1.

The physical effort of the manpower to produce the protective devices of the frontliners describes
which factor of production?

a) Land b) Capital

c) Labor d) Entrepreneur

2. The great ideas, concepts and drive of the production managers to produce something new describe
which factor of production?

a) Land b) Capital

c) Labor d) Entrepreneur

3. The computers of the production manager in an office are what kind of goods or products? a)
Consumer goods b) Either consumer goods or capital goods c) Capital goods d) Economic goods

4. Which best describes economics as a social and an applied science? a) The study of things we need to
survive b) The study of how people make choices when they are faced with an unlimited supply of
resources c) The study of human behavior d) The study of how buyers make choices when there is
limited supply of resources

5. Which of the following are examples of human needs? a) Water and a place to live like houses b) Iced
caramel macchiato frappuccino c) Flat screen televisions d) Laptops and computers +

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

1. Mrs Nenita De Jesus purchased basic goods like vegetables and groceries for the consumption of her
family. These goods are: a. Consumers goods b. Capital Goods c. Luxury Goods d. Economic Goods 2. Mr.
Dennis Elecanal purchased new car as a gift for his father’s birthday. This good is a. Consumers Good b.
Luxury Good c. Capital Good d. Economic Good 3. ABM Computer shop purchased additional 10 units of
computer for the business. These goods are called: a. Consumers goods b. Luxury Goods c. Capital
Goods d. Economic Goods 4. Which is not considered as tangible good? a. Cell phone b. Mask c. Sack of
rice d. Training service 5. Which is true about Economics as a social science? a) Scarce resources and
limited needs drive choice b) Economics explains and predicts economic events c) The scientific method
is based on the normative analysis d) Economic hypotheses lead directly to predictions 6. Which is
true on the value of an economic theory in practice? It is determined by a. how accurate the
assumptions are. b. how well the theory can be represented by a graph. c. how well the theory can
predict or explain. d. how economical the model is. 7. Which of the following is the study of the
aggregate economy studied as a whole? a. Mathematical economics b. Econometrics
c. Macroeconomics d. Microeconomics 8. 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. 9. Businesses have responded to incentives for ethical behavior by doing ALL except
a. lobbying for the abolition of laws that require ethical behavior. b. appointing “ethics officers” to
monitor ethical manners of employees. c. providing training sessions in ethical behavior for
employees. d. establishing codes of ethical behavior for employees. 10. Which of the following
is not an economic agent in your locality? a. Producer b. Consumer c. Public Sector d. None of ABC

module 2

Directions: Kindly choose the letter of the correct answer. Encircle your answer.

1. The physical effort of the manpower to produce the basic needs of the consumers, describes which
factor of production? a) Land b) Capital c) Labor d) Entrepreneur 2. The initiative and creativity to
produce something new describes which factor of production?

a) Land b) Capital c) Labor d) Entrepreneur

3. The equipment of the coffee shop to produce cups of coffee, are what kind of goods or products? a)
Consumer goods b) Either consumer goods or capital goods c) Capital goods d) Economic goods

4. Which best of the following best describes economics as a social and an applied science? a) The
study of products we need to survive b) The study of how customers make choices when there is
unlimited supply of resources c) The study of human personalities d) The study of how buyers make
choices when there is limited supply

5. The following are examples of customers’ basic needs. a) Water and shelter b) Iced tea c) Laptop and
cellular phones d) Expensive bags

Part II. Matching Type

Direction: Please match the resources with the statements.

A) Land C) Labour B) Capital D) Entrepreneurship 1. ________________The idea for a car that runs on a
rocky road 2. ________________The crude oil used by ABM Firm to produce gasoline 3.
________________The machine used by Mang Jose, a tailor to stitch PPEs 4. ________________The
manpower to build bridges and houses 5._________________Technicians who repair computers

Part I TRUE or FALSE Directions: Please write TRUE if the statement is correct and FALSE if the statement
is incorrect.

1. _______________Scarcity in goods and services happens if the resources in the production are
inadequate or scarce.
2. _______________Customers must choose among several alternatives if scarcity exists.

3. ________________ Income inequality is the gap in income that exists between the rich and the
poor customers willing to buy the same products.

4. ________________Shortage of goods and services is an economic problem; and shortages are

always constant

5. _________________The Build Build Build Program by the government aims to help improve the
infrastructure projects and other programs of the country.

Part II Multiple Choice. Choose the letter of the correct answer. 1. The fundamental economic problem
that must be solved efficiently a) Scarcity of resources b) Health system c) Surplus of demands d)
Export policies

2. Economists point out that scarcity must be addressed to protect the a) The poor but not the rich b)
Both the poor and the rich c) Neither the poor nor the rich d) The poor but never the rich

3. What two factors contribute to scarcity in the production of goods and services? a) Unlimited
resources and limited wants b) Unlimited resources and wants c) Unlimited wants and limited resources
d) Limited resources and wants

11

Learning Module for Applied Economics 4. If there is scarcity in public transportation, what should the
learners do? a) Home based learning is an alternative choice for access to education b) Stop learning
while waiting for transportation shortage to be solved c) The government must import units of car from
neighbor countries d) All choices are applicable

5. The economists describe the amount of resources in an economy as: a) Always constant b) Can never
decrease or increase c) Unlimited at any moment in time d) Limited at any moment in time

module 3

PART I True or False

Directions: Write TRUE if the statement is correct and FALSE if incorrect. Write your answer before the
number.

________1.The upward slope of the supply curve illustrates the law of demand— ―higher price leads to
a higher quantity supplied, and vice versa‖. ________2.The downward slope of the demand curve
illustrates the law of supply—the inverse relationship between prices and quantity demanded.
________3.Time is important to supply because suppliers must react quickly to a change in demand or
price. ________4.A shift in a demand or supply curve occurs when quantity demanded or supplied
changes even though price remains the same. ________5.The law of supply says that ―at higher prices,
sellers will supply more of economic goods‖.

PART II Multiple Choice Questions

Directions: Read the sentences carefully. Encircle the correct answer.

6. An increase in the price of electricity bill will force you to: a. increase your demand for kerosene
heaters and coal. b. increase your demand for light bulbs and aircon. c. increase your demand for
stereos and videokes. d. increase your demand for TVs and use of gadgets.

7. The market demand curve for apple shows the a. effect on market supply of a change in the demand
for apple b. quantity of an apple that consumers like to buy at different prices. c. marginal cost of
producing and selling different quantities of an apple. d. effect of advertising expenditures on the
market price of an apple.

8. 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 shifts to the right. b.
Demand for new cars shifts to the left. c. Demand for new cars has no shift d. Demand for new cars
either has or no shift

POST-TEST

Learning Module for Business Mathematics

13

9. The market supply curve for gasoline shows the a. effect on market demand of a change in the supply
of gasoline. b. quantity of gasoline that firms offer for sale at different prices. c. quantity of gasoline
that consumers are willing to buy at different prices. d. All of the above are correct.

10. If Toyota firm is producing a car faster than people want to buy, there is a. an excess supply of car
and price can be expected to decrease. b. an excess supply of car and price can be expected to increase.
c. an excess demand of car and price can be expected to decrease. d. an excess demand and price can
be expected to increase.

module 4

Directions: Please read the statements carefully. Encircle the correct answer.

1. In the market, the price elasticity for the demand of canned goods sold by Aling Puring Grocery Store
is the:

a) ratio of the percentage change in quantity demanded for the goods to the percentage change in its
price b) responsiveness of revenue to a change in quantity of the canned goods c) ratio of the change in
quantity demanded divided by the change in its price of the canned goods d) response of revenue to a
change in the price

2. If demand for sacks of rice in Aling Puring Grocery Store is price elastic, then a: a) rise in the price of
sacks of rice will raise total revenue of the grocery b) fall in the price of sacks of rice will raise total
revenue of the store c) fall in the price of sacks of rice will lower the quantity demanded d) fise in the
price of sacks of rice won't have any effect on total revenues

3. If the cross-price elasticity between soap bar and liquid soap commodities is 1.5, a) the two goods are
luxury goods b) the two goods are complements c) the two goods are substitutes d) the two goods are
normal goods

4. The price elasticity of demand for a certain good tends to be: a) smaller in the long run than in the
short run b) smaller in the short run than in the long run c) larger in the short run than in the long run d)
unrelated to the length of time

5. If the price elasticity of supply of cup noodles is 0.60 and the price increase by 3 percent, then the
quantity supplied for cup noodles increases by how by? a) 0.60 percent. b) 0.20 percent c) 1.8 percent d)
18 percent

Part I True or False Directions: Read the sentences carefully. Write TRUE if the statement is correct and
FALSE if the statement is incorrect.

1. Elasticity of demand refers to the change in demand when there is a change in another factor such as
price or income

2. If demand for a good or service is static even when the price changes, demand is said to be inelastic

3. Examples of elastic goods include gasoline, while inelastic goods are items like canned goods and
vitamin c tablets

4. The law of demand states that “elasticity shows how much a good or service is demanded relative to
its movement in price”.

5. Inelastic demand is when a demanded quantity for masks changes by a greater percentage compared
to its percentage change in price

6. The opposite of a market economy is a planned economy, where investment and production
decisions are decided by the government.

7. Unit elastic is when a percentage change in demand equals the price. 8. A mango fruit with an
elastic demand gets more sales when its price drops slightly. When its price goes up, it stays longer in the
box.
9. The demand curve shows how quantity demanded for apple responds to price changes. The flatter
the curve, the more elastic is the demand for an apple.

10. The midpoint elasticity is greater than 1.

module 5

Directions: Read the questions carefully. Choose the letter of the correct answer. Encircle your answer.

1. Which does not belong to the group of market structures? a) Monopoly b) Oligopoly c) Perfect
Competition d) Market Competition 2. Which of the following is the most competitive market structure?
a) Perfect competition b) Monopolistic competition c) Oligopoly d) Monopoly 3 Which of the following
is the least competitive market structure? a) Perfect competition b) Monopolistic competition c)
Oligopoly d) Monopoly 4 Which of the following is NOT a feature of a monopolistic competition? a)
Numerous sellers b) Product differentiation c) Numerous buyers d) Homogenous price 5 What market
structure if price is the key for competing with other firms? a) Monopoly b) Oligopoly c) Monopolistic
competition d) Perfect competition 6. When the revenue is equal to price, which types of market
structure? a) Competitive monopoly b) Oligopoly c) Perfect competition d) All are types 7. Which of
the following is NOT a type of market structure? a) Competitive monopoly b) Oligopoly c) Perfect
competition d) All are types 8. 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 b)
oligopolist c) perfect competitor d) monopolistic competitor 9. If the ABM firm sells homogenous
products in a market, with a single seller and many buyers, for which there are no close substitutes to
the products, it is a/an a) monopolist b) oligopolist c) perfect competitor d) monopolistic competitor
10. If ABM firm sells its differentiated products in a market, with many sellers and buyers, the structure is
a/an a) monopolist b) oligopolist c) perfect competitor d) monopolistic competition

module 6

Directions: Read the questions carefully. Encircle the correct answer.

1. If there is cyclical unemployment in the economy the government might: a. increase interest rates b.
encourage savings c. cut income tax d. reduce government spending 2. To reduce cyclical unemployment
the government might: a. increase the budget surplus b. increase balance of payment c. impose low
interest rates d. encourage savings 3. The natural rate of unemployment is likely to fall if: a.
unemployment benefits increase b. income tax increases c. more training for the unemployed d.
geographical immobility increases 4. What is the 'nature-focused' account of hunger? a. no enough food
to go around b. hunger is a distribution problem c. hunger is a part of human nature d. none from ABC 5.
According to critical alternative views, poverty is a a. monetary condition brought about by people's
own laziness. b. monetary condition where people do not have enough to satisfy needs. c. monetary and
non-monetary condition and people lack access to regulated resources, opportunities and income. d. all
of the options given are correct. 6. To boost economic growth the government is most likely to: a.
increase interest rates b. increase taxation rates c. provide incentives to invest d. provide incentives to
save 7. Potential growth measures the: a. growth of the fastest economy in the world b. fastest growth
an economy has ever achieved c. present rate of growth of an economy d. growth rate that could be
achieved if resources were fully employed 8. In a potential economic growth rate: a. unemployment is
likely to fall b. prices are likely to fall c. demand is likely to fall d. imports are likely to fall 9. In consumer
behavior the culture, social class, and reference group influences have been related to purchase and a.
economic situations b. situational influences c. consumption decisions d. physiological influences 10.
Changes in consumer values have been recognized by entrepreneurs expanding a. latest technology b.
timesaving and convenience- oriented a. health related b. communication