I. MULTIPLE CHOICE: Choose the correct answer. (1 point each) 1. The Income Approach to Calculating GDP includes... a. All spending on final products in the year b. All Income made from selling all final goods c. All costs on all products d. The number of people involved in production. 2. GDP = C+ 1 + G (X-M) + Net factor income earned where: C= consumption; G= Gov't expenditure; I= Investment; and X-M = Net exports The formula above is an example of which approach? a. Value Added Approach b. Expenditure Approach C. Income Approach d. All the above. 3. What happens to the equilibrium price and quantity of inferior goods when incomes fall? a. P and Q both decrease b. P and Q both increase c. P increases and Q decreases d. P decreases and Q increasesAshley's Demand Curve Market Demand Curve 6.00 6.00 5.00 5.00 4.00 3.00 Price per slice (in dollars) Price per slice (in dollars) 3.00 200 2.00 1.00 Demand 1.00 Demand slices of pizza per day 50 100 150 200 250 300 350 Slikes of pizza per day 4. Globally the various food chain operated everywhere. Regarding this, study the demand curves below. If the price of a slice of pizza decreased from $4.00 to $2.00, how would that change the number of slices of pizza demanded each day by the market? a. The demand would increase by 2 slices per day. b. The demand would decrease by 2 slices per day. c. The demand would increase by 100 slices per day. d. The demand would decrease by 100 slices per day. 5. The Cortile company used memory chips, a key component in portable hard drives, which have fallen in price. What happens to the supply of portable hard drives? a. Supply does not change b. Supply shifts to the right c. Supply shifts to the left d. Supply initially shifts to the right and then back to the left 6. In 2018 one of the South Asia country's GNP and GDP can be equal if: a. Domestic-owned businesses do better in the country than domestic-owned businesses outside the country. b. The net value of foreign investments equals 0. C. The value of exports and the value of imports are the same. d. Domestic goods and services are equal to foreign goods and services.10. The quality of labor depends on the human capital of the following, EXCEPT: a. Work experience b. From education c. Technology d. Onthejob training What is scarcity? a. The condition where resources are not enough to meet needs. b. The situation where resources can be renewed. c. The action of collecting resources from nature. d. The activity that allows people to make money. The amount that consumers plan to buy during a particular time, and at a particular price. a. Quantity supply b. Consumer surplus c. Quantity demanded d. Producer surplus The entrepreneur's idea is that when a rise in supply exceeds a rise in demand, they should expect a. the equilibrium price and quantity levels will rise. b. the equilibrium price will rise while the equilibrium quantity will decline. c. The equilibrium price will fall while the equilibrium quantity will rise. d. the equilibrium price and quantity levels will decline. 11. A substitute is a good a. Of higher quality than another good b. That is not used in place of another good c. That can be used in place of another good d. Of lower quality than other good 12. If a country of Philippines experience to decrease in the price of gasoline and an increase in the demand for large cars, then a. gasoline and large cars are complements in consumption b. large cars are an inferior good c. gasoline is an inferior good d. gasoline and large cars are substitutes for consumption 13. Which of the following goods is included in GDP? a. Dresses b. Screws used in a cruise missile c. Flour for making bread d. Cloth for making dresses 14. Mr. Dela Cruz is working in the XYZ company he is suffering severe sickness. Which type of good do people buy less of as their income rises? a. Inferior b. Substitute C. Normal d. Fungible15. Consider the following statements and identify the right ones i. National income is the monetary value of all final goods and services produced. ii. Depreciation is deducted from gross value to get the net value a. l only b. ii only c. both d. none 16. A Filipino entrepreneur is planning to establish a business and he used a proper combination of resources. Regarding this, which among the following is not afactor ofproduction? a. Land b. Labor c. Capital d. Wages 17. Which of the following will cause the demand to move along the demand curve rather than shift it? a. Preferences b. Expectations c. Price d. income 18. The Expenditures Approach of Calculating GDP includes... a. All spending on final products in the year b. All Income made from selling all final goods c. All costs on all products d. The number of people involved in the production 19. Let us say the opportunity cost of a hot dog in terms of hamburgers is a. The price of a hot dog minus the price of a hamburger b. The ratio of the slope of the supply curve for hot dogs to the slope of the supply curve for hamburgers c. The ratio of the slope of the demand curve for hot dogs to the slope of the demand curve for hamburgers d. The ratio of the price of a hot dog to the price of a hamburger 20. The law of demand states that other things remain the same, the higher the price of a good, the a. Smaller is the demand for the good b. Smaller is the quantity of the goods demanded c. Larger is the quantity of the goods demanded d. Larger is the demand for the good21. The value of which work is added in the calculation of GDP? a. Housewives' works b. A teacher teaching his child c. The value of resale of old shares d. Construction of a new house by an artisan 22. An XYZ company conducted its operation for (3) years, a manager noticed that if the total product is at a maximum, then in the circular flow diagram. Which of the following items flows from firms to households through the markets for the factors of production? a. wages, rent, and profit b. land, labor, and capital c. dollars spent on goods and services d. goods and services 23. Consider the following statements and identify the right ones i. While calculating GNP, income generated by foreigners in a country is taken into consideration While calculating GNP, income generated by nationals of a country outside the country is considered a. I only b. ii only C. both d. none24. As an economic concept, scarcity applies to a. neither time nor money b. both money and time c. time but not money d. money but not time 25. Which of the following is NOT a leakage from the circularow ofincame and expenditure? a) Imports b] Government purchases c] Taxes net of government transfers d] Saving 26. A rise in the price of a good causes producers to supply more of the good. This statement is referred to: a. The nature ofan inferior good b. The law of demand c. The law of supply d. A change in supply 27. The law of diminishing marginal returns states that as additional units of the variable input are combined with fixed inputs in the production process, the total product a. Decreases by larger and larger amounts b. Decreases by smaller and smaller amounts c. Remains constant d. Increases by smaller and smaller amounts 28. Which of the following does NOT enter GDP? a} Pu_b|icservice b] Pu_b|iceducation c] Life expectancy d] National Defense 29. It occurs when there is excess demand that is the quantity demanded is greater than The quantity supplied. a. Market surplus b. Market shortage c. Market equilibrium d. Market segmentation 30. In contrast to private goods, public goods are a. cheap. b. divisible. c. highly valued d. indivisible. 31. Which of the following best describes a trodeo? a. An office executive enrolling in a management course to develop her skills b. An investor buying stocks of a startup company c. A businessman investing a portion of company profits in research and development d. A college student sacrifices a few hours of study time to work at the town cafeteria. 32. Economists distinguish between two types of statements: What ispositive statements and What ought to benormative statements? Thus, positive statements are described as: a. Cannot be tested b. Experiment c. Tested by checking against facts d. Research of information and detailsl 33. Refer to the graph shown in BUVE. When the price is P1, consumer surplus is a. A. b. A + B c. A + B + C d. A + B + D 34. Refer to the graph shown. When the price rises from P1 to P2, consumer surplus a. increases by an amount equal toA b. decreases by an amount equal to B + C c. increases by an amount equal to B + C d. decreases by an amount equal to C 35. What should be the most important factor considered when you decide? a. The Tradeoffs b. The Opportunity Cost c. The lost opportunities d. The opinions of others 36. Which of the following statement about opportunity cost is NOT - TRUE? a. The opportunity cost of a given action is equal to the value foregone of all alternative actions. b. Opportunity costs only measure direct out-of-pocket expenditures c. To accurately calculate the opportunity cost of an action, we need to identify the next best alternative to that action. d. Every ofdinary decision we make involves an opportunity cost A P 2 B IC 37. An individual who is engaged in buying goods and services and that he considers some factors. Regarding this, which factors can cause a surplus in the following, EXCEPT: a. High prices IE b. High demand De C. Overproduction Quant d. Recession period mand 38. If a nation Decializ @in activities in which opportunity costs are the lowest and then trades with other nations, it is most likely to: a. Have a higher standard of living for its citizens than it would it if did not specialize and then trade b. Have a lower standard of living for its citizens than it would if it did not specialize and then trade c. Create as much wealth for its citizens as it could if it did not specialize and then trade d. Benefit in the short run but incur a heavy loss in the long run 39. In 2021 there were 200,000 gas grills demanded at a price of Php50,000. In 2001 there were more than 200,000 gas grills are demanded at the same price. This increase could be the result of any of the following EXCEPT a. an increase in the supply of gas grills b. an increase in population C. an increase in income if gas grills are a normal good.40. It determines what is possible to produce. Supply reflects a decision about which technologically feasible items to produce is called. a. Price expectation b. Innovation c. Resource and technology d. Globalization