Republic of the Philippines

CATANDUANES STATE UNIVERSITY

Virac, Catanduanes

College of Education-Laboratory Schools

APPLIED ECONOMICS
Midterm Examination
nd
2 Semester, SY 2021-2022

Name: ________________________________________

I. MULTIPLE CHOICE: Write the letter of the correct answer on a separate sheet of
paper. Write N if the answer is not found on the choices.

1. What is it called when you have limited quantities of resources used to meet unlimited wants?
a. Profit c. Employment
b. Scarcity d. Economics
2. Economics as _______________, studies how society creates its material wealth and how to
make it available to the people with less difficulties.
a. An Applied science c. A Natural Science
b. A Social Science d. A Physical Science
3. This economic problem aims to find out the best and applicable techniques or methods to use
in the manufacture of the products that is demanded by the consumers.
a. What to produce? c. How much to produce?
b. Whom to produce? d. How to produce?
4. It is the limited availability of resources.
a. Wants c. needs
b. Scarcity d. none of these
5. Economics as _______________, studies how economic theories would be applied to real-
life economic problems.
a. An Applied science c. A Natural Science
b. A Social Science d. A Physical Science
6. In 2018, it was recorded that the annual per capita poverty threshold of Region V is ₱24,461
and 27% of the Bicolanos belong to the poverty line. Which of the following is true, if Mr.
Zulueta earns ₱8,000 pesos a month with having a family with a wife and 2 kids?
a. Mr. Zulueta’s family is above the poverty line or the poverty threshold
b. Mr. Zulueta’s family belongs to the poor families in Bicol Region.
c. Mr. Zulueta’s family belongs to the upper 63% of the families who are above the poverty
line.
d. None of these
7. This economic problem aims to find to determine the consumer’s demand.
a. What to produce? c. How much to produce?
b. Whom to produce? d. How to produce?
8. This economic problem aims to determine the type of consumer’s to cater their needs and
wants.
a. What to produce? c. How much to produce?
b. Whom to produce? d. How to produce?
9. It is a study that deals with human behavior.
a. Economics as an Applied science c. Applied science
b. Economics as a Social Science d. Social Science
10. It is a situation where people encounters difficulty in purchasing their basic needs on a regular
basis.
a. Unemployment c. Unequal Distribution of Income
b. Poverty d. Weak Infrastructure
11. It is a situation where people physically, and mentally qualified, and are willing to work, cannot
find a job aligned with their educational attainment.
a. Unemployment c. Unequal Distribution of Income
b. Poverty d. Weak Infrastructure
12. It pertains to the overall lack of income to buy basic necessities for subsistence living.
a. Poverty c. Relative Poverty
 Republic of the Philippines
CATANDUANES STATE UNIVERSITY
Virac, Catanduanes

b. Absolute Poverty d. Unemployment

13. It pertains to the minimum amount of income needed to purchase basic necessities.
a. Poverty Incidence c. Capita Income
b. Poverty Threshold d. Income Threshold
14. Economics as _______________, is the utilization of wealth for individual’s satisfaction and
society’s welfare.
a. Study of wealth c. study of allocation
b. Study of making choices d. an applied science
15. Determining the type and quantity of goods to produce belongs to what economic problem?
a. What to produce? c. How much to produce?
b. Whom to produce? d. How to produce?

II. Essay. (5 points)

16-20. Differentiate economics as an applied science and economics as a social science.

21-25. Differentiate absolute poverty from relative poverty.

Prepared by:

ALJON T. TEVES
Instructor I

Noted:

JOERANDY C. TABLIZO
Head Teacher