Applied Economics Quiz

Why is economics classified as a social science?

• Because it deals with the study of man's life and how he lives with other men.

• Because it is concerned with human beings and his behavior, and it is concerned with appraisal of facts and events.

• Because it deals with one aspect of human behavior, viz., how men deal with problems of scarcity

• Because it is a systematic knowledge built upon by conscious efforts.

Study of economics in relation to real world situations

• Microeconomics

• Econometrics

• Applied economics

• Macroeconomics

Which of the following is true on the basic economic goods based on their use?

• consumer good: soap, capital good: equipment, essential good: soft drinks, economic good: aircon

• consumer good: shampoo, capital good: machine, essential good: medicine, economic good: aircon

• luxury good: ballpen, capital good: buildings, essential good: cake, economic good: computer

• Luxury good: ballpen, capital good: watch, essential good: paper, economic good: flower vase

What are the basic economic problems of the country?

• What to produce, for whom to produce, why to produce and what legalities should be made

• What to produce, for whom to produce, how to produce and what legalities should be made

• When to produce, why to produce, what legalities should be made

• What to produce, for whom to produce, how to produce and what laws should be made for economic growth

This factor of production is paid in the form of rent or lease.

• labor

• land

• entrepreneur

• capital

What is trade-off?

• to trade

• an alternative that we sacrifice when we make a decision.

• opportunity cost

• the more expensive alternative

What is opportunity cost?

• society

• the most desirable alternative gives up as the result of a decision.

• the most desirable give up as a result of force

• a trade off

The local government encourage their constituents to start a small agri-business to provide the need of its people. Yuri, one of the beneficiaries, owns one (1) hectare land but doesn't have enough capital. He decided to make small farm and he must make a choice between two goods, i.e., whether to grow rice or wheat. He also wants to put up a piggery farm on his land. Which of the following statements shows how this situation solve the problem?

• The government provide enough capital to those who want to put up their own business.

• Providing a capital to people to start a new business is a good start for those people who have enough resources which can help to support the need of the society.

• Business provides the need of the people.

• Investment is the action or process of investing money for profit or material result.

It is a condition when the supply of a good, service, or resource is not enough to meet the demand.

• shortage

• allocation

• scarcity

• elasticity

Scarcity is the same as shortage.

• None of the above

• Both A and B

• This statement is false

• This statement is true