Which of the following can cause a decrease in supply of agricultural output, leading to a decrease in total economic surplus (TES)?

• A) Favorable weather conditions
• B) Technological advancements
• C) Drought
• D) Increase in consumer demand

Profit-maximizing firms may consider expanding their operations in the long run if:

• A) Achieving abnormal profits in the short run.
• B) Operating under decreasing returns to scale.
• C) Facing abnormal losses in the short run.
• D) Experiencing decreased market demand.

In imperfect competition, the extent of barriers to entry or exit the market depends on:

• A) Product differentiation
• B) Free mobility of resources
• C) Economic environment
• D) Number of sellers and buyers in the market

Which of the following market situation occurs when Market Demand is greater than Market Supply in the market for agricultural commodities?

• A) Price and quantity remains constant
• B) The market is in equilibrium
• C) There is a surplus of commodities
• D) There is a shortage of commodities

The long-run advantage of adjusting capital use allows a firm to:

• A) Expand capital use limitlessly
• B) Maximize variable capital costs
• C) Incur fixed capital costs
• D) Avoid capital adjustments

The supply of agricultural output in the very short run is:

• A) Imperfectly elastic
• B) Perfectly inelastic
• C) Perfectly elastic
• D) Unit elastic

In the long run, a competitive firm aims to produce at the point where:

• A) Long-run marginal cost is maximized.
• B) Short-run marginal cost equals market price.
• C) Short-run average cost is minimized.
• D) Long-run price equals long-run marginal cost.

The term used for a market with few sellers, where each firm produces a large fraction of the industry’s output is:

• A) Monopsony
• B) Monopoly
• C) Perfectly competitive market
• D) Oligopoly

Legislative acts in the agricultural sector aim to:

• A) Impose taxes on agricultural exports
• B) Reduce subsidies on farming inputs
• C) Improve the income of farmers
• D) Allow free market operations without regulation

Which of the following market structures describes a situation where many firms are buying resources with the capacity of differentiating services?

• A) Perfect competition
• B) Monopsony
• C) Monopsonistic competition
• D) Oligopsony

In a market structure of monopolistic competition, products are:

• A) Sold by one seller
• B) Differentiated
• C) Restricted by high entry barriers
• D) Homogeneous

Imposing a ceiling price on a monopoly results in:

• A) No change in output and profits
• B) Increased profits and reduced output
• C) Decreased demand and increased prices
• D) Increased output and reduced profits

In economics, which of the following represents economic surplus?

• A) Difference between producer willingness to accept and actual payment received
• B) Difference between consumer willingness to pay and actual payment made
• C) Sum of consumer surplus and producer surplus
• D) Rent generated by marginal land

What challenge do farmers face that those legislative acts in the sugar industry address?

• A) Delayed payments and low prices for sugarcane
• B) High operational costs of sugar mills
• C) Overproduction of sugarcane
• D) Excessive government interference

Which of the following is NOT a governmental measure mentioned to reduce the adverse effects of imperfect competition?

• A) Institution of maximum prices for outputs
• B) Legislative acts
• C) Providing low-interest loans to businesses
• D) Fixing minimum prices

Which dualistic development model emphasizes urban unemployment despite migration?

• A) Fei-Ranis Model
• B) Lewis Model
• C) Ranis-Fei Model
• D) Harris-Todaro Model

Which of the following is NOT a characteristic of a market under perfect competition?

• A) Many sellers
• B) Ability to set the market price
• C) No restriction on entry and exit
• D) No long-run economic profits

In a market with perfect competition both in buying and selling, the profit-maximizing point of input usage is determined based on the intersection of:

• A) Marginal value product and supply curve
• B) Marginal revenue product and marginal input cost
• C) Marginal revenue product and supply curve
• D) Demand curve and supply curve

If a firm is producing under imperfect competition where MR = MC and MR is below AVC and P = ATC, then the firm is:

• A) In long run equilibrium
• B) In short run equilibrium
• C) At Breakeven point
• D) Minimizing short run average total cost

According to Adam Smith, the effect of the division of labor on productivity is that it:

• A) Decreases productivity due to over-specialization
• B) Increases productivity through improved skills and time savings
• C) Has no significant effect on productivity
• D) Reduces the need for agricultural surplus