This quiz works best with JavaScript enabled. Home > Economics > Applied Economics > Applied Economics – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Applied Economics Quiz 2 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Is the income left after all other necessary (nontax) expenses have been deducted. The amount that is either spent or saved corresponds. A) Disposable Income. B) Interest. C) Profit. D) Discretionary Income. Show Answer Correct Answer: D) Discretionary Income. 2. Old and outmoded physical plant. A) Strength. B) Weakness. C) Opportunities. D) Threat. Show Answer Correct Answer: B) Weakness. 3. It refers to the use of goods and services to satisfy human wants. A) Consumption. B) Satisfaction. C) Utility. D) Opportunity. Show Answer Correct Answer: A) Consumption. 4. Defined as:the performance of a duty or work for another person A) Good. B) Service. C) Export. D) Import. Show Answer Correct Answer: B) Service. 5. What do supply and demand describe in microeconomics? A) The impact of government regulations on markets. B) The determination of market prices and quantities. C) The interaction between producers and consumers. D) The quantity of goods produced and consumed. Show Answer Correct Answer: B) The determination of market prices and quantities. 6. Local stores sell a particular pair of sneakers for P8, 000. A picture of a basketball star Lebron James wearing these sneakers appears in all the local newspapers. The next day, sales for sneakers start to rise.What is likely to happen to the price of the sneakers over the next several weeks? A) People will refuse to buy these sneakers. B) The price for the sneakers will not change. C) The price will fall as people learn Lebron James wears them. D) The price of the sneakers will rise as more people want similar sneakers. Show Answer Correct Answer: D) The price of the sneakers will rise as more people want similar sneakers. 7. Active investors may be stock pickers who invest based on fundamental analysis of corporate financial statements and financial ratios. A) True. B) False. Show Answer Correct Answer: A) True. 8. What is the movement of the slope of demand curve? A) Leftward. B) Sideward. C) Downward. D) Upward. Show Answer Correct Answer: C) Downward. 9. It applies the conclusions from economic theories and econometrics in dealing with practical economic issues. A) Home economics. B) Socio economics. C) Applied economics. D) Economics. Show Answer Correct Answer: C) Applied economics. 10. As a certain type of clothing becomes more fashionable, we would expect its equilibrium price: A) To decrease and quantity will remain constant. B) And quantity will decrease. C) To increase and quantity to decrease. D) And quantity to increase. Show Answer Correct Answer: D) And quantity to increase. 11. Which economic system is characterized if prices are based on demand and supply? A) Traditional. B) Command. C) Market economy. D) Barter. Show Answer Correct Answer: C) Market economy. 12. The initiative and creativity to produce something new describe which factors of production. A) Land. B) Labor. C) Capital. D) Entrepreneurship. Show Answer Correct Answer: D) Entrepreneurship. 13. The following statements are correct EXCEPT: A) Authority to tax is inherent to every state. B) Taxes are compulsory contributions to support the state. C) Overseas workers cannot be taxed for his income earned in abroad. D) Taxation regulates the flow of income in an economic system. Show Answer Correct Answer: C) Overseas workers cannot be taxed for his income earned in abroad. 14. Analyzes demand and supply of a product A) Microeconomics. B) Macroeconomics. Show Answer Correct Answer: A) Microeconomics. 15. As price of good increases, buyers tend to buy more of it A) Agree. B) Disagree. Show Answer Correct Answer: B) Disagree. 16. Low morale of the employee A) Strength. B) Weakness. C) Opportunities. D) Threat. Show Answer Correct Answer: B) Weakness. 17. It is where independent contractor/freelancer deals into a corporation/company and they will be paid in return for the services they made. A) Business Process Outsourcing. B) Networker. C) Network Marketing. D) Networking. Show Answer Correct Answer: C) Network Marketing. 18. Poverty that goes further to include factors such as participation in decision making either in civil, political, social, and cultural life. A) Absolute poverty. B) Overall poverty. C) Human capital. D) Physical capital. Show Answer Correct Answer: B) Overall poverty. 19. When an economy produces more houses and fewer typewriters, it is answering the ..... A) "where". B) "for whom". C) "how". D) "what". Show Answer Correct Answer: D) "what". 20. Indicate which economic resource does the following term belongs to. FOREST AND MARINE RESOURCES A) LAND. B) LABOR. C) CAPITAL. D) ENTREPRENEURSHIP. Show Answer Correct Answer: A) LAND. ← PreviousNext →Related QuizzesEconomics QuizzesApplied Economics Quiz 1Applied Economics Quiz 3Applied Economics Quiz 4Applied Economics Quiz 5Applied Economics Quiz 6Applied Economics Quiz 7Applied Economics Quiz 8Applied Economics Quiz 9Applied Economics Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books