1st Periodical Exam In Applied Economics

Which of the following explains economics, pertaining to the study of how society creates its material wealth, how it makes this wealth available to its people with minimum difficulties, and how it expands its wealth.

• anthropology

• political science

• psychology

• social science

Economics is the study of ____

• how to make money

• how to operate a business

• people making choices because of the problem of scarcity

• the government decision-making process

Scarcity exists __________

• in all countries of the world

• only in poor nations

• only in rich nations

• when people consume beyond their needs

Microeconomics approaches the study of economics from the viewpoint of

• economy-wide effects

• individual or specific markets

• the national economy

• the operation of the Bangko Sentral ng Pilipinas

This resource commands a price.

• economic resources

• free resources

• natural resources

• all of the above

Which of the following is not a resource?

• capital

• labor

• land

• money

This is an analysis of economics that deals with what should be?

• economic problem

• economic solution

• normative economics

• positive economics

Which of the following decisions must be made by all economists?

• How much to produce? When to produce? How much does it cost?

• What is the price? Who will produce it? Who will consume it?

• What to produce? How to produce it? For whom to produce?

• None of the above

Because of mechanization and mass production, Pepsi Cola used machinery to produce goods. Which of the following methods is used by Pepsi Cola?

• capital-intensive production process

• labor-intensive production process

• mixed production process

• product-based technology process

Karen is the procurement officer of ABC Company. She bought 10 boxes of bond paper for office consumption. Which of the following markets best matches the given example?

• business market

• consumer market

• government market

• reseller market