Republic of the Philippines

Department of Education
MIMAROPA Region
SCHOOLS DIVISION OF MARINDUQUE
YOOK NATIONAL HIGH SCHOOL

SUMMATIVE TEST IN APPLIED ECONOMICS

Name: ______________________________________ Date:______________

Grade&Section: ________________ Score: _____ / _____

Direction. Encircle the letter of the correct answer.

1. It is the study of how individuals and societies choose to use the scarce resources that nature and
previous generations have provided.
A. Positive economics C. Economics
B. Economist D. Economic theory

2. Which is an example of a variable?

A. Income C. Population
B. Price D. All of these are correct

3. A device used by holding the other variable constant.

A. Ockham’s razor C. Economic theory
B. Ceteris paribus D. None of these are correct

4. The following are factors of production; except:

A. Land C. Services
B. Capital D. Labor

5. ___ looks at the individual unit—the household, the firm, and the industry.
A. Econometrics C. Macroeconomics
B. Descriptive economics D. Microeconomics

6. It arises mainly because resources are scarce or limited.

A. Marginal cost C. Efficient market
B. Opportunity cost D. None of these are correct

7. It is often called “what is” economics?

A. Positive economics C. Negative economics
B. Normative economics D. None of these are correct

8. Why study economics?

A. Because it is an essential part of the study of C. Because other countries are studying it
society D. None of these are correct
B. Because it is a required course in schools

9. It is the process of combining inputs in order to make something for consumption.

A. Combination C. Manufacturing
B. Production D. All of these are correct

10. It is a theoretical construct representing economic processes by a set of variables and a set of
logical/quantitative relationship between them.
A. Graph C. Model
B. Variable D. None of these are correct

11. If Sherry decided to study for her economics exam than going out with her friends to watch a
movie, what is her opportunity cost?
A. Her time studying C. The enjoyment of watching the movie
B. Her having greater chance of getting good D. None of these are correct
score
12. Which of the following reflects a positive economics?
A. Providing free education to all would help many students to finish their studies but government
budget constraints make that option impossible
B. Women should hold more managerial positions than men
C. Laborers should receive greater parts of the company profits
D. All of these are correct

13. The government is predicting the future levels of inflation and employment rate is under what
scope of economics?
A. Positive economics C. Macroeconomics
B. Microeconomics D. None these are correct

14. Which is an example of a Microeconomics?

A. Mike wants to know the employment rate in C. Mike is interested in knowing the inflation this
the country year
B. Mike is concerned about the changes in the D. None of these are correct
price of milk

15. For every additional production of a box of milk, there is an equivalent incremental cost. This is an
example of a/an ________.
A. Opportunity cost C. Marginalism
B. Normative Economics D. None of these are correct

16. “The government should increase sin tax imposed on cigarettes” is what kind economic statement?
A. Descriptive economic statement C. Positive economic statement
B. Normative economic statement D. None of these are correct

17. Private airlines in the Philippines use airplanes to produce transportation services. Airplanes in this
situation are an example of what resource?
A. Land C. Capital
B. Labor D. None these are correct

18. It is a market in which profit opportunities are eliminated almost instantaneously.

A. Ceteris paribus C. Efficient Market
B. Economics D. All of these are correct

19. If John, who is working at a fast food restaurant, decides not to go to work and instead rest and
watch movies at home; what is his opportunity cost?
A. The joy of resting C. His wage
B. The entertainment provided by the movies D. All of these are correct

20. Upon graduating in high school, Lara decided to go to college. The time she spent in college is an
opportunity cost.
A. True C. Maybe
B. False D. None of these are correct

21. It is the problem on how to make use of the limited and scarce resources available.
A. Scarcity C. Resources
B. Economic problem D. None of these are correct

22. It is the application of economic theories and principles to real world situations with the desired aim
of predicting potential outcomes.
A. Statistics C. Applied Economics
B. Unemployment D. None of these are correct

23. ________refers to dishonest or fraudulent behavior by people with power such as managers.
A. Corruption C. Unemployment
B. Poverty D. None of these are correct

24. Decisions on resource allocation shall be made together by ________.

A. Individuals and Society C. Corporations
B. Businesses D. All of these are correct

25. _________ occurs when there is less supply than consumer demand.
A. Surplus C. Price Change
B. Shortage D. None of these are correct

26. ___________ occurs when there is excess supply than consumer demand.
A. Surplus C. Price Change
B. Shortage D. None of these are correct

27. The concept of _________ and ________ are considered fundamental in the study of economics.
A. Capital and land C. Human skills and knowledge
B. Choice and scarcity D. None of these are correct
28.______________ refers to who receives the products and services an economy produces.
A. What to produce C. Who gets what is produced
B. How to produce D. None of these are correct

29. Applied economics cannot be used to solve economic problems.

A. True C. Maybe
B. False D. None of these are correct

30. Statistical methods can also be used in solving economic problems.

A. True C. Maybe
B. False D. None of these are correct

31. It is a branch of economics that uses statistical and mathematical theories in economics for
‘forecasting future trends.’
A. Applied economics C. Education
B. Econometrics D. None of these are correct

32. Applied economics ‘can lead to "to do" lists for steps that can be taken to ensure stability in real
world events.’
A. True C. Maybe
B. False D. None of these are correct

33. To use applied economics in solving economic problems, there is no need to use economic concepts
and theories.
A. True C. Maybe
B. False D. None of these are correct

34. When there is a high demand for ice cream during summer, what happens to its price?
A. Increases C. Remains the same
B. Decreases D. None of these are correct

35. Business managers or entrepreneurs must have a thorough knowledge on basic economic theories
and concepts.
A. True C. Maybe
B. False D. None of these are correct

36. Statistical methods can be used to forecast the following EXCEPT:

A. Unemployment rate C. Product demand
B. Poverty D. None of these are correct

37. High unemployment rate is one of the economic problems of the country today.
A. True C. Maybe
B. False D. None of these are correct

38. It is harvest season and farms are producing more vegetables than households demand. There is a
_________.
A. Shortage C. Price Volatility
B. Surplus D. None of these are correct

39. A _________ is usually involved when a choice is made.

A. Trade-of C. Scarcity
B. Economic problem D. None of these are correct

40. Consumers are alarmed because of the sudden price increase of household commodities. There is
an economic problem called ____________.
A. Shortage C. Price Volatility
B. Surplus D. None of these are correct

41. Issues on education includes the following, EXCEPT:

A. Tuition and other fees increase C. Graft and corruption
B. Bullying D. None of these are correct

42. The three basic economic problems of the country are the following; EXCEPT:
A. What to produce C. Who gets what is produced
B. How is it produced D. Who makes the choice

43. A business manager or an entrepreneur should not be dishonest or exhibit fraudulent behaviour to
ensure business success. The socio-economic problem in this statement is _______________.
A. Tax issues C. Poverty
B. Corruption D. None of these are correct
44. In “how is it produced”, what are the two techniques used for an efficient and efective production.
A. Artificial Intelligence and robot technique C. Labor intensive and capital intensive
B. Capital intensive and machine intensive technique
technique D. None of these are correct

45. A worker’s education can contribute to _________.

A. Scarce resources C. Human capital
B. Economic problem D. None of these are correct

46. Which of the following is a factor of production?

A. The taxes paid by workers to the government.
B. The profit of a company.
C. The interest paid on a bank loan.
D. The skill of an electrical engineer to make electrical wirings.

47. The opportunity cost of producing an additional unit of product X is _____________.

A. The cost of producing additional product X
B. The cost of product Y that cannot be produced because of product X
C. The cost of the technology used in the production of product X
D. None of these are correct

48. Which of the following would one consider as an example of scarcity?

A. Coal C. Flooding
B. Over-fishing D. All of these are correct

49. What is the opportunity cost of a person going to college?

A. The income that one could have earned when he/she worked instead
B. The time that one could have spent doing other activities
C. Other life opportunities one could have availed
D. All of these are correct

50. In the United States, earth moving devices are used to construct buildings. This how to produce
technique is called _______.
A. Labor intensive C. Capital intensive
B. Skill intensive D. None of these are correct

51. In Manuelito farm, they have 10 employees in a 2-hectare land area. Crop planting and harvesting
are done by these employees. This production technique is known as _____.
A. Labor intensive C. Capital intensive
B. Skill intensive D. None of these are correct

52. Which of the following are considered luxury good/s?

A. A Php 50,000 Apple laptop C. A Php 30,000 Louis Vuitton bag
B. A Php 30,000 diamond earrings D. All of these are correct

53. The following are considered consumer goods; EXCEPT:

A. Food C. Water
B. Clothing D. Hermes bag
 Republic of the Philippines
Department of Education
MIMAROPA Region
SCHOOLS DIVISION OF MARINDUQUE
YOOK NATIONAL HIGH SCHOOL

SUMMATIVE TEST IN APPLIED ECONOMICS

Name: ______________________________________ Date:______________

Grade&Section: ________________ Score: _____ / _____
TEST I: TRUE OR FALSE

Write T if the statement is true and F if False.

1. Supply refers to the quantity of goods that a seller is willing to ofer for sale.

2. Supply Function shows the diferent quantities the seller is willing to sell at various prices.

3. Supply Schedule shows the dependence of supply on the various determinants that afect supply.

4. Supply Curve is a graphical illustration of the supply schedule, with the price measured on the vertical axis
(Y) and the quantity supplied measured on the horizontal axis (X).

5. Demand is the willingness of a consumer to buy a commodity at a given price.

6. Demand Schedule shows the various quantities the consumer is willing to buy at various prices.

7. Demand Function shows how the quantity demanded of a good depends on its determinants.

8. Demand Curve is a graphical illustration of the demand schedule, with the price measured on the vertical
axis (Y) and the quantity demanded measured on the horizontal axis (X).

9. Substitution Efect is felt when a change in the price of a good changes consumer’s real income or
purchasing power, which is the capacity to buy with a given income.

10. Income Efect is felt when a change in the price of a good changes demand due to alternative consumption
of substitute goods.

TEST II – IDENTIFICATION

Write the word that is being described on each of the following sentences.

1. It is a situation where Quantity supplied = quantity demanded.

2. It occurs when QD > QS.

3. It occurs when QS > QD.

4. Graphically, the intersection of supply and demand.

5. The price that causes quantity supplied to equal quantity demanded.

6. The numerical quantity (supplied and demanded) at the equilibrium price. When the demand
increases, the equilibrium price and quantity increases, as a result, the graph shifts to the _________.

7. When the Supply increases, the equilibrium price declines and equilibrium quantity increases, as a
result, the graph shifts to the _________.

8. When the demand increases, the equilibrium price and quantity increases, as a result, the graph
shifts to the _________.

9. When the demand decreases, the equilibrium price and quantity decreases, as a result, the graph
shifts to the _________.
 10. When the Supply decreases, the equilibrium price increases and equilibrium quantity decreases, as a
result, the graph shifts to the _________.

TEST III ENUMERATION: Enumerate the following.

a. Non-Price Determinants of Demand (1-9)

b. Non-Price Determinants of Supply (10-12)
c. Three types of Market (13-15)