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WorksheetsTerm Exam Review: Economics
Total questions: 41
Worksheet time: 38mins
Which of the following is NOT an effect of inflation?
Less Savings
Reduced Purchasing Power
Increased Spending
Increased Poverty Rate
Is inflation a normal economic phenomenon?
Yes, it just naturally happens without human intervention.
Yes, a small amount of inflation is normal in a healthy economy.
No, it is a product of the incompetence of the government.
No, inflation regardless of its rate will always do harm to all the sectors of the economy.
What do you call to the economic tool which measures price changes of a
representative basket of selected goods and services consumed by a typical
household during a specific time frame? Additionally, this tool is used to
compute for the inflation rate of the economy.
Consumer Price Income
Consumer Price Expectation
Consumer Price Interest
Consumer Price Index
What do you think are the missing economic terms that would complete the
sequence in the box?
Economy and Recession
Inflation and Supra-inflation
Inflation and Recession
Inflation and Ultra-inflation
Which of the following economic indicators is used to measure inflation?
Gross National Income (GNI)
Consumer Price Index (CPI)
Unemployment Rate
Demand and Supply Curve
How does studying the historical trends of inflation over the course of years and
decades help?
It guarantees that there will never be another recession.
When the price of any given commodity rises.
When the average price of most goods and services rises.
It enables us to develop strategies to manage future economic fluctuations.
Which of the following MUST decline to slow cost-push inflation?
Debt
Production Cost
Tax
Supply
When does inflation usually occur?
When the aggregate demand rises.
When the price of any given commodity rises.
When the average price of most goods and services rises over time.
When the tax rate is lower than the expected government spending rate.
Which of the following MUST decline to slow demand-pull inflation?
Spending
Social Services
Taxation
Production Capacity
How does monitoring inflation helps the policymakers in making the best
economic and political decisions in the country?
It can help them eliminate poverty.
It can help them predict the future stock market performance.
It can help them freely control the price of goods and services.
It can help them make informed decisions about the appropriate economic measures such as lowering or increasing interest rates and taxes.
The prices of cellphones went up because it was reported that the new models
have many good features. Many people are waiting for the new models to be
rolled out in the market.
(a)
The price of shoes went up because the price of leather went up.
(a)
The entrance fee to an old house has gone up because many people want to
see it after it was featured in a television news program.
(a)
On Valentine’ Day, many people buy flowers, causing flower prices to increase.
(a)
Transportation prices went up because of gasoline prices increased.
(a)
The export growth in a developing economy is slow and unstable which is
inadequate to support the required growth rate of the economy.
(a)
The price of flour went up, leading to a price increase of bread in the bakery.
(a)
An increased in the minimum wage for all workers in the country has been
legislated.
(a)
Argentina in the 1990s experienced inflation due to its overvalued currency and
debt crisis.
(a)
The price of meat has gone up because Christmas is approaching.
(a)
Households supply resources and labor to firms and receive wages and salaries in return.
True
False
It Depends.
Businesses use the money earned from selling goods and services to purchase factors of production from households.
True
False
It Depends.
Businesses are not allowed to sell goods and services to the government.
True
False
It Depends.
The circular flow model is a complex representation of the entire economy.
True
False
It Depends.
The circular flow of goods and services in the economy is a linear or one-way flow.
True
False
It Depends.
The concept of the circular flow of economic activity illustrates the point that all economic activities are interdependent.
True
False
It depends.
The factors of production are owned by firms.
True
False
It depends.
There are four primary economic sectors in the circular flow of goods and services in the economy.
True
False
It depends.
Firms exist because they facilitate the efficient organization of factors of production.
True
False
It depends.
International trade can be incorporated into more complex circular flow models.
True
False
It depends.
GNP and GDP both measure the economic growth in the country.
True
False
It depends.
Income and Expenditure Approach are used in computing for the Gross National Product.
True
False
It depends.
GNP does not include the earnings of Overseas Filipino Workers.
True
False
It depends.
GDP only computes the earnings within the borders of a particular country.
True
False
It depends.
GDP computes the earnings outside the borders of a particular country.
True
False
It depends.
GDP is a better indicator of the economic well-being of a country's citizens compared to GNP.
True
False
It depends.
A country with a high GDP will always have a higher GNP.
True
False
It depends.
Both GDP and GNP are calculated using market value, which reflects the price at which goods and services are sold in the market.
True
False
It depends.
The government manages the Monetary Policy of the Philippines.
True
False
It depends.
The Bangko Sentral ng Pilipinas manages the Fiscal Policy of the Philippines.
True
False
It depends.
Draw the Circular Flow Model of the Economy.
