1. What is the primary focus of economics?
A. Studying human behavior
B. Allocating scarce resources
C. Understanding history
D. Analyzing political systems
B. Allocating scarce resources
Economics primarily focuses on how individuals and societies allocate scarce resources to satisfy unlimited wants and needs. Studying human behavior, understanding history, and analyzing political systems can be part of economics, but the key focus is resource allocation.
2. Which of the following best describes microeconomics?
A. Study of the entire economy
B. Analysis of individual consumer behavior
C. Exploration of global economic trends
D. Evaluation of government policies
B. Analysis of individual consumer behavior
Microeconomics studies individual units such as consumers, firms, and markets, focusing on decision-making and resource allocation at a small scale.
3. What does the term "opportunity cost" refer to in economics?
A. The actual cost of a good or service
B. The cost of missed opportunities when a choice is made
C. The price of luxury items
D. The total expenditure in an economy
B. The cost of missed opportunities when a choice is made
Opportunity cost refers to the value of the next best alternative that is forgone when a decision is made.
4. Which economic approach focuses on maximizing utility and individual preferences?
A. Behavioral economics
B. Keynesian economics
C. Neoclassical economics
D. Marxist economics
C. Neoclassical economics
Neoclassical economics emphasizes rational behavior, where individuals maximize utility (satisfaction) and firms maximize profits, based on available resources and preferences.
5. Which method is commonly used to measure a country's economic performance?
A. Gross National Happiness (GNH)
B. Gross Domestic Product (GDP)
C. Consumer Price Index (CPI)
D. Human Development Index (HDI)
B. Gross Domestic Product (GDP)
GDP measures the total value of goods and services produced within a country over a specific time, commonly used as an indicator of economic performance.
6. What is the primary role of a production possibility frontier (PPF) in economics?
A. Identifying consumer preferences
B. Showing the maximum combination of goods a society can produce
C. Analyzing market demand curves
D. Estimating the cost of production
B. Showing the maximum combination of goods a society can produce
The PPF illustrates the trade-offs and opportunity costs of producing different combinations of goods using limited resources.
7. In economics, what is meant by the term "inflation"?
A. A decrease in the general price level
B. An increase in the supply of money
C. A sustained increase in the general price level
D. A decrease in the money supply
C. A sustained increase in the general price level
Inflation is the continuous rise in the general price level of goods and services over time.
8. Which tool of economic analysis is used to represent the trade-offs between two goods or services?
A. Supply and demand curves
B. Production possibility curve
C. Lorenz curve
D. Phillips curve
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BSED Major in Social Studies 2
Non-FictionThese materials provide lecture notes, quizzes, and resources for BSED Social Studies students, covering key topics such as history, geography, economics, and political science. Marjhon Mascardo shares a personal note, reflecting on his college jour...
