Chapter Test No.

1 (Introduction to Economics) Score: _______/45

I. Multiple Choice. Choose the letter of the correct answer. Write your answer on the blank before each number.

______ 1. The following statement supports the concept of ceteris paribus except:
A. All other things held constant
B. A device to analyze the relationship between two variables
C. As it should be
D. All else equal
E. It allows economists to isolate the relationship between two variable.

______ 2. It is the foregone value of what you give up whenyou make choices.
A. Command economy
B. Macroeconimcs
C. Market economy
D. Microeconomics
E. Opportunity cost

______ 3. It refers to the basic and central economic problem confronting every individual and society.
A. Oikos
B. Scarcity
C. Nomus
D. Household
E. System

______ 4. This broadly refers to all resources found in nature and are, therefore, not man-made.
A. Entrepreneurship
B. Capital
C. Labor
D. Land
E. Production

______ 5. This refers to any form of human effort exerted in the production of goods and services.
A. Capital
B. Labor
C. Population
D. Entrepreneurship
E. Land

______ 6. These are man-made goods used in the production of other goods and services.
A. Land
B. Entrepreneurship
C. Capital
D. Labor
E. Distribution

______ 7. It refers to a person who organizes, manages, and assumes the risks of a firm, develops a new idea or
product, and turns it into a successful business.
A. Entrepreneurship
B. Capital
C. Labor
D. Land
E. Entreprenuer
______ 8. It refers to the place where resources or teh services of resource suppliers are bought and sold.
A. Market
B. Household
C. Businesses
 D. Resource market
E. Land

______ 9. It is the place where goods and services produced by businesses are bought by and sold to the
households.
A. Households
B. Businesses
C. Market
D. Land
E. Product Market

II. True or False. Write True if the statement is correct, if otherwise, write False.

_________ 10. Microenomonics operates at the level of the individual business firm, as well as that of the individual
consumer.
_________ 11. Microeconomics is a branch of economics that deals with the individual decisions of units of the
economy.
_________ 12. Microeconomics is the branch of economics that studies the relationship among broad economic
aggregates.
_________ 13. Macroeconomics focuses on the four sectors of the economy: aggregate household, business,
govertnment and externals.
_________ 14. Among the topics discusses in macroenomics are the principles of demand and supply and the
elasticity of demand and supply.
_________ 15. Macroeconomics also discusses the measurement of gross national product and gross domestic
product.
_________ 16. We cannot produce everything that we want since there is scarcity of resources.

III. Identification. Fill in the blanks with the correct answer.

17. ___________________________ is the branch of economics that studies the behavior of the economy as a
whole.

18. ___________________________ is the science that studies chemical and physical processes.

19. ___________________________ as a commodity or service being in short supply, relative to its demand.

20. ___________________________ is the study or discipline that aims to explain human behavior.

21. ___________________________ is the study of economics relative to real-life situations.

22. ___________________________ results in excess goods and services going to waste.

23. ___________________________ means “all other things held constant”.

24. If there is no scarcity, there should also be no ___________________________.

25. A society must also take into account teh resources that it possesses before deciding what goods or services

to ___________________________.

26. ___________________________is the discipline dealing with the application of scientific knowledge to
problems in order to develop practical solution.
27. The Greek word oikos means ___________________________.

28. ___________________________ results in a failure to meet the needs and wants of society
 29. Economics comes from the Greek term ___________________________.

30. ___________________________ employs more technological and capital goods like machineries and
equipment.

31. ___________________________ is the science that manages limited resources in demand.

III. Enumeration. List down what is asked.

What are the factors of production?

32. ______________________________________________________

33. ______________________________________________________

34. ______________________________________________________

35. ______________________________________________________

What are the basic economic questions?

36. ______________________________________________________

37. ______________________________________________________

38. ______________________________________________________

39. ______________________________________________________

What are the major sectors of macroeconomics?

40. ______________________________________________________

41. ______________________________________________________

42. ______________________________________________________

43. ______________________________________________________

What are the branches of economics?

44. ______________________________________________________

45. ______________________________________________________