APPLIED ECONOMICS

Summative Test
A. True or False. Write the word True if the statement is true; write False if the statement is false.

1. Economics as social science has something to do with our everyday lives.

2. Supply is a persuasive tool in understanding economic and business realities, issues, and problems.,
3. One a man is applying a job to sustain its basic needs shoes is an example of economics as social
science.
4. There two branches of economics the microeconomics and the macroeconomics.
5. Economics is about utilizing economic theories to explain economic events, government actions and
recommend courses of actions for business, household, and government.,
6. Applied Economics is an application of conclusion from the different economic theories.
7. Using economic theories, applied economics tries to address the central problem of economics which
is scarcity.
8. The Law of Supply states that as the price goes down, quantity supplied goes up too and as the price
goes down, the quantity supplied goes down too, considering other things are constant (ceteris
paribus).,
9. The consumers have the power to influence the price of the products and services in monophony.
10. A monopolist has no power to determine its output level and the price of their product.,
11. Government is the consumer in monophony and the government employees are the producers.
12. Advertisement is very important in perfectly competitive market to encourage buyers to buy certain
products.,
13. Oil industry is an example of oligopoly.
14. Monopoly is a market structure in which there is only one buyer of a product for which there are no
close substitutes.,
15. Under oligopoly the action of each firm does not affect other firms.,

B. ESSAY (5 POINTS)

Suggest solutions on how to address the problem on inadequate wage and unemployment.

Prepared by: CHECKED BY: NOTED:

VENUS B. MACATUGGAL DANILO M. BACANI FABIO M. MACALLING

Teacher II HT-III/ Asst. Principal Principal IV