MODULE ON MICROECONOMICS FOR

BSBA STUDENTS
COVERAGE FOR PRELIMINARY EXAMINATION

Chapter 1
I. Topic: Introduction to economic theory

Activity 1
Name: ________________ Course and Yr.:
Date: Rate: __________________

Identify what is being described. Write the letter of the best answer on the line before each
number.

_A____1. The economic system in which production decisions are made according to
customs and traditions.

a. Traditional economic system c. market system

b. Command economy d. mixed economy

_C____2. The system that works under the principle that the interest of society should prevail
over that of the individual.

a. Traditional economic system c. market system

b. Command economy d. mixed economy

_C___3. The system in which market prices serve as signal to the producers about what
goods to produce and how much of these good should be produced.

a. Traditional economic system c. market system

b. Command economy d. mixed economy

_C____4. Under this system, the economic problems are answered predominantly through
the price mechanism and modified through government intervention.
 a. Traditional economic system c. market system
b. Command economy d. mixed economy

_D____5.an economy where individuals exercise free enterprise.

a. Traditional economic system c. market system

b. Command economy d. mixed economy

_B__6. It is considered as a basic consuming unit.

a. Firm c. resource
b. Household d. mixed economy

_A___7. It includes water, forests, minerals, and animals.

a. Land c. resource owners

b. Labor d. none of the above.

_B___8. It refers to man’s mental and physical efforts exerted in production.

a. Land c. entrepreneur
b. Labor d. capital

_D___9. It refers to machines, tools and equipment used in production.

a. Land c. entrepreneur
b. Labor d. capital

_C___10. “The brains” behind the business.

a. Land c. entrepreneur
b. Labor d. capital
_D___11. Inputs used in production.

a. Land c. capital
b. Labor d. all of the above

_D___12. It corresponds to the price of capital.

a. rent c. profits
b. wages d. interest

_B____13. The payment made for labor.

a. rent c. profits
b. wages d. interest

_A____14. The payment for the use of land.

a. rent c. profits
b. wages d. interest

_A____15. It pertains to the national income analysis.

a. macroeconomics c. normative economics

b. microeconomics d. positive economics

_D____16. The study of what is.

a. macroeconomics c. normative economics

b. microeconomics d. positive economics

_B____17. It is also known as the price theory.

a. macroeconomics c. normative economics

b. microeconomics d. positive economics
_C____18. It deals with what should be.

a. macroeconomics c. normative economics

b. microeconomics d. positive economics

_C____19. The desires and needs of consumers that have to be satisfied.

a. Basic needs c. wants

b. Luxury goods d. all of the above

_D____20. Man’s needs required for survival.

a. Basic needs c. wants

b. Luxury goods d. all of the above

Activity 2
Name: Course and Yr.:
Date: Rate: ______________________
 1. Resources Payment
Land RENT
Labor WAGES
Capital INTEREST
Entrepreneurship PROFIT

2. What are the economic problems?

Some of the current economic difficulties are the unemployment, economic

instability, low level of growth development, inequality of income distribution and the type
of economic system to be adapted.