Economic Terms and Concepts Quiz

Questions and Answers

What does the term 'Ceterus Paribus' mean?

The status quo remains unchanged

All things are different

Other things being equal (correct)

Equal distribution of resources

Which of the following best describes 'Luxury goods'?

Goods deemed highly desirable within a culture (correct)

Essential items necessary for survival

Widely used basic goods

Products that are cheap and easily accessible

What defines 'Aggregate Supply'?

The total supply of products a company plans to sell (correct)

The quantity of goods demanded across the market

The measurement of labor force in an economy

Supply of goods solely from domestic producers

Which market structure is characterized by a few companies exerting significant control?

Oligopoly Signup and view all the answers

What are Capital goods primarily used for?

Producing consumer goods or services Signup and view all the answers

In what economic system does the government have little to no control over market forces?

Market economy Signup and view all the answers

What is the relationship between Substitute Goods?

They are considered identical by consumers Signup and view all the answers

What is the primary focus of Applied economics?

Solving real-world problems Signup and view all the answers

What does economic rent refer to?

A payment exceeding the expected amount for a factor of production Signup and view all the answers

Which statement best describes scarcity?

It occurs when the demand for a good exceeds its availability Signup and view all the answers

What is meant by the law of supply and demand?

Prices are determined by the interaction of supply with demand Signup and view all the answers

How is market structure primarily classified?

Based on the degree and nature of competition Signup and view all the answers

What term describes the movement of individuals for employment across borders?

Labor migration Signup and view all the answers

Which of the following describes a surplus?

An excess amount of a resource beyond its usage Signup and view all the answers

What defines price stability?

Low and stable inflation leading to purchasing power retention Signup and view all the answers

What primarily influences the labor supply?

Individual willingness to trade for wages or compensation Signup and view all the answers

What is measured by Gross Domestic Product (GDP)?

The total final output of goods and services produced by an economy. Signup and view all the answers

Which situation describes full employment?

All available labor resources are being used efficiently. Signup and view all the answers

What does deflation represent in an economy?

A decrease in the general price level of goods and services. Signup and view all the answers

Which of the following best defines depreciation?

A gradual decrease in the economic value of a firm's capital stock. Signup and view all the answers

What is the main characteristic of perfect competition?

There is a large number of small companies competing. Signup and view all the answers

What are consumers defined as?

Persons who purchase goods and services for personal use. Signup and view all the answers

Which of the following describes labor migration?

Crossing national borders primarily to seek employment. Signup and view all the answers

What does the term 'Factors of Production' refer to?

The resources needed for producing goods and services. Signup and view all the answers

What occurs when market supply and demand balance each other?

Equilibrium is reached Signup and view all the answers

How does the Law of Supply and Demand relate price and quantity of goods supplied?

Quantity supplied decreases as market price decreases Signup and view all the answers

What does a demand curve graphically represent?

Relationship between price and quantity demanded Signup and view all the answers

What might be a consequence of imposing taxes on goods in the market?

Decreased supply of goods Signup and view all the answers

What role does Economic Science primarily study?

Resource allocation and trade-offs in decision-making Signup and view all the answers

Which of the following defines price elasticity?

The ratio between change in demand and change in price Signup and view all the answers

What does economic efficiency refer to?

Effective utilization of productive resources Signup and view all the answers

Which statement best defines Microeconomics?

It studies individual and firm behavior in resource allocation. Signup and view all the answers

What does opportunity cost represent?

The value of the next best alternative that is forgone Signup and view all the answers

What is an example of basic goods?

Rice and sugar Signup and view all the answers

What is a characteristic of complementary goods?

A change in one affects the demand for another Signup and view all the answers

Henry Sy is known for what significant role?

Owning SM Group of Companies and being the richest man Signup and view all the answers

In a command economy, who determines what goods and services are produced?

The government or a central planner Signup and view all the answers

What is the primary focus of macroeconomics?

Overall economic performance on a large scale Signup and view all the answers

What does the term 'resources' refer to in economic terms?

The inputs used to produce goods and services Signup and view all the answers

Economic freedom primarily allows consumers to do what?

Choose their food, housing, and recreational activities freely Signup and view all the answers

Study Notes

Market Concepts

Market: A venue for buying and selling various products.
Economic Science: Focuses on understanding human behavior in resource allocation and decision-making amid scarcity.
Macroeconomics: Examines the economy on a broad scale, including large aggregates.
Microeconomics: Analyzes individual and firm behaviors in resource allocation.

Economic Definitions

Economics: The study of social behavior in the context of allocating scarce resources to meet unlimited needs.
Opportunity Cost: The value of the next best alternative that is foregone when making a choice.
Commodity: A tangible product that can be traded without significant change in value.

Economic Actors and Systems

Henry Sy: Notable entrepreneur and the wealthiest individual in the Philippines.
Economic System: Framework through which societies distribute resources and goods.
Command Economy: Government or planner-driven control over production decisions.

Employment and Economic Well-Being

Unemployment: Individuals actively seeking work but unable to secure employment.
Economic Freedom: Consumers' ability to make choices regarding goods, lifestyle, and education.
Economic Growth: Increase in the output of goods and services over time.

Supply and Demand

Supply: The quantity producers are willing to sell at various prices.
Demand: Consumer desire to purchase goods at specific prices.
Equilibrium: Market condition where supply equals demand, stabilizing prices.

Price Concepts

Law of Supply and Demand: Indicates that supply increases with price and decreases when prices drop.
Demand Curve: Graphical representation of the relationship between price and quantity demanded.
Taxes: Government-imposed charges that can limit market supply.

Economic Security and Stability

Economic Security: The capability to meet essential needs sustainably.
Economic Stability: Availability of necessary resources for a healthy lifestyle.

Goods Classification

Complementary Goods: Products typically used together; price changes affect mutual demand.
Substitute Goods: Products that can replace one another, impacting consumer choices.
Basic and Luxury Goods: Essentials for living versus non-essentials that fulfill desires.

Market Structures

Monopoly: Market dominated by a single seller.
Perfect Competition: A large number of sellers providing identical products.
Oligopoly: A few firms hold significant market power, influencing prices and supply.

Economic Metrics

Gross Domestic Product (GDP): Measures total output of goods and services within an economy.
Total Cost: All expenses incurred during production or business operations.
Interest Rate: Represents the cost of borrowing money, influencing investment decisions.

International Trade

Importation: Bringing goods produced in foreign countries into a domestic market.
Exports: Domestic goods sold to foreign markets.
Exchange Rate: Value of one currency relative to another.

Additional Economic Principles

Scarcity: The imbalance between limited resources and unlimited wants.
Economic Rent: Additional payment exceeding the expected compensation for a resource.
Investment: Asset acquired for future income or value appreciation.

Labor Dynamics

Labor Migration: Movement of individuals for employment, often influenced by economic factors.
Labor Supply: Amount of human capital available for work-related activities.

Economic Problems

Economic Problem: The fundamental issue of meeting unlimited desires with limited resources.
Types of Economic Problems: Include issues like inflation, unemployment, and poverty.

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Description

Test your knowledge on fundamental economic terms such as labor, ceteris paribus, retail, and agribusiness. This quiz covers key concepts that are essential for understanding economics and commerce. Perfect for students and anyone interested in enhancing their economic vocabulary.