Republic of the Philippines

Department of Education
National Capital Region
Schools Division of Parañaque City
MOONWALK NATIONAL HIGH SCHOOL
www.moonwalknhs.edu.ph

Name: __________________________ Date: ___________

Grade and Section: ________________ Score: __________

First Periodical Exam in Applied Economics

S.Y 2019-2020

I. Multiple Choice
Direction: Choose the correct answer for each statement
1. Which of the following is true in terms of Economics is a Social Science?

I. Economics is a Social Science because it deals with human nature

II. Economics is a Social Science because it deals with natural resources
III. Economics is a Social Science because it deals with experimentation
IV. Economics is a Social Science because it deals with plants and animals

A. I, II and III is true C. I, III and IV is true

B. II, III and IV is true D. only II is true

2. This is the condition where there are insufficient resources to satisfy all the needs and wants of a population.

A. Absolute scarcity C. Scarcity

B. Relative scarcity D. Limited edition

3. Blexer, a farmer takes into consideration the physical and human effort exerted in production. Which of the
following factors of production is seen on the situation?

A. Land C. Capital
B. Labor D. Economy

4. Which of the following does not belong to the group?

A. Traditional Economy C. Market Economy

B. Command Economy D. Autonomous Economy

5. Which of the following is not true in terms of Scientific Approach in the Empirical Testing of an Economic
Theory?

I. State the propositions or conditions that are taken as given

II. Does not observe facts in connection with the activity that wants to theorize
III. Apply the rules of logic to the observed facts to determine causal relationship
IV. Use statistics and econometrics as empirical proof in testing the hypothesis

A. I, III and IV is not true C. II, III and IV is not true

B. II and IV is not true D. only II is not true

6. Refers to the value of the best foregone alternative

A. Oportunity Cost C. Oppurtunity Cost

B. Opurtunity Cost D. Opportunity Cost

7. Also known as Factors of Production, are the resources used to produce goods and services
A. Economic Resources C. Economic Needs
B. Economic Funds D. Economic Factors

8. Man-Made Resources used in the production of goods and services

A. Land C. Capital
B. Labor D. Goods
 Republic of the Philippines
Department of Education
National Capital Region
Schools Division of Parañaque City
MOONWALK NATIONAL HIGH SCHOOL
www.moonwalknhs.edu.ph

9. Decisions are based on traditions and practices upheld over the years and passed on from generation to
generation
A. Traditional Economy C. Market Economy
B. Command Economy D. Autonomous Economy

10. Why do we need to study Economics?

A. Economics will help the students understand why there is a need for everybody to budget and allocate
the use of whatever resources
B. It will help one understand how to make more rational decisions in speding, saving part of it and even
investing some of it.
C. A only
D. Both A and B

11. Gabriel, a businessman have the following characteristics for his store: a single seller that has a control of
entire supply of raw materials, had a ownership of patent or copyright that is invested in a single seller. Based
on the Characteristics stated , what type of Market does Gabriel’s store belongs?

A. Monopoly
B. Oligopoly
C. Both A and B
D. A only

12. The following statements are true, which is not?

A. Competition is rivalry among various sellers in the market

B. Market structure refers to the competitive environment in which buyers and sellers operate.
C. Oligopoly is a market not dominated by a small number of strategically interacting firms.
D. Monopoly exists when a single firm that sells in the market has no close substitute

13. Equilibrium is a state of balance when demand is equal to supply. Which of the following statement is not
true based on this concept?

A. The equality means that the quantity that sellers are willing to sell is also the quantity that buyers are
willing to buy for a price.
B. As a market experience, equilibrium is an implicit agreement between how much buyers and sellers are
willing to transact.
C. The price at which demand and supply are equal is the entity price
D. A, B and C is not true

14. The following are Non-Price Determinants of Demand, which is not.

A. Consumer’s expectations of future price

B. Prices of Related goods
C. Number of Consumers
D. None of the above

15. Which is true in terms of Basic Principles of Demand and Supply?

A. Demand is the willingness of a consumer to buy a commodity at a given price

B. Demand Function shoes how the quantity demanded of a supply depends on its determinants.
C. Income effect is not felt when a change in the price of a good changes consumer’s real income.
D. Ceteris Paribus” all are not held constant”

16. The following are Non-Price Determinants of Supply , which is not?

A. Cost of Production
B. Technology
C. Availability of Raw Materials
D. Substitution Effect

17. Which of the following is true in terms of Elasticity of Demand ?

I. There are three types of elasticity of demand that deal with the responses to a change in the price of
the good itself
II. Price Elasticity of Demand measures the responsiveness of demand to a change in the price of the
good.
III. Arc Elasticity is the value of elasticity that is computed by choosing two points on the demand
curve and comparing the percentage changes in the quantity and the price on those two points.
IV. Point Elasticity measures the degree of elasticity on many points
 Republic of the Philippines
Department of Education
National Capital Region
Schools Division of Parañaque City
MOONWALK NATIONAL HIGH SCHOOL
www.moonwalknhs.edu.ph

A. I, II, III and IV is true C. II and IV is true

B. I, II and III is true D. III and IV is true

18. Trading with other countries is also an important economic activity that impacts on the economy. Selling
locally made products, called exports, means we earn dollars as payment for these goods bought by foreign
buyers. What Economic Problem is implied in the given statements?

A. The Philippine Peso and Foreign Currencies C. Rent and Price Structure
B. Housing Shortage D. Savings and Investment

19. One of the most influential economists of his time, credited for the concept of Price elasticity of demand.
A. Alfred Marshal C. Alfred Marshall
B. Alfred Adler D. Alfred Marchall

20. The firm faces a downward-sloping demand curve. This means that it can sell more by charging less and can
raise price without losing all customers. The firms in this market are given room to set different prices by
their product differences, In the scene presented, what type of Market Structure does this belong?

A. Monopolistic Competition
B. Oligopoly
C. Perfect Competition
D. Single Market

21. Which of the following ideas elicits the Philippine Wage Situation?
A. The government does not protect the workers through the imposition of minimum wages.
B. Minimum wages in the other regions on the Philippines are lower depending on the cost of living in the
specific region or sector.
C. The above minimum wages does not apply in the NCR .
D. The setting of minimum wages by the government does not assures protection for workers that they are
not underpaid by employers.

22. Which of the following is true in terms of Housing Shortage and the Real Estate Boom in the Philippines ?

A. Demand and Supply also play an important role in the Philippine real estate situation
B. In the late 1990s, during the Asian financial crisis, construction hit high levels in the Philippines
C. Some high profile construction projects were appraised.
D. Some real estate companies are not affected.

23. We pay taxes for government to provide public goods and services that empower and enable individuals and
institutions alike to pursue their dreams. we can say that:

A. From this taxes, one example of public good is farm access road for farmers
B. We pay taxes for government to provide a worst place where we can exercise our freedom
C. Taxes cannot distort savings , investment and consumption
D. Taxes cannot dampened the incentive to do business for the benefit of the society

24. Perfect Competition implies an ideal situation for the buyers and sellers. The following are characteristics of
a perfectly competitive market:

I. There are so many buyers and sellers that each has a negligible impact on market price
II. A homogeneous product is sold by sellers
III. Market price and quantity of output are determined exclusively by forces of demand and supply
IV. Perfect mobility of resources refers to the easy transfer of resources in terms of use or in terms of
geographical mobility

A. I and II C. I,II, III and IV

B. II and III D. III and IV

25. In other markets, one or more of the assumptions of perfect competition will not be met, thus market
becomes imperfectly competitive. Which of the following is true in terms of Imperfect Competition?

I. The existence of Monopoly depends on how easy it is for consumers to substitute the products for
those of others sellers.
II. Monopolist’s quantity of output will be lower to enable him to set the price higher
III. Monopoly firm is free to determine its output level and its price
 Republic of the Philippines
Department of Education
National Capital Region
Schools Division of Parañaque City
MOONWALK NATIONAL HIGH SCHOOL
www.moonwalknhs.edu.ph
IV. Monopolistic competition, wherein products are differentiated and entry and exit are easy.

A. I and II C. IV only
B. I, II, III and IV D. III and IV

26. Which of the following statements is not true for Supply-Demand and the Philippine Labor Market

I. The people of the country are very important as a resource used in the production of goods and
services.
II. Population is the source of labor supply although not all of a country’s populations are part of the
labor supply.

III. The country’s labor supply is vital to the economy, since their contribution to production of goods
and services determines the value of the country’s GDP
IV. In the Philippines, the labor supply also known as the labor force, refers to the population, 13 years
old and over.

A. I, II and III C. III only

B. II and III D. IV only

27. Saving and investment are necessary to build the future. Savings is to investment as food is to body
nourishment. Based on the given situation, we can say that

A. As food and the nourishment process sustain body growth, so do savings and investment to the growth
of the economy’s productive capacity
B. Savings calls for not giving up the present in order to build up and therefore invest for a better future
C. Savings and investment are only concern of business
D. None of the above

28. The problem of unaffordable decent housing is the problem not so much of the middle class. This implies
that:

A. Typical middle class household members pitch in to afford decent housing rental and eventual
ownership
B. The poor spend less than their meager income to make both ends.
C. The poor can afford decent housing at all times
D. All of the above

29. The following are considered Major Philippine Economic Problems, which is not?

A. The Philippine Wage Situation

B. The Labor Migration
C. The Philippine Peso and Foreign Exchange
D. K-Pop Group

30. The following are topics for Microeconomic, except for:

A. The inflation rate in the Philippines in the last quarter of 2013 was 4.8%
B. Prices for Toyota vehicles are predicted to go up in December
C. Garlic prices in the past months have risen because producers hoarded their supplies in their bodegas.
D. Prices of apples and grapes tend to increase at the rate of 5.8% in 2019

For number 31-35, Analyze the give statement and supply the missing term for each statement

31. If Relative scarcity is when good is scarce compared to its demand then ____ is when supply is limited
A. Absolute scarcity C. Scarcity
B. Scarcity of resources D. Normative Economics

32. If land is equal to soil and natural resources that are found in nature and are not man made then ____ refers
to physical and human effort exerted in production.
A. Labor C. Human Production
B. Human effort D. Human Force

33. If the decisions of Traditional Economy are based on traditions and practices upheld over the years and
passed from generation to generation then ____; decision making is centralized in the government or
planning committee.
A. Command Economy C. Market Economy
B. Mixed Economy D. Autonomous Economy
 Republic of the Philippines
Department of Education
National Capital Region
Schools Division of Parañaque City
MOONWALK NATIONAL HIGH SCHOOL
www.moonwalknhs.edu.ph

34. If Positive Economic deals with what are actually happening such as the current inflation rate, number of
employed labor then____ deals with what should be , that which embodies the ideal such as the ideal rate
population growth.
A. Negative Economics C. Good Economics
B. Normative Economics D. Bad Economics

35. If Alfred Marshall- was the dominant figure in British economics then _____ was the Prime Minister of
Singapore from 1959-1990.
A. Lee Kuan Yew C. Li Kwan Yui
B. Le Kwan Yu D. Lee One You

II. Follow the instruction below

1. Read the following excerpts from a news

2. Make a concept map by means of identifying two concepts of Economics related to it
3. Each concept will be justified by one supporting detail .

A. Economist believes Duterte admin can deliver on catch-up spending plan

The Philippines is poised for faster economic growth in 2019. This was the general consensus among
foreign and local experts, thanks to a more accommodative inflation and interest rate environment in the
country. However, it is advised to address key issues to make this growth sustainable.

B. Inflation likely at 2.2 to 3 percent range in June: BSP think tank

Manila- Inflation could settle within the 2.2 to 3.0 percent range in June, a Bangko Sentral think tank
said Friday. Lower rice and local oil prices, the downward adjustment in electricity rates and the percent
peso appreciation are seen to “temper: inflation during the month. The consumer price index rose 3.2 %
in May from 3% in April, staying within the government’s 2 to 4 percent target range

C. PH inflation eases to 2.7% in June

Analysts and government officials agree Philippine inflation will continue to ease for the rest of the year
amid cheaper food and gas prices. But as Bruce Rodriguez tells us, the country’s top economic and
development agency is still calling for vigilance.

A.
36. B.
41.
.
37. 38.
42. 43.

39. 40.
44. 45

C.
46.

47. 48.

49. 50.