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APPLIED ECONOMICS > MIDTERMS > Flashcards

MIDTERMS Flashcards

1
Q

when interest rates rise, what typically happens to the opportunity cost of borrowing money?

a. it will also rise
b. it will become stagnant
c. it will now reduce
d. it will remain the same

A

it will also rise

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2
Q

they are the party that offers the product or service for sale in a market

a. buyer
b. marketer
c. pricer
d. sller

A

seller

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3
Q

Under this structure, an individual firm is not a price-taker, but has a certain effect on the price of a commodity. What market structure is this?

A, Market structure
B. Monopolistic competition
C. Oligopoly market
D. Perfect competition

A

monopolistic competition

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4
Q
  1. One of the fundamental economic questions that societies must answer is determining the desires and needs of the population. Which of the following options best represents this question?

A. For whom to produce?
B, How much to produce?
C. How to produce?
D. What to produce?

A

for whom to produce

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5
Q

Macroeconomnics focuses on the overall performance of the economy, Which of the following is a macroeconomic topic?

A. The reasons for the rise of orange orange juice
B. The reasons for the rise in average prices
C. Why do plumbers earn more than janitors
D. Whether the army should buy more tanks or more rockets

A

B. The reasons for the rise in average prices

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6
Q
  1. Each of the following statement is true, except?

A. Supply is not measured in terms of a time frame
B. The term “supply” is always used in conjunction with the term “price”
C. The term “supply” refers to how much a company is willing to sell rather than how much it actually sells
D. The supply of a commodity does not refer to the stock of the item; rather, it refers to the quantity the firm is willing to sell at a certain price

A

A. Supply is not measured in terms of a time frame

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7
Q

Supply is an economic concept that refers to the total amount of a specific good or service that is available to consumers. Which of the following statements about supply is correct?

A. Supply is not measured in terms of a time frame
B. The term “supply” is always used in
Conjunction with the term “price”
C. The term “supply” is not used in conjunction with the term “price”
D. Supply is not measured in terms of a
time frame

A

B. The term “supply” is always used in
Conjunction with the term “price”

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8
Q

How does market structure said to be characterize by a sole vendor, offering a niche commodity with a limit on the entry into the market of a new business?

A. When it is monopoly B. When it has perfect competition
C. When it is said to be Oligopoly market
D. When it has many competitors

A

A. When it is monopoly

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9
Q

When market price reflects the equilibrium point where the quantity demanded by consumers equals the quantity supplied by producers. How will you best define a market price?

A. This is a good or at the current price service that can be bought or sold in the market
B. This is a measure of the benefit
Service provided by a good or
C. This is found at a point when the demand and supply curve intersect
D, This is the expense in the production of
good and service

A

A. This is a good or at the current price service that can be bought or sold in the market

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10
Q

Which of the following does not deal with Macroeconomics

A. Gross national product
B. Employment
C. National Income
D. Price of rice

A

D. Price of rice

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11
Q

The difference between a person’s income and their expenditures is known as what?

A. Capital
B. Investments
C. Savings
D. Taxes

A

C. savings

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12
Q

The process of determining the appropriate monetary value fora product or
service is known as what?

A. Price
B, Market price
C. Pricing
D. Prices

A

c. pricing

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13
Q

Price controls are government-mandated minimum or maximum prices set for specific goods and services, Which of the following statement about price control is correct?

A. Firms are limited on the amount to
produce
B. Selling strategy to impose lower price
C. Consumers are limited on the amount to purchase
D. Price enforced by the government to control inflation

A

D. Price enforced by the government to control inflation

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14
Q

A market structure where in the new companies are not able to enter the market for any reason, such as government licensing and regulation, large capital requirements, advanced technologies and economics of scale?

A. Monopoly
B. Monopolistic competition
C. Oligopoly Market
D. Perfect competition

A

monopoly

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15
Q

A market structure lies between pure monopoly and monopoly competition, where few vendors dominate the market and have power over the price of the commodity?

A. Market structure
B. Monopolistic competition
C. Oligopoly market
D. Perfect competition

A

oligopoly market

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16
Q

The organization of a market, including the number of firms, the nature of their products, and the level of competition, is referred to as what?

A. Market structure
B. Monopolistic competition
C. Oligopoly market
D. Perfect competition

A

market structure

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17
Q

The financial resources that individuals or households use to meet their regular expenses, such as food, housing, and transportation, are referred to as what?

A. Capital
B. Debt
C. Investments
D. Spendings

A

spendings

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18
Q

Machinery, equipment, buildings, and Construction are all can be classified as?

A. Assets
B. Capital
C. Savings
D. Spendings

A

assests

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19
Q

A government-imposed limit on the price of essential goods or commodities, designed to prevent prices from rising above a certain level, is known as what?

A. Price
B. Price ceiling
C. Price floor
D. Price freeze

A

price ceiling

20
Q

The amount of money that a buyer is willing to pay or a seller is willing to accept for a good or service is referred to as what?

A. Price
B. Price ceiling
C. Price floor
D. Price freeze

A

price

21
Q

Positive externalities are benefits that accrue to third parties who are not directly involved in a transaction. They occur when the production or consumption of a good or service has beneficial effects on others in society. Which of the following is an example of positive externalities?

A. Government Budget Surplus
B. More export than import
C. Motorway improvement scheme D. Noise pollution

A

Motorway improvement scheme

22
Q

Gross domestic product (GDP) is a key economic indicator.
Which of the following best describes GDP?

A. The conditions of economic system in which the organization operates
B. The total quantity of goods and services produced by an economic system
C. The total quantity of goods that
country’s citizen can purchase with the currency used in their economic system
D. The total values of all goods and services produced within a given period by the national economy through domestic factors of production

A

D. The total values of all goods and services produced within a given period by the national economy through domestic factors of production

23
Q

Which field of economics focuses on the behavior of individual consumers and businesses and their interactions in determining market prices?

A. Absolute scarcity
B. Macroeconomics
C. Microeconomics
D. Relative scarcity

A

C. Microeconomics

24
Q

Labor, human capital, entrepreneurship, natural resources, and capital are all examples of what?
A. Factors of production
B. Microeconomics
C. Public goods
D. Relative scarcity

A

A. Factors of production

25
Q

Which of the following actions is an example of an improvement in human capital?

A. Carlos hires three workers for his business
B. Frank’s Furniture trains employees to use
C. Tasha applies for a job as an engineer
D. The city of Upland builds a new nursing
home

A

B. Frank’s Furniture trains employees to use

26
Q

Economics is best defined as the study of how people, business, governments, and society interact with one another. Which is the best answer in the choices given?

A. Attain wealth
B. Choose abundance over scarcity
C. Make choices to cope with scarcity
D. Use their infinite resources

A

C. Make choices to cope with scarcity

27
Q

In a world of limited resources, what key decisions must individuals and economies make to address scarcity?

A. They should think and make decisions to allocate resources
B. They should think and make decisions to export resources
C. They should think and make decisions to import resources
D. They should think and make decisions to stagnation of resources

A

A. They should think and make decisions to allocate resources

28
Q

Economists frequently rely on visual tools like graphs to interpret data and draw conclusions, What does this suggest about the nature of economics?

A. Economics as Applied Science
B. Economics as an Art
C. Economics as Normative Science
D. Economics as Social Science

A

B. Economics as an Art

29
Q

Despite improvements, the National Statistics Office continues to report persistent economic challenge in the Philippines. What is this primary issue

A. Economics
B. Scarcity
C. Social Science
D. Unemployment

A

D. Unemployment

30
Q

Mr Ching is facing increasing losses in his business due to a recession. What is the most effective action he can take to improve his financial situation?

A. Close the business
B. Lay-off some of the workers
C. Hire another worker
D. Temporary close the business

A

B. Lay-off some of the workers

31
Q

Factors of production are the resources used to produce goods and services. They are the building blocks of an economy. There are four main factors of production, 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 capital means the money which the owners of firms need to set their firms up
C. The factor of production termed labor means human resources
D. The factor of production termed land means natural resources

A

B. The factor of production termed capital means the money which the owners of firms need to set their firms up

32
Q

A government policy that fixes the price of a good or service at a specific level, preventing any price increases, is known as what? This policy allows trading to continue but restricts price fluctuations.

A. Price
B. Price ceiling
C. Price floor
D. Prize freeze

A

D. Prize freeze

33
Q

A government-imposed minimum price for a good or service, designed to prevent prices from falling below a certain level, is known as what?

A. Price
B. Price ceiling
C. Price floor
D. Price freeze

A

C. Price floor

34
Q

The financial contributions that citizens make to support the provision of public goods and services is known as what?

A. Capital
B. Debt
C. Savings
D. Tax

A

D. Tax

35
Q

A market structure characterized by a small number of firms selling either identical or differentiated products is known as what?

A. Market structure
B. Monopolistic competition
C. Oligopoly market
D. Perfect competition

A

C. Oligopoly market

36
Q

A market structure has a large number of companies manufacturing distinct goods which are near substitutes for each other?

A. Market structure
B. Monopolistic competition
C. Oligopoly market
D. Perfect competition

A

B. Monopolistic competition

37
Q

The market’s competitive environment is defined by its structure, which encompasses factors like the number of firms and the nature of their products.

A. Market structure
B. Monopolistic competition
C. Oligopoly market
D. Perfect competition

A

A. Market structure

38
Q

The DTI has implemented a maximum price of P50 for face shields. This type of government price control is known as what?

A. Demand oriented price
B. Price ceiling
C. Price floor
D. Price freeze

A

B. Price ceiling

39
Q

The payment made for the use of land, often for residential or commercial purposes, is known as what?

A. Capital
B. Income
C. Rent
D. Spending

A

C. Rent

40
Q

Suppose that the market demand for room for rent in Makati is too high for the common employee to afford, If the government-imposed control on rent, what impact will it have on the market for room-for-rent?

A. The price is in equilibrium
B. The price is below equilibrium
C. The landlord will charge higher rent
D. Many employees will move to Makati

A

B. The price is below equilibrium

41
Q

Which of the following constitute the fundamental questions every economic system must answer?

I. What goods will be produced?
II. How will they be produced?
III. When will they produce?
IV. For whom will they be produced?
V. Where will they produce?

A. I, III & V only
B.I, II & IV only
C. I,II & V only
D. I, II, II, IV & V

A

B.I, II & IV only

42
Q

This government agency is responsible for ensuring that employers comply with minimum wage laws and regulations in the Philippines

A. BIR
B. DENR
C. DOLE
D. DTI

A

C. DOLE

43
Q

If the gross profit for Year 3 is P116,400 and the total expenses equals to P92,400, What will be the company’s Net profit for the said year?

A. The conditions of economic system in which the organization operates
B. The total quantity of goods and services produced by an economic system
C. The total quantity of goods that a
country’s citizen can purchase with the currency used in their economic system
D. The total values of all goods and services produced within a given period by the national economy through domestic factors of production

A

D. The total values of all goods and services produced within a given period by the national economy through domestic factors of production

44
Q

Which of the following statements is true?

A. The term “supplier” refers to how much a company is willing to sell rather than
how much it actually sells.

B. The supply of a commodity does not refer to the whole stock of the item;
rather, it refers to the quantity that the firm is willing to sell at a certain price

C. The term “supplier” refers to how much a company is willing to sell rather than
how much it actually sells.

D. The supply of a commodity does not refer to the whole stock of the item;
rather, it refers to the quantity that the firm is willing to buy at a certain price

A

B. The supply of a commodity does not refer to the whole stock of the item;
rather, it refers to the quantity that the firm is willing to sell at a certain price

45
Q

The following statement is true except?

A. Supply is not measured in terms of a
time frame
B. The term “supply” is always used in conjunction with the term “price”

C. The term “supplier” refers to how much a company is willing to sell rather than how much it actually sells

D. The supply of a commodity does not refer to the stock of the item; rather, it refers to the quantity the firm is willing to sell at a certain price

A

C. The term “supplier” refers to how much a company is willing to sell rather than how much it actually sells

APPLIED ECONOMICS (8 decks)

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