Cagayan state University
Sanchez Mira, Cagayan
Midterm Exam in Economic Development
Name: _______________________________________ Year and section: _____________
I Multiple Choice
Directions: Read and understand the Following items carefully. Write the letter of your correct
answers on the space provided before each number.
_____1. Which of the following statements best define economics?
A. It’s the science and art of wealth-getting and wealth-using activities.
B. It’s the study on the allocation of scarce resources among unlimited and competing
uses to satisfy human wants.
C. It is a social science that deals with inquiries on satisfying human needs.
D. Satisfying unlimited wants with limited supply of economic needs.
_____2. Why do people need to protect and preserve world’s natural resources?
A. Natural resources are expendable.
B. Natural resources would not last long and must be consumed the most economical
way.
C. Natural resources are not replaceable.
D. Natural resources are limited and must be utilized with utmost care.
_____3. Which of the following is true about human wants?
A. It’s insatiable.
B. It’s a serious matter for human survival.
C. It differs upon people with different economic status.
D. It is purely concentrated on material things.
_____4. The following are causes of scarcity except___________________
A. Increasing number of human population. C. Decreasing family income.
B. Poor working practices. D. Qualities of resources and human wants
_____5. Which of the following problems is an offshoot of massive land conversion in the
Philippines?
A. Urbanization C. migration
B. Rice Shortage D. Industrialization
_____6. Why do the Philippines have excessive labor force?
A. An indication of over population.
B. No job opportunity provided for the Filipinos.
C. An indication of too much school in the Philippines.
D. it’s a result of government effort in educating the Filipinos.
____5. Which of the following government agency/sector provides open opportunity for social
mobilization among the Filipino citizen?
A. Educational Sector C. NEDA
B. Department of Agrarian Reform, D. DOLE
_____6. Which refers to the normal wear and tear of any physical commodity?
A. depreciation C. Defective
B. renovation D. Condemnable
_____7. Which of the following is a None-Quantifiable needs?
A. physiological needs C. belongingness and love
B. safety needs D. Self-actualization
_____8. Which classification of resources is being valued on the countries claim over Kalayaan
Group of Islands?
A. Mineral Resources C. Fisheries and marine resources
B. Land Resources D. All of the above
_____9. Why is economics a social science?
A. It uses scientific studies in dealing with problems.
B. It deals with problems of the society
C. Economics tries to understand human behavior in dealing with problems.
D. All of the above.
_____10. Which of the following concepts deals with choosing how and where resources are
being utilized to the best end?
A. Allocation C. Economizing
B. Efficiency D. Budgeting
II Identification
Identify what is being referred to in the following items. Write your answers on the space
provided before each number.
___________________1. The hands-off policy of government having capitalism as an economic
system.
___________________2. An economic theory which describes the growth of population faster
than food supply in the future which can only be resolved through
the occurrence of deadly war, famine and disease.
___________________3. Critical aspect of economy wherein the Total revenue has been
equalized with the Total cost.
___________________4. It is also referred to as the Economics of the society.
___________________5. It is characterized by the improved quality of life and high standard of
living among the people.
___________________6. It is characterized by an increase/expansion on volume of trade,
investment, income and wide infrastructure.
___________________7. The sum of the value of goods and services produce in the economy
in
a given year.
___________________8. It is being referred to a working condition wherein workers receive
wages below their earning capacity due to unused professional or
technical skills.
___________________9. It is characterized by malnutrition which generally affect most the
young and adolescent.
___________________10. The proponent of an economic theory which contended that more
investment will lead to a more technological change and
consequently to a more investment.
III Enumeration
Directions: Enumerate the following items asked for by the following numbers.
01-14 Critical aspects of economics.
15-38 Causes of Business Failure
39-43 The stages of Economic Development.
44-50 Measurement of growth and development
III Essay
Directions: Give your best explanations on the following items.
1. Discuss the following role of the government in development;
a. The central planning authority, (5 pts)
b. The government Budget. (5 pts)
