COLEGIO DE DAGUPAN

SCHOOL OF BUSINESS AND ACCOUNTACY

MACROECONOMIC THEORY
Semi-Finals (A)

Name: ____________________________________ Date: ___________________________

Directions:

 This is a 5-paged examination. Give this back to your proctor should your questionnaire
lacks page/s.
 Answer neatly on your test booklets and avoid erasures.
 You can help the Philippines as a student this early, by being honest to yourself.

I. Multiple Choice: Choose the best answer ( 40 points)

1. Refers to the population 15 years old and over who can contribute to the production
of goods and services in the country. It comprises the employed and unemployed.
a. Population
b. Employed
c. Labor Force
d. Unemployed
2. Consists of persons in the labor force who are reported either as at work or with a job
or business although not at work. Persons at work are those who did some work, even
for an hour during the reference period:
a. Employed
b. Self-Employed
c. Laborer
d. Workers
3. The proportion of employed persons to the total labor force
a. Employment rate
b. Self-employed
c. Unemployment rate
d. Laborer
4. The concept of subsistence income as that level affording minimum consumption of
basic necessities has been estimated for families of given characteristics for the
country. Below which, a family is considered poor.
a. Poverty
b. Impoverished people
c. Unemployment
d. Poverty threshold
5. The theory in which an explanation of the long-term trends in the prices of labor
a. Malthusian Theory
b. Laissez-Faire Theory
c. Subsistence Theory
d. Urbanization
6. Author of the Wealth of Nations in 1976
a. Adam Smith
b. Sam Smith

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 COLEGIO DE DAGUPAN
SCHOOL OF BUSINESS AND ACCOUNTACY
MACROECONOMIC THEORY
Semi-Finals (A)
c. John Smith
d. Denearys Targaryen
7. States that individuals ought to be free to act in their own self-interest and they must
be allowed to move about without interference
a. Malthusian Theory
b. Laissez-Faire Theory
c. Subsistence Theory
d. Urbanization
8. Concludes that on the basis of historical evidence, populations have an inherent
tendency to multiply rapidly, that is, to double each 25 year:
a. Malthusian Theory
b. Laissez-Faire Theory
c. Subsistence Theory
d. Urbanization
9. The kind of check that reduces birth rate
a. Positive check
b. Manager’s check
c. Negative check
d. Preventive check
10. Concludes that wages tended to equal the cost of reproducing it:
a. Thomas Malthus
b. David Ricardo
c. Adam Smith
d. Oscar Wilde
11. Lasted from 1929 to 1939, and was the worst economic downturn in the history of the
industrialized world
a. 2008 US Recession
b. 1997 Asian Financial Crisis
c. Industrial Revolution
d. The Great Depression
12. A consolidated theory from various theories about how in the short run – and
especially during recessions – economic output is strongly influenced by aggregate
demand (total spending in the economy)
a. Malthusian Theory
b. Classical Theory
c. Keynesian Theory
d. Theory of all labor Theories
13. Black Tuesday is
a. The Wall Street Crash of 1929
b. The Tuesday of the Holy Week
c. The day when everybody wears black
d. The great depression ended.
14. Generally used to mean any sustained or continuing increase in price
a. Price Increase
b. Inflation
c. Deflation

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 COLEGIO DE DAGUPAN
SCHOOL OF BUSINESS AND ACCOUNTACY
MACROECONOMIC THEORY
Semi-Finals (A)
d. Percent increase in Price
15. The kind of inflation where those who buy goods and services desire to purchase
goods and services greater than what the economy can produce.
a. Flexible inflation
b. Cost-push Inflation
c. Deflation
d. Demand-pull inflation
16. The hypothesis that changes in prices correspond to changes in the monetary supply:
a. Supply of Money Theory
b. Change in Price Theory
c. Quantity Theory of Money
d. Cost-Push Theory
17. An important starting point in the analysis of inflation is the empirical relationship of
unemployment to inflation:
a. Inflation curve
b. Phillip’s curve
c. Production Possibilities curve
d. Consumer Price Index
18. Measures the monthly changes in the general price level of commodities that flow
into wholesale trade intermediaries.
a. Retail price index
b. Wholesale Price Index
c. Commodity Price index
d. Consumer Price Index
19. Intended to provide general measure of average monthly and annual changes in the
retail prices of commodities commonly bought by consumers in the Philippines,
covering all income households
a. Consumer Price Index
b. Whole price index
c. Retail price index
d. Price Index
20. Statistical measure designed to show changes in a variable or group of related
variables
a. Index number
b. Relatives
c. Base Year
d. Curb inflation

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 COLEGIO DE DAGUPAN
SCHOOL OF BUSINESS AND ACCOUNTACY
MACROECONOMIC THEORY
Semi-Finals (A)

II. Choose the best answer among the terms below. (30 points)

1. Savings and Time Deposit

2. Checking Accounts
3. Money created by the BSP
4. A vehicle of Economic Activity
5. Value of Peso in terms of Foreign Currency
6. Dollar Inflows exceed Dollar Outflows
7. Ability of banks to create Deposit liabilities greater than
their reserves
8. Percentage of deposits kept inside the vaults

9. Administers the monetary, banking, and credit system

10. regulates the level of savings and investments
11. Buying and selling of securities of BSP
12. Major source of investments
13. BSP persuades financial institutions to follow and
implement its policies
14. Bank of all banks
15. A liability of the BSP

Selective
Monetary Policy Rediscounting Credit
Regulation
Fractional Reserve
Savings
System
Banko Sentral ng
Commercial Bank
Pilipinas
Moral Suasion Rediscount rate
Open Market Reserve
Quasi-Money
Operations Requirement
Balance of Payment Balance of
Surplus Payment Deficit
Peso Notes
Exchange Rate Demand Deposit
and Coins
Money Velocity

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 COLEGIO DE DAGUPAN
SCHOOL OF BUSINESS AND ACCOUNTACY
MACROECONOMIC THEORY
Semi-Finals (A)
III. Enumeration/Essay

1. Give the 5 Areas of Labor Problems. (10 points)

2. Give examples of people who benefit from the effects of inflation. Explain. (10 points)

3. Explain what initiated the Great Depression from 1929 to 1939 . (10 points)

4. In your opinion, can money provide you ultimate happiness? (10 points)

“There are things, far more important, than to look at yourself in the mirror, and lie.”- b.j.go

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