Republika ng Pilipinas

Kagawaran ng Edukasyon
Dibisyon ng Romblon

FERROL NATIONAL HIGH SCHOOL

Brgy. Tubigon, Ferrol, Romblon

SENIOR HIGH SCHOOL

2nd SEMESTER - GENERAL ACADEMIC STRAND
Preliminary Examination
Applied Economics
Name: ___________________________________

Date: _________________

I. Multiple Choice: Choose the letter of the correct answer.

1. What is a state of poverty in which income is insufficient for maintaining a minimum standard of
living?
a. absolute poverty b. relative poverty
c. virtual poverty
d. comparative poverty
2. What is the systematic approach in estimating the strengths and weaknesses of alternatives?
a. cost-benefit analysis
b. cost-benefit dimension
c. cost- benefit threshold
d. external
migration
3. What is the term popularized by Gary Becker that refers to the stock of knowledge, habits, social and
personality attributes, including creativity, embodied in the ability to perform labor so as to produce
economic value?
a. human capital
b. human power
c. human mind
d. human resource
4. What is the graph of which the cumulative percentage of total national income (or some other
variable) is plotted against the cumulative percentage of the corresponding population (ranked in
increasing size of share)?
a. Lorenz Curve
b. Gini Coefficient
c. Spillover effects
d. Wastage
5. What is the number of households having an income below the Poverty Threshold?
a. poverty incidence b. poverty threshold c. poverty trap
d. poverty
6. It refers to the economic events in one context that occur because of something else in a seemingly
unrelated context, what is it?
a. spillover effects
b. spillover cost
c. spillover wastage d. surplus
7. It refers to the additional satisfaction or utility that a person receives from consuming an additional
unit of a good or service, what is it?
a. marginal benefit b. marginal cost
c. social cost
d. temporal dimension
8. What is the term being used to describe the amount of an asset or resource that exceeds the portion
that is utilized?
a. Scarcity
b. Shortage
c. Surplus
d. Wastage
9. What is the state of an employed person not having enough paid work or not doing work that makes
full use of their skills and abilities?
a. unemployment
b. employment
c. underemployment d. poverty
10. What is the term being used that states that the loss of potential gain from other alternatives when
one alternative is chosen?
a. opportunity cost b. knowledge capital c. explicit cost
d. temporal dimension
II. TRUE OR FALSE: Write A if the statement is correct and B if not.
1. The Law of Demand states that, if all other factors remain equal, the higher the price of a good, the
less people will demand that good.
2. The Law of Supply demonstrates the quantities that will be sold at a certain price.
3. In Law of Supply, producers supply more at a higher price because selling a higher quantity at a
higher price increases revenue.
4. Time is not important to supply because suppliers must, but cannot always, react quickly to a change
in demand or price.
5. When supply and demand are equal the economy is said to be at equilibrium.
6. Disequilibrium occurs whenever the price or quantity is not equal to P* or Q*.
7. Excess supply states that, if the price is set too high, excess supply will be created within the
economy and there will be allocative inefficiency.
8. Excess demand is created when price is set above the equilibrium price.
9. On the demand curve, a movement denotes a change in both price and quantity demanded from one
point to another on the curve.
10. A shift in a demand or supply curve occurs when a good's quantity demanded or supplied changes
even though price remains the same.

III. IDENTIFY: Name the graphs below and describe it briefly. (3pts each)
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2.

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3.

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4.

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5.

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IV. ESSAY: Answer the following question briefly.

1. What is the role of education and training in the pursuit of economic prosperity? (5pts)

2. What are the implications of slow adoption of modern technology on the national economy? (5pts)

3. The Pantawid Pamilyang Pilipino Program (4ps) is a conditional cash transfer program that aims to
alleviate poverty. Discuss the positive and negative sides of this policy and state and defend your
position for this issue. (10pts)