MICROECONOMICS

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ANSWER THIS : TRUE OR FALSE

1. The way any nation makes economic choices on how it will use its infinite resources is called economic system.

2. Capital includes infrastructure, such as roads, ports, sanitation facilities.

3. Underdeveloped nations having natural resources, but don't have capital or skilled labor to develop them is an example of scarcity.

4. Selective choices about using scarce resources create an economy.

5. When higher price is an incentive, sellers produce at the margin and buyers consume less.

6. Under principle #8, we need government intervention to enforce property rights.

7. The political system most frequently associated with capitalism is democracy.

8. Privatization is a common aspect of transition from a command economy to free enterprise system.

9. The main goal of socialism is to keep prices low for all people and to provide employment for many.

10. Because of totalitarian form of government, communistic countries set actual record of no unemployment.

11. Religion, customs and traditions determine and shape largely the so-called traditional economy.

12. Because of the nature of command economy, resources owned by the state are never wasted.

14. Everyday, in the Philippines and in some countries around the world, business owners, consumers, workers, and governments must make choices about using limited resources.

15. Entrepreneurship, refers to the skills of people who are willing to risk their time and money to run a business.