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

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?
 Republic of the Philippines
Department of Education
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MOONWALK NATIONAL HIGH SCHOOL
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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

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

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
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Department of Education
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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
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
 Republic of the Philippines
Department of Education
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MOONWALK NATIONAL HIGH SCHOOL
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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
 Republic of the Philippines
Department of Education
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MOONWALK NATIONAL HIGH SCHOOL
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II. Analogy
Direction: Analyze the given pairs and supply the missing term for each statement

31. Relative scarcity- when good is scarce compared to its demand

______________- when supply is limited

32. Land – soil and natural resources that are found in nature and are not man made
______________- physical and human effort exerted in production

33. Traditional Economy- decisions are based on traditions and practices upheld over
the years and passed from generation to generation.
______________- decision making is centralized in the government or planning
committee.
34. Positive Economics- deals with what are actually happening such as the current
inflation rate, number of employed labor
______________- deals with what should be , that which embodies the ideal such
as the ideal rate population growth.

35. ____________- was the Prime minster of Singapore from 1959- 1990
Alfred Marshall- was the dominant figure in British economics

III. Solve for QD, PQ and graph your answers.

Given: Qd= 934 123- 5(P)

36.
37.
38.
39.
40.

P Q

5 41.

10 42.

15 43.

20 44.

25 45
 Republic of the Philippines
Department of Education
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Schools Division of Parañaque City
MOONWALK NATIONAL HIGH SCHOOL
www.moonwalknhs.edu.ph
46- 50. Graph the slope.