APPLIED ECONOMICS GRADE 12

NAME:__________________________________ GRADE & SECTION:______________________

SCHOOL:________________________________ DATE:________________ SCORE:_______________
DIRECTION: SHADE THE LETTER OF YOUR ANSWER! ANSWER SILENTLY!
1.What is the main focus of economics as an applied science?
Ⓐ Developing economic theories Ⓒ Analyzing market demand and supply
Ⓑ Understanding human behavior Ⓓ Solving real-world economic problems
2.What is the nature of economics as a social science?
Ⓐ It studies human behavior only.
Ⓑ It is the study of how individuals make decisions.
Ⓒ It is primarily concerned with predicting market trends.
Ⓓ It analyzes the production and distribution of goods and services.
3 How do government policies affect income distribution in the Philippine economy?
Ⓐ By reducing poverty rates
Ⓒ By encouraging entrepreneurship
Ⓑ By increasing income inequality
Ⓓ By promoting equitable distribution of wealth
4 What is the ceteris paribus assumption?
Ⓐ No variables change
Ⓑ Only one variable changes at a time
Ⓒ All variables are held constant except one
Ⓓ All variables are allowed to change simultaneously
5 How does cost minimization relate to profit maximization?
Ⓐ They are totally unrelated concepts
Ⓑ Profit maximization involves increasing costs
Ⓒ Cost minimization is the same as profit maximization
Ⓓ Cost minimization ensures that profits are maximized
6 How does the concept of trade-off relate to opportunity cost?
Ⓐ They are totally unrelated concepts
Ⓑ Trade-off is the opposite of opportunity cost
Ⓒ Both involve making choices and sacrificing one alternative over the other
Ⓓ Opportunity cost involves maximizing benefits while trade-off
involves minimizing all costs
7 What are the primary factors of production in economics?
Ⓐ Goods, services, and capital Ⓒ Supply, demand, and equilibrium market
Ⓑ Land, labor, and entrepreneurship Ⓓ Consumption, production, and distribution
8 How might a government subsidy to farmers impact the supply of agricultural products in the market?
Ⓐ It increases supply. Ⓒ It has no real effect on supply.
Ⓑ It decreases supply. Ⓓ It depends on other market factors.
9 Samsung phone models were once on the recall by the manufacturer due to an incident of burning Samsung phone while
charged in an airplane. This has created a gadget controversy and its sales were affected for some time. What do you think
happened to its demand curve?
Ⓐ The curve shifted to the left.
Ⓒ There was a movement along the curve to the left.
Ⓑ The curve shifted to the right.
Ⓓ There was a movement along the curve to the right
10 What does price elasticity of demand measure?
Ⓐ The responsiveness of quantity supplied to changes in price
Ⓑ The responsiveness of quantity demanded to changes in price
Ⓒ The responsiveness of quantity supplied to changes in income
Ⓓ The responsiveness of quantity demanded to changes in income
11 If the price elasticity of demand for a product is 0.5, what does this indicate?
Ⓐ Demand is elastic Ⓒ Demand is unitary elastic
Ⓑ Demand is inelastic Ⓓ Demand is perfectly elastic
If the price of a good increases by 10% and the quantity demanded decreases by 15%, what is the price elasticity of demand?
Ⓐ 0.67 Ⓑ 1.5 Ⓒ 1.67 Ⓓ 2.0

12 Philippines particularly Mindanao is rich in bananas as agricultural produce. Exporting bananas and importing computers
as finished goods exchanged are recorded in this part of our Gross National Product.
Ⓐ investmentⒷ consumption
Ⓒ balance of trade Ⓓ government spending
13 The responsiveness of your demand for Tiktok platform over Reels on Instagram, in relation to changes in the demand of
other related services like editing platforms like Capcut and KineMaster on social media can be expressed through this.
 Ⓐ Price elasticity Ⓒ Demand elasticity
Ⓑ Income elasticity Ⓓ Cross price elasticity
14 How does a perfectly elastic demand curve appear on a graph?
Ⓐ As a vertical line Ⓒ As an upward-sloping curve
Ⓑ As a horizontal line Ⓓ As a downward-sloping curve
15 Which side of the market is more likely to negotiate to the government for price floor?
Ⓐ buyers Ⓑ sellers
Ⓒ consumers Ⓓ laborers
16 Onion prices have soared since September 2022 reaching their peak of Php 400-700 per kilogram, even higher than the
world price by $2 or Php100. To address this issue, the government, headed by Department of Agriculture, has set this price
cap from a goal of Php170 to a price cap Php80 this year. Price cap is equitable to
Ⓐ bid price Ⓑ ask price
Ⓒ price floor Ⓓ price ceiling
17 Miss Daquis, a fresh graduate of a university, will be joining the job-seeking sector or the potential labor force of the
economy. If she will not get a job in a couple of weeks or months of searching, she will be counted as part of this sector.
Ⓐ labor force Ⓑ unemployed
Ⓒ underemployed Ⓓ hidden unemployment
18 Miss Daquis, a fresh graduate of a university, will be joining the job-seeking sector or the potential labor force of the
economy. If she will not get a job in a couple of weeks or months of searching, she will be counted as part of this sector.
Ⓐ labor force Ⓑ unemployed
Ⓒ underemployed Ⓓ hidden unemployment
19 Filipinos searching for greener pastures resulting to reduction of quality and quantity of human capital in a phenomenon
called “brain drain” is attributed to an issue on ____________.
Ⓐ inflation Ⓑ migration
Ⓒ balance of trade Ⓓ foreign exchange rate
20 Yhojie has a difficulty adjusting to hia lifestyle in Davao since he only brought just a little amount of yen his Japanese
father gave him for a month-long vacation. This issue is an example of a/an ____________ concern of an economy.
Ⓐ inflation Ⓑ migration
Ⓒ balance of trade Ⓓ foreign exchange rate
21 Considering the potential separation of Mindanao from the rest of the Philippines, which economic factor would be most
affected?
Ⓐ Inflation rate Ⓒ Unemployment rate
Ⓑ Exchange rate Ⓓ Gross Domestic Product (GDP)
22 Which of the following scenario represents edge in taxation that tax benefit is maximized, burden is minimized?
Ⓐ regulation of business permits to prevent overcrowding
Ⓑ public school system to educate children of poor families
Ⓒ public service rehabilitating war-torn and post-conflict areas
Ⓓ tax credits offered to individuals or companies for donations made to charitable organizations supporting underprivileged
communities or disaster relief efforts