1. The economics teacher can employ various types of tests to assess students’ understanding and knowledge of the subject. Some of the commonly used test types in economics education include:

a) Multiple Choice Questions (MCQs): This type of test item presents a question or statement with several possible answers, of which the student must select the correct one. MCQs are useful for assessing students’ factual knowledge and understanding of key concepts.

b) Short Answer Questions (SAQs): SAQs require students to provide brief, concise answers to specific questions. These questions can assess students’ understanding of economic theories, principles, and their ability to apply them to real-world scenarios.

c) Essay Questions: Essay questions require students to provide a more detailed and comprehensive response to a given prompt. This type of test item assesses students’ ability to analyze economic concepts, critically evaluate arguments, and articulate their thoughts effectively.

d) Data Analysis Questions: These questions involve analyzing and interpreting economic data, such as graphs, charts, or tables. Students are required to draw conclusions, make predictions, or identify trends based on the provided data. This type of test item assesses students’ ability to apply statistical and analytical skills to economic problems.

1. Based on the types of tests mentioned above, here are four test items that can be constructed:

a) Multiple Choice Question (MCQ): Question: Which of the following is an example of a regressive tax? a) Sales tax b) Income tax c) Property tax d) Value-added tax

b) Short Answer Question (SAQ): Question: Define the concept of opportunity cost and provide an example.

c) Essay Question: Question: Discuss the impact of inflation on an economy. Include in your answer an explanation of the causes and consequences of inflation, as well as possible measures to control it.

d) Data Analysis Question: Question: Examine the provided graph depicting the relationship between price and quantity demanded for a particular product. Based on the graph, explain the concept of price elasticity of demand and discuss its implications for producers and consumers.

Note: The specific content and complexity of the test items can be adjusted according to the level of the students and the learning objectives of the economics course.