APPLIED ECONOMICS WT2 a. It is only focused on market demand. B.

positive
b. It refers to factors of demand shift. C. negative first, then positive
c. It means that all other things held constant. D. positive first, then negative
1. What is unemployment? d. None of the above
a. People who are available for work but do not find any jobs. 17. Which of the following is NOT TRUE about poverty?
b. These are the people who have no work. 9. Which of the following statements is TRUE about trade-off? a. It is a condition where people’s basic needs for foods, clothing, and
c. It refers to a person who leave their current job. a. Trade-off is the same as opportunity cost. shelter are not being met.
d. All of the above b. Trade-off happens when you sacrifice one thing to get something. b. It occurs when people do not enjoy a certain minimum level of living
c. Trade-off is the benefit in choosing the best alternative. standards as determined by a government.
2. The law of supply states that: d. None of the above c. It is a state which the income for a family/individual is not enough to
A. As price goes up, ceteris paribus, the producers will offer more for sustain the basic food and non-food requirements.
sale. 10. Which of the following is an economic problem? d. None of the above
B. As income increases, ceteris paribus, quantity supplied also increases. a. Poverty
C. As price increases, ceteris paribus, quantity supplied decreases. b. Unemployment 18. The number of goods that businesses are willing and able to sell at a
D. None of the above c. Traffic jam in Metro Manila specific price during a particular period.
d. All of the above A. Supply
3. Which of the following statements is TRUE about opportunity cost? B. Demand
a. Opportunity cost is the same as trade-off. 11. Which of the following factors does not cause a shift in the demand C. Quantity supplied
b. Opportunity cost is the foregone benefit in choosing the best curve? D. Quantity demanded
alternative. a. Price
c. Opportunity cost happens when you sacrifice one thing to obtain b. The income of consumers 19. Which of the following statements refers to demand?
another. c. Expectations of future prices A. A relationship between the price of a product and the quantity
d. None of the above d. None of the above demanded during a given period.
B. It refers to a quantity of a good or service consumers would choose to
4. Which of the following is a cause of poverty? 12. This factor causes shifts of the supply curve. buy at a particular price.
a. Exposure to risk such as natural disasters A. Price C. It shows the number of goods that consumers are willing and able to
b. High inflation during crisis B. The income of consumers buy.
c. Both A and B are correct C. Cost of production D. All of the above
d. None of the above D. Inferior good
20. Which of the following is a cause of unemployment?
5. Which of the following is NOT TRUE about barter system? 13. It refers to the number of goods that producers are willing and able to a. Due to people moving between jobs
a. It refers to the exchange of goods and services without the use of sell at different prices. b. Fewer jobs available in the market
money. A. Supply c. Both A and B are correct
b. It is an old form of commerce. B. Quantity supplied d. None of the above
c. It is evident in traditional economy. C. Both a and b
d. None of the above D. None of the above

6. Which of the following statements best describes the production 14. Which of the following group is the classification of economic systems?
possibilities frontier? a. Traditional, Command, Market, and Mixed
a. It shows different combinations in producing two goods. b. Agricultural, Industrial, Technological, and Developmental
b. It is the production schedule of a good. c. First World, Second World, Third World, and Fourth World
c. It reflects the possible solution to the problem. d. None of the above
d. None of the above
15. Which of the following statements does not describe the law of demand?
7. Which of the following scenarios causes the demand to shift upward? A. It shows the relationship between price and quantity demanded.
a. Consumers are satiated with product B. There is a negative relationship between price and quantity demanded.
b. Increase in consumer’s income c. Price is directly affected by quantity demanded.
c. The price is expected to decrease next week d. None of the above
d. None of the above
16. The relationship between the price and quantity supplied is:
8. Which of the following is TRUE about ceteris paribus? A. negative