DMC COLLEGE FOUNDATION,INC.

Sta. Filomena, Dipolog City

1st Semester 2018- 2019

SCHOOL OF BUSINESS AND ACCOUNTANCY

Special Class

HIGHER EDUCATION DEPARTMENT Econ 3. (Macroeconomics)

MIDTERM EXAMINATION Earl Russell S. Paulican, REB,LPT

NAME: ___________________________________________ SCORE: _______________________

COURSE/YEAR: ______________________________ DATE : _____________________

“Commit to the Lord whatever you do, and your plans will succeed”
Proverbs 16:3
Test I. IDENTIFICATION. FILL IN THE BLANKS WITH THE CORRECT ANSWERS. (2 Points Each)
1. The fact that available resources are insufficient to satisfy all desired uses thereof.
2. Final goods produced for use in the production of other goods, eg., equipment ,structures.
3. The assembling of resources to produce new or improved products and technologies.
4. The most desired goods or services that are forgone in order to obtain something else.
5. The alternative combinations of final goods and services that could be produced in a given
time period with all available resources and technology.
6. Maximum output of a good from the resources used in production.
7. An increase in output or the expansion of the production possibilities.
8. The doctrine of “leave it alone”, or the nonintervention by the government in the market
mechanism.
9. An imperfection in the market mechanism that prevents optimal outcomes.
10. Government intervention that fails to improve economic outcomes.
11. The study of the aggregate economic behavior of the economy as a whole.
12. The assumption that nothing else is changing.
13. Payments to individuals for which no current goods or services are exchanged .
14. Goods and services sold to foreign buyers.
15. The ability of a country to produce a specific good at a lower opportunity cost than its
trading partners.
16. Production processes that uses a high ratio of capital to labor inputs.
17. The knowledge and skills possessed by the workforce.
18. Costs or benefits of a market activity borne by a third party.
19. A firm that produces the entire market supply of a particular good or service.
20. Any place where factors of production are bought and sold.
21. The ability and willingness to buy specific quantities of a good at alternative prices in a
given time period, ceteris paribus.
22. The quantity of a good demanded in a given time period increases as its price falls, ceteris
paribus.
23. Goods frequently consumed in combination; when the price of good x rises, the demand
for good y falls, ceteris paribus.
24. The total quantities of a good or service people are willing and able to buy at alternative
prices in a given time period; the sum of individual demands.
25. An economy that uses both market signals and government directives to allocate goods and
resources.
26. The use of markets prices and sales to signal desired outputs (or resource allocation).
27. An individual who reaps direct benefits from someone else’s purchase of a public good.
28. A social science that deals on the study of how society allocates its scarce resources to
satisfy the unlimited needs and wants of the society.
29. The study of individual behavior in the economy of the components of the larger economy.
30. The inability of labor-force participants to find jobs.

Test II. Essay.At least 10 sentences. Utilize the back page.(10 p0ints)
1.) Illustrate and explain the macroeconomics circular flow.
2.) Discuss some government failures that hinder our economic growth and its possible solutions.

-Success is a Choice, not a Destiny-

_keep on dreaming_

GOD Bless