Applied Economics

1st Summative Test

Name: _______________________________________ Date: __________ Score: ___________

I. Fill in the blanks. Write the letter of your choice only.

A. Individual D. Unlimited G. Household

B. Need E. Allocation H. Economics
C. Distribution F. Scarce I. Wants

1.______ is the study of social behavior guiding in the allocation of 2. ______ resources to meet the
3. ______ needs and desires of the 4. ______ members of a given society.

II. Multiple Choice. Encircle the letter of the correct answer.

1. Defined economics as “the study of choice under the condition of scarcity.”
A. Bernardo Villegas B. Hall and Loeberman C. Gerardo Sicat D. Paul Samuelson
2. A situation wherein the amount of something available is insufficient to satisfy the desire for it.
A. Resources B. Unlimited C. Wants D. Scarcity
3. These are commodities or services that are used to produce goods and services.
A. Production B. Inputs C. Output D. Public Finance
4. The labor, capital, land and natural resources and entrepreneurship that are used to produce goods and
services.
A. Resources B. Unlimited C. Wants D. Scarcity
5. It is the application of statistical and mathematical theories to economics for the purpose of testing hypotheses
and forecasting future trends.
A. Microeconomics B. Macroeconomics C. Applied Economics D. Econometrics
6. It is the allocation of the total product among members of society. It is related to the problem of for whom
goods and services are to be produced.
A. Production B. Distribution C. Allocation D. Consumption
7. In everything we do, whether we produce or consume, whether wealth-getting or wealth-using, we make
decisions and these decisions are based on alternative choices
A. Economics as a study of Wealth
B. Economics as a study of Making Choices
C. Economics as a study of Allocation
8. Refers to the tension between our limited resources and our unlimited wants and needs.
A. Resources B. Unlimited C. Wants D. Scarcity
9. It is concerned with government expenditures and revenues. Economics studies how the government raises
money through taxation and borrowing.
A. Production B. Inputs C. Output D. Public Finance
10. It is the use of inputs to produce outputs
A. Production B. Distribution C. Allocation D. Consumption
11. Deals with the economic behavior of the whole economy or its aggregate such as government, business,
unemployment, inflation and the like.
A. Microeconomics B. Macroeconomics C. Applied Economics D. Economics
12. It is the use of a good or service.
A. Production B. Distribution C. Allocation D. Consumption
13. It deals with the economic behavior of the individual units such as consumers, firms, the owners of factors of
production
A. Microeconomics B. Macroeconomics C. Applied Economics D. Econometrics
14. It is the application of economic principles and theories to real situations, and trying to predict what the
outcomes might be.
A. Microeconomics B. Macroeconomics C. Applied Economics D. Econometrics
III. Essay. Explain concisely and briefly. Give examples whenever necessary.
1. What is the essence of studying economics? 5 pts.
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2. What is the importance of applied economic application? 5 pts.

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IV. Enumeration.
1. What are the basic economic problems?
2. What are the types of economics?
3. Study of economics.