EEC - Quiz Material - Economic Concepts, Theories and Systems

The problem of scarcity stems from the fact that ___________

• A. Resources within a certain location is limited.

• B. Production practices within states are unsustainable

• C. Governments restricts production of too many goods and services.

• D. Wealthy people consume disproportionate quantities of goods and services.

In the event of high inflation and low economic growth, which need are likely to be prioritize?

• Basic Necessities

• Safety and Security

• Education

• Love and Belongingness

Which discipline is regarded as the study of how humans make decisions based on how they allocate resources to maximize their utility and use scientific approaches to examine and predict their behavior regarding production, consumption and distribution of goods and services in the society?

• Economics

• Economic Psychology

• Philosophy of Economics

• Macro economics

Which is NOT as a basic question in addressing an economic problem?

• What to Produce and For Whom to Produce?

• How Many will be produce and How to Produce?

• How to make production efficient and is the economy growing?

• How should the government help in the economy?

In addressing the high prices of onion, the first basic economic question we need to ask is _________

• What to produce and how many to produce?

• For whom to produce?

• How to produce and how to make production efficiently?

• Is the economy growing?

Once a resource is used for a gain something, it cannot be used for gain another thing. This concept is known as ______

• Gain loss

• Potential loss

• Opportunity cost

• Cost-benefit ratio

The Government has increased tax on sugary beverages under the Tax Reform for Acceleration and Inclusion. What do you think is the opportunity cost of this policy for the government?

• It increases tax revenues from the beverage industry

• It reduces household consumption of sugary beverages

• It decreases growth in beverages sector gradually affecting tax revenues coming from the sector

• It increases price of inputs thereby affecting production of beverage companies

Which branch of economics is concerned with the behavior of individuals and firms in making decisions regarding the allocation of scarce resources and the interactions among these individuals and firm?

• Behavioral Economics

• Economic Psychology

• Microeconomics

• Macroeconomics

What branch of economics is concerned with understanding of aggregate phenomena such as economic growth, business cycles, unemployment, inflation, and international trade?

• International Economics

• Microeconomics

• Macroeconomics

• Positive Economics

Who is considered the Father of Economics and the proponent of Laissez Faire Economics?

• Adam Smith

• John Maynard Keynes

• Thomas Malthus

• Milton Friedman