Social Science – Economics
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Choose the letter of
the best answer.
1. What is NOT included in the three economic questions?
A. what to
produce
B. how to
produce
C. where to produce
D. for whom
to produce
2. The
philosophy that the government should take a hand's off approach to the
economy.
A. Laissez-faire
B. Economies
of scale
C.
Capitalism
D. Law of
self-interest
3. The study
of how individual and business decisions interact.
A. Economics
B. Economies
of scale
C.
Transaction
D. Microeconomics
4. The degree of wealth and material
comfort available to a person or community.
A. Economy of scale
B. Standard of living
C. Financial resource
D. Comfortability
5. The four factors of production: land,
labor, capital and _________.
A. gold
B. advertisement
C. marketing
D. entrepreneurship
6. The boundary between what can and
cannot be produced given the set amount of resources.
A. Circular flow model
B. Production possibilities frontier
C. Opportunity cost
D. Production gap
7. When a person or firm can produce
at a lower opportunity cost than others.
A. Comparative advantage
B. Absolute advantage
C. Monopoly
D. Trade-off
8. When the price of a cup of coffee
increases, some consumers opted to buy tea. We can safely say that tea is a/an
__________ good.
A. complementary
B. substitute
C. alternative
D. complimentary
9. Which of the following illustrates
the “law of supply”?
A. As price increases, quantity
demanded decreases.
B. As quantity supplied decreases,
price decreases.
C. As price increases, quantity supplied increases.
D. As quantity demanded increases,
quantity supplied also increases.
10. When quantity demanded equals
quantity supplied.
A. Market equilibrium
B. Break-even point
C. Law of supply and demand
D. Law of Diminishing Marginal Utility
11. When the price of rice changes,
quantity demanded for rice does not change drastically. This means that rice is
an example of __________ good.
A. elastic
B. inelastic
C. complementary
D. mutual
12. When the government sets a minimum
price that a good or service can be sold for.
A. Price ceiling
B. Suggested Retail Price
C. Price freeze
D. Price floor
13. A tax whose percentage increases
as income decreases.
A. Progressive tax
B. Regressive tax
C. Proportionate tax
D. Value Added tax
14. Because of high demand of its
products, Factory ABZ employed additional 5 workers every month, while other
means of production remained the same. The management noticed that over time,
employing more workers did not meet the yields that they expected. This
illustrates _____________.
A. Economies of scale
B. Law of Diminishing Marginal Utility
C. Law of Diminishing Marginal Return
D. Law of Supply and Demand
15. Which of the following illustrates
structural unemployment? Unemployment due to ______.
A. changes in the job market
B. a change in the seasons
C. changes in the business cycle
D. people entering and exiting the job
market
16. The price of a fixed basket of
goods; is tracked year to year and measures inflation.
A. Gross Domestic Product
B. Balance of Trade
C. Domestic Price
D. Consumer Price Index
17. What is NOT an effect of
inflation?
A. An increase in prices
B. Devaluation of the Philippine peso
C. Decrease in the Money Supply
D. An increase in salary
18. It consists of increasing and decreasing
taxes and increasing and decreasing government spending to manage the economy.
A. Monetary Policy
B. Fiscal Policy
C. Economic Policy
D. Domestic Policy
19. It is characterized by a fall in Gross
Domestic Product (GDP) for two consecutive quarters.
A. Inflation
B. Deflation
C. Boom
D. Recession
20. Which of the following are
substitute goods?
A. coffee and milk
B. coffee and sugar
C. coffee and tea
D. coffee and creamer
ANSWERS:
ANSWERS:
