Questions and Answers
What is a defining characteristic of science as described?
Which of the following factors contributes to economic problems?
What primarily characterizes macroeconomics?
How is economics classified within the sciences?
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Which of the following is NOT included in macroeconomic policies?
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What distinguishes economics as an art?
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What does the Consumer Price Index (CPI) measure?
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What does microeconomics analyze specifically?
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How does the Producer Price Index (PPI) differ from the CPI?
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What role does scarcity play in economics?
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What is a major goal of economics?
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What is one of the primary goals of macroeconomic policies?
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In economic terms, what does 'wealth' refer to?
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What is the formula for calculating the Producer Price Index (PPI)?
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Which of the following best describes the impact of inflation on society?
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What type of inflation is caused by an increase in demand for goods and services?
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What is the primary function of monetary policy?
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Which statement accurately defines the Consumer Price Index (CPI)?
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What does the GNP formula consist of?
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Which of the following is included in the Income Approach to calculate GDP?
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What is depreciation in the context of GDP calculations?
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Which of the following elements does not directly contribute to the calculation of GNP?
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What does 'Net foreign factor income' measure?
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Which of the following is NOT a reason for unemployment in the Philippines?
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What does Gross Domestic Product (GDP) measure?
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Which approach to measuring national income focuses on the production side?
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What is the formula for calculating GDP using the expenditure approach?
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Which of the following is considered part of National Income?
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What is the term for the value which is added at the time of production?
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Which is a major contributor to the poverty cycle linked to unemployment?
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Which of the following statements is true regarding discrimination in employment?
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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.
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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.
