Republic of the Philippines

Department of Education
Region VI – Western Visayas
Division of Roxas City
BALIJUAGAN NATIONAL HIGH SCHOOL
Balijuagan Roxas City
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APPLIED ECONOMICS
S.Y. 2020-2021

______________ :Name: ____________________ Grade/Sec: ______________ Date

Direction: Choose the letter of the correct answer and write it on the space provided opposite
each item.
_____ 1. It is the study of how individuals and societies choose to use scarce resources that
nature and previous generations have provided.
a. Economics c. Positive Economics
b. Economist d. Economic Theory
_____ 2. The following are factors of production EXCEPT
a. Land c. Capital
b. Labor d. Enterprise
_____3. When one is making a choice, the cost of one gives up is called __________.
a. Barter c. Trade-off
b. Exchange d. Opportunity Cost
_____ 4. The three basic problems of the country are the following except:
a. Who gets what is produced c. What are produce
b. How it is produced d. Who makes the choice
______5. Which of the following is a factor of production?
a. The interest paid on a bank loan
b. The taxes paid by workers to the government
c. The skill of an electrical engineer to make electrical wirings
d. The profit of a company
_____ 6. Liza is concerned on the changes of shoes’ price in the market. What scope of
economics is concerned?
a. Macroeconomics c. Positive Economics
b. Microeconomics d. Descriptive Economics
______7.It happens when there is less supply than consumer demand.
a. Shortage c. Price Change
b. Surplus d. All are correct
_____ 8. This states that as the price of a good or service that producers are willing and able to
offer for sale during a period of time increases, the quantity of a good or service supplied
increases.
a. Law of Demand c. Supply
b. Law of Supply d. Demand
______ 9. This is the application of economic theories and principles to real world situations
with the desired aim of predicting potential outcomes.
a. Economics c. Traditional Economics
b. Econometrics d. Applied Economic
_____ 10. This is the most important resource.
a. Land c. Capital b. Labor d. Entrepreneurship
_____ 11. This is the application of economic theories to real life situations.
a. Applied economics c. economics b. Ethics d. normative economics
_____ 12. Which of the following statement best describes scarcity?
a. When there is an abundant or infinite amount of resource or goods
b. Society can meet the wants of every individual
c. There is a less of goods and resources available than people wish to have
d. The government fails to produce the goods
_____ 13. Marvin is thinking of going into a movie to watch “How to Train Your Dragon”
premiere. A
ticket costs Php300 and she will have to cancel her tutoring job that pays Php500. The
cost of seeing the movie is
a. 300 c. 800 b. 500 d. 200
_____ 15. Benjie decided to go to class instead of watching movie. What is her opportunity
cost?
a. The benefit of learning new things and having more knowledge
b. Meeting new friends
c. Entertainment of watching movie
d. All of the answers
_____ 16. This is one of the factors affecting supply which is commonly costly at the start of
implementation but would provide better results in the long run. An example is in
agriculture where it can help in the increase of crop production. What factor is this?
a. Price c. Competition
b. Capital d. Technology
_____ 17. Under which economic system would factors of production most likely be owned by a
government?
a. Free - Market economy c. Traditional Economy
b. Command economy d. Mixed Economy
_____ 18. In a command economy, how are the prices of goods and services determined?
a. Market forces of supply and demand c. independent agencies
b. The central government d. business owners
_____ 19. Which of the following is NOT a factor affecting demand?
a. Price c. Input Prices b. Consumer Income and Wealth d. Change of Taste and
Preference
_____ 20. Which statement best describes the difference between a market economy and a
traditional economy?
a. In a market economy, decisions are based on customs
b. In a traditional economy, decisions are based solely on supply and demand
c. In a traditional economy, decisions are based on habit and custom
d. In a market economy, decisions are based on habit
_____ 21. This type of economy is characterized by competition and high level of private
ownership. There is no government intervention in this type of economy.
a. Free-market c. Mix
b. Traditional d. Centralized
______22. Which term is used to describe a situation where the majority of people are looking
for work or finding a job? a. poverty c. unemployment b. corruption d. inflation
_____ 23. It is often called as “what is economics”
a. Positive economics c. none of the choices
b. Negative economics d. normative economics
_____ 24. A pizza delivery guy falls under what factor of production?
 a. Land c. capital
b. Labor d. entrepreneurship
_____ 25. A forest falls under what factor of production?
a. Land c. Capital
b. Labor d. entrepreneurship
_____ 26. Which of the following statement fall under microeconomics?
a. Household weekly budget
b. Government budget on public infrastructure
c. Total Philippine export to the United States of America
d. Current inflation rate of the country
_____ 27. In how it is produced, what are the two techniques used for an efficient and effective
production?
a. Capital intensive and machine intensive technique
b. None of these are correct
c. Artificial intelligence and robot technique
d. Labor intensive and capital intensive technique
_____ 28. If the price of a substitute to a good increases, then __________
a. The demand for the substitute will increase.
b. The demand for the substitute good will decrease
c. The demand for the substitute good will not change
d. The supply for the substitute good will decrease
_____ 29. It is the process of combining inputs in order to make something for consumption.
a. Combination c. Production
b. All of these are correct d. Manufacturing
_____ 30. “Ceteris Paribus” in Latin phrase literally means
a. All things equal c. to respond slowly to price change
b. After this before this d. there’s no such thing as free lunch
_____ 31. A worker’s education can contribute to __________
a. Economic problem c. Human Capital
b. Scarce Resources d. All choices
_____ 32. Shiela sells corn every day. The demand for crop dropped due to numerous
substitutes available in the market, thus increasing the number of supply. In this state,
there could be a possible __________.
a. Shortage c. drought
b. Surplus d. none is correct
_____ 33. It is harvest season and there had been an abundant supply. What concept best
applies the statement?
a. Scarcity c. surplus
b. Shortage d. exchange
_____ 34. Private airlines in the Philippines use airplanes to produce transportation services.
Airplanes in this situation are an example of what resource?
a. Labor c. Land
b. Capital d. None of the choices
_____ 35. The following are considered as consumer goods EXCEPT:
a. Hermes bag c. Water
b. Food d. Clothing