1. Study of the various agencies and business structure which perform the marketing process?

• Functional Approach
• Institutional Approach
• Commodity Approach
• Structure-conduct-performance Approach

2. What is the primary goal of agricultural economics?

• To maximize agricultural production
• To allocate resources efficiently
• To increase agricultural exports
• To promote organic farming

3. Which marketing function involves the physical movement of goods from the producer to the consumer?

• Buying
• Selling
• Transportation
• Storage

4. What is the main advantage of crop rotation in agriculture?

• It increases soil fertility
• It reduces the need for irrigation
• It improves crop flavor
• It enhances mechanization

5. Which economic concept explains the relationship between supply, demand, and price in the market?

• Elasticity
• Opportunity cost
• Market equilibrium
• Comparative advantage

6. What is the role of government subsidies in agriculture?

• To increase food prices
• To support farmers’ income
• To reduce agricultural imports
• To encourage urbanization

7. In which type of market structure do many sellers offer differentiated products?

• Perfect competition
• Monopoly
• Monopolistic competition
• Oligopoly

8. Which pricing strategy involves setting a low price to enter a competitive market and then gradually increasing it?

• Skimming pricing
• Penetration pricing
• Cost-plus pricing
• Dynamic pricing

9. What is the primary function of agricultural cooperatives?

• To maximize individual profits
• To reduce competition
• To enhance collective bargaining power
• To increase government regulation

10. Which financial instrument is commonly used by farmers to hedge against price fluctuations in the agricultural market?

• Stocks
• Bonds
• Futures contracts
• Mutual funds

11. What does GDP stand for in economics?

• Gross Domestic Product
• Gross Development Policy
• General Domestic Policy
• Gross Development Product

12. Which term refers to the cost of the next best alternative that is foregone when a decision is made?

• Opportunity cost
• Sunk cost
• Fixed cost
• Variable cost

13. Which factor does not directly influence the supply of agricultural products?

• Weather conditions
• Market price
• Consumer preferences
• Government policies

14. What is the concept of ‘economies of scale’ in agricultural production?

• Increasing average costs with increased output
• Decreasing average costs with increased output
• Constant average costs regardless of output
• Decreasing total costs with increased output

15. What is the role of a marketing board in the agricultural sector?

• To regulate prices and supply
• To provide technical assistance
• To offer credit facilities
• To conduct agricultural research

16. Which type of elasticity measures how the quantity demanded of a good responds to a change in income?

• Price elasticity of demand
• Cross elasticity of demand
• Income elasticity of demand
• Supply elasticity

17. What is ‘agribusiness’?

• The business of agricultural production and services
• Government policy on agriculture
• Agricultural research and development
• Farming techniques and methods

18. Which type of utility is created when products are made available to the area wherethey are most wanted?

• Time
• Form
• Place
• Possession

19. What does the term ‘food security’ mean?

• Access to sufficient, safe, and nutritious food
• Protection of food from contamination
• Insurance coverage for food products
• Government control over food prices

20. Which crop is most commonly associated with the term ‘cash crop’?

• Wheat
• Corn
• Rice
• Cotton

21. What is ‘sustainable agriculture’?

• Agriculture that maximizes yield at any cost
• Agriculture that meets current needs without compromising future generations
• Organic farming methods
• Intensive farming practices

22. Which factor is not considered in the calculation of GDP?

• Consumption
• Investment
• Government spending
• Environmental sustainability

23. What is the primary purpose of agricultural marketing?

• To sell products at the highest possible price
• To create a balance between demand and supply
• To reduce agricultural imports
• To promote exports

24. What is ‘agricultural extension’?

• Expanding farm sizes
• Training and advising farmers on best practices
• Developing new crop varieties
• Exporting agricultural products

25. Which economic principle is described by ‘more of a good will be bought at a lower price than at a higher price, all other things being equal’?

• Law of Supply
• Law of Demand
• Law of Diminishing Returns
• Law of Comparative Advantage

26. Which term describes the situation where a small change in price results in a large change in the quantity demanded?

• Inelastic demand
• Elastic demand
• Unit elastic demand
• Perfectly inelastic demand

27. Which marketing channel involves the sale of agricultural products directly from farmers to consumers without intermediaries?

• Wholesalers
• Retailers
• Farmers’ markets
• Export markets

28. Which concept in agricultural economics involves reducing the costs per unit of output by increasing the level of production?

• Marginal cost
• Average cost
• Economies of scale
• Diseconomies of scale

29. What is the primary focus of ‘agrarian reform’?

• Industrialization of agriculture
• Redistribution of land to the landless
• Expansion of agricultural exports
• Development of new agricultural technologies

30. What is the significance of ‘price elasticity of supply’ in agriculture?

• It measures the responsiveness of quantity supplied to a change in price
• It measures the responsiveness of quantity demanded to a change in price
• It indicates the cost of production
• It shows the profitability of farming

31. Which economic theory explains why countries engage in trade based on their ability to produce goods more efficiently?

• Absolute advantage
• Comparative advantage
• Competitive advantage
• Advantage theory

32. What is the main function of a ‘marketing mix’ in agriculture?

• To regulate production processes
• To balance supply and demand
• To determine product pricing, placement, promotion, and distribution
• To promote agricultural research

33. Which term refers to the ability of a market to allocate resources efficiently?

• Market failure
• Market equilibrium
• Market efficiency
• Market saturation

34. Which financial tool allows farmers to lock in a price for their crops before harvest?

• Loans
• Futures contracts
• Insurance policies
• Grants

35. What is ‘vertical integration’ in the context of agricultural businesses?

• Merging with competitors
• Expanding into new markets
• Controlling multiple stages of production and distribution
• Increasing product variety

36. Which type of farming focuses on producing crops and livestock for direct sale to consumers, often emphasizing quality and sustainability?

• Industrial farming
• Subsistence farming
• Organic farming
• Conventional farming

37. What is the primary benefit of diversification in agricultural production?

• Increasing yield of a single crop
• Reducing financial risk
• Lowering production costs
• Simplifying farm management

38. Which term describes a market condition where a few large firms dominate the industry?

• Monopoly
• Oligopoly
• Perfect competition
• Monopolistic competition

39. What is the primary objective of ‘farm management’?

• Maximizing production at any cost
• Balancing resources to achieve sustainable profitability
• Reducing labor costs
• Increasing farm size

40. Which term refers to the benefits or satisfaction gained from consuming a good or service?

• Utility
• Profit
• Revenue
• Cost

41. What is ‘price discrimination’?

• Charging different prices for the same product in different markets
• Offering discounts to loyal customers
• Charging the same price for different products
• Setting prices based on production costs

42. What does ‘input-output analysis’ in agriculture study?

• The relationship between different inputs and outputs in production
• The effect of agricultural policies on production
• The financial performance of farms
• The environmental impact of farming

43. What is the primary goal of ‘rural development’?

• Urbanization of rural areas
• Diversification of rural economies
• Maximization of agricultural production
• Protection of natural resources

44. Which factor is not typically included in the calculation of a farm’s gross income?

• Sales of crops and livestock
• Government subsidies
• Operating expenses
• Rental income from farm property

45. What is the significance of ‘value-added’ agriculture?

• Increasing the physical output of farms
• Enhancing the economic value of agricultural products
• Reducing the cost of agricultural inputs
• Expanding agricultural land

46. Which term refers to the financial support provided by the government to farmers to help stabilize their incomes?

• Taxes
• Subsidies
• Tariffs
• Grants

47. What is the primary function of ‘crop insurance’?

• To increase crop yields
• To protect farmers against loss of income due to crop failure
• To provide loans for purchasing seeds
• To support research in crop production

48. Which of the following is considered as the point of consumption?

• Point of transaction
• Point of transportation
• Point of last sale
• Point of no return

49. What is ‘organic farming’?

• Using genetically modified organisms for higher yields
• Relying on synthetic chemicals for pest control
• Avoiding synthetic inputs and emphasizing natural processes
• Implementing high-tech solutions for farming

50. What is the primary purpose of ‘rural credit’?

• To buy urban properties
• To finance agricultural activities and rural development
• To support industrialization in rural areas
• To promote tourism in rural areas