Republic of the Philippines

Department of Education
REGION I
SCHOOLS DIVISION OFFICE I PANGASINAN
ALVEAR ST. POBLACION, LINGAYEN, PANGASINAN

Applied Economics
First Quarter Examination
Name: ________________________ Date: ________________
Section: _______________________ Score: _______________

Direction: Choose the correct answer from the given choices. Write your answer in the space provided.

______1. It is the study of economics concerning real-world situations.

A. Microeconomics B. Macroeconomics C. Econometrics D. Applied economics
______2. The tension between limited resources and unlimited wants and needs is_______
A. natural resources B. scarcity C. opportunity cost D. poverty
______3. This type of economics deals with the management of income, expenditures, Wealth, or resources of a nation.
A. Household economics B. Business economics C. National Economics D. International economics
______4. The three problems of economics are what to produce, how to produce, and ____________
A. when to produce B. where to produce C. which one to produce D. for whom it will be produced
______5. This is the marketing of goods and services to different economic outlets for allocations to individual consumers.
A. production B. distribution C. exchange D. consumption
_ ____6. Which is an example of Microeconomics?
A. Mike wants to know the employment rate in the country.
B. Mike is concerned about the changes in the price of milk.
C. Mike is interested in knowing the inflation this year.
D. Mike is interested in knowing the trade per business.
______7. The people who buy goods and services are called _______________
A. producers B. consumers C. bankers D. traders
______8. What do you call the things that you gave up when you make a choice?
A. Choice B. Opportunity cost C. Problem D. Trade-off
______9. It is the process of making, buying, and selling of goods and services
A. economics B. inflation C. market D. barter
_____10. Which of the following refers to macroeconomics?
A. Effects of government regulation on individual markets.
B. It concerns itself with the actions of whole countries.
C. It concerns itself with the action of individuals.
D. Firm production and profit maximization.
______11. It is the process of combining inputs to create an output.
A. Public Finance B. Consumption C. Distribution D. Production
______12. It is the use of goods or services. It is the ultimate end of economic activity.
A. Public Finance B. Consumption C. Distribution D. Production
______13. This type of economics deals with the management of income, expenditures, Wealth, or resources of a nation.
A. Household economics B. Business economics C. National Economics D. International economics
_____14. This refers to the resource mix and technology applied in production.
A. For whom to spend B. How to produce C. What to produce and how much D. When to produce
______15. This is the basic question in economics asking about the market for the product.
A. For whom to produce B. For whom to spend C. How much to produce D. Where to product
______16. Economics that deals with what is happening such as the current inflation rate, the number of employed
laborers, what is the papulation rate, etc. is _______________
A. Negative economics B. Normative economics C. Overload economics D. Positive economics

_______17.What is the most favorable production in manufacturing among the following?

A. Producing low units at a lower cost C. Producing more units at a lower cost
B. Producing high units at a higher cost D. Producing moderately at a reasonable cost
18. It is the best alternative that people forego, or give up when making a choice or decision
 Republic of the Philippines
Department of Education
REGION I
SCHOOLS DIVISION OFFICE I PANGASINAN
ALVEAR ST. POBLACION, LINGAYEN, PANGASINAN

A. Opportunity cost B. Marginalism C. Efficient Markets D. Society

19. Which of the following is a factor of production?
A. The skill of an electrical engineer to make electrical wirings.
B. The interest paid on a bank loan.
C. The profit of a company.
D. The taxes paid by workers to the government.
20. This occurs when there is excess supply than consumer demand.
A. Surplus B. Shortage C. Poverty D. Price Change
21. When there is a high demand for ice cream during summer, what happens to its price?
A. Decreases B. Remains the same C. Increases D. None of the above
22. It is harvest season and farms are producing more vegetables than households demand.
A. Shortage B. Price Volatility C. Surplus D. Poverty
23. Consumers are alarmed because of the sudden price increase of household commodities. In this case there is
an economic problem called________________
A. Shortage B. Price Volatility C. Surplus D. Unemployment
24. This is an economic theory that can be used to explain why shortages and surpluses occur.
A. Law of demand and supply C. Price volatility
B. Law of diminishing returns D. Unemployment
25. When the price of an item goes up, suppliers will attempt to maximize their profits by increasing the quantity
offered for sale. This defines what law?
A. Demand curve B. Law of demand C. Law of supply D. Supply curve
26. How would one determine the equilibrium price and quantity?
A. The middle price and quantity are equilibrium.
B. Any price and quantity on the curves is the equilibrium.
C. It is the highest price and its corresponding quantity on the curves.
D. It is the point of intersection of the two curves.
Use the graph below to answer questions 27 & 28.

27. How much is the surplus?

A. ₱10,000.00 B. ₱5,000.00 C. ₱15,000.00 D. ₱20,000.00
28. What is the equilibrium point?
A. 20,000 bushels at ₱3.00 B. 35,000 bushels at ₱2.50
C. 40,000 bushels at ₱3.00 D. 40,000 bushels at ₱3.00
29. Corn crops are very plentiful over the year and there is more corn than people would normally buy.
To get rid of the excess supply, what should farmers do?
A. Increase the price of corn C. Do not sell the corn
B. Price of corn stays the same D. Lower the price of the corn
30. What do you call the people who make rumors and/or assumptions about a certain commodity price?
A. Commodity speculators B. Gossipers C. Consumers D. Producers
_______31. This market structure has a lot of many buyers and sellers offering identical goods and services.
A. Monopoly B. Perfect competition C. Monopolistic competition D. Oligopoly
32. This market is identified with its lack of substitutes because of having a singular seller in the market.
A. Monopoly B. Perfect competition C. Monopolistic competition D. Oligopoly
 Republic of the Philippines
Department of Education
REGION I
SCHOOLS DIVISION OFFICE I PANGASINAN
ALVEAR ST. POBLACION, LINGAYEN, PANGASINAN

33. Irene was once a Globe subscriber but switched to Sun because of its better call-and-text promos.
These telecommunications companies are examples of what market structure?
A. Perfect competition B. Monopolistic competition C. Oligopoly D. Monopoly
34. When washing her laundry, Jane prefers liquid soap more than the bar or powder. The soap industry shows
what kind of market structure?
A. Perfect Competition B. Monopolistic competition C. Oligopoly D. Monopoly
_______35. What is referred to as the willingness to buy any goods or services should be accompanied with the ability to
buy?
A. Efficient Demand B. Effective Demand C. Quality Demand D. Equilibrium on Demand
_______36. When there is equilibrium, the supply and demand are usually _______________
A. Conflicting B. Unstable C. Balanced D. Matched
_______37. What is defined as the price at which the producer can sell all the units he produced in agreement with the
buyer?
A. Fixed Price B. Book Value C. Par Price D. Equilibrium Price
_______38. What acts as a signal for shortage and surpluses?
A. Demand B. Supply C. Price D. Goods
_______39. Which statement about price is NOT TRUE?
A. Prices are decided by interactions between the buyer and the seller
B. If a good is in a shortage, prices tend to rise
C. If a good is in a surplus, prices tend to fall
D. Price doesn’t really help resources from goods with little demand to goods or services
_______40. What measures the responsiveness of the quantity demanded or supplied of a good to a change in its price?
A. Demand Elasticity B. Supply Elasticity C. Price Elasticity D. Marginal Elasticity
_______41. What happens when the percentage change in quantity demanded is greater than the percentage change in
price, and the coefficient of the elasticity is greater than 1?
A. Inelastic Supply B. Elastic Demand C. Inelastic Demand D. Elastic Supply
_______42. When the percentage change in demand is equal to the percentage change in price, the product is said to
have________________
A. Unstable Elastic Demand B. Stable Elastic Demand C. Hybrid Elastic Demand D. Unitary Elastic Demand
_______43. What is defined as the relationship between changes in quantity demanded for a good and a change in real
income?
A. XED B. YED C. PES D. PED
_______44. Classify the following factors affecting the demand of a commodity. Which does NOT belong to the group?
A. Income B. Market C. Price of Production Inputs D. Taste
_______45. Classify the following factors affecting the supply of a commodity. Which does NOT belong to the group?
A. Market B. Price of Production Inputs C. Taxes D. Technology

_______46. The volume of supplies is not controlled by the supplier alone, except____________
A. People B. Competitors C. Government laws D. Costs
_______47. When there is oversupply circulating in the economy, the government should use this policy.
A. Fiscal B . Taxation C. Fiscal D. Trade
_______48. It is someone who creates goods and services or is in charge of coordinating all aspects.
A . Producer B . Consumer C . Investor D. Supplier
_______49. It is an asset or item that is purchased with the hope that it will generate income or will appreciate in the
future.
A. Banks B. Bonds C. Stocks D. Investment
_______50. Which of the following classifications does not fall under underemployment?
A. Highly skilled but working in low paying jobs
B. Part-time workers who would prefer to be full time.
C. Without work and currently available for work
D. Workers who are highly skilled but working in low skill jobs
 Republic of the Philippines
Department of Education
REGION I
SCHOOLS DIVISION OFFICE I PANGASINAN
ALVEAR ST. POBLACION, LINGAYEN, PANGASINAN

Prepared by:

JUNIE J. GALE
Master Teacher I
Bolinao Integrated School