3 The total income of the factors of production in one year or the total factor payments received by citizens in one year.

(A) Gross National Product;

(B) National Income;

(C) Per Capita GNP;

(D)Gross Domestic Product.

4. There are many reasons why a poor country may fail to catch up with a rich neighbor. Which of the following is NOT one of these reasons?

(A) The poor country may have more rapid population growth.

(B) The rich country may have more human capital

(C) The poor country may have a higher saving ratio

(D) The rich country may be more open to the world economy.

5. What is the economic principle which means "other things being equal or constant''?

(A) Ceteris paribus;

(B) Pro reo;

(C) Lex legume;

(D) Empirical method.

6. During slack periods, many workers in farming and construction are laid off. What type of unemployment is being described?

(A) Seasonal unemployment;

(B) Cyclical unemployment;

(C) Structural unemployment;

(D) Frictional unemployment.

7. The introduction of modern machines in agricultural or the use of modern computers in offices may reduce the number of workers. What type of unemployment is being described?

(A) Seasonal unemployment;

(B) Cyclical unemployment;

(C) Structural unemployment;

(D) Frictional unemployment.

8. Ten (10) percent of the population of the Republic of Saging was unemployed because they were sick, left their jobs because of dissatisfaction and old age. Based on the facts cited, the Republic of Banana has a full employment?

(A) It be must have one hundred percent of employment;

(B) Yes, if there is available job for every person who is willing and able to work;

(C) Yes, because the ten percent was indolent;

(D) No, some people are sick.

9. This deals with economic behavior of individual units such as consumers, firms and the owners of the factors of production.

(A) Microeconomics

(B) Macroeconomics

(C) Elasticity

(D) Economic Systems

10. The schedule of various quantities of commodities which buyers are willing and able to purchase at a given price, time and place

(A) Demand

(B) Supply

(C) Income

(D) Population

11. What is a determinant of supply elasticity?

(A) Number of good substitutes

(B) Price increase in proportion to income

(C) Importance of the product to the consumers

(D) Time

12. Which is NOT included in the income approach?

(A) Wages

(B) Rents

(C) Interests

(D) Gross national Product

13. Economics derive from the word "oikonomos.". What is the meaning of the aforesaid word?

(A) Management of the government

(B) Household management

(C) Circulation of money

(D) Money

14. What is the price elasticity of demand measure?

(A) The responsiveness of quantity demanded to a change in price

(B) How far a demand curve shifts

(C) A change in price;

(D) A change in quantity demanded

15. What is meant by the term final goods and services?

(A) Intermediate goods and services;

(B) Consumer goods and services;

(C) All goods and services except those traded second hand

(D) Goods and services which are finished as far as the economy is concerned

16. It is tangible and measurable in terms of the number of buildings, houses, schools, cars, hospital, factories, or machines made in a given year.

(A) Abundance

(B) Growth

(C) Stability

(D) Security

17. What is the firm that is characterized by a single seller and many buyers of a homogeneous product for which there are no close substitutes and barriers to long-run resource mobility?

(A) a monopolist

(B) an oligopolist

(C) a perfect competitor

a monopolistic competitor?

18. Is Money a factor of production?

(A) Yes, it enables that a person or firm to buy or attract all four factors of production

(B) Yes, it is a means of acquiring wealth and a way of measuring wealth

(C) No, is a means to acquire factors of production and is also a measure of wealth, it is not in itself a factor of production;

(D) None of the above

19. The equilibrium point is the level where the demand and supply curves intersect.

True

False

20. A mango fruit with an elastic demand gets more sales when its price drops slightly. When its price goes up, it stays longer in the box.

True

False

21. The demand curve shows how quantity demanded for apple responds to price changes. The flatter the curve, the more elastic is the demand for an apple.

True

False

22. It is a state in the economy where there is a balance between price, quantity demand and quantity supplied

(A) Shortage

(B) Surplus

(C) Equilibrium

(D) Price Ceiling

23. Which of the following statements is FALSE?

(A) GDP measures the value of all the goods and services produced in the economy.

(B) GDP stands for gross domestic product.

(C) GDP excludes intermediate goods and services.

(D) Y = C+I+ (X-M)

24. Which of the following statements about factors of production is FALSE?

(A) The term 'factors of production' is another term for resources

(B) The factor of production termed labor means human resources

(C) The factor or production termed land means natural resources

(D) The factor of production termed capital means the money which the owners of firms need in order to set their firms up.

25. Which of the following statements about the use of resources is not one of the key questions in economics?

(A) How are resources used?

(B) Where are resources used?

(C) For what are resources used?

(D) For whom are resources used?

26. Which of the following statements is true?

(A) Despite the problem of scarcity, people do not always want producers to use the most efficient production methods.

(B) The problem of scarcity would disappear if the world's population grew to ensure more labour was available.

(C) A producer who uses no more resources than it needs must display productive efficiency.

(D) The world's economies were as integrated 50 years ago as they are today

27. Which of the following does the principle of diminishing marginal utility say about what happens when a consumer consumes more of a product?

(A) The consumer's total utility will be unaffected

(B) The consumer's total utility will diminish

(C) The consumer's marginal utility will diminish

(D) The consumer's marginal utility will become negative

28. Expansion is the saturation point or climax, which is the second stage of the business cycle.

True

False

29. Trough is the depression stage, the economic growth rate turns negative.

True

False

30. Opportunity Cost is the most desirable alternative given up when you make a choice.

True

False