APPLIED ECONOMICS

I – MULTIPLE CHOICE: Choose the letter of the correct answer.

1. It is the amount due to the personnel where the termination of employment is due to causes authorized
by law.
a. Holiday pay b. Termination Pay c. Separation Pay d. Overtime Pay
2. It is a monetary remuneration computed on hourly, daily, weekly, or piece of work basis paid by an
employer to an employee in exchange for work done.
a. payment b. contract c. salary d. wage
OPTIONS for nos. 3-6
a. Labor Force b. Labor Shortage c. Labor Surplus d. Labor Supply
3. It is an economic conditions in which the supply of labor is greater than the demand for labor.
4. It is the number of hours people are willing and able to supply at a given wage rate.
5. It is an economic conditions in which supply of labor is less than the demand for labor.
6. It is defined as the people who are willing and able to work.
OPTIONS for nos. 7 – 10
a. Elasticity of supply b. Market Equilibrium c. Supply d. Market Supply
7. It refers to a condition where a market price is established through competition such that the amount of
goods or services purchased by buyers is equal to the amount of goods or services produced by sellers.
8. The sum of all individual supply.
9. It is defined as the number of items that sellers are willing and able to sell in the market at different
prices during some specified period of time.
10. It is measured as the ration of proportionate change in the quantity supplied to the proportionate
change in price.
OPTIONS for nos. 11-15
a. Demand b. Economics c. Opportunity Cost d. Trade-offs e. Scarcity
11. It is the condition that results from the imbalance between relatively unlimited wants and the relatively
limited resources available for satisfying those wants.
12. It is the study of the ways that individuals and societies allocate their limited resources to satisfy
unlimited wants.
13. It is forgone benefit of the next best alternative when scarce resources are used for one purpose rather
than another.
14. It involves accepting or choosing less of one thing to get more of something else.
15. It is defined as the different quantities of a resource, good or service that consumers are willing and able
to buy at any given time at various possible prices.
II – TRUE or FALSE. Write T if the underlined word is correct and if not write the correct answer.
_____________1. Adam Smith is known as the founder of economics.

_____________2. A Filipino worker earning a minimum wage is exempted in in the payment of income tax.
_____________3. Markets are institutional arrangements that enable buyers and sellers to exchange goods
and services.
_____________4. The law of supply states that all other things being constant, the quantity of the product
that consumers are willing and able to buy increases.
_____________5. The law of demand states that seller will offer more of an item at a high prices and less
at low price.
____________ 6. The labor force population consist of the employed and the unemployed 15 years old and
over.
____________ 7. Unemployment is situation where employed persons express their desire to have an
additional hours of work in their present job, or to have additional job, or to have a new job with longer
working hours.
____________ 8. All married female employees are entitled to seven (7) days paternity leave for the
delivery or miscarriage of his legitimate spouse with whom he must live, for up to four (4) pregnancies.
_____________9. Civilian Non-Institutionalized population covers everyone living in the Philippines who is
15 or older except inmates or institutions such as prisons, home for the aged and mental hospitals.
_____________ 10. The minimum wage rates applicable per region, province and industry sector is stated in
the Labor Code of the Philippines.

III – ENUMERATION:

1–8 Wage and wage-related benefits given to workers

9 – 15 Negative Effects of Population Growth