Principle of Economics Renato A Adriano III

Mock Exam 2019-2020

GUIDELINES: A “No Permit No Exam Policy” shall be strictly implemented. No student is

allowed to go out of the classroom. Examinee is advised to approach the proctor silently.
Do not start while you are not told to do so. All answers must be written legibly. If
finished pass your test paper with the test booklet to the proctor and silently go out of
the classroom. You will receive back your test booklet a week after the scheduled
examination.

NAME:___________________________________DEPT/COURSE:____________________

PART I MULTIPLE CHOICE

Encircle the correct answer

1. Which term describes the way a society organizes the production,

distribution, and consumption of goods and services to meet people's
needs and wants?
a. Supply and Demand
b. Economic System
c. Mixed System
d. Capitalism
2. The two important factors in the study of Economics
a. Scarcity and Unlimited Wants
b. Capitalism and communism
c. Demand and Production
d. None of the above
3. What scarcity means
a. Unlimited resources
b. Abundant supply
c. Both a and b
d. None of the Above
4. Who is the writer that defines Economics as “the study of production
distribution selling use of goods and services “
a. Collins
b. Mac Collins
c. Parkin and Bades
d. None of the above

5. Is an economic principle referring to a consumer's desire to

purchase goods and services and willingness to pay a price for a
specific good or service. 

a. demand
b. supply
c. production
d. both a and b

6. is a process of combining various material inputs and immaterial

inputs (plans, know-how) in order to make something for consumption
(the output)
a. Demand
b. supply
c. production
d. both a and b

7. These are desires that can be satisfied by consuming a good,

service, or leisure activity

a. Demand
b. supply
c. production
d. wants

8. The branch of knowledge concerned with the production, consumption,

and transfer of wealth.

a. Economics
b. Social Science
c. Politics
d. supply and demand

9. This refers that people never get enough, that there is always
something else that they would like to have. When combined with
limited resources,unlimited wants result in the fundamental problem of
scarcity.

a. unlimited wants
b. wants
c. supply
d. goods

10. It asserts that there is scarcity, or that the finite resources

available are insufficient to satisfy all human wants and needs

a.Economic Problems

b.Economic Goals

c.Communism

e. both b and c

11. Type of Capitalism where the Government do not intervene in the

action of the private person

a. mixed economy
b. Pure capitalism
c. modified Capitalism
d. Socialism

12. The human resource that combines the other resources to produce a
product, makes nonroutine decisions, innovates, and bears risks.
a.Entreprenuerial ability
b.Labor
c.Capital
d.none of the above

13. This refers to services embodied to any human effort or activities

a.capital
b.labor
c.land
d.both c and a
 14. Refers to Agricultural or industrial purposes as well as natural
resources taken from above or below the Soil.
a.Capital
b.land
c.Labor
d.Products

15.The branch of knowledge concerned with the production, consumption,

and transfer of wealth.
a.Economics
b.labor
c.capital
d.work

PART II MATCHING TYPE

11) Pure Capitalism a. the Government regulates and

intervene in the acts of the Private
person

12) Modified Capitalism b. the government cannot intervene in

the acts of Private Person

13) Capitalism c. Property is Owned by Private Person

14) Communism d. the primary resources is owned by the

Government

15) Socialism e. all the resources is owned by the

government

16) Wants f. refers to a person’s desires

PART III

ENUMERATION

A. What are the questions raised in Economic problems?

17.
18.
19.

B. What are the two forms of Capitalism?

20.

21.
C. What are the rights of the Private Person in Capitalism?

22.

23.

24.

25.

D. What are the Economic Resources or Factors of Production

26.

27.
 28.

29.

PART IV TRUE OR FALSE

Write T if the statement is TRUE and write F if the statement is FALSE

_________30. In Communism the Private Persons Own the Property

_________31. In Communism the Governemnt owns all resources of the nation

_________32. Under Communism the Government owns the basic and major
Industries

_________33. Mixed economy is the combination of both private and state

enterprise

_________34. Economic resources are the factors used in producing goods or

providing services.

__________35. In Socialism private persons own the property

__________36. Economics is the study of how societies use scarce resources

to produce valuable commodities and distribute them among different people.

__________37. The word “economics” has been derived from the Greek word
oikonomia. It means household management

___________38. An institution is a set of rules of conduct, established

ways of thinking, or ways of doing things.

___________39. The purpose of an economic system is to solve the basic

economic problems. The main goal of economic system is high standard of
living for all its citizens.

___________40. Economics deals with the problem of scarcity

___________41.Sociology is the study of how societies use scarce resources

to produce valuable commodities and distribute them among different people.

___________42. Politics may be defined as a science that deals with the

activities of man in obtaining wealth for the satisfaction of his wants.

___________43. Economics is the art of making a living.

___________44. Capitalism is the proper allocation and efficient use of

available resources for the maximum satisfaction of human wants.

___________45. Supply and demand is the branch of social science that deals
with the production and distribution and consumption of goods and services
and their management.

_____________46.Economics is the science that deals with the production,

distribution, and consumption of wealth, and with the various related
problems of labor, finance, taxation, etc. (Webster's New World)

_____________47. In Communism the people has no choice of Job

_____________48. In communism only the Government can operate Business

_____________49. The rights of Capitalism is allowed in Communism

_____________50. Under the Capitalism the Government owns the basic and
major Industries

***Nothing follows***

Prepared by: Checked by: Verified by: Approved by:

Renato A. Adriano III Renato A. Adriano III Prof. Jose Van Galvo Carmelo D. Carcido
Teacher Academic Coordinator School Director Headmaster