16. The purchasing parity method is exemplified by:

a. cost index for comparable baskets of consumption goods in the local currency and then compares it with the prices in the United Stated for the same sets of goods.

b. comparison of income levels against the prices of commodities among countries

c. cost index for comparable baskets of consumption goods in the local currency versus the currency of another country

d. all of the above

e. none of the above

17. It is the term referring to the surge in the financial market caused by a speculation regarding a commodity which results in an explosion of activity in a market segment resulting in vastly over-inflated prices.

a. fund hedging

b. economic overheating

c. currency devaluation

d. bubble economy

e. none of the above

18. China and India propelled getting out of crisis spell through

a. foreign trade and foreign demand

b. labor export

c. increase production

d. shift of foreign policy adoption

19. With the monetary devaluation of 55% experience by the Philippines in the Asian crisis, this is a situation that can already be categorized as:

a. depression

b. crisis

c. meltdown

d. recession

20. They are people who make use of analytical tools and methods developed in a variety of other branches of economics, such as growth theory, macro and microeconomics, labor, industrial organization, international trade, fiscal and monetary policies.

a. development economist

b. researchers

c. economic managers

d. world economist

21. To lessen the currency mobility and its liquidity, what policy is needed to be looked at?

a. fiscal

b. monetary

c. foreign exchange

d. taxes policy

22. Changes in land tenure did not really help in the improvement of agricultural productivity according to the microeconomics of Asian agriculture. The reason for this is that:

a. farm sizes are small

b. disincentives of farmers

c. poor land distribution

d. countries focused on industrial development

e. government lack proper management

23. One of the principal factors contributory to the Asian growth miracle is labor market flexibility. A flexible labor market exists under that following condition

a. Labor markets are subject to strict regulations

b. There are fewer rules and regulations in term wages, hiring policies, and work hours.

c. Strict enforcement of rules governing labor union

d. all of the above

e. none of the above

24. When mobility is always geared towards rural, this is called

a. reverse migration

b. forward migration

c. growth migration

d. localized migration

25. In what aspect is Paul more aptly advantage than Juan?

a. real income

b. nominal income

c. relative income

d. spending discipline

26. ________________ are positive or negative consequences of economic activities experienced by unrelated third parties. They can arise either on the production or on the consumption side. In most cases, externalities result in market failure that only be avoided by imposing some kind of regulation internalize them

a. input

b. output

c. externalities

d. mixture of other economic resources

27. The measurements can be dictated by the value of goods, services, produced by a country's, both domestically and abroad.

a. market value for price

b. consumers authority

c. Gross domestic product

d. Gross national product

28. Scourge poverty is categorized as a ___________ setback

a. social

b. cultural

c. political

d. economic

29. When the consumers predict that the supply of a basic commodity will run out:

a. There will be an outward shift in the demand curve and a decrease in equilibrium price

b. There will be an inward shift in the demand curve and a decrease in the equilibrium price

c. There will be an outward shift in the demand curve and an increase in the equilibrium price

d. There will be an outward shift in the demand curve without any impact on the equilibrium price

e. all of the above

30. When you try to put your money where you expect to earn in the near future is an example of

a. permanent investment

b. speculative investment

c. foreign exchange rate

d. high value purchases