58 and 59: RATIONALE revenue Revenue cost
Output Total Total cost Profit Marginal Marginal 0 0 400 -400 - -
revenue Revenue cost 100 400 1000 -600 4 6
0 0 400 -400 - - 200 800 1300 -500 4 3
100 400 1000 -600 4 6 300 1200 1500 -300 4 2
200 800 1300 -500 4 3 1600 1600 4 1
300 1200 1500 -300 4 2
400 0
400 1600 1600 0 4 1
a. 400 → at 400 units of output, the firm breaks even in which the profit
59. The firm breaks even at _____ units of output. becomes zero.
a. 400 b. 900
b. 900 c. 0
c. 0
d. 300 and 400
d. 300 and 400

181 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 182 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

60. Which of the following relationship between 60. Which of the following relationship between
Marginal Propensity to Consume (MPC) and Marginal Propensity to Consume (MPC) and
Marginal Propensity to Save (MPS) is true? Marginal Propensity to Save (MPS) is true?

a. MPC – MPS = 0 a. MPC – MPS = 0

b. MPC – MPS = 1 b. MPC – MPS = 1
c. MPC + MPS = 1 c. MPC + MPS = 1
d. MPC + MPS = 0 d. MPC + MPS = 0

183 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 184 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

RATIONALE
61. Disposable income is comprised of:
a. MPC – MPS = 0
b. MPC – MPS = 1
c. MPC + MPS = 1 a. Savings + Consumption
MPS → proportion of an increase in income that a consumer b. Consumption + Government Expenditures
saves. c. Savings + Taxes
MPC → proportion of an increase in income that a consumer d. Consumption + Investment
consumes
a. MPC + MPS = 0

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RATIONALE
61. Disposable income is comprised of:
a. Savings + Consumption → Disposable income is the
a. Savings + Consumption net income
b. Consumption + Government Expenditures b. Consumption + Government Expenditures
c. Savings + Taxes c. Savings + Taxes
d. Consumption + Investment d. Consumption + Investment

187 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 188 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

62. The decrease in the value of capital goods used 62. The decrease in the value of capital goods used
in production is called: in production is called:
a. Depression a. Depression
b. Depreciation b. Depreciation
c. Diminishing return c. Diminishing return
d. Diversion d. Diversion

189 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 190 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

RATIONALE
63. If C = 50 + 0.80 Yd
a. Depression → steep and sustained drop in economic activity
b. Depreciation → decrease in value of capital goods
(straight-line, declining balance, etc.)
a. The MPC is 0.50
c. Diminishing return → after reaching optimal level of capacity, b. The MPS is 0.80
additional factor of production will result in smaller increases in c. The MPC is 0.20
output. d. The MPS is 0.20
d. Diversion → prohibits exported goods from being shipped to
unapproved destinations.

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RATIONALE
63. If C = 50 + 0.80 Yd
a. The MPC is 0.50
b. The MPS is 0.80
c. The MPC is 0.20
a. The MPC is 0.50 d. The MPS is 0.20
b. The MPS is 0.80 Recall: C = c + MPC(Yd) and MPC + MPS = 1
c. The MPC is 0.20 where C = consumption
d. The MPS is 0.20 c = autonomous consumption
MPC = marginal propensity to consume,
Yd = disposable income

193 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 194 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

RATIONALE
64. Restrictions to foreign trade are made through
If C = 50 + 0.80 Yd these except:
Then: MPC = 0.80 a. Quotas
MPS = 1 – MPC b. Incentive
MPS = 1 – 0.80 c. Embargos
MPS = 0.20 d. Tariff

195 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 196 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

RATIONALE
64. Restrictions to foreign trade are made through
these except: a. Quotas → limits on number or monetary value of
a. Quotas goods that can be imported or expored
b. Incentive b. Incentive → it encourages trade
c. Embargos c. Embargos → partial or total trade ban
d. Tariff d. Tariff → tax imposed on imported or exported
goods.

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65. They are individuals or businesses that specialize in 65. They are individuals or businesses that specialize in
performing various marketing functions involved in the performing various marketing functions involved in the
purchase and sale of goods as they are moved from purchase and sale of goods as they are moved from
producers to consumers. producers to consumers.

a. Middlemen a. Middlemen
b. Farmers b. Farmers
c. Processors c. Processors
d. Consumers d. Consumers

199 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 200 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

RATIONALE
66. This is a pricing strategy to gain more customers while
maintaining/holding the present ones (e.g., odd-centavo
a. Middlemen → e.g., merchant middlemen, agent middlemen, pricing, even-centavo pricing)
processors, market associations
b. Farmers → producers
c. Processors → under middlemen a. Unit pricing
d. Consumers → end user of commodities b. Price lining
c. Special pricing
d. Psychological pricing

201 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 202 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

RATIONALE
66. This is a pricing strategy to gain more customers while
maintaining/holding the present ones (e.g., odd-centavo
pricing, even-centavo pricing) a. Unit pricing → «buy one take one»
b. Price lining → extra class mango, class 1 mango
c. Special pricing → «hot» special items to attract customers to the
a. Unit pricing store
b. Price lining d. Psychological pricing → «gaming laptop for only Php 49,999»
c. Special pricing
d. Psychological pricing

203 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 204 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

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67. A type of middlemen who acts as representatives of their 67. A type of middlemen who acts as representatives of their
client. They do not take title to and therefore do now own client. They do not take title to and therefore do now own
the products they handle. They just receive their income the products they handle. They just receive their income
in the form of fees and commissions. They sell their in the form of fees and commissions. They sell their
services to their principal, not physical goods to services to their principal, not physical goods to
consumers. consumers.
a. Consumers a. Consumers
b. Merchant middlemen b. Merchant middlemen
c. Commission c. Commission
d. Broker d. Broker

205 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 206 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

RATIONALE
68. The main source of government revenue is through:
a. Consumers → end-user
b. Merchant middlemen → takes title and own products they
handle a. Fees
c. Commission → fees received by agent middlemen b. Fines
d. Broker → example of agent middlemen, receives c. Licenses
income in the form of commission d. Taxes

207 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 208 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

RATIONALE
68. The main source of government revenue is through:

a. Fees
a. Fees b. Fines
b. Fines c. Licenses
c. Licenses d. Taxes → lifeblood of the government
d. Taxes

209 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 210 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

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69. A fee received by individuals for endorsing a product 69. A fee received by individuals for endorsing a product
is called: is called:

a. Franchise a. Franchise
b. Royalty b. Royalty
c. Patent fee c. Patent fee
d. Intellectual property rights fee d. Intellectual property rights fee

211 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 212 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

RATIONALE
70. Which of the following statements is incorrect?
a. Franchise → fee paid by the franchisee to the franchisor a. The law of supply yield a positively sloped supply
b. Royalty → fee paid to the endorser curve
c. Patent fee → fee paid to seek patent b. The law of demand yields a negatively sloped curve
d. Intellectual property rights fee → includes fees for c. A shortage or surplus is observed if disequilibrium
copyrights and patents occurs in the market
d. None of the above

213 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 214 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

RATIONALE
70. Which of the following statements is incorrect?
a. The law of supply yield a positively sloped supply curve
a. The law of supply yield a positively sloped supply
b. The law of demand yields a negatively sloped curve
curve
b. The law of demand yields a negatively sloped curve c. A shortage or surplus is observed if disequilibrium occurs
in the market
c. A shortage or surplus is observed if disequilibrium
d. None of the above → all statements from A to C are
occurs in the market
correct.
d. None of the above

215 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 216 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

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71. This law aims to declare large-scale 71. This law aims to declare large-scale
agricultural smuggling as economic sabotage agricultural smuggling as economic sabotage

a. RA 10548 a. RA 10548
b. RA 10485 b. RA 10485
c. RA 10845 c. RA 10845
d. RA 10854 d. RA 10854

217 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 218 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

RATIONALE
72. It is an integrated program consisting of measures
to improve land tenure by production and support
a. RA 10548
b. RA 10485 services to hasten the process of development in
c. RA 10845 → «Anti-Agricultural Smuggling Act of 2016» the countryside
Large-scale Agricultural Smuggling – Php 1M and up, except a. Sustainable development
rice (Php 10M) b. Agrarian reform
a. RA 10854 c. AFMA
d. GATT

219 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 220 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

RATIONALE
72. It is an integrated program consisting of measures
to improve land tenure by production and support a. Sustainable development → «...without compromising the ability
services to hasten the process of development in of future generations to meet their own needs»
the countryside b. Agrarian reform → «land tenure», «land redistribution»
c. AFMA → RA 8435
a. Sustainable development d. GATT → General Agreements in Tariff and Trade (1947) – legal
b. Agrarian reform agreements minimizing barriers to international trade
c. AFMA
d. GATT

221 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 222 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

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73. In monopolistic competition, we have: 73. In monopolistic competition, we have:

a. Few firms selling differentiated product a. Few firms selling differentiated product
b. Many firms selling homogeneous product b. Many firms selling homogeneous product
c. Few firms selling homogeneous product c. Few firms selling homogeneous product
d. Many firms selling differentiated product d. Many firms selling differentiated product

223 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 224 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

RATIONALE
74. This marketing function addresses the problem on
product seasonality. The primary aim of which is to
a. Few firms selling differentiated product
b. Many firms selling homogeneous product help balance the consumption and scarcity of the
c. Few firms selling homogeneous product commodity.
d. Many firms selling differentiated product → key a. Pooling
characteristics of monopolistic competition (e.g., fast food, b. Storage
restaurants, bakery shop) c. Processing
d. Packaging

225 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 226 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

RATIONALE
74. This marketing function addresses the problem on
product seasonality. The primary aim of which is to a. Pooling → physical function, grouping together of assets or products
help balance the consumption and scarcity of the b. Storage → physical function, holding goods between the time of
commodity. production and final sale
a. Pooling c. Processing → physical function, includes extraction of raw material
b. Storage and transforming it into another product with added value.
c. Processing d. Packaging → facilitating function, to preserve and protect from
contamination
d. Packaging

227 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 228 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

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75. When the price of Talk N’ Text load increases, the 75. When the price of Talk N’ Text load increases, the
demand for TM load _________. demand for TM load _________.

a. Will increase a. Will increase

b. Will decrease b. Will decrease
c. Has no effect at all c. Has no effect at all
d. May not be affected d. May not be affected

229 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 230 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

RATIONALE
76. An economic system characterized by public
ownership of property resources and collective
a. Will increase → since TNT and TM loads are substitute
goods, the increase in price of TNT load will result to the determination of economic decisions through
increase in the demand of TM load. economic planning is:
b. Will decrease a. Socialism
c. Has no effect at all b. Communism
d. May not be affected c. Capitalism
d. Fascism

231 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 232 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

RATIONALE
76. An economic system characterized by public
ownership of property resources and collective a. Socialism → citizens can own properties but the economy is planned by
determination of economic decisions through the government
economic planning is: b. Communism → citizens cannot own properties and the economy is
planned by the government
a. Socialism
c. Capitalism → citizens can own properties and the economy is controlled
b. Communism by the supply and demand
c. Capitalism d. Fascism → associated with authoritarianism/totalitarianism and
d. Fascism nationalism (i.e., Nazi Germany or Germany during Holocaust period)

233 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 234 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

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77. It is the selling of government-owned or controlled 77. It is the selling of government-owned or controlled
corporations and non-performing assets to the corporations and non-performing assets to the
private sector private sector

a. Privitization a. Privitization
b. Corporatism b. Corporatism
c. Cooperativism c. Cooperativism
d. Regulation d. Regulation

235 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 236 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

RATIONALE
78. Which of the following best describes the
a. Privitization → e.g., PNB, Petron, Philippine Airlines “Production Function”?
b. Corporatism → advocates the organization of society by
corporate groups a. It indicates the best output to produce
c. Cooperativism → advocates the organization of society by b. It relates physical inputs to physical outputs
cooperatives c. It relates peso inputs to peso outputs
d. Regulation → rules made by the government in order to control d. None of these
the way something is done

237 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 238 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

RATIONALE
78. Which of the following best describes the
“Production Function”? a. It indicates the best output to
produce
a. It indicates the best output to produce b. It relates physical inputs to
b. It relates physical inputs to physical outputs physical outputs
c. It relates peso inputs to peso outputs c. It relates peso inputs to peso outputs
d. None of these d. None of these

239 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 240 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

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79. It refers to the recurrent ups and downs in the level 79. It refers to the recurrent ups and downs in the level
of economic activity of economic activity

a. Inflation a. Inflation
b. Business cycle b. Business cycle
c. Depression c. Depression
d. Deflation d. Deflation

241 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 242 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

RATIONALE
80. He believed that specialization or division of labor
increases productivity thereby causing positive
a. Inflation socioeconomic conditions. He also asserted that
b. Business economic freedom is an efficient way to organize and
cycle → economy.
«cycle» →
recurring a. Adam Smith
b. Ptolemy
c. Depression
c. Ricardo
d. Deflation
d. Charles Darwin

243 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 244 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

RATIONALE
80. He believed that specialization or division of labor
increases productivity thereby causing positive
socioeconomic conditions. He also asserted that a. Adam Smith → invisible hands
economic freedom is an efficient way to organize and b. Ptolemy → monetarization of ancient Egypt
economy. c. Ricardo → comparable advantage
d. Charles Darwin → competition
a. Adam Smith
b. Ptolemy
c. Ricardo
d. Charles Darwin

245 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 246 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

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81. Jose and Mario depends solely on butchering live 81. Jose and Mario depends solely on butchering live
animals into meat for livelihood. In this case, what animals into meat for livelihood. In this case, what
function are they performing? function are they performing?

a. Storage function a. Storage function

b. Transportation function b. Transportation function
c. Standardization function c. Standardization function
d. Processing function d. Processing function

247 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 248 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

RATIONALE
82. The short-run is:
a. Storage function → e.g., cold storage of the carcass
b. Transportation function → e.g., transportation from the farm to a. A period of time shorter than one year
slaughterhouse b. The planning period wherein some resources are fixed
c. Standardization function → e.g., BAFS establishing standards c. The planning period wherein all resources are fixed
on GAHP d. The planning period wherein all resources are variable
d. Processing function → e.g., slaughtering

249 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 250 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

RATIONALE
82. The short-run is:

a. A period of time shorter than one year a. A period of time shorter than one year
b. The planning period wherein some resources are fixed →
b. The planning period wherein some resources are
land and machineries are fixed in the short-run
fixed c. The planning period wherein all resources are fixed
c. The planning period wherein all resources are fixed d. The planning period wherein all resources are variable → in
d. The planning period wherein all resources are variable the long-run

251 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 252 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

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83. Money in a modern economy performs function(s) 83. Money in a modern economy performs function(s)
such as: such as:

a. Medium of exchange a. Medium of exchange

b. Store of value b. Store of value
c. Standard of deferred payment c. Standard of deferred payment
d. All of the above d. All of the above

253 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 254 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

RATIONALE
84. The concept of scarcity:

a. Medium of exchange → instrument to facilitate trade of

a. Creates a need for a system of extravagance
goods
b. Store of value → retains purchasing power into the future b. Means insufficient resources to satisfy potential users
c. Standard of deferred payment → accepted way to value a c. Means not enough needs to urge production
debt d. Creates allocation of sufficient resources to satisfy
d. All of the above human needs

255 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 256 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

RATIONALE
84. The concept of scarcity:
a. Creates a need for a system of extravagance
a. Creates a need for a system of extravagance b. Means insufficient resources to satisfy potential users →
b. Means insufficient resources to satisfy potential users finite resources for infinite human needs and wants
c. Means not enough needs to urge production c. Means not enough needs to urge production
d. Creates allocation of sufficient resources to satisfy human d. Creates allocation of sufficient resources to satisfy human needs
needs

257 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 258 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

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85. Who is the current secretary of DAR? 85. Who is the current secretary of DAR?

a. Castriciones a. Castriciones
b. Dar b. Dar
c. De la Peña c. De la Peña
d. Año d. Año

259 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 260 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

RATIONALE
86. Republic Act 6657 of 1988 is the legal basis for the
implementation of CARP is also known as:
a. Castriciones → John Rualo Castriciones, DAR
a. Agrarian Reform
b. Dar → William Dar, DA
b. Comprehensive Agrarian Reform Law
c. De la Peña → Fortunato de la Peña, DOST
c. Agriculture and Fisheries Modernization Act
d. Año → Eduardo Año, DILG
d. None of these

261 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 262 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

RATIONALE
86. Republic Act 6657 of 1988 is the legal basis for the
implementation of CARP is also known as:
a. Agrarian Reform
a. Agrarian Reform b. Comprehensive Agrarian Reform Law → 1988,
b. Comprehensive Agrarian Reform Law Comprehensive Agrarian Reform Program
c. Agriculture and Fisheries Modernization Act c. Agriculture and Fisheries Modernization Act → 1997
d. None of these d. None of these

263 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 264 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

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87. Economic growth is measured as the annual 87. Economic growth is measured as the annual
percentage change of ______. It has both percentage change of ______. It has both
advantages and drawbacks at the same time. advantages and drawbacks at the same time.

a. Technology a. Technology
b. Gross Domestic Product b. Gross Domestic Product
c. Productivity c. Productivity
d. Prices d. Prices

265 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 266 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

RATIONALE
88. Globalization refers to the implementation of free
a. Technology trade on a global scale which is carried out through:
b. Gross Domestic Product
advantage: gives information about the size of economy a. Trade restriction
drawback: exclusion of non-market transactions b. Trade protection
a. Productivity
c. Trade liberalization
b. Prices
d. None of the above

267 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 268 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

RATIONALE
88. Globalization refers to the implementation of free
trade on a global scale which is carried out through:
a. Trade restriction → discourages trade between countries
b. Trade protection → discourages trade between countries by
a. Trade restriction
protecting the economic activity within its borders
b. Trade protection c. Trade liberalization → removal or reduction of barries to
c. Trade liberalization free exchange between countries
d. None of the above d. None of the above

269 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 270 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

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89. Which of the following terms best applies to a single 89. Which of the following terms best applies to a single
seller market? seller market?

a. Monopsony a. Monopsony
b. Monopoly b. Monopoly
c. Oligopoly c. Oligopoly
d. oligopsony d. oligopsony

271 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 272 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

RATIONALE
90. When lending interest rates are low, the primary effect
is to:
a. Monopsony → one buyer
b. Monopoly → one seller a. Encourage investment
c. Oligopoly → few sellers b. Discourage investment
d. Oligopsony → few buyers c. Encourage consumption
d. Discourage consumption

273 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 274 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

RATIONALE
90. When lending interest rates are low, the primary effect
is to:
a. Encourage investment → investments involve
getting loans; if the lending interest rate is low, it
a. Encourage investment
encourages investors to venture into one.
b. Discourage investment
b. Discourage investment
c. Encourage consumption
c. Encourage consumption
d. Discourage consumption
d. Discourage consumption

275 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 276 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

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91. Fiscal policies are government policies related 91. Fiscal policies are government policies related
to: to:

a. Wages and prices a. Wages and prices

b. Money supply, credit, and interest rates b. Money supply, credit, and interest rates
c. Government expenditures and taxation c. Government expenditures and taxation
d. Investments d. Investments

277 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 278 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

RATIONALE
92. Economic development is shaped not only by
economic factors but also:
a. Wages and prices
b. Money supply, credit, and interest rates a. Environmental factors
c. Government expenditures and taxation → (the b. Social factors
answer is in the question already); these govt c. Cultural conditions
policies influence the economy d. All of the above
d. Investments

279 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 280 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

RATIONALE
92. Economic development is shaped not only by
economic factors but also: a. Environmental factors → e.g., natural disasters often
disrupt economic dev’t
a. Environmental factors b. Social factors → e.g., how gender issues play a role in
b. Social factors the labor force
c. Cultural conditions c. Cultural conditions → e.g., how social trust leads to
d. All of the above higher rates of trade
d. All of the above

281 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 282 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

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93. This economic decision addresses the tendency 93. This economic decision addresses the tendency
of overpopulation. of overpopulation.

a. How to produce? a. How to produce?

b. For whom to produce? b. For whom to produce?
c. How much to produce? c. How much to produce?
d. When to produce? d. When to produce?

283 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 284 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

RATIONALE
94. Which of the following does not support and complement our
definition of a market?
a. How to produce? → the MANNER of producing
something a. A place where buyers and sellers meet to exchange goods and
services
b. For whom to produce? → the TARGET INDIVIDUALS/
b. Buyers and sellers may use telephones, mails, and other
GROUPS of producing something communication facilities to transact
c. How much to produce? → the AMOUNT to produce c. A market has three elements: buyers, sellers, and consumers
d. When to produce? → the TIME to produce d. In order for a market transaction to be completed, both buyer
and seller must agree at a particular price.

285 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 286 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

RATIONALE
94. Which of the following does not support and complement our
definition of a market? a. A place where buyers and sellers meet to exchange goods and services
a. A place where buyers and sellers meet to exchange goods and b. Buyers and sellers may use telephones, mails, and other communication
services facilities to transact
b. Buyers and sellers may use telephones, mails, and other c. A market has three elements: buyers, sellers, and consumers →
market has 4 elements (4Ps): product, price, place, and promotion
communication facilities to transact
d. In order for a market transaction to be completed, both buyer and seller
c. A market has three elements: buyers, sellers, and consumers must agree at a particular price.
d. In order for a market transaction to be completed, both buyer and
seller must agree at a particular price.

287 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 288 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

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95. Economic concepts illustrated in production 95. Economic concepts illustrated in production
possibilities frontier, except: possibilities frontier, except:

a. Trade-off a. Trade-off
b. Distribution b. Distribution
c. Scarcity c. Scarcity
d. Economic growth d. Economic growth

289 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 290 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

RATIONALE
96. GNP/GDP excludes non-productive transactions
a. Trade-off → the entity has to choose such as firm’s:
between guns and butter
b. Distribution → it shows various
combinations of amounts of guns and a. Second hand sales
butters given finite resources
c. Scarcity → it is impossible to produce
b. Purely financial transactions
at point X c. Both A and B
d. Economic growth → production d. Neither A and B
possibilities frontier does not
describe economic growth

291 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 292 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

RATIONALE
96. GNP/GDP excludes non-productive transactions
such as firm’s:
a. Second hand sales → excluded in GNP/GDP
a. Second hand sales computation to avoid double counting
b. Purely financial transactions b. Purely financial transactions → excluded since they do
c. Both A and B not involve production.
d. Neither A and B c. Both A and B
d. Neither A and B

293 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 294 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

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97. He is considered as the father of economics 97. He is considered as the father of economics

a. Adam Smith a. Adam Smith

b. Karl Marx b. Karl Marx
c. John Maynard Keynes c. John Maynard Keynes
d. David Ricardo d. David Ricardo

295 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 296 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

RATIONALE
98. Advantages are felt when there is an occurrence
a. Adam Smith →father of modern economics; laissez-faire of economic growth, except:
economic policies; invisible hands; free market
b. Karl Marx → marxism, struggle between social classes a. Higher standard of living
c. John Maynard Keynes → Keynesian economics; role of b. Fiscal dividend
government on economy
c. Growth and business confidence
d. David Ricardo → law of diminishing returns
d. Inflation risk

297 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 298 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

RATIONALE
98. Advantages are felt when there is an occurrence
of economic growth, except: a. Higher standard of living → needs and wants are met in a
better way
a. Higher standard of living b. Fiscal dividend → more profits to its shareholders
b. Fiscal dividend c. Growth and business confidence → encourages to establish
c. Growth and business confidence even more businesses
d. Inflation risk → inflation can be high even during
d. Inflation risk
economic depression (e.g., current Venezuelan crisis)

299 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 300 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

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99. This government agency is in charge to promote 99. This government agency is in charge to promote
the viability and growth of cooperatives. the viability and growth of cooperatives.

a. SEC a. SEC
b. DTI b. DTI
c. PCIC c. PCIC
d. CDA d. CDA

301 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 302 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

RATIONALE
100. Grant of immunity to particular persons or
a. SEC → Securities and Exchange Commission;
corporations from a tax which they are obliged
supervision of all business entities to pay
b. DTI → Dept. of Trade and Industry; for consumer affairs a. Tax exemption
c. PCIC → Phil. Crop Insurance Corporation; crop b. Tax avoidance
insurance c. Tax amnesty
d. CDA → Cooperative Development Authority d. Tax evasion

303 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 304 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

RATIONALE
100. Grant of immunity to particular persons or
corporations from a tax which they are obliged a. Tax exemption → immunity from tax obligations
to pay b. Tax avoidance → legal methods to minimize amount of income
tax
a. Tax exemption c. Tax amnesty → limited-time opportunity to pay a defined
b. Tax avoidance amount in exchange of forgiveness of a tax liability
c. Tax amnesty d. Tax evasion → illegal non-payment/underpayment of tax
d. Tax evasion

305 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING 306 UPSTEP REVIEW CENTER : AG. ECON & MARKETING - FINAL COACHING

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