This reviewer is particularly designed for lecturers of economics subject to any college-level students who has taken this subject as a part of the course curriculum. This review provides set of items that attempt to include the introductory chapters like factor markets, production, supply and demand and income distribution. This assessment involves 30 items for identification and 30 items for enumeration. Answer choices are provided in random appearance and this would allocate students 120 minutes of time to answer the test.
1. Is the creation of goods and services to satisfy human wants.
2. Is a finished product which is used to produce other goods. Examples are machines. In finance and to laymen, refers to money.
3. Are the organizer and coordinator of the land, labor and capital.
4. The sum total cost of production. It is composed of wages, rents, interests and normal profits.
5. A kind of cost which remains constant regardless of the volume of production.
6. Is an original gift of nature. It includes the soil, rivers, lakes, oceans, mountains, forests, mineral resources and climate.
7. Is an exertion of physical and mental efforts of individuals. Applies not only to workers or farmers but to professionals like accountants, economists or scientists.
8. Is the proper allocation and efficient use of available resources for the maximum satisfaction of human wants.
9. A method used by economists relying on practical observation.
10. This means they do not apply to all people. They tend to be true to a large number of people under certain assumptions.
11. Deals with the economic behavior of individual units such as the consumers, firms and owners of the factors of production.
12. Deals with the economic behavior of the whole economy or its aggregates such as government, business and household.
13. A basic law of economics and technology.
14. A kind of cost which changes in proportion to volume of production.
15. Also called unit cost. Equivalent to total cost divided by quantity.
16. The additional or extra cost brought about by producing one additional unit.
17. Is a non-expenditure cost. The factors of production belong to other users.
18. An alternative benefit or foregone opportunity.
19. Also called expenditure cost. These are payments to the owners of the factors of production like wages, interests, etc.
20. Additional income of the firm brought about by producing and selling one additional unit of a product.
21. Are markets used to exchange and allocate the services of factor inputs and scare resource among productive activities.
22. Is the special sort of human effort that takes on the risk of bringing labor, capital, and the land together to produced goods.
23. Is one person alone. He or she will have unlimited liability for all debts of the business, and the income or loss from the business will be reported on his or her personal income tax return along with all other income and expense he or she normally reports.
24. Is formed when two or more person agrees to carry on a business together. This agreement can be written or oral.
25. Is formed by two or more entities and must have at least one limited partner and one general partner. Limited partners are only liable for the partnership’s debts equal to their investment in the partnership. A limited partner normally has little knowledge or participation in the activities of the partnership, the general partner usually runs the limited partnership.
26. A legal entity that is separate and distinct from its owners; has the right to enter into contracts, loan and borrow money, sue and be sued, hire employees, own assets and pay taxes.
27. Is a form of applied ethics that examines ethical principles and moral or ethical problems that arise in a business environment.
28. It is the ability to acquire something of a value at the present time in return for a promise to pay at a certain future time.
29. The allocation of income among the owners of the factors of production.
30. Is the allocation of income among persons or households.
ANSWER CHOICES: sole proprietorship , capital, fixed cost, labour, economics, personal distribution , empirical method, economic principles, macroeconomics, production, total cost, business ethics , average cost, marginal cost, implicit cost, opportunity cost, explicit cost, law of diminishing returns, marginal revenue, entrepreneur, factor markets, credit , entrepreneurship , land, microeconomics, general partnership , limited partnership , variable cost, corporation , income distribution
Basic economic statements (1-3)
Economic Models (4-6)
Basic economic problems (7-10)
Judging economic system (11-16)
Objective goals of economics (17-20)
Determinants of demand elasticity (21-23)
Types of supply elasticity (24-28)
Divisions of economics (29-30)
Answer Key: Identification (30 Points)
1. production, 2. capital, 3. entrepreneur, 4. total cost, 5. fixed cost, 6. land, 7. labour, 8. economics, 9. empirical method, 10. economic principles, 11. microeconomics, 12. macroeconomics, 13. law of diminishing returns, 14. variable cost, 15. average cost, 16. marginal cost, 17. implicit cost, 18. opportunity cost, 19. explicit cost, 20. marginal revenue, 21. factor markets, 22. entrepreneurship , 23. sole proprietorship , 24. general partnership , 25. limited partnership , 26. corporation , 27. business ethics , 28. credit , 29. income distribution , 30. personal distribution
Answer Key: Enumeration (30 Points)
1. What goods and services to produce and how much, 2. How to produce the goods and services, 3. For whom are the goods and service, 4. Capitalism, 5. Socialism, 6. Communism, 7. High prices, 8. Unemployment, 9. Income, 10. Capital deficiency, 11. Abundance, 12. Stability, 13. Security, 14. Efficiency, 15. Justice and equity, 16. Freedom, 17. Economic growth, 18. Economic freedom, 19. Equitable distribution of wealth and income, 20. Economic security, 21. Number of goods substitutes, 22. Price increase in proportion to income, 23. Importance of the product to the consumers, 24. Elastic supply, 25. Inelastic supply, 26. Perfectly elastic, 27. Perfectly inelastic, 28. Unitary supply, 29. Macroeconomics, 30. microeconomics