APPLIED ECONOMICS EXAM
Those that cannot be readily changed during the time period under consideration except at a very great expense.
Select one:
a. Inputs
b. Outputs
c. Variable Inputs
d. Fixed Inputs ✔
An entity organized by people with similar needs to provide themselves with goods or services or to jointly use available resources to improve their income.
Select one:
a. Cooperative ✔
b. Corporation
c. Sole Proprietorship
d. Partnership
The combined production of several units of a given set of inputs.
Select one:
a. Marginal Utility
b. Marginal product
c. Total Product ✔
d. Total Utility
This includes a look at the population size, the geography of the place where business will be located, land distribution, climate, and today’s global warming situation, whether or not the area is prone to flood or earthquake.
Select one:
a. Cultures and Lifestyles
b. Physical Environment ✔
c. Political Factors
d. Economic Forces
Production is the transformation of inputs into outputs of goods & services.
Select one:
True ✔
False
It studies the conditions in an industry at a particular time, including the behavior of and relations between competitors, suppliers, and customers.
Select one:
a. SWOT Analysis
b. HERFINDAHL-HIRSCHMAN INDEX (HHI)
c. Industrial analysis ✔
d. Environmental Analysis
An equation showing the maximum output of a commodity that a firm can produce per period of time with each set of inputs.
Answer: Production Function
It refers to the additional utility derived from consuming an additional unit of the good.
Select one:
a. Total product
b. Marginal Utility ✔
c. Marginal product
d. Total Utility
Consumers are a business’ source of raw materials, intermediate goods or final products and services.
Select one:
True
False ✔
This sector processes raw materials from agriculture, fishery and forestry into intermediate products which are further processed into final products.
Select one:
a. Trade and Transport
b. Service Sector
c. Manufacturing
d. Industrial Sector ✔
Production refers to the use of goods and services to satisfy human wants.
Select one:
True
False ✔
These are domestically produced goods sold to foreign countries.
Select one:
a. Final Goods
b. Intermediate Goods
c. Exports ✔
d. Imports
Consumer Theory describes how consumers make decisions about what to buy given their income and prices of goods and services.
Select one:
True ✔
False
It refers to the average contribution per unit of input and is equal to TP/i.
Select one:
a. Total Utility
b. Marginal Utility
c. Total Product
d. Average Product ✔
It is a legal entity that is separate from its owners, the shareholders. No shareholder is personally liable for the debts, obligations or acts of the corporation.
Select one:
a. Sole Proprietorship
b. Partnership
c. Cooperative
d. Corporation ✔
A Business with total assets worth from P15,000,001 to P60,000,000. Large scale business is one with total assets in excess of P60,000,000.
Select one:
a. Large Business
b. Small Business
c. Micro Business
d. Medium Business ✔
It is a tool that lists the strengths, weaknesses, opportunities, and threats that face the business.
Select one:
a. HERFINDAHL-HIRSCHMAN INDEX (HHI)
b. Environmental Analysis
c. Industrial analysis
d. SWOT Analysis ✔
Goods that are ready for direct consumption and are then sold to customers for their use.
Select one:
a. Imports
b. Intermediate Goods
c. Final Goods ✔
d. Exports
The basic facilities, services and installations needed for the functioning of a community or society.
Answer: Infrastructure
The basic consuming unit, makes use of goods and services which are available in the economy.
Answer: Household
It refers to the combined utility derived from consuming certain units of a good.
Select one:
a. Marginal Product
b. Marginal Utility
c. Total utility
d. Total Product ✔
It shows the relationship between utility and consumption.
Answer: Utility Function
It produces the intangibles supporting and complementing production in the other sectors as well as among its own industries.
Select one:
a. Industrial Sector
b. Manufacturing
c. Trade and Transport
d. Service Sector ✔
The Law of Diminishing Marginal Utility states that as additional units of a good are consumed, the additional utility derived from each additional unit tends to diminish, while keeping consumption of other goods constant.
Select one:
True ✔
False
Those that can be changed easily and on short notice.
Select one:
a. Input
b. Variable Inputs ✔
c. Output
d. Fixed inputs
The commonly accepted measure of market concentration. It is calculated by squaring the market share of each firm competing in a market, and then summing the resulting numbers.
Select one:
a. Industrial analysis
b. SWOT Analysis
c. Environmental Analysis
d. HERFINDAHL-HIRSCHMAN INDEX (HHI) ✔
A form of business organization in which two or more persons combine their resources in a business with a view to making profit.
Select one:
a. Cooperative
b. Partnership ✔
c. Corporation
d. Sole Proprietorship
t is an aggregation of the different businesses engaged in the same kind of undertaking.
Answer: Affiliated Companies
The term used for satisfaction derived from consuming a good/service.
Answer: Utility
The Law of Diminishing Marginal Returns states that additional output starts to diminish at a certain point as additional units of a variable input are combined with one or more fixed inputs.
Select one:
True
False
A principle or body of principles to guide decisions and achieve rational outcomes.
Answer: Policy
The value of a particular monetary unit in terms of the goods and services that it can buy.
Answer: Purchasing Power
This is undertaking by a person or a group of persons who are partners, or of stockholders who own a juridical entity known as a corporation whose main objective is to earn profit for owners.
Answer: Corporate
A Business with total assets worth from P1,500,001 to P15,000,000.
Select one:
a. Micro Business
b. Large Business
c. Medium Business
d. Small Business
Retailers are wholesalers or brokers who buy in big quantities from manufacturers, add a mark-up to their purchase price and sell to distributors.
Select one:
True
False
A business with total assets worth below P1,500,001.
Select one:
a. Small Business
b. Medium business
c. Micro Business
d. Large Business
It is the basic producing unit, delivers the goods and services to the household for its consumption.
Answer: Producers
A form of business organization that is owned by a single individual who is singly responsible for running the business and is accountable for all debts and obligations related to the business.
Select one:
a. Sole Proprietorship
b. Cooperation
c. Corporation
d. Partnership
The product created as a result of the combination of inputs in the production process.
Select one:
a. Fixed Inputs
b. Input
c. Variable inputs
d. Output ✔
A written estimate of anticipated government revenues and expenditures during a specific period of time.
Select one:
a. National Budget ✔
b. International Budget
c. City Budget
d. Provincial Budget
Refers to an evaluation of the possible or probable effects of external forces and conditions on the survival and growth of the business.
Answer: Environmental Analysis
These are unprocessed goods like raw materials, logs, and wheat, they are materials extracted from their sources and do not undergo any process of production.
Select one:
a. Import Goods
b. Raw Materials ✔
c. Final Goods
d. Intermediate Goods
An act or process of trying to get or win something over one’s rivals.
Answer: Competition
This involves a look at economic factors such as income of the people, specifically the target market, economic conditions such as inflation, recession, prosperity, demand, and supply in the market.
Select one:
a. Economic Forces ✔
b. Physical Environment
c. Political Factors
d. Cultures and Lifestyles
Target market refers to the group of customers the business aims to cater to.
Select one:
True ✔
False
The additional output produced by an additional unit of the input and is equal to TP/ i.
Select one:
a. Marginal Utility
b. Total product
c. Marginal Product ✔
d. Total Utility
It refers to goods purchased from a foreign country
Select one:
a. Final Goods
b. Intermediate Goods
c. Exports
d. Imports ✔
A regular payment, usually on an hourly, daily or weekly basis, made by an employer to an employee, especially for manual labor.
Answer: Wage
These are semi-processed goods which are not ready for final use by the consumer, which have undergone some processing but need to go through additional processing before they can be actually used by the consumer. These are supplied to final good firms for conversion into goods in their finished stage.
Select one:
a. Intermediate Goods ✔
b. Exports
c. Final Goods
d. Imports
The resources used in the production of goods & services. It refers to the use of economic resources to create goods and services that will be used to satisfy human wants.
Select one:
a. Variable Inputs
b. Inputs ✔
c. Outputs
d. Fixed Inputs
Consumer Theory describes how consumers make decisions about what to buy given their income and prices of goods and services.
Select one:
True ✔
False
A form of business organization that is authorized to act as a legal entity regardless of the number of owners.
Select one:
a.
Distributor
b.
Partnership ✔
c.
Proprietorship
d.
Corporation
Graph showing the quantities supplied at each and every possible price in the marker.
Select one:
a.
Supply Schedule
b.
Variabale Costs
c.
Demand Schedule
d.
Supply Curve ✔
Human-made goods that are used to produce other goods and services
Answer: Capital
A Latin phrase that means while certain variables change, "all other things remain unchanged."
Select one:
a.
Ceteris Paribus ✔
b.
Entrepreneurship
c.
Microeconomics
d.
Microeconomics
Measure of the way in which the quantity supplied responds to a change in price. → Elasticity of Demand
Select one:
True
False ✔
What are the three basic economic questions?
Select one:
a.
What?, How?, Whom? ✔
b.
What?, Why?. Whom?
c.
How?, Whom?, When?
d.
What?, Where?, Whom?
Decision making based on extra benefit/cost of an action.
Answer: Marginal Analysis
What type of business structure is owned by many people?
Select one:
a.
Sole Proprietorship
b.
Corporation ✔
c.
Partnership
Extra revenue from the production of one additional unit.
Answer: Marginal Revenue
Provides a means to clearly show economic relationships in two-dimensional space. Economic analysis is often concerned with two variables confined to the upper-right (northeast) quadrant of the coordinate number system.
Answer: Graphs
Changes in price cause a SMALL change in quantity demanded. -INELASTIC DEMAND
Select one:
True
False ✔
Monopoly and Monopolistic Competition mean the same:
Select one:
True
False ✔
In a Market structure called 'Monopoly' there will:
Select one:
a.
One Firm ✔
b.
Two Firms
c.
Few Firms
d.
Many Firms
What is a payment made by an employer to an employee?
Select one:
a.
Marginal
b.
Profit
c.
Interest
d.
Wage ✔
The creative ability of individuals to seek profits by taking risk and combining resources to produce innovative products.
Answer: Entrepreneurship
Combination of desire, ability, and willingness to buy a product. → Demand
Select one:
True ✔
False
Feedback
Listing showing the quantity demanded at all possible prices that might prevail in the market at any given time.
Answer: Demand Schedule
The main difference between Oligopoly and duopoly is
Select one:
a.
No. of Firms ✔
b.
Imperfect Knowledge
c.
Similar Products
d.
Strong Bariers
Law of supply: suppliers will offer more for sale at _____ prices and less for sale at _____ prices.
Select one:
a.
high, low ✔ A
b.
Demand Curve
c.
down, up
d.
Supply Curve
Amount demanded at any given price.
Answer: Quantity Demanded
The condition in which human wants are forever greater than the available supply of time, goods, and resources.
Answer: Scarcity
The branch of economics that studies, decision making by a single individual, household, firm, industry, or level of government → Macroeconomics
Select one:
True
False ✔
Feedback
Occurs when two variables are unrelated → Independent relationship
Select one:
True ✔
False
3 Factors Affecting Elasticity of Demand → Necessity, substituitability, income
Select one:
True ✔
False
Supply curve that shows the quantities offered at various prices BY ALL FIRMS that sell product in a given market. → Cost of Production
Select one:
True
False ✔
Economic policies for determining the amount of money supply, rates of interest & exchange rates → Monetary Policy
Select one:
True ✔
Any natural resource provided by nature that is used to produce goods and services
Answer: Land
Principle that more will be offered for sale at higher and prices and less at lower prices. → Law of Supply
Select one:
True ✔
Demand: shift left=______ in demand.
Select one:
a.
Demand
b.
Decrease ✔
c.
Inverse Relationship
d.
Shortagae
An analysis limited to statements that are verifiable
Select one:
a.
Positive Economics
b.
Direct Relationship
c.
Inverse Relationship
d.
Normative Economics
The mental and physical capacity of workers to produce goods and services
Answer: Labor
The study of how society chooses to allocate its scarce resources to the production of goods and services in order ot satisfy unlimited wants → Microeconomics
Select one:
True
False ✔
What is it called when you have limited quantities of resources used to meet unlimited wants?
Select one:
a.
Scarcity ✔
b.
Specialization
c.
Profit
d.
What is the study of economic behavior and decision makings of small units, such as individuals, families, and businesses called?
Select one:
a.
Microeconomics ✔
b.
Economic Statistics
c.
Economics
d.
Macroeconomics
Amount that producers bring to the market at at any given price.
Answer: Quantity Supplied
Variable plus fixed costs, all costs associated with production.
Answer: Total Costs
A person who takes a risk to produce goods and services in search of profit
Select one:
a.
Entrepreneur ✔
b.
Profiteer
c.
Magistrate
d.
Baliff
Corporations are in business for what?
Select one:
a.
Profit ✔
b.
Non Profit
c.
Stockholders
Lowest legal price that can be paid for a good or service.
Select one:
a.
Fixed Costs
b.
Market Economy
c.
Price Floor ✔
d.
Total Costs
What kind of business is BEST described by these statements?
I am the only owner of my business.
I take all the risks of doing business.
I keep all the profits.
Select one:
a.
Corporation
b.
Partnership
c.
Sole Proprietorship ✔
d.
Cooperative
Amount of money, resources, raw materials, labor, and production it takes to make a good, item, or service.
Select one:
a.
Inelastic
b.
Cost of Production ✔
c.
Quantity Demanded
d.
Elastic
Satisfaction or usefulness obtained from acquiring one more unit of a product.
Select one:
a.
Variable Cost
b.
Marginal Utility ✔
c.
Marginal Analysis
d.
Quantity Supplied
The basic categories of inputs used to produce goods and services.
Answer: Resources
The branch of economics that studies decision making for the economy as a whole → Microeconomics
Select one:
True
False ✔
List the four market structures in order from least competitive to most competitive.
Select one:
a.
Monopoly, Oligopoly, Monopolistic Competition, Perfect Competition ✔
b.
Oligopoly, Monopoly, Perfect Competition, Monopolistic Competition
c.
Perfect Competition, Oligopoly, Monopoly, Monopolistic Competition
d.
Monopoly, Monopolistic Competition, Perfect Competition, Oligopoly
An analysis based on value judgments or opinions and use words such as good, bad, ought to, and should.
Select one:
a.
Normative Economics ✔
b.
Entrepreneurship
c.
Direct Relationship
d.
Positive Economics
What are the four factors of production?
Select one:
a.
Capital, money, supply, demand
b.
Land, capital, money, entrepreneurs
c.
Labor, capital, supply, demand
d.
Land, capital, labor, entrepreneurs ✔
What is the measure of how consumers react to a change in price?
Select one:
a.
Equilibrium Price
b.
Marginal
c.
Scarcity
d.
Elasticity ✔
What type of business consists of two or more people?
Select one:
a.
Partnership ✔
b.
Corporation
c.
Franchise
d.
Sole Proprietorship
Changes in price cause a LARGE change in quantity demanded.
Answer: Elastic Demand