APPLIED ECONOMICS REVIEWER

Labor_ The physical effort of the manpower to produce the protective devices of the frontliners .

Entrepreneur -the great ideas, concepts and drive of the production managers to produce something new describe
which factor of production?

Capital goods -The computers of the production manager in an office is what kind of goods or products?
. Equilibrium price - The price at which the producer can sell all the units he wants to produce and buyer can buy all
units he wants?

Environmental Degradation -Abuse in our environment have some negative impact to our business like
insurance costs, damage to property and resources This refers to the negative impact of economic activities on the
environment, such as pollution, deforestation, and climate change. Also, It can have significant long-term economic
and social impacts, including increased healthcare costs, reduced productivity, and displacement of communities.

. Luxury Good- Mr. Dennis Elecanal purchased new car as a gift for his father’s birthday. This good is

Poverty When people are not financially stable , they need their income for substinence, Due to this they
are unable to to invest in human capital. It is a manifestation of not having sufficient income or resources to
meet basic human needs, such as food, housing, and healthcare. Poverty can have negative impacts on
health, education, and social participation, and can limit opportunities for economic and social mobility.
Not considered as tangible good- Training service

True about Economics as a social science- Scarce resources and limited needs drive choice

Which is true on the value of an economic theory in practice? It is determined by - how well the theory can predict or
explain

Business ethics refers to any behavior by business that may…. . result in the maximization of profits

Unemployment refers to the number of people who are willing and able to work but are unable to find
employment. High levels of unemployment can have negative impacts on individuals, families, and society, including
reduced income, social tension, and a lower quality of life.

Law of demand - states that the higher the price typically leads to lower quantity supplied?

19. Which item refers to a condition of not having sufficient income or resources to meet basic human needs, such as
food, housing, and healthcare. Poverty can have negative impacts on health, education, and social participation, and
can limit opportunities for economic and social mobility

Supply curve - term shows the relationship between quantity supplied and price on a graph.It is termed as shortage in
supply.

Focuses on the behavior of individual economic units and the functioning of markets. Its perspective focuses on parts
of the economy: individuals, firms, and industries.

Macroeconomics Studies the functioning of economics as an aggregate (production, employment). Its perspective
looks at the economy as a whole,

Consumer goods - These goods has some degree of scarcity and therefore an opportunity cost.. Some examples of
goods are food, clothing, cars, electronics and furnitures. This kind of items benefit to the lives of people who consume
them. Most companies sell goods whether they are physical products or services that consumers can regularly use.

. How to produce refers to the problem of deciding on the most efficient and cost-effective way to produce goods
and services while minimizing the use of resources?

What to produce- The problem of deciding which goods and services should be produced based on the available
resources and the needs and wants of society.
For whom to produce -The problem of deciding who will benefit from the goods and services produced, based on their
ability to pay or their specific needs.

Equilibrium point - It is a point where two slopes intersect?

Law of supply and demand - law explains the interaction between sellers of resources and buyers for that resource?

. Equilibrium- terminology if the supply and demand are balanced,

Which market structure is primarily managed by a single seller- monopoly

under monopoly market structure- standardized

an advantage of perfect competition under entry and exit in the business--. Free entry and exit

Market -place where buyers and sellers interact?

Competition- the term referred to the rivalry among sellers in the market- Which refers to the competitive
environment wherein the buyers and sellers operate- market structure

. Abnormal profit - type of profit can be derived by a monopoly market structure

Price taker - type of pricing strategy is perfect competition belong

Market structure is TISELCO belong- monopoly

 Republic of the Philippines
Division of Masbate
MONREAL NATIONAL HIGH SCHOOL
Monreal, Masbate

Summative test 4.2

Applied Economics

Directions: Kindly choose the letter of the correct answer. Encircle your answer.

1. 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

2. The initiative and creativity to produce something new describes which factor of production?

a) Land b) Capital c) Labor d) Entrepreneur

3. The equipment of the coffee shop to produce cups of coffee, are what kind of goods or products?

a) Consumer goods b) Either consumer goods or capital goods c) Capital goods d) Economic goods

4. Which best of the following best describes economics as a social and an applied science?

a) The study of products we need to survive b) The study of how customers make choices when there is
unlimited supply of resources

c) The study of human personalities d) The study of how buyers make choices when there is limited
supply

5. The following are examples of customers’ basic needs.

a) Water and shelter b) Iced tea c) Laptop and cellular phones d) Expensive bags

Part II. Matching Type

Direction: Please match the resources with the statements.

A) Land C) Labour

B) Capital D) Entrepreneurship

1. ________________The idea for a car that runs on a rocky road

2. ________________The crude oil used by ABM Firm to produce gasoline

3. ________________The machine used by Mang Jose, a tailor to stitch PPEs

4. ________________The manpower to build bridges and houses

5._________________Technicians who repair computers

 Republic of the Philippines
Division of Masbate
MONREAL NATIONAL HIGH SCHOOL
Monreal, Masbate

Summative test 4.3

Applied Economics

PART I True or False

Directions: Write TRUE if the statement is correct and FALSE if incorrect. Write your answer before the number.

________1.The upward slope of the supply curve illustrates the law of demand— ―higher price leads to a higher
quantity supplied, and vice versa‖.

________2.The downward slope of the demand curve illustrates the law of supply—the inverse relationship between
prices and quantity demanded.

________3.Time is important to supply because suppliers must react quickly to a change in demand or price.

________4.A shift in a demand or supply curve occurs when quantity demanded or supplied changes even though price
remains the same.

________5.The law of supply says that ―at higher prices, sellers will supply more of economic goods‖.

PART II Multiple Choice Questions

Directions: Read the sentences carefully. Encircle the correct answer.

6. An increase in the price of electricity bill will force you to:

a. increase your demand for kerosene heaters and coal.

b. increase your demand for light bulbs and aircon.

c. increase your demand for stereos and videokes.

d. increase your demand for TVs and use of gadgets.

7. The market demand curve for apple shows the

a. effect on market supply of a change in the demand for apple

b. quantity of an apple that consumers like to buy at different prices.

c. marginal cost of producing and selling different quantities of an apple.

d. effect of advertising expenditures on the market price of an apple.

8. Economies experience an increased in unemployment and a reduced of activity during recession. How does recession
affect the market demand for new cars?

a. Demand for new cars shifts to the right.

b. Demand for new cars shifts to the left.

c. Demand for new cars has no shift

 d. Demand for new cars either has or no shift

9. The market supply curve for gasoline shows the

a. effect on market demand of a change in the supply of gasoline.

b. quantity of gasoline that firms offer for sale at different prices.

c. quantity of gasoline that consumers are willing to buy at different prices.

d. All of the above are correct.

10. If Toyota firm is producing a car faster than people want to buy, there is

a. an excess supply of car and price can be expected to decrease.

b. an excess supply of car and price can be expected to increase.

c. an excess demand of car and price can be expected to decrease.

d. an excess demand and price can be expected to increase

 Republic of the Philippines
Division of Masbate
MONREAL NATIONAL HIGH SCHOOL
Monreal, Masbate

Summative test 4.4

Applied Economics

Test 1
Part I True or False Directions: Read the sentences carefully. Write TRUE if the statement is correct and FALSE if the
statement is incorrect.

1. Elasticity of demand refers to the change in demand when there is a change in another factor such as price or
income

2. If demand for a good or service is static even when the price changes, demand is said to be inelastic

3. Examples of elastic goods include gasoline, while inelastic goods are items like canned goods and vitamin c tablets

4. The law of demand states that “elasticity shows how much a good or service is demanded relative to its movement
in price”.

5. Inelastic demand is when a demanded quantity for masks changes by a greater percentage compared to its
percentage change in price

6. The opposite of a market economy is a planned economy, where investment and production decisions are decided
by the government.

7. Unit elastic is when a percentage change in demand equals the price. 8. A mango fruit with an elastic demand gets
more sales when its price drops slightly. When its price goes up, it stays longer in the box.

9. The demand curve shows how quantity demanded for apple responds to price changes. The flatter the curve, the
more elastic is the demand for an apple.

10. The midpoint elasticity is greater than 1.

TEST 2
Directions: Please read the statements carefully. Encircle the correct answer.

1. In the market, the price elasticity for the demand of canned goods sold by Aling Puring Grocery Store is the:

a) ratio of the percentage change in quantity demanded for the goods to the percentage change in its price
 b) responsiveness of revenue to a change in quantity of the canned goods

c) ratio of the change in quantity demanded divided by the change in its price of the canned goods

d) response of revenue to a change in the price

2. If demand for sacks of rice in Aling Puring Grocery Store is price elastic, then a:

a) rise in the price of sacks of rice will raise total revenue of the grocery

b) fall in the price of sacks of rice will raise total revenue of the store

c) fall in the price of sacks of rice will lower the quantity demanded

d) fise in the price of sacks of rice won't have any effect on total revenues

3. If the cross-price elasticity between soap bar and liquid soap commodities is 1.5,

a) the two goods are luxury goods

b) the two goods are complements

c) the two goods are substitutes

d) the two goods are normal goods

4. The price elasticity of demand for a certain good tends to be:

a) smaller in the long run than in the short run

b) smaller in the short run than in the long run

c) larger in the short run than in the long run

d) unrelated to the length of time

5. If the price elasticity of supply of cup noodles is 0.60 and the price increase by 3 percent, then the quantity supplied
for cup noodles increases by how by?

a) 0.60 percent. b) 0.20 percent c) 1.8 percent d) 18 percent

If your income or the income of your family is not enough to purchase the basic commodities needed by your
family, what goods would you buy, instead? What economic or marketing strategies would you apply? How would you
respond to the price changes of these commodities?

PERFORMANCE TASK