Name: ______________________________ Date: ____________________

Section: ______________________________

Multiple Choice. Select the best answer among the choices. Write the answer before the
number.

1. A leading economist, Michael Todaro, defined ______________ as that “branch of

economics concerned with individual decision units, namely firms and households,
and the way in which their decisions interact to determine relative prices of goods
and factors of production, and how much of these will be bought and sold.”
a. Macroeconomics c. Positive Economics
b. Microeconomics d. Normative Economics

2. It is a place where buyers and sellers meet; refers to a place where goods and
services are exchanged.
a. Households c. Social Science
b. Economics d. Market

3. it is management of people, resources, and time to produce goods and services to

satisfy the needs of humans and societies.
a. Social Science c. Profit
b. Management d. Economics

4. Which of the following is not included as categories of different disciplines or fields

of science.
a. Social Science c. Natural Science
b. Formal Science d. Empirical Science

5. Method of logic that allows a person to make general conclusions based on

repeated specific occurrences, i.e., from specific to general.
a. Induction c. Theory
b. Scientific Method d. Deductive

6. The study of the entire economy and how the individual economic agents interact
with one another in the economy is called…
a. Economics c. Social Science
b. Management d. Macroeconomics
7. The Scottish philosopher who once said that human beings are driven by self-
interest when they do their businesses.
a. Edward Shapiro c. David Ricardo
b. Adam Smith d. Thomas Maltus

8. Which of the following items is not considered as our basic needs;

a. Rice c. Pants
b. House d. Necklace

9. A pervasive condition of people and society with unlimited wants and needs but
with limited resources to satisfy them.
a. Choices c. Need
b. Wants d. Scarcity

10. It is the act or attitude of maximizing utility or satisfaction with every money spent
a. Rational Behavior c. Choices
b. Self-Interest d. Wants

11. The social institution that makes, executes, and interpret laws, and sets policies to
manage the economy.
a. Judicial c. Government
b. Legislative d. Executive

12. He is the economist who was largely responsible for the development of
microeconomics in modern times.
a. Alfred Marshall c. David Ricardo
b. John Maynard Keynes d. John Stuart

13. Refers to all private people who consume goods and services in an economy.
a. Firms c. Society
b. Households d. Unemployed

14. The word “economics” comes from two Greek words, “oikos” and ”nomos”, what
does “oikos” means?
a. Management c. House
b. Law d. Society

15. Mathematics, statistics, logic, computer science, and information technology are all
included in which field of science?
a. Normal Science c. Social Science
b. Formal Science d. Universal Science
16. A method of logic that allows a person to make specific conclusions based on
general or universal premises that are already established to be true.
a. Theory c. Induction
b. Deduction d. Scientific Method

17. Biology, botany, zoology, astronomy, physics, meteorology, geology, and chemistry
are disciplines under the category of which field of science?
a. Normal Science c. Social Science
b. Formal Science d. Universal Science

18. Refers to mishandling or misuse of resources.

a. Management c. Wastage
b. Maximize d. Profit

19. That part of human nature that makes people move or acts towards what they
perceive as good for them.
a. Rational Behavior c. Choice
b. Self-Interest d. Wants

20. The productivity of the country may be studied by summing up all incomes earned
and the expenditures made by everyone in the country, for which we will get the
national output or the GDP and GNP. What does GDP stands for?
a. Gross Domestic Purchase c. General Domestic Purchase
b. General Domestic Product d. Gross Domestic Product