Christian International School

Of Caloocan City, INC.

#15, Zone 15, Zamora Compound, Gate
-1, Brgy. 172, Camarin, Caloocan City

SUMMATIVE TEST- APPLIED ECONOMICS GRADE 11

Name: __________________________________________________ Year & Sec. ____________

Teacher: ___________________________________________ Date: ________________________

Direction: Kindly choose the letter of the correct answer. Encircle your answer.
1. The physical effort of the manpower to produce the protective devices of the
frontliners describes which factor of production?
a. Land b) Capital c) Labor d) Entrepreneur
2. The great ideas, concepts and drive of the production managers to produce
something new describe which factor of production?
a. Land b) Capital c) Labor d) Entrepreneur
3. The computers of the production manager in an office 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 describes economics as a social and an applied science?
a) The study of things we need to survive
b) The study of how people make choices when they are faced
with an unlimited supply of resources
c) The study of human behavior
d) The study of how buyers make choices when there is limited supply of resources
5. Which of the following are examples of human needs?
a) Water and a place to live like houses
b) Iced caramel macchiato frappuccino
c) Flat screen televisions
d) Laptops and computers
6. Mrs Nenita De Jesus purchased basic goods like vegetables and groceries for
the consumption of her family. These goods are:
a. Consumers goods
b. Capital Goods
c. Luxury Goods
d. Economic Goods
7. Mr. Dennis Elecanal purchased new car as a gift for his father’s birthday. This
good is
a. Consumers Good
b. Luxury Good
c. Capital Good
d. Economic Good
8. ABM Computer shop purchased additional 10 units of computer for the business.
These goods are called:
a. Consumers goods
b. Luxury Goods
c. Capital Goods
d. Economic Goods
9. Which is not considered as tangible good?
a. Cell phone
b. Mask
c. Sack of rice
d. Training service
10. Which is true about Economics as a social science?
a) Scarce resources and limited needs drive choice
b) Economics explains and predicts economic events
c) The scientific method is based on the normative analysis
d) Economic hypotheses lead directly to predictions
11. Which is true on the value of an economic theory in practice? It is determined by
a. how accurate the assumptions are.
b. how well the theory can be represented by a graph.
c. how well the theory can predict or explain.
d. how economical the model is.
12. Which of the following is the study of the aggregate economy studied as a whole?
a. Mathematical economics
b. Econometrics
c. Macroeconomics
d. Microeconomics
13. Business ethics refers to any behavior by businesses that may
a. be illegal.
b. violate social or moral standards.
c. result in the maximization of profits.
d. All of the above.
14. Businesses have responded to incentives for ethical behavior by doing ALL except
a. lobbying for the abolition of laws that require ethical behavior.
b. appointing “ethics officers” to monitor ethical manners of employees.
c. providing training sessions in ethical behavior for employees.
d. establishing codes of ethical behavior for employees.
15. Which of the following is not an economic agent in your locality?
a. Producer
b. Consumer
c. Public Sector
d. None of ABC

II. Directions: Read each statement carefully. Write T if the statement is correct,
otherwise write F.

____________16. Economic factors include economic growth, interest rates, exchange

rates, inflation, disposable income of consumers and businesses.
____________17. The presence of one or more competitors can reduce the prices of
goods and services as the companies attempt to gain a larger market
share.
____________18. Environmental analysis is a process used by organizations to
monitor their external and internal environments.
____________19. A customer is an individual or business that purchases products.
____________20. Environmental scanning is a strategic tool in assessing the level of
threat or opportunity the factors might affect the business.

III. Direction: Determine which factor of production is needed in the following problem

21. The ABM Manufacturing Co. hired a gardener. He uses a

lawn mower for landscaping. Which factor of production
would you consider this machine?

____________________________________

22. The owner of the company withdrew cash for the salaries of
the employees. Which factor of production would you
consider cash on hand?
____________________________________

23. The top manager of the firm said “the great ideas, concepts
and emotional determination of a person to produce
something that consumers want to buy” is very important for
the company. What factor of production describes the ability
to create great ideas?
_________________________________ ___

24. The farmers planted pineapple cuttings in the vacant area

located in their locality. Which factor of production would
you consider a pineapple plantation?

_____________________________________
IV. Kindly arrange the following words. These are the terms you commonly encounter when
you make decisions of going to the market. Examples of these items are given on the right
column.
25. MIRECOOCNOMSCI _________________________________ individuals and industries
26. TENAGILBDSOOG ___________________________________basic goods/commodities
27. SARCITYC __________________________________________shortage in supply
28. UXDOOSLUGYR _____________________________________expensive jewels and gems
29. CDAOTOASAGIP ____________________________________baking machines
30. ECONOMICS