SENIOR HIGH SCHOOL DEPARTMENT

SY 2022- 2023
FIRST QUARTER EXAMINATION

NAME:
APPLIED ECONOMICS
GR & SECTION: GRADE 12

TEACHER: Ms. Andrea M. Ibañez DATE:

General Instructions: Strictly follow the instructions. Read each item carefully before answering. Write
legibly and avoid erasures. Wrong spelling is wrong. Use only black or blue ball pen.

I. Multiple Choice
Direction: Read the sentences carefully. Write your answer in the blank before the number. Use CAPITAL
LETTERS only. Avoid erasures.

1. _____ It is a study of how individuals and societies choose to use the scarce resources that nature
and previous generations have provided.
a. Positive Economics
b. Economic Theory
c. Economics
d. Economist
2. _____ Economics is all about _______.
a. making money
b. making decisions
c. government controlling resources
d. none of the above
3. _____ It is a process of combining inputs in order to make something for consumption.
a. Production
b. Combination
c. Manufacturing
d. All of these are correct
4. _____ Under what scope of economics is this: The government is predicting the future levels of
inflation and employment rate.
a. Microeconomics
b. Macroeconomics
c. Positive Economics
d. None of the above
5. _____ It looks at the individual unit such as the household, the firm, and the industry.
a. Microeconomics
b. Econometrics
c. Macroeconomics
d. Descriptive Economics
6. _____ The following are the factors of production except.
a.Land
b.Labor
c.Capital
d.Services
7. _____ What is a need?
 a. anything that it is used to make a good or service
b. things that are made
c. things we need to survive
d. none of the above
8. _____ 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
9. _____ Which of the following is an example of customer’s basic needs?
a.
Water and Shelter
b.
Iced Tea
c.
Laptop and Cellphones
d.
Expensive Bags
10. _____ Manila is ranked 2nd in the most cases of COVID patients in Metro Manila. The city needs
urgent of the medical frontliners in curing the increasing number of patients. There is a scarcity in
the raw materials for production. To whom would you produce first the available resources?
a. Soldiers
b. Police Officers
c. Medical Frontliners
d. Your Family

II. Matching Type

Direction: Identify what is being described in Column A and choose your answer in Column B. Write your
answer CAPITAL LETTERS ONLY in the space provided.

Column A Column B

_____1. The nature of goods to produce. A. What to Produce

_____2. The allocation of the goods among members of the B. How to Produce
society. C. For Whom to Produce
_____3. The methods of production. D. Needs
_____4. Fundamental economic problem. E. Land
_____5. The initiative and creativity to produce something new. F. Labor
_____6. These resources consist of free gifts of nature which G. Capital
includes: - soil - rivers - lakes, oceans - forests - mountains - H. Scarcity
mineral resources I. Production
_____7. It can represent the monetary resources use to purchase J. Distribution
natural resources or the major physical assets individuals and K. Exchange
companies use when producing goods and services L. Consumption
_____8. The marketing of goods and services to different M. Wants
economic outlets.
_____9. The transferring goods and services to a person in return
for something present medium of exchange - money
_____10. The proper utilization of economic goods

III. True or False

Direction: Write TRUE if the same 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. ______________ If customers can pay for it, there is no effective demand.
3. ______________ Price is what a buyer pays for a unit of the specific good or service.
4. ______________ The total number of units purchased at that price is called the quantity
supplied.
5. ______________ Expectations for supplier are exact same of those of buyers. If a supplier thinks
that the price of a product will increase in the near future, then try to sell more now and little later
so they can make more money.
 6. ______________ If the government taxes you to make a certain product, they are making you
pay to make the product.
7. ______________ "The higher the price, the higher the quantity demanded".
8. ______________ The faster and better the technology is; the faster product can be produced.
9. ______________ If the number of buyers increases then the demand increases.
10. ______________ The higher the price, the lower the quantity supplied and vice versa.

IV. Fill in the Blanks

Direction: Read the sentences and fill in the blanks

1. The _____________________ explain the interaction between the sellers of a product and the
buyers.
2. The _____________________ states that the higher the price, the higher the quantity supplied.
3. When supply and demand are balanced, it is called _____________________.
4. The _____________________ states that the higher the price the lower the quantity demanded.
5. _____________________ occurs when there is excess supply- that is quantity supplied is greater
than quantity demanded.
6. When there is excess demand- that is quantity demanded is greater than quantity supplied, it is
called _____________________.
7. A _____________________ is money that government pays to a company to produce a certain
product.
8. There is a _____________________ relationship between price and quantity supplied.
9. There is a _____________________ relationship between price and quantity demanded.
10. _____________________ are goods that can serve as replacements for one another; when the
price of one increases, demand for the other goes up.

V. Enumeration
Direction: List down what is being asked in each item.

A. (2) Branches of Economics

1. _____________________
2. _____________________
At
B. (3) Internal Factors Affecting Pricing Decisions
3. _____________________
4. _____________________
5. _____________________

C. (5) External Factors Affecting Pricing Decisions

6. _____________________ And
7. _____________________
8. _____________________
9. _____________________
10. ____________________

At