25.The philosophy that centered on actions that are considered morally right if they tend to promote happiness for all A. Marginalism 8. Economic freedom C. Utilita rianism D. Ethics 26.He argued that happiness is the sole basis of morality A. Jeremy Bentham B. John Stuart Mill C. William Jevons D. Carl Manger 27.This situation that exists when population growth outruns food production, is described by Maithus as A. Malthusian trap B. Malthusian catastrophe C. starvation D. poverty 28." Adam Smith's basis of international trade is absolute advantage, that of David Ricardo's was based on A. division oflabor B. labor theory of value C. comparative advantage D. marginal rent 29.That portion of the earth which is paid to the landlord for the use of the indestructible powers of the soil was referred to by Ricardo as A. wages B. prot C. rent D. producer surplus 30.The futile attempt to improve the real income of workers since the wage level always returned to the subsistence level A. Iron law of wages B. Bargaining theory of wages C. Law of diminishing returns D. Law of comparative advantage 1. The approach used in the study of economic thought that is of the view that economic Ideas are inuenced by the social, political and economic conditions that prevailed during the lifetime of the thinker] philosopher. A. historical approach 8. absolutist approach C. relativist approach D. competitive approach 2.If the study oi economic thought looks into the evolution of earlier theories and how these have contributed to contemporary economic thinking, this approach is called A. cumulative approach 8. competitive approach C. relativist approach D. none ofthe above 3.Which of the if statements ls true? A. Aristotle believed in private ownership of property 8. Plato believed in communal property C. St. Thomas Aquinas believed in private ownership of property D. all of the above 4.Aristotie's household management consists of the ff associations except A. master-slave association B. husband-wife association C. children and their peer's association D. parents-children association 5. Natural acquisition, as claimed by Aristotle, involves A. acquiring things to satisfy one's wants 8. acquiring things for the joy of acquisition C. acquiring things to accumulate wealth D. all of the above 6.5t Thomas Aquinas allowed usury under the ff conditions excluding A. if lender suffers a delay in the payment of the loan B. if lender intends to gain a profit out of lending C. ifthe lender faces a risk in lending D. if lender suffers a damage upon lending 31.Rent-free land is called by Ricardo as A. scarce land B. fertile land C. superior land D. marginal land 32.Marx's work which sees society as being fundamentally determined by the relationship which people have for each other A. Das Kapital 3. Theory of Historical Materialism C. The Communist Manifesto D. Theory of Alienation 33.In Marx's Historical Materialism, class conicts arose at every level of society, such that in feudalism, this arises from the A. relationship of landowners to serfs 3. relationship of masters to slaves C. relationship of the bourgeosie to the proletariat D. relationship of state managers to workers 34.According to Marx the source of surplus value of surplus value is A. capital B. land C. human labor D. private property 35.Value that is equal to the new value created by workers in excess of their own labor cost A. value in use B. value in exchange C. surplus value of labor D. wages paid to labor 36.The theory developed by Jevons, Menger and Walras, independently of each other, in order to understand and explain consumer behavior A. Law of diminishing returns B. Theory on Marginal Utility C. Theory on Consumer Behavior D. Theory of the Surplus Value of Labor 37.Unlilte Bentham, Jevons asserted that pleasure have two dimensions instead of four A. certainty and intensity 3. certainty and propinquity C. intensity and propinquity D. intensity and duration 38Jevons' Theory of Exchange postulates that exchange between two parties will stop when A. both parties have reached their final and equal levels of satisfaction from the additional units received from the exchange satisfaction from th 8. one of the parties has obtained more benefits from the other C. one of the parties sees that an additional unit of the good is more useful to him D. none of the above 39.Which economic activity was considered as the most important by Jevons] A. consumption 8. production C. resource allocation 0. exchange 40.Which of the ff statements is not true? A. Jevons and Menger both believed that the value ofa good depends upon its utility B. Jevons and Menger believed that utility is not intrinsic in a good C. Jevons and Menger believed in diminishing MU D. Jevons and Manger believed in the labor theory of value 41.The problem of economics, as claimed by Jevons is to A. satisfy wants to the utmost with the least effort B. maximize pleasure C. procure the greatest amount of what is desirable at the expense of the least desirable 0. all of the above 42.It is an abstract quantity whereby an object serves a purpose and is ranked as a commodity (levons' concept) A. value in use B. value in exchange C. commodity D. utility 13. The first attempt at economic modelling 16.Adam Smith's magnum oppus was published in A. Edgeworth's contract curve A. Theory of Moral Sentiments, 1778 B. Quesnay's Tableau Economique B. Political Economy and Taxation, 1779 C. Walrasian General Equilibrium C. An Inquiry Into The Wealth of Nations, 1776 D. Fisher's Equation of Exchange D. Theory on Population, 1781 14.He argued that restrictions on trade to promote 17. The invisible hand that guides people into specie accumulation is counterproductive making decisions that was best for them A. self-interest A. John Sturat Mill B. capital accumulation B. Jeremy Bentham C. specialization C. David Hume D. natural price of a good D. Robert Malthus 18.Adam Smith divided society into three orders , 15. The mechanism that operates when a trade each receiving a specific income, which includes the deficit is automatically turned into a trade surplus ff except A. wages are paid to the working class A. pricing mechanism B. profits accrued to capitalists B. market mechanism C. profits accrued to the entrepreneur C. invisible hand D. by the landlordrent was collected D. price-specie flow mechanism61.If the market rate of interest is greater than the 64. The equation of exchange stipulates that if V natural rate of interest (Wicksell's concept) and T are constant, A. price decreases A. M is directly proportional to P price increases B. M is inversely proportional to P C. prices do not change C. M is directly proportional to T D. prices fluctuate erratically D. P is directly proportional to V 62. Wicksell asserts that when the natural rate of interest is higher than the market rate of interest 65. The equation of exchange implies that A. if M is tripled , the general price level is also tripled as does the value of money . negative equilibrium results B. if M is tripled , P is tripled, 1/p is reduced by B. positive equilibrium results a third C. general equilibrium occurs C. if P is doubled, M is also doubled D. excess demand for goods results D. if P is halved, M is also halved 63.He is best known for the "equation of exchange" 66. The father of macroeconomics A. Irving Fisher A. Milton Friedman B. Knut Wicksell B. John Maynard Keynes C. Milton Friedman C. Paul Samuelson D. Alfred Marshall D. Alfred Marshall49.A line that connects all points of tangencies of 52.Who believed in the importance of consumption the indifference curves of two trading nations and needs and wants? A. indifference map A. Jevons, Menger and Marshall B. contract curve B. Jevons and Menger C. demand curve C. Marshall and Jevons D. production possibilities curve D. Jevons 50.Edgeworth analyzed utility using the 53. This firm is described by Marshall as that which has had a fairly successful operation and A. cardinal approach management during its fairly long life B. ordinal approach A. model firm C. demand and supply approach B. largest firm D. general equilibrium approach C. innovating firm 51. This curve is a locus of points showing different combinations of two goods that give the same level of utility to the consumer D. representative firm A. Pareto optimum 54.He started the Neo-classical school of thought B. demand curve A. Adam Smith C. indifference curve B. David Ricardo D. production possibilities curve C. John Maynard Keynes D. Alfred Marshall19.Laissez- faire allowed state intervention on the ff 22. The French economist who is famous for his law except that on of markets A. attainment of economic growth A. Louis XIV B. maintenance of peace and order B. Francois Quesnay C. provision of national defense C. Leon Walras D. administration of justice D. Jean Baptiste Say 20.Which was not considered by Malthus as a 23.He provided the foundations for Utilitarianism preventive check to population growth? A. John Stuart Mill A. delayed marriage B. Jeremy Bentham B. restricting marriage of poor people C. David Hume C. starvation D. William Stanley Jevons D. abstinence from sexual intercourse 21. These laws banned the importation of grains 24. The algebraic summation of pleasure and pain into the United Kingdom during the classical period stemming from a set of actions A. Corn Laws A. Felicific calculus B. Taxation Laws B. Total utility C. Cash Transfers C. Marginal utility D. Poor Laws D. Utilitarianism55.Which of the ft is not a contribution of Alfred Marshall to the study of economics] A. short run and long run periods of production 8. elasticity of demand C. price = value of the good D. marginal rent 56. Marshall claimed that as ageneral rule, the demand for luxuries is A. elastic B. inelastic C. unitary D. zero 57.l-ie is known for his scissor analysis of demand and supply A. Irving Fisher 8. Alfred Marshall C. Milton Friedman D. Adam Smith 58.Eugene Bohm Bawerk beleieved in A. the superiority of present goods to future goods 8. the existence of a positive interest rate C. the roundabout process D. all of the above 59.Which of the ff is true of Bawerlt's concept of a positive interest rate? A. the MU of income declines overtime B. the MU of additional units of a good diminishes C. the MU of money increases as more of it is acquired D. all of the above 60.The difference between the natural rate of interest and the market rate of interest A. economic prot B. Wicksell's differential C. consumer su rplus D. return on capital 7.The pre-classical period of economic thought includes ideas of economic thinkers except that of A. the ancient Greeks and Romans 8. the scholastics led by St Thomas Aquinas C. the mercantilists led by Thomas Munn D. David Ricardo's 8.Which of the ff about mercantilist thinking is true? A. more gold means a stronger army and navy B. more gold means more money in circulation C. more gold means more employment and output D. all of the above 9.The physiocrats believed in the ff except A. agricultural surplus is important for the economy to expand B. the proprietary class is the productive class C. artisans and merchants are sterile D. the farmer is the producer in the economy 10.The physiocrats government regulation of economic activities while the mercantilists state intervention A. opposed, favored B. favored, opposed C. opposed, op posed D. favored, favored 11.Which is not a part of the indestructible power of the soil? ( Ricardo's concept) A. climatic conditions B. rental price of land C. fertility ofthe soil D. mineral deposits 12.Which is not true of the landlord based on the Tableau Economique? A. he is purely a consumer 3. he is the mechanism through which food is exchanged for foreign imports C. he is the prime mover of economic activity D. he redistributes land rent to the other classes in the economy 43.Which of the ff is not true about Jevons' theory of utility? A. the utiltiy of each additional unit of a good becomes lesser and lesser to the consumer B. total utility of each additional unit decreases C. utility is measured by the addition made to a person's happiness D. none of the above \"According to Manger an economic good is A. one that is scarce, has value, and commands a price in the market B. one that is free and has a zero price C. one that can satisfy a need D. none of the above 45.The needs of man, as Menger claims, A. vary in importance of satisfaction B. vary in different quantities C. vary in equal amounts D. vary in the amount of pleasure or pain given to the consumer 46.Menger's theory of value rests upon A. the amount of pleasure that a consumer gets out of a good B. the sum of pleasure and pain experienced by an individual C. the level of importance of the good to the consumer D. the price at which the good is sold 47.Leon Walras believed that A. equilibrium exists simultaneously in all markets B. there is neither excess demand or excess supply in the market C. excess supply must be met with an excess demand in another market D. all ofthe above 48.He introduced the use of indifference curves to illustrate consumer behavior A. Knut Wicksell B. Alfred Marshall C. Francis Edgeworth D. John Maynard Keynes 67.This school of thought leans towards state 70.Who focused on the analysis of public goods? intervention in economic activities vis-a-vis fiscal Immersive Reader policy A. Keynesianism A. Paul Samuelson B. Neo-classicism B. Milton Friedman C. Monetarism C. John Maynard Keynes D. Marginalism D. Francis Edgeworth 68.According to Keynes, which of the ff does not depend upon the level of total spending in the economy? A. level of national output B. level of employment C. level of national income D. level of consumer preferences 69."There is no such thing as a free lunch", a famous quote in economics, is attributed to A. Milton Friedman B. John Maynard Keynes C. Paul Samuelson D. Paul Krugman