Midterm

ECON 101

Name: _____________________________ Year & Section: __________Date:____________

Directions: Read each questions carefully. Choose and write the best answer on the space
provided before the number.

_____1. Economics 101 is firmly anchored on?

a. CHED Memo Order No. 59 s.1996
b. CHED Memo Order No. 69 s. 1987
c. CHED Memo Order No. 57 s. 1996
d. CHED Memo Order No. 71 s. 2010
_____2. According to the CHED order, all college students are required to take at least how
many units?
a. 72 units c. 32 units
b. 12 units d. 22 units
_____3. Factor of Production which covers all natural resources that exist without man’s
intervention.
a. labor c. capital
b. land d. entrepreneurship
_____4. Refer to human inputs.
a. labor c. capital
b. land d. Entrepreneurship
_____5. Man-made factor of production.
a. labor c. capital
b. land d. Entrepreneurship
_____6. It integrates the 3 factor of production to create new products.
a. labor c. capital
b. land d. Entrepreneurship
_____7. Factors of production are scarce, because they are?
a. Properly allocated
b. Limited
c. Neither allocated and limited
d. Either improperly or allocated limited
_____8. Things we cannot live without.
a. scarcity c. wants
b. needs d. Limited
_____9. Non-essential things we can live without.
a. limited c. scarcity
b. wants d. Needs
_____10. Social science essential for dealing with two extremes.
a. Philosophy c. Psychology
b. Economy d. Biology
_____11. Two extremes that economics are dealing with.
 a. Scarce resources and unlimited human demands
b. Abundant resources and unlimited human demands
c. Scarce resources and limited human demands
d. Abundant resources and limited human demands
_____12. Expansion of consumption and an increase in population of a particular market
segment.
a. Changing taste and preference
b. Increase in population
c. Increase in income
d. None of the above
_____13. Consumption pattern change
a. Changing taste and preference
b. Increase in population
c. Increase in income
d. None of the above
_____14. Individual preference change
a. Changing taste and preference
b. Increase in population
c. Increase in income
d. None of the above
_____15. In economics, the resources are called?
a. scarcity c. factors of production
b. wants d. Needs
_____16. Branch of economics which deals with economics of firms.
a. macroeconomics c. microeconomics
b. positive economics analysis d. normative economics analysis
_____17. Branch of economics which studies the aggregates of economy.
a. macroeconomics c. microeconomics
b. positive economics analysis d. normative economics analysis
_____18. Refers to the total value of the goods and services produced by the people of a
particular nation.
a. inflation c. deficit
b. Gross Domestic Product d. demographics
_____19. The continual increase in the price of the goods and services.
a. Inflation c. deficit
b. Policies d. demographics
_____20. The finite nature of land, labor, capital, and entrepreneurship consequently makes
the existence of?
a. scarcity c. resources
b. wants d. needs

Test II. Analyze, Complete, Explain the illustration on how the economy works.( 30 points)

Test III. Explain the following. (5 points each)

a. Differentiate needs between wants.

b. TRAIN Law
c. What is your stand on the teachers asking for an increase of salary?