Economics

1. Which of the following are important factors in Economics?
Land, capital, labor and entrepreneurship

2. It is the study of production, consumption and distribution of goods and services.
Economics

3. He is the author of Wealth of Nations and considered as Father of Modern Economics.
Adam Smith

4. It is the study the production and distribution of goods and services; it is the study of human efforts to satisfy unlimited wants with limited resources.
Economics

5. Which Economic system can be characterized by a dictatorial system of government?
Command Economic system

6. It studies economic behavior without making judgments. It describes what exists and how it works.
Positive economics

7. The field of economics that studies the behavior of the aggregate economy.
Macroeconomics

8. We use resources as ____ to produce economic goods called ____.
Input - Output

9. It refers to the collection and use of data to test economic theories.
Empirical economics

10. What is the main element of every market?
All of the given options

11. A discussion of wealth and income is under:
Economics

12. The word Economics comes from the Greek word which means:
Household management

13. Which statement is not correct?
Service are tangible commodity

14. It analyzes outcomes of economic behavior, evaluates them as good or bad, and may prescribe courses of action.
Normative economics

15. Economics is important because:
All of these

1. Inputs are including of _____.
All of the given options

2. It is the study of methods, especially the scientific method, in relation to economics, including principles underlying economic reasoning.
Economic methodology

3. Which one is not include of goods for the future?
Food

4. It involves building models of behavior.
Economic theory

5. In the product market, households are ____ and firms are ____.
buyers - sellers

6. Inputs are known as the ______ owned by the ______ who in return consume all the goods and services produce by the firm.
factors of production - household

7. Injections into the circular flow are _____, ______ and ______.
investment,goverment expenditure,exports

8. Leakages from the circular flow are ____, _____ and _____.
savings,taxes net of subsidies,import

9. Which factors can make an economy grows?
All of the given options

10. It means that we are using all available resources, and they are being used to their potential.
Full employment

1. The market supply curve shows
the quantity of a good that firms would offer for sale at different prices

2. If the price of a good decreases while the quantity of the good exchanged on markets increases, then the most likely explanation is that there has been
An increase in supply

3. Demand curve indicates lower quantity at a ___ price, and a higher quantity at a ___ price.
higher - lower

4. Which of the following will cause a change in quantity supplied?
All of the given options

5. Which one is not normal good?
Cheap frozen dinner

6. If the price of a good increases while the quantity of the good exchanged on markets increases, then the most likely explanation is that there has been
An increase in demand

7. Which one is Neutral good?
Salt

8. Market equilibrium refers to a situation in which market price
Is at a level where there is neither a shortage nor a surplus

9. If input prices increase, all else equal,
Supply will decrease

10. The market demand curve shows
The quantity of a good that consumers would like to purchase at different prices

11. ____ is discovered in the interactions of buyers and sellers
Price

12. During a recession, economies experience increased unemployment and a reduced level of activity. How would a recession be likely to affect the market demand for new cars?
Demand will shift to the left

13. Which one are complementary goods?
Tea - Sugar

14. If the price of a good increases while the quantity of the good exchanged on markets decreases, then the most likely explanation is that there has been
A decrease in supply

15. If automobile manufacturers are producing cars faster than people want to buy them,
There is an excess supply and price can be expected to decrease

1. When ed=1, it means:
Unit-elastic

2. Tennis racquets and tennis balls are likely to have a positive cross-elasticity of demand.
False

3. If the price elasticity of demand is unit then a fall in price:
Leaves revenue unchanged

4. Which statement is wrong?
Cross-elasticity for Subtitute goods is negative

5. A government seeking to raise revenue should increase taxes on products with relatively elastic demands.
False

6. 2. The bus fare charged by the local bus company is Php2.00 during the morning rush hour, but only Php1.50 during the early afternoon. This can be explained by the fact that the demand for bus rides during the morning rush hour is _____; but during the early afternoon the demand for bus rides is _____:
Less elastic; more elastic

7. If the income elasticity of a demand for a good is negative, then the good is:
an inferior good

8. _____ measures the relative responsiveness in quantity demanded to a change in price.
Price elasticity of demand

9. If the cross elasticity of demand between two goods is negative, then the two goods are:
Complements

10. When ed>1, it means:
Elastic demand

11. At a price of Php11.00, quantity demanded is 90; and at a price of Php9.00, quantity demanded is 110. The price elasticity of demand is:
-1.22

12. ______ measures elasticity over a distance.
Arc elasticity

13. Different types of washing-up liquid are likely to have a positive cross-elasticity of demand.
True

14. When ed=0, it means:
Perfectly inelastic

15. A university decides to raise tuition fees to increase the total revenue it receives from students. This strategy will work if the demand for education at that university is:
Inelastic

16. Price elasticity of demand refers to shifts in the demand curve for a product.
False

17. When ed<1, it means:
Inelastic

18. Measures responsiveness of buyers to changes in income.
Income elasticity of demand

19. When ed=8, it means:
Perfectly elastic

20. _____ is primary determinant of elasticity of supp