Quiz # 1 Applied Economics

Quiz # 1 A. Multiple Choice: Choose the letter of the best answer. Write it on the space provided before each number. Any kind of ERASURES are not allowed. _____1. When did scarcity happen? a. When resources are limited to satisfy the unlimited needs and wants of the people b. When resources became scarce because of the consumers ability to buy c. When resources became limited because of lack of production factors d. When resources are limited because of the country’s poor economic stability ______2. What do you call the value of an alternative that you give up to obtain another item? a. Trade off b. Opportunity cost c. Benefit d. Savings ______3. What can you gain from your choices? a. Trade off b. Savings c. Benefit d. Opportunity cost ______4. It is the purchase and use of goods and services to satisfy economic wants. a. consumption b. buying c. allocation d. purchasing ______5. How did the labor force contribute to the economy? a. They give payment of taxes to the government. b. They process the raw materials of agriculture. c. They act as consumers of the products. d. They support the economy through trading. ______6. What is the main goal of economics? a. to sustain the needs of the people b. to solve the problem of scarcity c. to create a sustainable life for the people d. to establish a stable economy _____7. All are examples of basic needs except for one: a. clothing b. jewelries c. shelter d. food ______8. In the law of supply, if the price increases what will happen to the demand? a. increases b. decreases c. constant d. equilibrium price _____9. In the law of demand, if the price increases what will happen to the supply? a. increases b. decreases c. constant d. equilibrium price _____10. In the law of supply, if the price decreases or goes down what will happen to the demand? a. increases b. decreases c. constant d. equilibrium price _____11. In the law of demand if the price decreases or goes down what will happen to the supply? a. increases b. decreases c. constant d. equilibrium price _____12. If the demand increases and the prices goes down. What will happen to the supply schedule? a. increases b. decreases c. constant d. equilibrium price _____13. If the supply increases and price goes up. What will happen to the demand schedule? a. increases b. decreases c. constant d. equilibrium price ______14. If the price is above the equilibrium and attained the lower prices in the market, it will create a: _______to the producers because of the excess. a. surplus b. shortage c. recession d. depression ______15. . If the price is below the equilibrium and attained the higher prices in the market, it will create a: ______ to the consumers because of the scarcity. a. surplus b. shortage c. recession d. depression ______16. He is the father of Modern Economics a. John Maynard Keynes b. David Ricardo c. Adam Smith d. Karl Marx ______17. He is the father of Communism. a. John Maynard Keynes b. David Ricardo c. Adam Smith d. Karl Marx ______18. He is the father of Macroeconomics a. John Maynard Keynes b. David Ricardo c. Adam Smith d. Karl Marx ______19. He is the father of Economics a. John Maynard Keynes b. David Ricardo c. Adam Smith d. Karl Marx _____20. A branch of social science that concerned with the collection and analysis of numerical facts and data. a. Chemistry b. Biology c. Statistics d. Geography _____21. It is the study of living things. a. Chemistry Biology c. Statistics _____22.It is the study of matter and energy a. Chemistry d. Geography b. Biology c. Statistics d. Mathematics ______23. A branch of social science that records the struggle of man and past events. a. History b. Anthropology c. Sociology d. Biology ______24 It is the study of the composition of society and social institutions. a. History b. Anthropology c. Sociology d. Political Science ______25.It is the study of the government structure and functions. a. History b. Anthropology c. Geography d. Political Science b.