1. This a result of the increase in the prices of production process inputs.

a. demand-pull inflation

d. less supply inflaton

b. cost-push inflation

c. built-in inflation

2. This uses constant base-year prices to place a value on the economy's production of goods and services.

c. real interest rate

a. nominal GDP

b. real GDP

d. nominal interest rate

3. What type of inflation occurs when the overall demand for goods and services in an economy increases more rapidly than the economy's production capacity.

c. built-in inflation

b. cost-push inflation

d. less supply inflaton

a. demand-pull inflation

4. The key factor according to this theory is land because it is a very vital in economic development.

a. Ricardian Growth Model

c. Kaldor Model

b. Harrod-Domar Model

d. Technological Model

5. The business condition is now at its highest level.

a. expansion phase

c. recession phase

b. peak phase

d. trough phase

6. It is the recovery period wherein businesses, trying to recover from the bad experience of depression, now start to move up.

c. recession phase

d. trough phase

b. peak phase

a. expansion phase

7. An artificial being created by operation of law, having the right of succession and the powers and properties expressly authorized by law or incident to its existence.

a. single proprietorship

d. cooperative

b, partnership

c. corporation

8. One of the four canons of taxation which states that the tax to be levied must be just enough to sustain the government and its function.

d. economy

a. equity

b. certainty

c. convenience

9. A tax demanded from one person in the expectation and intention that he should indemnify himself at the expense of another.

c. national tax

b. indirect tax

a. direct tax

d. municipal tax

10. This unemployment occurs as a result of people voluntarily changing jobs within an economy.

a. frictional unemployment

b. cyclical unemployment

d. seasonal unemployment

c. structural unemployment

11. It focuses on three measurable dimensions of human development: life expectancy, school enrollment, literacy and income.

b. Gender Related Development Index

c. Gender Empowerment Measure

a. Human Poverty Index

d. Human Development Index

12. Measures the cost of a basket of goods and services bought by firms rather than consumers.

b. gross domestic produuct

a. producer price index

d. GDP deflator

c. consumer price index

13. This policy is used to reduce the money supply by restricting the volume of money banks can lend.

a. expansionary monetary policy

b. contractionary monetary policy

c. expansionary fiscal policy

d. contractionary fiscal policy

14. The unemployment comes about through technological change in the structure of the economy in which labor markets operate.

c. structural unemployment

a. frictional unemployment

d. seasonal unemployment

b. cyclical unemployment

15. Developed by David Ricardo which he postulated that nations should export the goods which they enjoy the greatest advantage and should import the goods which they have the greatest disadvantage.

b. Theory of Population

c. Theory on Comparative Advantage

d. Innovation Theory

a. Classical Theory