1. True or False. If the statement is true, write the word True.

If False, write False

and replace the underlined word with the correct term. Note that the system
accepts an exact answer. Wrong spelling is considered wrong.
For example:
Q: Whales are reptiles. A: False - mammals
The additional income obtained by producing and selling an additional unit of product is
marginal product.

2. The following are injections in the economy, except:

Select one:
a. OFW Remittances
b. Investments
c. Exports
d. Savings

3. Refers to the process of converting inputs into outputs.

4. True or False. If the statement is true, write the word True. If False, write False
and replace the underlined word with the correct term. Note that the system
accepts an exact answer. Wrong spelling is considered wrong.
For example:
Q: Whales are reptiles. A: False - mammals
Steel bars and cement used in construction are consumer goods.
Answer:

5. True or False. If the statement is true, write the word True. If False, write False
and replace the underlined word with the correct term. Note that the system
accepts an exact answer. Wrong spelling is considered wrong.
For example:
Q: Whales are reptiles. A: False - mammals
Critical thinking is an important and necessary skill in the study of economics.
 6. True or False. If the statement is true, write the word True. If False, write False
and replace the underlined word with the correct term. Note that the system
accepts an exact answer. Wrong spelling is considered wrong.
For example:
Q: Whales are reptiles. A: False - mammals
The price elasticity of demand measures how much the quantity supplied of a product
respond to a change in its price.

7. Production stage characterized by negative returns.

STAGE 3

8. Company XYZ implemented a new computerized accounting system and

corresponding trained concerned staff in the Accounting Department. However,
this also created displacement to the extent of some personnel transferring to
other departments and even resignation. The type of resulting unemployment is:
Select one:
a. Seasonal Unemployment
b. Concealed Unemployment
c. Frictional Unemployment
d. Structural Unemployment

9. True or False. If the statement is true, write the word True. If False, write False
and replace the underlined word with the correct term. Note that the system
accepts an exact answer. Wrong spelling is considered wrong.
For example:
Q: Whales are reptiles. A: False - mammals
Economics is a social science which deals with the equitable allocation and optimum
utilization of resources.

10. True or False. If the statement is true, write the word True. If False, write False
and replace the underlined word with the correct term. Note that the system
accepts an exact answer. Wrong spelling is considered wrong.
For example:
Q: Whales are reptiles. A: False - mammals
Government policies determine the types of market structure in an economy.

11. The economist behind the consumption and savings function showing the
relationship between disposable income and consumer spending:
Select one:
a. Adam Smith
b. R.A. Gordon
c. David N. Hyman
d. John Maynard Keynes

12. There are two approaches in measuring consumer satisfaction.

Select one:
a. True
b. False

13. True or False. If the statement is true, write the word True. If False, write False
and replace the underlined word with the correct term. Note that the system
accepts an exact answer. Wrong spelling is considered wrong.
For example:
Q: Whales are reptiles. A: False - mammals
Economic resources are limited and can be combined to produce commodities.

14. True or False. If the statement is true, write the word True. If False, write False
and replace the underlined word with the correct term. Note that the system
accepts an exact answer. Wrong spelling is considered wrong.
For example:
Q: Whales are reptiles. A: False - mammals
The table or list of the prices and the corresponding volume producers are willing to sell
is called a demand schedule.
 15. When the quantity demanded remained unchanged as its price changes, the
coefficient of price elasticity is:
Select one:
a. Greater than one
b. Equal to one
c. Less than one
d. Zero

16. The marginal product of the 5th worker is zero. This means that:
Select one:
a. All of the choices
b. The total production of the first 4 workers is equivalent to the output of 5 workers
c. The firm must hire a 6th worker to increase production
d. The total volume of production is at its low

17. Government agency in-charge of implementing the CARP.

18. It relates to the nature, type, and actual process of farm operation.

19. True or False. If the statement is true, write the word True. If False, write False
and replace the underlined word with the correct term. Note that the system
accepts an exact answer. Wrong spelling is considered wrong.
For example:
Q: Whales are reptiles. A: False - mammals
The firm’s selling price is an important determinant of its revenue.

20. Supernormal profit which serves as incentive for other firms to enter the industry
is also called:
Select one:
a. Abnormal Profit
b. None of the choices
c. Normal Profit
d. Business profit

21. True or False. If the statement is true, write the word True. If False, write False
and replace the underlined word with the correct term. Note that the system
accepts an exact answer. Wrong spelling is considered wrong.
For example:
Q: Whales are reptiles. A: False - mammals
Product X is unitary elastic, since its price demand elasticity is computed at –1.

22. Supply elasticity is affected not only by price but by any of the following:
Select one:
a. Availability of materials
b. The Product type
c. All of the choices
d. Inventory

23. Hermann Heinrich Gossen is the proponent of ordinal utility theory.

Select one:
a. True
b. False

24. True or False. If the statement is true, write the word True. If False, write False
and replace the underlined word with the correct term. Note that the system
accepts an exact answer. Wrong spelling is considered wrong.
For example:
Q: Whales are reptiles. A: False - mammals
Production leads to consumption but consumption also leads to production.
 25. True or False. If the statement is true, write the word True. If False, write False
and replace the underlined word with the correct term. Note that the system
accepts an exact answer. Wrong spelling is considered wrong.
For example:
Q: Whales are reptiles. A: False - mammals
The total cost curve originates from the value of the fixed cost.

26. The company policy requires all employees to retire after 30 years of service,
regardless of age. Mr. X who is only 50 years old is affected by this policy.
Select one:
a. Seasonal Unemployment
b. Frictional Unemployment
c. Concealed Unemployment
d. Cyclical Unemployment

27. If the price elasticity of demand is unitary; increasing the price of the product
would result to:
Select one:
a. The revenue will not change
b. Increase in the total revenue
c. Decrease in the total revenue
d. Zero revenue

28. True or False. If the statement is true, write the word True. If False, write False
and replace the underlined word with the correct term. Note that the system
accepts an exact answer. Wrong spelling is considered wrong.
For example:
Q: Whales are reptiles. A: False - mammals
Political science is the science of reasoning and correct thinking to determine validity of
a given statement.
 29. It indicates various combinations of two factors of production which give the
same level of output per unit of time.

30. True or False. If the statement is true, write the word True. If False, write False
and replace the underlined word with the correct term. Note that the system
accepts an exact answer. Wrong spelling is considered wrong.
For example:
Q: Whales are reptiles. A: False - mammals
Essential goods are those that contribute to a person's comfort and well–being.

31. True or False. If the statement is true, write the word True. If False, write False
and replace the underlined word with the correct term. Note that the system
accepts an exact answer. Wrong spelling is considered wrong.
For example:
Q: Whales are reptiles. A: False - mammals
Price demand elasticity for luxury good generally tends to be inelastic.

32. True or False. If the statement is true, write the word True. If False, write False
and replace the underlined word with the correct term. Note that the system
accepts an exact answer. Wrong spelling is considered wrong.
For example:
Q: Whales are reptiles. A: False - mammals
Long run costs include both fixed and variable costs.

33. Unemployment attributable to the business cycle:

Select one:
a. Structural
b. Frictional
c. Seasonal
d. Cyclical
 34. True or False. If the statement is true, write the word True. If False, write False
and replace the underlined word with the correct term. Note that the system
accepts an exact answer. Wrong spelling is considered wrong.
For example:
Q: Whales are reptiles. A: False - mammals
An isoquant map is composed of a series of indifference curves.

35. The power of the government to impose burdens upon the subjects and the
objects, within its jurisdiction, for the purpose of raising revenues.

36. True or False. If the statement is true, write the word True. If False, write False
and replace the underlined word with the correct term. Note that the system
accepts an exact answer. Wrong spelling is considered wrong.
For example:
Q: Whales are reptiles. A: False - mammals
Economics is about managing scarcity of the limited resources.

37. True or False. If the statement is true, write the word True. If False, write False
and replace the underlined word with the correct term. Note that the system
accepts an exact answer. Wrong spelling is considered wrong.
For example:
Q: Whales are reptiles. A: False - mammals
Regressive taxation wherein the tax rate increases as the tax base increases is
implemented in the Philippines.

38. The demand curve is downward sloping because:

Select one:
a. The quantity demanded is increasing with the reduction in price
b. The quantity supplied is increasing
c. None of the choices
d. The quantity demanded is decreasing with the reduction in price
e. All of the choices

39. True or False. If the statement is true, write the word True. If False, write False
and replace the underlined word with the correct term. Note that the system
accepts an exact answer. Wrong spelling is considered wrong.
For example:
Q: Whales are reptiles. A: False - mammals
If the demand and supply curves do not change their positions, the change in the
quantities is brought about by adjustment in income.

40. Tax of fixed proportion of the value of the property.

41. True or False. If the statement is true, write the word True. If False, write False
and replace the underlined word with the correct term. Note that the system
accepts an exact answer. Wrong spelling is considered wrong.
For example:
Q: Whales are reptiles. A: False - mammals
Ceteris paribus indicates that something would be the case other things being equal.

42. Economist is concerned with:

Select one:
a. Man’s choices
b. Accumulation and proper utilization of resources
c. Resource allocation
d. All of the choices

43. Current GDP is also called nominal GDP.

Select one:
a. True
b. False

44. True or False. If the statement is true, write the word True. If False, write False
and replace the underlined word with the correct term. Note that the system
accepts an exact answer. Wrong spelling is considered wrong.
For example:
Q: Whales are reptiles. A: False - mammals
Answers to the three basic economic problems are arrived at in the market.

45. True or False. If the statement is true, write the word True. If False, write False
and replace the underlined word with the correct term. Note that the system
accepts an exact answer. Wrong spelling is considered wrong.
For example:
Q: Whales are reptiles. A: False - mammals
An entrepreneur is a person who manages the factors of production and assumes the
risks of a business venture.

46. What type of price demand elasticity will be manifested by an insulin dependent
diabetic patient on cost of insulin:
Select one:
a. Perfectly Inelastic
b. Perfectly Elastic
c. Elastic
d. Inelastic

47. A graphical representation of elasticity showing a slanting curve is an indication

of:
Select one:
a. Perfectly Elastic elasticity
b. Inelastic price demand elasticity
c. Unitary elasticity
d. Elastic price supply elasticity

48. True or False. If the statement is true, write the word True. If False, write False
and replace the underlined word with the correct term. Note that the system
accepts an exact answer. Wrong spelling is considered wrong.
For example:
Q: Whales are reptiles. A: False - mammals
Fiscal policy is concerned with managing the amount of money in circulation.

49. The point of tangency between the indifference curve and the budget line
signifies:
Select one:
a. The market equilibrium point
b. All of the choices
c. The consumers’ and producers’ demand and supply, respectively
d. The best possible combination of goods and services within the consumer budget

50. The GDP is computed on a quarterly basis.

Select one:
a. False
b. True