Republic of the Philippines

Region I
Schools Division of Ilocos Norte
PAGUDPUD NATIONAL HIGH SCHOOL

APPLIED ECONOMICS
Multiple Choice. Select the BEST answer that corresponds to the given question. Write the letter of your
answer.
1. It is a condition where there are insufficient resources to satisfy all the needs and wants of a
population.
A. shortage B. Scarcity C. Surplus D. Equilibrium
2. It refers to the value of the best forgone alternative.
A. Trade-off B. Choice C. Opportunity cost D. Decision making
3. It refers to physical and human effort exerted in production. It covers manual workers like
construction workers, machine operators, and production workers, as well as professionals.
A. Land B. Labor C. Capital D. Entrepreneurship
4. What is Applied Economics?
A. It is the application of economic theory and econometrics in specific settings with the goal of
analysing potential outcomes. applied economics
B. It is a branch of economics that deals with the study of the society.
C. It studies human behaviour
D. It studies living things and non-living things
5. One of the interventions implemented by the government to control population explosion is ______.
a. republic act no. 10354
b. republic act no. 13354
c. republic act no. 10135
d. republic act no. 10034
6. The following are causes of poverty EXCEPT
A. High economic growth C. Low economic growth
B. Weak agricultural sectors D. Increased population rates
7. The following are effects of poverty EXCEPT
A. Crime B. Robbery C. Malnutrition D. Peace and Order
8. Which of the following is the BEST example of economic issue?
A. Volcanic eruption B. Inflation C. Drop-out rate D. Drug addiction
9. What is market demand?
A. The household demands
B. The sum of all individual demand
C. The number of items a person is willing to buy
D. The collection of all products a person is willing to sell
10. What is market supply?
A. The firms supply
B. The sum of all individual supply
C. The number of items a firm is willing to sell
D. The collection of all products a person is willing to buy
11. Which of the following curves BEST illustrates a market equilibrium?

A. C.

B. . D.
12. Which of the following law describes the behaviour of people wherein price increases the quantity of
products people buy tends to lessen and when price decreases the quantity of products people buy
tends to increase?
A. Law of Supply
B. Law of Demand
C. Law of Diminishing Marginal Utility
D. Law of Nature
13. It is a state in the economy where there is a balance between price, quantity demand and quantity
supplied?
A. Equilibrium B. Shortage C. Surplus D. Price Ceiling
14. Ella an airline owner is affected by the pandemic for only few people are traveling. What possible
solution can she apply for her business to survive?
A. Increase Price B. Put on sale C. Shut the business D. Do nothing
15. A limited quantity of dolls are released just before Christmas. Which of the following will likely to
happen?
A. Shortage B. Price Floor C. Surplus D. Price Ceiling
16. What market structure if price is the key for competing with other firms?
A. Monopoly B. Oligopoly C. Monopolistic competition D. Perfect
competition
17. Which of the following types of firms is likely to be a monopolistic competitor?
A. Local telephone company C. A restaurant
B. Automobile manufacturer D. A school
18. One of the main similarities of perfect competition and monopolistic competition is_____.
A. Have many sellers, free entry and exit
B. The amount of product differentiation
C. The economic profit earned in the long run
D. Various barriers to enter the market
19. When the revenue is equal to price, which types of market structure?
A. Competitive monopoly C. Oligopoly
B. Perfect competition D. All are types
20. 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. perfect competitor
 b. oligopolist d. monopolistic competitor
21. Which of the following is NOT a feature of a monopolistic competition?
A. Numerous sellers C. Product differentiation
B. Numerous buyers D. Homogenous price
22. What do you call to the payment for the use of land?
A. Rent B. Spending C. Income D. Capital
23. It refers to the lowest wage permitted by law below which if paid by employer will subject him to
penalty from the government.
A. minimum wage B. maximum wage C. maximum salary D. minimum salary
24. Analyse the given statement if the natural rate of unemployment is likely to fall.
A. Unemployment benefits increase
B. Income tax increases
C. More training for the unemployed
D. Geographical immobility increases
25. Which statement BEST describe Potential Growth Measures?
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

Prepared by: Checked and Verified by: Recommending Approval:

PRETZEL L. RAGONJAN ROSHELLA B. AGULLANA JULIETA M. TABIEROS, PhD

Subject Teacher Master Teacher I Head Teacher III

Approved by:

NEIL ERICSON T. ACOB

School Principal I