Department of Education

Region X (Northern Mindanao)

Division of Lanao del Norte

DIVISION ACHIEVEMENT TEST

APPLIED ECONOMICS

NAME:________________________________ GRADE & SECTION:___________ SCORE:___________

Date:__________

Direction: Read and understand the statements. Please write all your answers on ½ lengthwise. Don’t forget to write your name.

1. What do you call the condition in which our wants C. Without work and currently available for work
are greater than our limited resources? D. Workers who are highly skilled but working in
A.Economics C. Scarcity low skill jobs
B. Opportunity Cost D. Trade-off 11. Which of the following works best for our country?
2. What is the reason why we are studying economics? A. Decrease in the employment rate
A. Poverty C. Trade-off B. Decrease in the underemployment rate
B. Scarcity D. Unemployment C. Increase in the underemployment rate
D. Increase in the unemployment rate
3. What are you experiencing when your wants are 12. It called as behaviour or the Filipinos in buying
greater than your resources? product that is affordable. What is the term?
A. Poverty C. trade-off A. Advertisement C. Supply
B. Scarcity D. Unemployment B. Preferences D. Value of Money
4. What do you call things that you gave up when you 13. When there is an increase of price for white sugar,
make a choice? customers switch to brown sugar as an alternative.
A. Choice C. Problem What type of good is the scenario classified?
B. Opportunity cost D.Trade-off A. Complement goods C. Substitute goods
5. What do you call the application of economic B. Important goods D. Valuable goods
principles and theories to real-world situations? 14. It called as behaviour of Filipinos to buy an item.
A. Applied Economics C. Macroeconomics What is this term?
B. Economics D. Microeconimics A. Durable items C. Less valuable
6. Economist is important so that we may be able to : B. Higher Price D. Not suitable for them
A. Understand problems facing the citizens and 15. There are Filipinos affected behaviours in buying an
family item when they see it in the commercial on
B. Help the government promote growth and television. What is this term?
improve quality of life. A. Advertisement C. Preferences
C. Analyze fascinating patterns of social behaviour B. Demand D. Value of Money
D. All of the above 16. It is a condition that there is a direct relationship
7. Economics is derived from the Greek word between the price of a good and the quantity
“oikanomia” meaning: supplied of that good.
A. Economic management A. Law of Demand C. Supply Schedule
B. Household management B. Law of Supply D. Surplus
C. Social management 17. It is a type of price where quantity demanded is
D. Political management equal to quantity supplied.
8. What is most likely to happen when the population A. Economic price C. Normal price
continues to rise? B. Equilibrium price D. Unique price
A. Employment rate will go up 18. In a market equilibrium, a higher price will result to :
B. Poverty rate will decrease A. Shortage C. Constant supply
C. Resources will become scarce B. Surplus D. Constant demand
D. Unemployment rate will go down 19. Demand for television increase despite the increase
9. When does underemployment occur? in price is due to a change in:
A. It is when a person does have work A. Supply C. Demand
B. It is when a person does not have work B. Quantity demanded D. None of the above
C. It when a person does not work for a job that 20. The demand curve is sloping down because:
fits his/her skills A. Any increase in the cost of production will result
D. It is when a person works for a job that fits to a higher price.
his/her skills B. The lower the price, the higher the demand
10. Which of the following classification does not fall C. The higher the price, the higher the quantity
under underemployment? that suppliers are willing to sell.
A. Highly skilled but working in low paying jobs
B. Part-time workers who would prefer to be full
time.

D. The large the quantity supplied, the lower the

price.
21. If the price of K declines, the demand curve for the
complementary product J will:
A. Shift to the left
B. Decrease
C. Shift to the right
D. Remain unchanged
22. An increase in the price of a product will reduce the 29.
amount of it purchased because. Which of the above diagrams illustrate(s) the effect
A. Supply curves are up sloping of a governmental subsidy on the market for AIDS
B. The higher price means that real incomes have research?
risen A. A only C. C only
C. Consumers will substitute other products for the B. B only D. D only
one whose price has risen 30. Which of the above diagrams illustrate(s) the effect
D. Consumers substitute relatively high-priced for of an increase of raw materials?
relatively low-priced products. A only C. C only
23. Which of the following will not cause the demand for B only D. D only
product K to change? 31. Another term used for equilibrium:
A. A change in the price of close-substitute product A. Stable C. Balance
J B. Static D. None of the above
B. An increase in consumer incomes 32. Demand for television increases despite the increase
C. A change in the price of K in price is due to a change in:
D. A change in consumer tastes A. Supply C. Demand
24. Which of the following would not shift the demand B. Quantity demanded D. None of the above
curve for beef? 33. In the market equilibrium, a higher price will result
A. A widely publicized study which indicates beef to:
increases one’s cholesterol A. Shortage C. Constant supply
B. A reduction in the price of cattle feed B. Surplus D. Constant demand
C. An effective advertising campaign by pork 34. It reflects the desire of the consumer for a
producers commodity:
D. A change in the incomes of beef consumers A. Demand C. Market
B. Supply D. Supply schedule
35. Which of the following is true?
A. The supplies of inputs used affect the supply of a
good.
B. The lower the price of the good, the smaller the
quantity that will be offered by the supplier.
25. C. The lower the price of the good, the bigger the
Refer to the above diagram. The equilibrium price quantity that will be demanded by the buyer.
and quantity in this market will be: D. All the above are true.
A. ₱1 and 200 36. When the % change in price is lesser than the %
B. ₱1.6 and130 change in quantity demanded, the demand is said to
C. ₱.50 and 130 be:
D. ₱1.60 and 290 A. Elastic C. Unitary
For No. 26-28 B. Inelastic D. Perfectly elastic
37. At a given elasticity of supply measures:
A. Elastic C. Inelastic
B. Perfectly elastic D. Perfectly inelastic
38. The responsiveness of demand/supply to a change in
its determinants:
A. Price elasticity C. Point elasticity
B. Arc elasticity D. Elasticity
26. Refer to the above diagram. A price of ₱20 in this 39. The price elasticity of demand measures:
market will result in: A. The degree of responsiveness of quantity
A. Equilibrium C. A surplus of 100 units supplied to variations in price
B. A shortage of 50 unitsD. a shortage of 100 units B. The degree of responsiveness of quantity
27. Refer to the above diagram. A price of ₱ 60 in this demanded to variations in price
market will result in: C. The price of commodity at which buyers are
A Equilibrium C. a surplus of 100 units willing to buy
C. A shortage of 50 unitsD. a shortage of 100 units D. The quantity of goods that buyers are willing to
28. Refer to the above diagram. A price of ₱ 40 in this buy.
market will result in: 40. The price elasticity of supply measures:
A. Equilibrium C. A surplus of 100 units A. The degree of responsiveness of quantity
B. A shortage of 50 unitsD. a shortage of 100 units supplied to variations in price
For nos. 29-30 B. The degree of responsiveness of quantity
demanded to variations in price
 C. The price of commodity at which buyers are A. 5 C. 15
willing to buy B. 10 D. 20
D. The quantity of goods that buyers are willing to 50. If the quantity demanded is 15, what price of goods?
buy. A. $30 C. $20
For Nos. 41-44 B. $10 D. $40

41. Based on the demand curve for good x, it can be

determined that good x has:
A. Many substitute C. No substitute
B. A few substitute D. Only one substitute
42. Based on the demand curve, what type of elasticity
shown above?
A. Unitary C. Inelastic
B. Perfectly Elastic D. Perfectly Inelastic
43. In the demand curve above, which of the following
goods is an example?
A. Medicine (Insuline) C. Gasoline
B. Rice D. Sugar
44. Based on the demand curve, which statement is
correct?
A. When a percentage change in price leads to a
proportionately greater percentage change in
quantity demanded.
B. When a percentage change in quantity
demanded can change infinitely.
C. When a percentage change in price creates no
change in quantity demanded.
D. When a percentage change in price leads to a
proportionately equal percentage change in
quantity demanded.
45. What does unitary elastic demand mean?
A. Elasticity of demand is mathematically
determined
B. Elasticity is different at each unit price range
C. Demand is inelastic at low price, becomes elastic
at high price
D. % change in QD = % change in Price
46. Supply elasticity is defined the degree to which a
change in _____affects the quantity supplied of a
particular item or commodity.
A. Demand C. Marketing Budget
B. Price D. Production Cost
For nos. 47-50

47. If the price of the goods is $30, what quantity will be

demanded?
A. 5 C. 15
B. 10 D. 20
48. If the price of the goods is $20, what quantity will be
demanded?
A. 5 C. 15
B. 10 D. 20
49. If the price of the goods is $10, what quantity will be
demanded?