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PRETEST
APPLIED ECONOMICS
Name_______________________Grade/Section____________Date________Score___
Direction: Read each question carefully and Circle the corresponding letter of your
answer.
2. It is derived from the Economics etymology which came from the two Greek
words “oiko” and “nomos”
a. management of the market c. management of the bank
b. management of the money d. management of household
3. This is the insufficiency in resources to meet the wants and needs of the
consumers.
a. scarcity c. depression
b. inflation d. recession
7. This is a branch of economics that studies the decisions of individuals and firms
to allocate resources of production, exchange, and consumption.
a. Econometrics c. Macroeconomics
b. Microeconomics d. Applied Economics
9. This refers to the amount of a given product or service that suppliers are willing
to offer to consumers at a given price level at a given period.
a. Supply c. Demand
b. Resources d. Surplus
10. This refers to the amount of some good or service consumers are willing and
able to purchase at each price that is based on consumer’s needs and wants.
a. Demand c. Surplus
b. Supply d. Price
11. This is the amount of an asset or resource that exceeds the portion that is
actively utilized. It causes a market disequilibrium in the supply and demand of a
product.
a. Deficit c. Equity
b. Surplus d. EquilibriumA
13. This is the foregone benefit that would have been derived from an option not
chosen.
a. Marginal Utility c. Opportunity Cost
b. Comparative Advantage d. Aggregate supply
15. The condition which obtains when the quantity demanded by consumers of a
certain commodity of service is greater than the quantity supplied.
a. Surplus c. Deficit
b. Shortage d. Inflation
19. It is one of the standard branches of economics that focuses on the value of
economic fairness, or what the economy "should be" or "ought to be." It is based
on value judgments.
a. Positive economics c. Normative Economics
b. Microeconomics d. Macroeconomics
23. This is a microeconomic law that states that quantity supplied is positively
related to the price.
a. Law of Demand c. Law of Supply
b. Law of Diminishing Returns d. Law of Marginal Utility
24. This is a microeconomic law that states that quantity demanded rises as price
falls, holding all else constant.
a. Law of Supply c. Quantity demanded
b. Law of Demand d. Quantity supplied
26. This is an asset or spending on capital goods that can be used for the
production of other goods in the future.
a. Investment c. Wage
b. Labor force d. Liability
27. This refers as the lowest remuneration that employers can legally pay their
employees—considered as one of the returns to the factors of production.
a. Minimum wage c. Lease
b. Interest rate d. Investment
28. This refers to all things that are generally acceptable as means of payment for
goods and services (medium of exchange) and as payment of debts (store of
value).
a. Money c. Resources
b. Market d. Asset
29. This is the institution which facilitates the transactions between buyers and
sellers.
a. Market c. Shopping mall
b. Capital d. Convenience store
30. This is an economic term or situation which means that if you choose an
alternative, you are going to lose another.
a. Trade-off c. Equity
b. Free lunch d. Risk