QUIZ

CH.1 Les 1.2

1. It is the application of economic
theories and principles to real world
situations.

a. Statistics
b. Applied Economics
c. Unemployment
d. Econometrics
2. For every additional production of a box
of milk, there is an equivalent incremental
cost. This is an example of a/an _______.

a. Opportunity cost
b. Normative Economics
c. Marginalism
d. Efficient Markets
3. A device used by holding the
other variable constant.
Translated as “all else equal”
a. Ockham’s razor
b. Okcham’s razor
c. Ceteres Paribus
d. Ceteris Paribus
4. Which is an example of variable?

a. Income
b. Price
c. Population
d. All of these are correct
5. It is a theoretical construct representing
economic processes by a set of variable
and a set of logical/quantitative
relationship between them.

a. Graph
b. Variable
c. Model
d. None of these are correct
6. It is a market in which profit
opportunities are eliminated almost
instantaneously.

A. Ceteris paribus
B. Economics
C. Efficient Market
D. All of these are correct
7. A branch of economics that uses statistical
and mathematical theories in economics
for ‘forecasting future trends.’

a. Applied economics
b. Econometrics
c. Education
d. None of these are correct
8. Consumers are alarmed because of the
sudden price increase of household
commodities. There is an economic
problem called ________.

a. Shortage
b. Surplus
c. Price Volatility
d. None of these are correct
 In Manuelito farm, they have 10 employees in
9. a 2-hectare land area. Crop planting and
harvesting are done by these employees. This
production technique is known as ________.

a. Labor intensive
b. Skill intensive
c. Capital intensive
d. None of these are correct
10. The principle that irrelevant detail
should cut away.
a. Model
b. Variable
c. All Else Equal
d. Ockham’s razor
1. B 6. C
2. C 7. B
3. D 8. C
4. D 9. A
5. C 10. D