Economics

_______________1. Is a condition where there are insufficient resources to satisfy all the needs and
wants of a population.

_______________2. As a study is the social science that involves the use of scarce resources to satisfy
unlimited wants.

_______________3. Is when supply is limited.

_______________4. Also known as factors of production, are the resources used to produce goods and

Services.

_______________5. Soil and natural resources that are found in nature and are not man made. Owners
of the lands receive a payment known as rent.

_______________6. Physical and human effort exerted in production. It covers manual workers like
construction workers, machine operators and etc.

_______________7. Man made resources used in the production of goods and services, which include

Machineries and equipment.

_______________8. Is a division of economics that is concerned with the overall performance of the
entire economy.

_______________9. Is concerned with the behaviior of individual entities such as the consumer, the
producer, and the resource owner.

______________10. Means through which society determines the answer to the basic economic
problems.

______________11. Decisions are based on traditions and pracices upheld over the years and passed
on from generation to generation.

______________12. This is the authoritative system wherein decision making is centralized in the
government or a planning committee.

______________13. This is the most democratic form of economic system. Based on the workings of
demand and supply, decisions are made on what goods and services to produce.

______________14. Is the market value of final products, both sold and unsold, produced by the
resources of the economy in a given period.

______________15. Is defined as the market value of final products produced within the country.
Test 11 – Describe the type of economic system characterized in each of the following sentences.

_____________1. Prices are based on demand and supply.

_____________2. The government decides on what goods should be produced.

_____________3. Ancient methods are used in deciding what goods to produce.

_____________4. People enjoy freedom of choice in arriving at decisions on what to buy.

_____________5. People have no freedom of choice in arriving at decisions on what to buy.

_____________6. Economy is stagnant, making use of practices in the olden times.

_____________7. Economy is backward because no new technology or production methods are

introduced.

_____________8. It is the most democractic form of economic system.

_____________9. Peoples preferences are reflected in the prices they are willing to pay in the market

____________10. It exist in primitive and backward civilizations.