1. The study of how
households and firms make decisions and how they interact in markets.
A. Economics
B. Microeconomics
C. Macroeconomics
D. Market economy
2. In the classical
model, it is thought that the long-run and short-run aggregate supply curves
are both _______.
A. vertical
B. horizontal
C. positively sloped
D. negatively sloped
3. It measures the
monetary value of the flow of output of goods and services produced in an
economy over a period of time.
A. Gross Domestic
Product
B. Gross National
Product
C. Cost of Production
D. National Income
4. The table that shows
the relationship between the price of a good and the quantity demanded.
A. Demand schedule
B. Law of Demand
C. Quantity Demanded
D. Demand Curve
5. A good for which,
other things equal, an increase in income leads to a decrease in demand.
A. Substitute good
B. Normal good
C. Inferior good
D. Complement good
6. A situation in which
the market price has reached the level at which quantity supplied equals
quantity demanded.
A. Inflation
B. Deflation
C. Equilibrium
D. Surplus
7. It is the period of
falling real GDP, i.e. negative economic growth, for a period of 6 months or
more.
A. Inflation
B. Deflation
C. Depression
D. Recession
8. It is the total
income that is earned by a country's factors of production regardless of where
the assets are located.
A. Gross Domestic
Product
B. Gross National
Product
C. Cost of Production
D. National Income
9. The short-run
Phillips curve represents the relationship between the unemployment rate and
the rate of change in aggregate ________ level.
A. demand
B. supply
C. price
D. tax
10. The Pantawid
Pamilyang Pilipino Program (4Ps) implemented by the DSWD is what form of
government expenditure?
A. Transfer Payment
B. Capital
C. Current
D. Incidental
11. There are two main
instruments of fiscal policy. They are government spending and taxation.
A. Only the first
statement is correct.
B. Only the second
statement is correct.
C. Both statements are
correct.
D. None of the
statements is correct
12. It is the difference
between government spending & taxation.
A. National Deficit
B. National Surplus
C. A & B
D. None of the above
13. A contractionary
fiscal policy is a policy that _________.
A. reduces aggregate
demand by increasing taxes
B. increases aggregate demand
by dcreasing taxes
C. increases aggregate
demand by increasing government purchases
D. reduces aggregate
demand by decreasing government purchases
14. An increase in the
supply of money will lead to ___ in equilibrium real GDP and ___ in equilibrium
interest rate.
A. an increase; a
decrease
B. a decrease; an
increase
C. an increase; an
increase
D. a decrease; a
decrease
15. Which of the following is NOT a contractionary
monetary policy?
A. decreasing the money
supply
B. decreasing government taxes
C. increasing interest
rates
D. decreasing aggregate demand
ANSWERS:
