PRELIMS

Question 1

studies how individual, government, firms, and nations makes choices in allocating scarce resources to satisfy man’s unlimited wants.

Answer 1

ECONOMICS

Question 2

division of economics which deals with overall performance of national and international economies.

Answer 2

MACROECONOMICS

Question 3

macroeconomics problems

Answer 3

1. income determination
2. inflation
3. employment
4. monetary and fiscal policy
5. international trade

Question 4

economics about the behavior of the individual units of the economic system such as the consumer, producers, and households as resource owners.

Answer 4

MICROECONOMICS

Question 5

microeconomics concern

Answer 5

1. supply and demand
2. consumer and producer
3. market system and pricing
4. individual wages
5. competition

Question 6

the reason why people need to study economics

Answer 6

SCARCITY

Question 7

condition of resource insufficiency to satisfy all the needs and wants of a population

Answer 7

SCARCITY

Question 8

the value of the best foregone alternative anything we give up to attain another.

Answer 8

OPPORTUNITY COST

Question 9

basic inputs needed to produce goods and services.

Answer 9

FACTORS OF PRODUCTION

Question 10

• all natural resources found in nature
• rent

Answer 10

LAND

Question 11

• human resources used in production
• covers manual workers and professionals
• wage

Answer 11

LABOR

Question 12

• man-made resources used in production
• machines, equipment, buildings, constructions
• interest

Answer 12

CAPITAL

Question 13

• factor of production involved in combining different resources used to produce goods
• setting of a business and of assuming risks to make profit

Answer 13

ENTREPRENEURSHIP

Question 14

3 economic questions

Answer 14

1. what to produce?
2. how to produce?
3. for whom to produce?

Question 15

• analyzes the cause-effect and interrelationship among factors and events
• rates, national income, employment

Answer 15

POSITIVE ECONOMICS

Question 16

• study of what should be; dispersing investment business toward the countryside to reduce rural poverty

Answer 16

NORMATIVE ECONOMICS

Question 17

the sum of all factor payments from raw material to the final product stage

Answer 17

GNP

Question 18

economic growth

Answer 18

GDP:

• 6.8% (2012)
• 7.2% (2013)
• 5.7 (2014)
• 6.8% (2018)

Question 19

• based on traditions and practices
• primitive and backward civilization

Answer 19

TRADITIONAL

Question 20

authoritative system; decision making is centralized in the government

Answer 20

COMMAND

Question 21

• most democratic
• supply and demand

Answer 21

MARKET

Question 22

combination of three system with dominance of one

Answer 22

MIXED

Question 23

importance of economics

Answer 23

• understand why there is a need for everybody, to allocate given resources
• make more rational decisions in spending and investing money
• to know how economy operates and have a take if government is doing great

Question 24

scientific approach steps

Answer 24

1. formation of a specific hypothesis
2. systematic operation and gathering of facts
3. application of logic to observe facts
4. empirical testing to validate the hypothesis
5. finding the reason for invalidation and repeating the steps