Economic Development Overview Quiz
31 Questions
2 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is a defining characteristic of science as described?

  • It is only concerned with natural phenomena.
  • It requires subjective interpretations.
  • It can only study quantifiable events.
  • It traces the relationship between cause and effect. (correct)

    • Which of the following factors contributes to economic problems?

  • Unlimited human wants. (correct)
  • Stability in prices.
  • Surplus of commodities.
  • Abundance of resources.

    • What primarily characterizes macroeconomics?

  • Study of individual consumer behavior
  • Focus on corporate finance
  • Examination of international trade agreements
  • Analysis of overall economic behavior as a whole (correct)

    • How is economics classified within the sciences?

    <p>As a social science.</p> Signup and view all the answers

    Which of the following is NOT included in macroeconomic policies?

    <p>Individual savings habits</p> Signup and view all the answers

    What distinguishes economics as an art?

    <p>It offers a system of rules for decision making.</p> Signup and view all the answers

    What does the Consumer Price Index (CPI) measure?

    <p>The price of a fixed basket of goods and services relative to a base year</p> Signup and view all the answers

    What does microeconomics analyze specifically?

    <p>Decision-making of individual units.</p> Signup and view all the answers

    How does the Producer Price Index (PPI) differ from the CPI?

    <p>PPI includes raw materials and semi-finished goods</p> Signup and view all the answers

    What role does scarcity play in economics?

    <p>It necessitates the management of limited resources.</p> Signup and view all the answers

    What is a major goal of economics?

    <p>To balance limited resources with human wants.</p> Signup and view all the answers

    What is one of the primary goals of macroeconomic policies?

    <p>Reduce uncertainty and risk in economic decision-making</p> Signup and view all the answers

    In economic terms, what does 'wealth' refer to?

    <p>The overall well-being and satisfaction of society.</p> Signup and view all the answers

    What is the formula for calculating the Producer Price Index (PPI)?

    <p>Current Price of Basket / Base Price of Basket</p> Signup and view all the answers

    Which of the following best describes the impact of inflation on society?

    <p>It can negatively impact basic necessities for individuals.</p> Signup and view all the answers

    What type of inflation is caused by an increase in demand for goods and services?

    <p>Demand-pull inflation</p> Signup and view all the answers

    What is the primary function of monetary policy?

    <p>Impacting bank lending interest rates</p> Signup and view all the answers

    Which statement accurately defines the Consumer Price Index (CPI)?

    <p>A calculation comparing prices of numerous goods and services into an index.</p> Signup and view all the answers

    What does the GNP formula consist of?

    <p>Consumption, Investment, Government spending, Net exports</p> Signup and view all the answers

    Which of the following is included in the Income Approach to calculate GDP?

    <p>Total National Income</p> Signup and view all the answers

    What is depreciation in the context of GDP calculations?

    <p>The decrease in value of an asset over time</p> Signup and view all the answers

    Which of the following elements does not directly contribute to the calculation of GNP?

    <p>Production of goods by foreign companies in the country</p> Signup and view all the answers

    What does 'Net foreign factor income' measure?

    <p>Income earned by citizens minus income earned by foreigners in the country</p> Signup and view all the answers

    Which of the following is NOT a reason for unemployment in the Philippines?

    <p>High demand for skilled workers</p> Signup and view all the answers

    What does Gross Domestic Product (GDP) measure?

    <p>Total flow of goods and services produced by an economy</p> Signup and view all the answers

    Which approach to measuring national income focuses on the production side?

    <p>Production approach</p> Signup and view all the answers

    What is the formula for calculating GDP using the expenditure approach?

    <p>GDP = C + I + G + NX</p> Signup and view all the answers

    Which of the following is considered part of National Income?

    <p>Profits generated by entrepreneurs</p> Signup and view all the answers

    What is the term for the value which is added at the time of production?

    <p>Gross Value Added</p> Signup and view all the answers

    Which is a major contributor to the poverty cycle linked to unemployment?

    <p>Insufficient education and skill development</p> Signup and view all the answers

    Which of the following statements is true regarding discrimination in employment?

    <p>It can contribute to challenges in job application</p> Signup and view all the answers

    Study Notes

    Economic Development Overview

    • Economics is a social science focused on production, exchange, and consumption within economic systems.
    • Addresses scarcity of resources and unlimited human wants to enhance wealth and welfare.
    • Classifies itself as both a science and an art; science explains "why" while art instructs on "how" to achieve economic goals.

    Branches of Economics

    • Microeconomics: Focuses on individual decision-making units like households and firms, analyzing specific behaviors and choices.
    • Macroeconomics: Studies economic systems as a whole, examining aggregates of decision-making units, national income, and public finance.

    Macroeconomics Policy

    • Encompasses taxation, government spending, borrowing, exchange rate influences, and monetary regulations.
    • Aims to reduce uncertainty, stabilize the economy, and impact living standards across generations.

    Inflation

    • Defined as the rate of rising prices for goods and services in an economy.
    • Can have detrimental effects on society, especially regarding essential items.
    • Two types:
      • Demand-pull inflation: Occurs when demand exceeds supply.
      • Cost-push inflation: Triggered by rising costs of production.

    Consumer Price Index (CPI)

    • The CPI is a primary metric for tracking price levels by collecting data on thousands of goods and services.
    • Represents the weighted average price of a market basket relative to a base year.

    Unemployment Causes in the Philippines

    • Job-skills mismatch, lack of quality graduates, outdated curriculum, insufficient experience, and discrimination.
    • Contributing factors: poverty cycle and rapid population growth.

    Gross Domestic Product (GDP)

    • Measures total flow of goods and services produced in an economy over a specified period, regardless of ownership.
    • Can be estimated using different approaches: production, expenditure, and income.

    National Income Composition

    • Includes wages, interest, rent, profits, and net income from abroad.
    • Offers insights into economic capabilities and performance.

    Approaches to Measuring National Income

    • Production Approach: Calculates value added at production stages.
    • Expenditure Approach: Utilizes GDP Formula:
      • C (Consumption) + I (Investment) + G (Government spending) + NX (Net exports).

    Income Approach for GDP

    • GDP Formula: Total National Income + Sales Taxes + Depreciation + Net foreign factor income.
    • Total National Income aggregates rent, salaries, and profits; sales taxes are imposed on goods; depreciation reflects asset value loss.

    Studying That Suits You

    Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

    Quiz Team

    Related Documents

    Economic Development (Reviewer) PDF

    Description

    Test your knowledge on the fundamentals of economics, covering aspects such as microeconomics, macroeconomics, and related policies. This quiz explores concepts like resource scarcity, inflation, and the roles of government in economic stability. Dive into the world of economic theories and practices to enhance your understanding.

    More Like This

    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser