- 1. 1. Aggregate/collection of total market value of production of primary/Leading industry in the Country.
A) Expenditure Approach
B) Industrial Origin/Value Added Approach
C) Income Approach
- 2. 2. Measures the total production produced within and outside the country.
A) GNP-Gross National Product
B) Income Per Capita
C) NFIFA
D) GDP-Gross National Product
- 3. 3. Refers to the total market value of production and services produced by the households at a given period of time. Even those Filipinos who are out of the country (OFW)
A) Final Products
B) CPI
C) GNP
- 4. 4. What is Qd in the equation Qd = a-bP?
A) a quantity demanded when the Price is ZERO
B) Quantity Demanded
C) Quantity Supplied
- 5. 5. The term "ceteris paribus" in economics means:
A) The price at which demand equals supply
B) All else being equal or held constant
C) The highest possible profit
D) The best choice for consumers
- 6. 6. If the price of coffee increases, and as a result, the quantity demanded for tea increases, what can be concluded?
A) The goods are substitutes
B) The goods are shortage in supply
C) The Law of Supply is at work
- 7. 7. Main problem of the Philippine Economy.
A) Poverty
B) Unemployment
C) Population Growth
- 8. 8. Means of producing natural/organic goods.
A) Manufacturing/industry Production
B) Essential Production
C) Production
D) Agricultural Production
- 9. 9. savings, taxes, and imports.
A) Injections
B) Savings
C) Consumption
D) Leakages
- 10. 10. The Philippines is under what kind of Economic System?
A) Mixed Economy
B) Capitalism
C) Command Economy
D) Free Market
- 11. 11. Equation:
A+1+S= is equals to?
A) NFIFA
B) Income Per Capita
C) Gross National Product
D) GDP
- 12. 12. These are withdrawals or outflows from the circular flow of income, representing the withdrawal of money from the economy.
A) Consumption
B) Injections
C) Leakages
D) Savings
- 13. 13. Equation:
C+I+G=(X-M) is equals to?
A) NFIFA
B) Income Per Capita
C) GNP
D) Gross National Product
- 14. 14. Refers to products and services produced within the country. Also includes those produced by foreigners within the country.
A) GNP-Gross National Product
B) Income Per Capital
C) GDP-Gross National Product
D) NFIFA
- 15. 15. Refers to the total market value of all final products/finished products and services produced at a given period of time/in a year WITHIN a country. Including Foreigners provided that production took place within the country.
A) CPI
B) GNP-Gross National Product
C) GDP-Gross Domestic Product
- 16. 16. Exports less/minus Imports.
A) Investment (Expenditure Approach)
B) Net EXPORTS (X-M) (Expenditure Approach)
C) Statistical Discrepancy/SD (Expenditure Approach)
- 17. 17. Money introduced to the circular flow as investment, government spending and exports. This inflow increases the income flow.
A) Consumption
B) Leakages
C) Injections
D) Business Cycle
- 18. 18. Means of producing processed goods.
A) Agricultural Production
B) Essential Production
C) Production
D) Manufacturing/industry Production
- 19. 19. National Expenditure of all citizens and includes Foreigners staying in the country.
A) Net Income Factor Income From Abroad
B) GNI
C) (NFIFA)
D) (X-M) = Net Exports
- 20. 20. In measuring GNP by industry Origin, what sectors/industries are involved?
A) Agriculture, Industry and Service
B) Transportation, Finance, Trade
C) Mining, Construction, Gas and Water
- 21. 21. According to the Law of Demand, when the price of a good decreases:
A) The quantity demanded increases
B) The quantity supplied decreases
C) The quantity demanded decreases
D) The quantity supplied increases
- 22. 22. All means of production activities are carried out to?
I. To provide or supply goods and services needed by a society/an economy
II. To satisfy man's Needs and wants
III. To satisfy man's comfort and well-being
A) and II only
B) I only
C) II only
D) I, II and III
- 23. 23. Maximizing the use of scarce resources as many wants as possible.
A) Production
B) Scarcity
C) Economic System
D) Choices and Decision-making
- 24. 24. Non-price determinants/factors.
A) A and C only
B) A. tastes and preferences B. Consumers' income and Family size population growth C. Expectations of future prices and income D. Prices of related goods
C) A, C and D only
D) A, B, C and D
- 25. 25. Refers to all consumers consumption/expenditures.
A) Government Spending (Expenditure Approach)
B) Investment (Expenditure Approach)
C) Personal consumption (Expenditure Approach)
- 26. 26. Importance of disposable income.
A. Consumer/individual spending
B. Saving Rate
C. Standard of Living
D. Better Standard of Living
A) A only
B) A and C only
C) A, B and D only
D) A, B, C and D
- 27. 27. The household's realized demand to satisfy current needs.
A) Personal Income
B) Personal Expenses
C) Personal Consumption
- 28. 28. In determining the Multiplier Equation of Income, what does MPC means__?
A) Marginal Propensity to Consume
B) Multiplier Coefficient
C) Marginal Propensity to Save
- 29. 29. It is a vital concept that summarizes or contains the interrelation of investment, consumption, and economic growth. It also illustrates how government and business investments can significantly boost economic activity and growth by creating jobs and stimulating consumption.
A) Capital Durability
B) Business Cycle
C) Economic Growth
D) The investment multiplier
- 30. 30. The proportion of additional income that consumers spend on consumption.
A) Subsequent spending
B) Investment Expenditure
C) MPC = Marginal Propensity to Consume
D) Initial Investment
- 31. 31. What is the key role of monetary policy during a recession?
A) To reduce taxes on corporations
B) To increase government spending
C) To decrease interest rates and increase money supply
D) To raise interest rates
- 32. 32. A factor of consumption when an individual product demand is inversely proportional to price due to the change in purchasing power substitution with other products.
A) Consumption Framework
B) Price Level
C) Income
- 33. 33. A factor of Consumption that depends on how the product satisfies one's desires.
A) Consumption Framework
B) Taste or Preference
C) Population size
D) Income
- 34. 34. The process of generating income through the circular flow exchange between the households and the firms.
A) Multiplier coefficient
B) Factor Income
C) Multiplier
- 35. 35. During this Business cycle phase, there is full employment of resources, and the level of production is at maximum and therefore results to increase in GNP (Gross National Product).
A) Recovery
B) Depression
C) Recession
D) Boom or Peak (Prosperity)
- 36. 36. What is the primary factor influencing household consumption in the Philippines?
A) Disposable income
B) Level of education
C) Government policies
D) Interest rates
- 37. 37. His research shows that as the family income level rose, the proportion to total income of essential items like food increased while non-essential items like education and recreation followed the opposite trend.
A) Ernest Engel
B) Engel's Law
C) Schumpeter
- 38. 38. A factor of Consumption that determines consumption needs and affects consumption expenditures with a given income.
A) Taste or Preference
B) Consumption Framework
C) Population size
- 39. 39. It is an amount of money that households have available for spending and saving which is equal to
Total Income less Taxes.
A) Disposable Income
B) Savings
C) Taxable Income
D) Individual Income
- 40. 40. Expansion happens in this phase of business cycle.
A) Recession
B) Depression
C) Recovery
D) Boom or Peak
- 41. 41. This business cycle phase is from depression to Prosperity/Boom or Peak.
A) Boom or Peak
B) Recession
C) Depression
D) Recovery
- 42. 42. Which of these explain about the Marginal Propensity to Consume (MPC)?
A. After receiving income, individuals and businesses decide how much of that income to spend versus how much to save.
B. The marginal propensity to consume is the fraction of additional income that is spent on consumption.
C. If, for example, an MPC of 0.8 means that for every additional Peso PHP/dollar received, 80 cents is spent. D. The additional income that occur as a result from an initial investment or economic activity.
A) D only
B) A, B, C and D
C) A, B and D only
D) A, B and C only
- 43. 43. The act of using of goods and services to satisfy human wants.
A) Consumption
B) Expenditure
C) Savings
- 44. 44. If the government increases its spending, it adds money to the economy, contributing to higher income levels. This inflow is called ?
A) Multiplier
B) A Leakage
C) An injection
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