DEPARTMENT OF EDUCATION

Region X – Northern Mindanao

DIVISION OF LANAO DEL NORTE
MUNAI DISTRICT
MUNAI NATIONAL HIGH SCHOOL
Tambo, Munai Lanao Del Norte

Applied Economics
1 Quarter Examination – 1st Semester
st

TEST I. MULTIPLE CHOICE: Read and analyze each item carefully. Write the
LETTER on your answer sheet.

1. It is the social science that involves the use of scarce resources to satisfy unlimited
wants
a. Applied Economics c. Political Science
b. Economics d. Anthropology

2. Economic resources, also known as factors of __________, are the resources used
to produce goods and services.
a. Production c. Labor
b. Manpower d. Entrepreneur

3. Is a condition where there are insufficient resources to satisfy all the needs and
wants of a population
a. Economics c. Recession
b. Scarcity d. Unlimited Wants

4. Refers to the physical and human effort exerted in production.

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

5. Capital is a man-made resource used in the production of goods and services, which
include machineries and equipment. The owner of capital earns an income called
_______________.
a. Rent c. Profit
b. Income d. Salary
6. An __________ is the organizer and coordinator of the other factors of
production.
a. Entrepreneur c. Manager
b. Employee d. Employer

7. Which of the following is the study of the aggregate economy as a whole?

a. Mathematical Economics c. Macroeconomics
b. Econometrics d. Microeconomics

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 DEPARTMENT OF EDUCATION
Region X – Northern Mindanao
DIVISION OF LANAO DEL NORTE
MUNAI DISTRICT
MUNAI NATIONAL HIGH SCHOOL
Tambo, Munai Lanao Del Norte

8. There is scarcity of resources because:

a. Man’s wants are unlimited c. Man’s wants are enough
b. Man’s wants are limited d. Man’s wants are satisfied

9. An economic resource that includes the natural resources:

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

10. Economics is a social science because it deals with:

a. Human nature c. Experimentation
b. Natural resources d. Plants and animal
11. It is a finished product which is used to produce other goods:
a. Land c. Capital
b. Labor d. Entrepreneur

12. In a market equilibrium, a higher price will result to:

a. Shortage c. Constant supply
b. Surplus d. Constant demand

13.The economic problem that refers to the nature of goods and services the
economy should produce:
a. What to produce c. How much to produce
b. How to produce d. For whom to produce

14. Which is not considered as tangible goods?

a. Cellphone c. Sack of rice
b.Mask d. Training services

15. refers to the condition of unwanted job losses, or willing workers without jobs.
a. underemployment c. OFW
b. Unemployment d. Migration

16. refers to a situation where several persons are not able to find jobs during some
months of the year.
a. Seasonal Employment c. Frictional Employment
b. Cyclical Employment d. Technical Employment

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 DEPARTMENT OF EDUCATION
Region X – Northern Mindanao
DIVISION OF LANAO DEL NORTE
MUNAI DISTRICT
MUNAI NATIONAL HIGH SCHOOL
Tambo, Munai Lanao Del Norte

17. unemployment caused by technological changes or new methods of production in

an industry or business.
a . Seasonal Employment c. Frictional Employment
b. Cyclical Employment d. Technical Employment

18.are mandatory contributions levied on individuals or corporations by a government

entity—whether local, regional, or national.
a . Migration c. OFW
b. Inflation d. Taxes
19. Another term used for equilibrium:
a. Stable c. Balance
b. Static d. None of the above

20.It is a condition that there is a direct relationship between the price of a good and
the quantity supplied of that good.
a. Law of demand c. Supply Schedule
b. Law of Supply d. Demand Schedule
c.
21.If a price increase of good A increases the quantity demanded of good B, then good
B is a ______.
a. Substitute good c. Bargain
b.Complementary good d. Inferior good

22.When there is an increase of price for white sugar, customers switch to brown sugar
as an alternative. What type of good is the scenario classified:

a. Complement goods c. Substitute goods

b. Important goods d. Valuable goods

23.It means that all other related variables except those that are being studied at the
moment and are held constant
a. Ceteris paribus c. Market Equilibrium
b. Income effect d. Substitution effect

24.It is a type of price where quantity demanded is equal to quantity supplied.

a. Economic price c. Equilibrium price
b. Normal Price d. Unique price

25. Which type of market structures which is more competitive and many

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 DEPARTMENT OF EDUCATION
Region X – Northern Mindanao
DIVISION OF LANAO DEL NORTE
MUNAI DISTRICT
MUNAI NATIONAL HIGH SCHOOL
Tambo, Munai Lanao Del Norte

sellers/producers competing each other with the same products?

a. Monopoly c. Oligopoly
b. Monopolistic competition d. Perfect competition

26.Which type of market structures which is less competitive and only one few firm
enjoys the activity in the market?
a. Monopoly c. Oligopoly
b. Monopolistic competition d. Perfect competition

27. The biggest source of government funds:

a. .Taxes c. Permits
b. Fines d. Revenues

28. Refers to the general agreement of the buyer and the seller in the exchange of goods
and services at a particular quantity.
a. Price Control c. Floor price
b. Price Ceiling d. Over Price

29. The legal minimum price imposed by the government on certain goods and services.
a. Price Control c. Floor price
b. Price Ceiling d. Over Price

30. A condition in the market where the quantity supplied is more than the quantity
demanded.
a. Law of Demand c. Law of supply
b. Demand d. Supply
31. This means that as price increases quantity supplied also increases; and as price
decreases, quantity supplied also decreases.
a. Law of Demand c. Law of supply
b. Demand d. Supply
32. is a business tax imposed and collected from the seller in the course of trade or
business on every sale of properties (real or personal) lease of goods or properties
(real or personal) or vendors of services.
a. Percentage Tax c. Expanded Tax
b. Value Added Tax d. Income Tax

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 DEPARTMENT OF EDUCATION
Region X – Northern Mindanao
DIVISION OF LANAO DEL NORTE
MUNAI DISTRICT
MUNAI NATIONAL HIGH SCHOOL
Tambo, Munai Lanao Del Norte

33. Payment made to labor:

a. Wage c. Profits
. b. Rent d. Interest
34.This reflects the consumer’s desire for a commodity.
a. Demand c. Good
b. Supply d. Price
35. Refers to the competitive environment in which buyers and sellers operate.
a. Market Structure c. Market Price
b. Market Competition d. Market Equilibrium
36. Goods and Services that are not necessary, but that we desire or wish for. Example
I Phone 6. Lop top and etc.
a. Demand c. Needs
b. Wants d. All of the Above
37. This factor of production is paid in the form of rent or lease
a. Land c. Labor
c. Capital d. Entrepreneur
38. Which of the following is the study of the units constitute a very small segment of
the whole economy?
a. Mathematical Economics c. Macroeconomics
b. Econometrics d. Microeconomics
39. Refers to the general increase in the price of goods and services in the Economy.
a. Inflation c. Fluctuation
b. Unemployment d. Migration
40. Refers to the movement from one place to another.
a. OFW’s c. Labor Force
b. Migration d. Labor Migration

Test II. TRUE or FALSE: Write SUPPLY in the space provided if the statement is
correct and DEMAND if incorrect.
_____________ 41.A market is a mechanism of interaction between buyers and sellers
for trade or exchange. The consumer sells and the seller buys.
_____________ 42.The demand for a product is the quantity of a good that the buyers
are willing to buy at certain prices. A demand schedule shows the different quantities
that will be sold by the sellers given various prices.

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 DEPARTMENT OF EDUCATION
Region X – Northern Mindanao
DIVISION OF LANAO DEL NORTE
MUNAI DISTRICT
MUNAI NATIONAL HIGH SCHOOL
Tambo, Munai Lanao Del Norte

_____________ 43.A demand function shows how the quantity demanded of a good is
dependent on its determinants, the most important of which is the price of the goods
itself.
_____________ 44.One of the non-price determinants of demand is taste. Taste or
preference may vary from person to person.
_____________ 45.The consumers’ income does not influence the demand for goods
and services. The increase in demand due to an increase in income is not experienced in
the economy.
______________ 46.An increase in population results in a greater demand since there
will be more consumers as population increases.
______________ 47.The supply of a product is the quantity of goods that sellers are
willing to sell. The supply schedule shows the different quantities that will be sold.
______________ 48.The demand curve is upward sloping to the right while the supply
curve is downward sloping.
______________ 49.When the income of the consumer increases it can shift the demand
curve upward to the right representing increase in demand.
______________50.Expectations as to future incomes and price may cause a shift of
the demand curve

(51-60) Test III. Show me the Plot

Directions: Plot the following hypothetical market demand and supply schedules for commodity
X and Y. Determine the Price Equilibrium the Shortage and the Surplus.
.Quantity Supplied Price Quantity Demanded

5 P 16.00 9

6 P 17.00 8

7 P 18.00 7

8 P 19.00 6
9 P20.00 5

10 P21.00 4

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