MACRO REVIEW

A determinant of Price Elasticity of Supply is where businesses are constrained by their available resources and may operate at full capacity during strong economic periods, resulting in inelastic supply when demand rises. 

PRODUCTIVE CAPACITY

A determinant of Price Elasticity of Supply where smaller businesses can quickly respond to rising demand without significantly increasing costs, giving them a more elastic supply compared to larger companies like steel manufacturers. 

SIZE OF THE FIRM/INDUSTRY

What type of Price Elasticity of demand that is greater than 1 and a one percentage increase in price will result in more than one percentage change in quantity demand?

ELASTIC

It is what a consumer pays for a unit of a specific good or service. 

PRICE

It is called the value of goods and services produced. 

OUTCOME

The amount of money from the goods and services being sold. 

INCOME

The money that is accepted as a medium of exchange because of the trust between the payer and the payee. 

FIDUCIARY MONEY

The Issue Price

PRICE LOWER THAN THE MARKET PRICE 

What is the formula for getting the GDP through Income Approach?

Total National Income + Sales Taxes + Depreciation + Net Foreign Factor Income

What is Depression in Economics

When the economy continues to suffer recession for two or more consecutive quarters; generally, it is a severe and prolonged recession. 

The following are Money Market Instruments, except: Treasury Bills, Certificate of Deposit, Commercial Paper, and Bonds 

BONDS

Which of the following is/are examples of money: Time Deposits, Currency Account Deposits, Currency Notes and Coins

CURRENCY NOTES AND COINS

Throughout its history, the PH Economy has experienced periods of inflation and deflation and periods of relatively high and low employment. These recurrent but non-periodic ups (expansions) and downs (contractions) of economic activity are called what? 

BUSINESS CYCLE

The “peak” of the business cycle is when the economy experiences expansions in all dimensions, leasing to accelerated and prolonged demand and increased investments, production, employment, etc. 

PROSPERITY

In this phase of the business cycle, the overall economic activity declines, leading to low economic output or real GDP. 

RECESSION

All of the following are Determinants of Productivity, except: Physical Capital, Advertising and Media, Technological Knowledge, Human Capital

ADVERTISING AND MEDIA

What does an Elastic Demand or Supply signify?

HIGH RESPONSIVENESS TO PRICE CHANGES 

If the price elasticity of supply (PES) is inelastic (<1), what does it mean for quantity supplied?

Quantity supplied changes slightly when price changes

Which type of demand occurs when a single product has multiple uses?

COMPOSITE DEMAND

This consists of finding the total wages, salaries, interests, dividends, rents, etc., paid to all the people of the country. To this are added receipts of goods in kind, profits earned by business firms but paid out to their owners, and similar items 

PAYMENTS RECEIVED METHOD

When the households consume the products and services of business firms, what will the households offer to the bank?

SAVINGS

When the business firms are offering and delivering products and services to the households, what will the households offer the government?

TAXES

All of the following are Determinants of Demand, except: Expectations, Number of Sellers, Consumer Income, Change in the Price of Related Goods 

NUMBER OF SELLERS

Refers to the goods and services that do not have an all-year-round demand.

SEASONAL DEMAND

This macroeconomic variable is the ratio of nominal GDP to real GDP and is otherwise called the implicit price deflator for GDP

GDP DEFLATOR

Best describes the difference between the GDP Deflator and the CPI.

The CPI can calculate the Inflation Rate while the GDP Deflator cannot.

It is a period of rapid economic expansion resulting in higher GDP, lower unemployment, a higher inflation rate, and rising asset price

ECONOMIC BOOM

This measures both a nation’s total output of goods and services and its income. 

GROSS DOMESTIC PRODUCT (GDP)

Printing money and distributing it to people is not a viable solution to poverty, because:

IT WILL CAUSE INFLATION

It is the measure of how much buyers and sellers responds to changes in market conditions

ELASTICITY

This is a business cycle contraction that occurs when there is a general decline in economic activity; it generally occurs when there is a widespread drop in spending.

RECESSION

This pertains to the total domestic and foreign output claimed by residents of a country, consisting of the gross  domestic product plus factor incomes earned by foreign residents minus income earned in the domestic economy by non-residents. 

GROSS NATIONAL PRODUCT

What is the amount of a good, service, or resource that people are willing and able to buy during a specified period at a specified price?

QUANTITY DEMANDED

This is the “valley” of the business cycle where output and employment are at their lowest levels.

DEPRESSION

What is the measure of deducting Depreciation from the Gross National Product (GNP)?  

NET NATIONAL PRODUCT (NNP)

Which of the following is not one of the Three Approaches used to measure the GDP: Expenditure Approach, Value Added Approach, Price Approach, Income Approach

PRICE APPROACH

What is the main difference between the Nominal Income and Real Income?

Nominal Income is the total income before taxes, while Real Income is after tax deductions 

What does Real Income represent in Economics? 

INCOME ADJUSTED FOR INFLATION

All of the following is included in the composition of GDP is made of, except: Consumption, Investment, Local Funds, Net Exports Expenditures

LOCAL FUNDS

What measures a country’s economic output per person? 

GDP PER CAPITA

There are three approaches to measuring the gross domestic product, or GDP. The formula for the Expenditure Approach is:

Y = C + I + G + (X-M), where Y = national income, C = consumption expenditures, I = investment, G + gov’t expenditures, X = export, and M = import

Compute the Nominal GDP if the quantity is 750 and the price of each quantity is 60.

45,000

It is one of the different demand curve types that illustrate graphically how the percentage change in quantity demanded and the percentage change in price are equal or constant. A demand curve that is shaped like a rectangular hyperbola presents this: 

UNITARY ELASTIC DEMAND

This variety of demand curve shows that any change in price will result in an infinite change in the quantity demanded. This variety of demand curve means that the Elasticity of Demand is infinity. 

PERFECTLY ELASTIC DEMAND

It is a situation where workers look for other jobs or are laid off for some reason.

FRICTION UNEMPLOYMENT

This type of unemployment, where innovation and technological change render the skills and talents of some workers obsolete.

STRUCTURAL UNEMPLOYMENT

This consists of finding the sum of retail sales, total expenditures for building construction (the most important form of investment), and similar data obtained from numerous sources. 

EXPENDITURE METHOD

Spending by households on goods and services, with the exception of purchases of new housing. What composition of GDP is this? 

CONSUMPTION

Which of the following is equal to the foreign purchases of domestically produced goods (exports) minus the domestic purchases of foreign goods (imports): Gov’t Purchases (G), Net Exports (NX), Investment (I), Consumption (C)

NET EXPORTS (NX)

Which of the following is not a Determinant of Elasticity Demand: Availability of close substitutes, Necessities versus Luxuries, Size of the Firm/Industry, Proportion of Income Devoted to the Product 

SIZE OF THE FIRM/INDUSTRY

Which is NOT an approach to measure GDP: Value Added Approach, Outcome Approach, Expenditure Approach, Income Approach

OUTCOME APPROACH

Not a Type of Elasticity

UNELASTIC

In economic policies, there are the following: Monetary Policy for Monetary Management and Circulation, Fiscal Policy for Government Taxes and Goods, and Trade Policy for Import and Exports of the Country. Which is the incorrect sub-topic?

FISCAL POLICY FOR GOV'T TAXES AND GOODS

 It is the economic measurement that states the overall sum of goods and services rendered in the economy in a whole year. 

NATIONAL INCOME

The Explanation for Diminishing Returns

It is the property whereby the benefit from an extra unit of an input declines as the quantity of the input increases. 

What is the simplest and considered the oldest type of currency that builds on scarce natural resources that act as a medium of exchange, store of value, and unit of account?

COMMODITY MONEY

Which of the following policies and ways could a nation use in order to resolve the Recession and Depression: Invest in Infrastructure, International Cooperation, Monetary Policy

ALL OF THEM

Which of the following is an example of an Exogenous Variable: The Quantity of Goods Demanded, The Price of Goods, The Level of Gov’t Spending, The Rate of Unemployment

THE LEVEL OF GOV’T SPENDING

It measures how much the quantity demanded responds to changes in the price.

PRICE ELASTICITY OF DEMAND

It is when the economy tries to come out of the low production phase, maybe a Recession or Depression.

RECOVERY

It is the measurement of the total value of produced goods and services using the current prices. 

NOMINAL GDP

It is a type of GDP where the economic well-being would tally the economy’s output of goods and services without being influenced by changes in prices. 

REAL GDP

In the context of the goods market, what is the “equilibrium” point? 

The point where Quantity Demanded equals the Quantity Supplied

Which of the following factors is likely to increase the demand for goods in the market: Decrease in Consumer Income, Increase in the Price of Substitute Goods, Increase in Population, Decrease in Consumer Confidence

INCREASE IN POPULATION

Which of the following is NOT a Determinant for Price Elasticity of Supply: Productive Capacity, The Time Period, Availability of Close Substitutes, Ease of Storing Stock

AVAILABILITY OF CLOSE SUBSTITUTES

Price Elasticity is equal to 1, and a one percentage increase in price will result in precisely one percentage change in quantity demanded. What is it? 

UNITARY

It is a model that shows the flow of money in society, which is: money is sent back and forth between producers and employees in the form of wages and payments for goods. 

CIRCULAR FLOW

The price of the basket of goods and services relative to the price of the same basket in some base year. It is by computing the price of a basket of goods and services purchased by a typical consumer.

CONSUMER PRICE INDEX (CPI)

Statement about Microeconomics that is FALSE

Microeconomics is the study of the economy as a whole 

Statement about Macroeconomics that is FALSE

Macroeconomics focuses on the actions of individuals and businesses. 

False Statement about the Net National Product (NNP)

It is examined bi-yearly in order to assess a nation’s achievement in maintaining minimal production standards. 

It is a type of demand wherein the increase in demand for a good or service is caused by changes in the cost of a related good or service.

DERIVED DEMAND

Purchase of goods that will be used in the future to produce more goods and services. 

INVESTMENT

It expresses the relationship between the price and quantity of goods purchased. 

PRICE DEMAND

_____ spending by households on goods and services, with the exception of purchases of new housing. 

CONSUMPTION

_____ can be described as claims against financial institutions that can be used to purchase goods and services that will be generally accepted as a medium of exchange.

COMMERCIAL MONEY

What is the importance of Net National Product?

It plays a significant role in shaping the growth rate of a nation. 

It is the term for how much money an individual or entity makes after accounting for inflation. 

REAL WAGE

What is the formula for the Unemployment Rate?

U = Unemployed People/Labor Force x 100 

It is the amount of money that has not been adjusted for inflation-related changes in purchasing power or how much that money can be purchased. 

NOMINAL INCOME