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.

1 point

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

16. Defined as an association of two or more persons who bind themselves to put up business and contribute money, property or industry to a common fund.

d. cooperative

b, partnership

c. corporation

a. single proprietorship

17. This theory was developed by John Maynard Keynes. He emphasizes that the cause of unemployment is high wages. There will be more employees if wages are low.

a. Theory on Progress and Poverty

d. Innovation Theory

b. Theory on Comparative Advantage

c. Theory of Employment

18. This measures human poverty in developing countries.

b. Gender Related Development Index

a. Human Poverty Index

c. Gender Empowerment Measure

d. Human Development Index

19. It is a policy that raises taxes and cuts spending.

c. expansionary fiscal policy

d. contractionary fiscal policy

b. contractionary monetary policy

a. expansionary monetary policy

20. This theory states that a free market mechanism rather that an economy run by the government can provide more benefits to the individuals and society.

d. Innovation Theory

a. Classical Theory

c. Theory on Comparative Advantage

b. Theory of Population

21. It is a measure of the overall cost of the goods and services bought by a typical consumer.

c. consumer price index

a. producer price index

d. GDP deflator

b. gross domestic produuct

22. It is a policy to lower unemployment and avoid recession by increasing liquidity and giving banks more money to lend.

c. expansionary fiscal policy

d. contractionary fiscal policy

b. contractionary monetary policy

a. expansionary monetary policy

23. This is design to stimulate the economy, is most often used during a recession, times of high unemployment or other low periods of the business cycle.

b. contractionary monetary policy

d. contractionary fiscal policy

a. expansionary monetary policy

c. expansionary fiscal policy

24. A tax of fixed amount imposed on an individual residing within a specified territory whether a citizen or not.

b. property tax

a. personal tax

d. tariffs

c. excise tax

25. This tax is imposed for the general purpose of the government to raise funds for the governmental needs.

b. regulatory tax

a. revenue tax

c. excise tax

d. ad valorem tax

26. A tax imposed by the national government.

d. municipal tax

a. direct tax

c. national tax

b. indirect tax

27. The key factor of this model is technology.

c. Kaldor Model

d. Technological Model

b. Harrod-Domar Model

a. Ricardian Growth Model

28. It uses current prices to place a value on the economy's production of goods and services.

a. nominal GDP

b. real GDP

d. nominal interest rate

c. real interest rate

29. Refers not only to the steady increase in productive capacities of one economy but, more specifically, to a series of progressive or qualitative changes that occur.

a. economic growth

c. economic efficiency

d. technical growth

b. economic development

30. A measure of the price level calculated as the ratio of nominal GDP to real GDP times 100.

c. consumer price index

a. price

d. GDP deflator

b. gross domestic produuct