1st Quarter Exam

Applied Economics

Name:_______________________________________Year/Section:_________________
Date:_____________________________________ Score :_________________

Directions: Choose the letter of the correct answer. Encircle your answer.

1. What is the social science that involves the use of scarce resources to satisfy unlimited wants?
A. Economy B. Econometrics C. Economics D. Economist

2. What do you call the condition where there are insufficient resources to satisfy all the needs and wants of a
population?
A. Capital B. Resources C. Scarcity D. Supply

3. What do you call the value of the best foregone alternative?

A. Demand B. Opportunity Cost C. Scarcity D. Trade-off

4. What is the resources used to produce goods and services?

A. Economic resources B. Gross Domestic Product C. Opportunity cost D. Scarcity

5. Mrs Jane de Leon purchased basic goods like vegetables and groceries for the consumption of her family.
What are these goods?
A. Capital goods B. Consumers goods C. Economic goods D. Luxury Goods
6. Which of the following is the study of the aggregate economy studied as a whole?
A. Econometrics B. Macroeconomics C. Mathematical economics D. Microeconomics

7. What is the fundamental economic problem that must be solved efficiently?

A. Export policies B. Health system C. Scarcity of resources D. Surplus of demand

8. What do you call when the consumer is willing to buy a commodity at a given price?
A. Demand B. Savings C. Supply D. Wage

9. What is the interaction between buyers and sellers of trading or exchange?

A. Demand B. Investment C. Market D. Supply

10. What do you call the quantity of goods that a seller is willing to offer for sale?
A. Demand B. Investment C. Savings D. Supply

11. As price increases, the quantity demanded for that product decreases. The low price of the good motivates
the consumer to buy more. When price increases, the quantity demanded for the good decreases. What do
you call this situation?
A. Business Analysis B. Market C. The law of demand D. The law of supply

12. As the price increases, the quantity supplied of that product also increases. The high price of the good
serves as motivation for the seller to offer more for sale. When price increases, the quantity supplied of the
good increases since the seller will take this as an opportunity to increase his/her income. What do you call this
situation?
A. Business analysis B. Market C. The law of demand D. The law of supply

13. Who is this economic icon that emphasizes the price and output of a good are determined by both supply
and demand?
A. Alfred Marshall B. B.F. Skinner C. Isaac Newton D. Lee Kuan Yew

14. What is the price of a unit of foreign currency in terms of the domestic currency?
A. Currency B. Exchange rate C. Inflation D. Money Changer
15. An increase in the price of electricity bill will force you to?
A. Increase your demand for light bulbs and aircon.
B. Increase your demand for stereos and videokes.
C. Increase your demand for TVs and use of gadgets
D. Increase your demand for kerosene heaters and coal.
16. What do you call to the portion of the population, 15 years old and over who are willing and able to work,
including those who are actively seeking work but have not found work and those who are employed?
A. Labor Demand B. Labor Force C. Labor Market D. Labor Supply

17. Philippines has a total population close to 113 million as of the 2nd quarter of 2022. The official count of the
population of a certain local administrative unit in the Philippines is the work of?
A. Philippine Census B. Philippine Market C. Philippine Statistics D. Philippine Status

18. The state of balance when demand is equal to supply is called?

A. Equilibrium B. Market Structures C. Price Elasticity D. Production Cost

19. Market equilibrium is attained in which of the following situation?

A. When quantity demanded is equal with the quantity supplied.
B. When quantity supplied is lower than the quantity demanded.
C. When quantity demanded is higher than the quantity supplied.
D. When quantity supplied is higher than the quantity demanded.

20. When the value of peso depreciates compared to the value of dollars, which of the following will likely to
occur?
A. High prices of gasoline
B. Less number of export products
C. Low prices on the basic commodities
D. There is a high demand on imported items

21. Economies experience an increased in unemployment and a reduced of activity during recession. How
does recession affect the market demand for new cars?
a. Demand for new cars has no shift
b. Demand for new cars shifts to the left.
c. Demand for new cars shifts to the right.
d. Demand for new cars either has or no shift.

22. How do you call a payment made to or for a factor of production over above the amount expected by its
owner?
A. Loan B. Rent C. Salary D. Wage

23. The demand and supply may differ depend on its determinants. The degree of response to a change is
called?
A. Demand B. Elasticity C. Equilibrium D. Supply

24. Changes on a single point are infinitesimally small. What measures the degree of elasticity on a single
point on the demand curve?
A. Arc elasticity B. Market elasticity C. Point elasticity D. Price elasticity

25. Which does not belong to the group of market structures?

A. Market Competition B. Monopoly C. Oligopoly D. Perfect competition

26. Which of the following is the least competitive market structure?

A. Monopoly B. Monopolistic Competition C. Oligopoly D. Perfect competition

27. The following are non-price determinants of demand, EXCEPT which one?
A. Income B. Life status C. Number of consumers D. Taste

28. The shift from manual coffee maker to an electric coffee maker belongs to what non-price determinant of
supply?
A. Cost of production B. Price C. Supply function D. Technology

29. Housing in the Philippines has been a problem evident because of the following factors EXCEPT which
one?
A. Lack of government support C. Unemployment
B. Limited land area D. Rapid growth of population
30. Which of the following statements are true to rent control?
A. It is the ideal situation for every Filipino
B. It will be an additional burden to the Filipino family.
C. It is equivalent to the setting of a price ceiling on the rent.
D. It will not help on the problem of housing in the Philippines.

31. Which is true about Economics as a social science?

A. Scarce resources and limited needs drive choice
B. Economic hypotheses lead directly to predictions
C. Economics explains and predicts economic events
D. The scientific method is based on the normative analysis

32. Which of the following is relating to the branch of economics concerned with single factors and the effects
of individual decisions?
A. Econometrics B. Macroeconomics C. Mathematical economics D. Microeconomics

33. The physical effort of the manpower to produce the protective devices of the frontliners describes which
factor of production?
A. Capital B. Entrepreneur C. Labor D. Land

34. Economists point out that scarcity must be addressed to protect who?
A. The poor but not the rich C. Both the poor and the rich
B. The poor but never the rich D. Neither the poor nor the rich

35. If there is scarcity in public transportation, what should the learners do?
A. The government must import units of car from neighbor countries
B. Stop learning while waiting for transportation shortage to be solved
C. Home based learning is an alternative choice for access to education
D. All choices are applicable

36. In a potential economic growth rate, which situation suits?

A. Demand is likely to fall C. Prices are likely to fall
B. Imports are likely to fall D. Unemployment is likely to fall

37. In consumer behavior the culture, social class, and reference group influences have been related to
purchase and?
A. Consumption decisions C. Physiological influences
B. Economic situations D. Situational influences

38. Which of the following is NOT a feature of a monopolistic competition?

A. Homogenous price C. Numerous sellers
B. Numerous buyer D. Product differentiation

39. If ABM firm sells its output in a market, with many sellers and buyers of homogeneous product, and
unlimited resource mobility, the structures is a/an?
A. Monopolist C. Oligopolist
B. Monopolistic competitor D. Perfect competitor

40. Potential growth measures the what?

A. Present rate of growth of an economy
B. growth of the fastest economy in the world
C. fastest growth an economy has ever achieved
D. growth rate that could be achieved if resources were fully employed

41. To boost economic growth, the government is most likely to?

A. increase interest rates C. provide incentives to save
B. increase taxation rates D. provide incentives to invest
42. Businesses have responded to incentives for ethical behavior by doing ALL except which one?
A. Establishing codes of ethical behavior for employees.
B. Lobbying for the abolition of laws that require ethical behavior.
C. Providing training sessions in ethical behavior for employees.
D. Appointing “ethics officers” to monitor ethical manners of employees.

43. Business ethics refers to any behavior by businesses that may?

A. Be illegal.
B. Violate social or moral standards.
C. Result in the maximization of profits.
D. All of the above

44. What are taxes for?

A. Government spending for social services C. Personal consumption
B. Health insurance D. Salary deduction

45. The economists describe the amount of resources in an economy as to what?

A. Always constant C. Limited at any moment in time
B. Can never decrease or increase D. Unlimited at any moment in time

46-50. Create a supply schedule for product Y given the supply curve below.

Rubrics for Scoring

CRITERIA PERFORMANCE POINTS
INDICATOR
Design The illustration is well 1
presented and organized.
Interface All elements interact with 1
each other
Components All elements are included 2
correctly.
Label All elements are labeled 1
with reference and value.
Total 5

Prepared by:

Gel Lamban