QUIZ IN APPLIED ECONOMICS

1. The three basic economic problems of the country are the following; except:
a. Who gets what is produced
b. How is it produced
c. What to produce
d. Who makes the choice

2. This basic economic problem involves the decision on what products and services to produce
and in what quantity.
a. For whom to produce
b. How to produce
c. What to produce
d. None of these are correct

3. It is the problem on how to make use of the limited and scarce resources available.
a. Scarcity b. Economic problem c. Resources d. None of these are correct

4. A worker’s education can contribute to _______.

a. Economic problem b. Scarce resources c. Human Capital d. None of these

5. Which of the following is a factor of production?

a. The profit of a company
b. The interest paid on a bank loan
c. The skill of an electrical engineer to make electrical wirings
d. The taxes paid by workers to the government

6. The law of demand states that as the price of a good or service increase, consumer demand
for the good or service also ____.
a. does not change b. increases c. decreases d. none of the above

7. It is the negative relationship between the price and the quantity demanded.
a. Market equilibrium b. Law of Supply c. Law of Demand d. All of the above

8. Why is the demand curve sloping downward?

a. because as the price of the good or service increases the quantity demanded decreases
b. because the price of the good or service decreases the quantity supplied also decreases
c. because it means that there is no trade off that happened
d. none of these are correct

9. When the price of an item goes up, suppliers will attempt to maximize their profits by
increasing the quantity offered for sale. This defines what law?
a. Law of Supply b. Supply Curve c. Law of Demand d. Demand Curve

10. How would one determine the equilibrium price and quantity?
a. It is the point of intersection of the two curves
b. It is the highest price and its corresponding quantity on the curves
c. Any prices and quantity on the curves in the equilibrium
d. None of these are correct
11. The following are factors of production except:
a. land b. services c. capital d. labor