1.
A farmer studies weather forecasts and future market demand before deciding what crops to
plant next season. Which farm management process is mainly applied?
A. Planning
B. Forecasting
C. Recording
D. Control
2. A farm plan clearly aligns daily operations with long-term goals such as land expansion and
mechanization. Which quality of a good plan does this reflect?
A. Time-bounded
B. Flexible
C. Consistent objectives
D. Feasible
3. After harvest, a farmer compares actual yield with the planned yield and finds a shortage. He
then adjusts his farming practices. Which step of the control process is this?
A. Establishing standards
B. Measuring performance
C. Comparing performance
D. Taking corrective action
4. A farmer hires more workers and output continues to increase, but each new worker adds less
output than the previous one. This situation demonstrates:
A. Economies of scale
B. Law of diminishing returns
C. Increasing efficiency
D. Resource abundance
5. A farm manager keeps detailed records of expenses, labor use, and production to guide future
decisions. Which farm management process is being emphasized?
A. Planning
B. Forecasting
C. Recording
D. Control
6. A farmer chooses crops based on market demand rather than personal preference to ensure
profitability. This shows the farm is viewed as a:
A. Household unit
B. Consuming unit
C. Social enterprise
D. Profit-oriented firm
7. A short-term loan is used to purchase seeds and fertilizers for the upcoming planting season.
This type of financing is best described as:
A. Low-interest and long-term
B. Short-term and costly
C. Long-term and flexible
D. Risk-free financing
8. A farmer installs a cold storage facility to delay selling vegetables until prices improve. Which
marketing function is involved?
A. Exchange function
B. Physical function
C. Pricing function
D. Facilitating function
9. A farm manager focuses on maximizing profit rather than just increasing total production.
This best defines the role of:
A. Agronomy
B. Farm production
C. Farm management
D. Agricultural science
10. A farmer divides total farm output by the number of workers used to evaluate labor
efficiency. What is he measuring?
A. Total Physical Product
B. Marginal Physical Product
C. Average Physical Product
D. Fixed Input Ratio
11. A farmer monitors price trends and demand before deciding the best time to sell his harvest.
This activity belongs to which marketing function?
A. Physical
B. Exchange
C. Facilitating
D. Processing
12. A farm manager accepts the possibility of loss due to unpredictable weather while still
making production decisions. This responsibility is known as:
A. Planning
B. Risk-bearing
C. Financing
D. Controlling 9
13. A farmer adjusts crop choices after noticing changes in climate conditions. Which quality of
a good farm plan does this show?
A. Attainable
B. Flexible
C. Realistic
D. Time-bounded
14. A farm manager compares actual farm activities with planned standards to ensure objectives
are met. Which farm management process is applied?
A. Planning
B. Recording
C. Forecasting
D. Control
15. A farmer decides how much labor and capital to use to avoid unnecessary costs while
maintaining output. This decision falls under which decision-making area?
A. Marketing
B. Financing
C. Production
D. Risk-bearing
16. A farmer sells crops at the point where production is first marketed before any processing or
distribution. This point is called the:
A. Consumer’s gate
B. Retail point
C. Market center
D. Farmer’s gate
17. A farm manager schedules daily, weekly, and monthly activities to improve efficiency. This
is an example of:
A. Forecasting
B. Periodic planning
C. Control
D. Recording
18. A farmer borrows money to purchase farm machinery that will be used for several years.
Which type of financing is appropriate?
A. Short-term financing
B. Emergency financing
C. Long-term financing
D. Seasonal financing
19. A farm manager gathers market research and price information before expanding production.
Which marketing function does this belong to?
A. Exchange
B. Physical
C. Processing
D. Facilitating
20. A farmer evaluates whether a new farming method is technically, financially, and
economically possible before adopting it. Which quality of a good plan is being assessed?
A. Attainable
B. Flexible
C. Feasible
D. Time-bounded 10
Answer Key
1. B – Forecasting
2. C – Consistent objectives
3. D – Taking corrective action
4. B – Law of diminishing returns
5. C – Recording
6. D – Profit-oriented firm
7. B – Short-term and costly
8. B – Physical function
9. C – Farm management
10. C – Average Physical Product
11. C – Facilitating
12. B – Risk-bearing
13. B – Flexible
14. D – Control
15. C – Production
16. D – Farmer’s gate
17. B – Periodic planning
18. C – Long-term financing
19. D – Facilitating
20. C – Feasible
