CARIDAD B.

TRINIDAD NATIONAL HIGH SCHOOL

Sta. Rosa, Iguig, Cagayan
1st Quarter Exam
APPLIED ECONOMICS

PART I. BASIC CONCEPTS IN ECONOMICS

Matching Type
1. “the study of how people and society end up choosing, with b. Paul Samuelson (Economics)
or without use of money, to employ scarce resources that c. Hall and Loeberman (Macroeconomics: Principles and
could have alternative uses to produce various commodities Applications)
among various persons and groups in society.” d. Gerardo Sicat (Economics)
2. “Economics concerns situations in which choices must be e. Bernardo Villegas (Guide to Economics for Filipinos)
made f. macroeconomics
about how to use limited resources, when to use them and for g. microeconomics
what purposes. Resources can be defined as the things people h. scarcity
use to make the commodities they want.”
3. “The study of choice under the condition of scarcity”
4. “A social science that studies and seeks to allocate scarce
human and non-human resources among alternatives in order
to satisfy unlimited human wants and desires.”
5. “a scientific study which deals with how individuals and
society make choices,”
6. Fundamental problem of the society
7. came from the work mikros means small personal decision
in allocating resources a group of specific groups
8. came from the latin word "makros" means big or whole
a. Roger Le Roy Miller (Economics, Today and
Tomorrow)

9. Income Inequality a. Basic Economic Problem

10. Gender b. Not basic Economic Problem
11. Lack of support to agriculture
12. location
13. Unemployment
14. Declining direct investments
15. Religion
16. Continued conversion of agricultural lands to residential or
industrial lands

Modified True or False. Write “T” if the statement is correct and “F” if otherwise. If your answer is “F” underline the
work that make the statement wrong (2 points each)
17. We can solve basic economic problems using applied economics.
18. Scarcity is the root cause of economic problem and not the unlimited wants of the people.
19. If resources are properly utilized, we can solve scarcity.
20. There is no solution for scarcity in general.
21. Applied economics alone can solve a basic economic problem such as poverty.

Multiple Choice (24-25 are 2 points each)

22. Which of the following situation shows the utilization of economics in solving basic economic problem?
a. Not buying expensive phone
b. Keeping money in a bank
c. budgeting income at home
d. a, b, and c are correct
23. How can we contribute in helping our economy to improve?
a. By buying goods and services
b. by selling good and services
c. by actively participating in the different economic activities
d. a and b are correct
24.1) Which product should you buy for you to say that you are utilizing the scarce resource properly?
a. all that you need
b. all that you want
c. food
d. anything that you want
24.2) Which product should you NOT buy for you to say that you are utilizing the scarce resource properly?
a. all that you need
b. all that you want
c. food
d. anything that you want
25.1) How many kilos of rice should you buy for 1 day?
a. the exact amount of rice that you need for one day
b. less that what you need so that you can save money
c. good for 3 days
d. all of the above
25.2) How many kilos of rice should you buy for 2 days?
a. the exact amount of rice that you need for 2 days
b. less that what you need so that you can save money
c. good for 3 days
d. all of the above
PART II. APPLICATION OF SUPPLY AND DEMAND
Fill in the Blanks. Choose your answer inside the box.

a. Household b. Entrepreneur c. firm d. capital market

e. labor market f. land market g. input market h. output market

26. A ________is an organization that transforms resources (inputs) into products (outputs).
27. An _____________is a person who organizes, manages, and assumes the risks of a firm, taking a new idea or a new product and
turning it into a successful business.
28. _______________are the consuming units in an economy.
29. The ____________, in which households supply work for wages to firms that demand labor.
30. The ____________, in which households supply their savings, for interest or for claims to future profits, to firms that demand funds
to buy capital goods.
31. The ___________, in which households supply land or other real property in exchange for rent.
32. ______________are the markets in which goods and services are exchanged.
33. ______________ are the markets in which resources—labor, capital, and land—used to produce products, are exchanged.

a. inferior goods b. normal goods c. income d. wealth e. market demand

f. supply schedule g. substitute h. complements
34. ________ are goods for which demand goes up when income is higher and for which demand goes down when income is lower.
35. _________ are goods for which demand falls when income rises.
36. __________are goods that can serve as replacements for one another; when the price of one increases, demand for the other goes
up. Perfect substitutes are identical products.
37. __________ are goods that “go together”; a decrease in the price of one results in an increase in demand for the other, and vice
versa.
38_________ is the sum of all households wages, salaries, profits, interest payments, rents, and other forms of earnings in a given
period of time. It is a flow measure.
39. _________, or net worth, is the total value of what a household owns minus what it owes. It is a stock measure.
40. _________ demand is the sum of all the quantities of a good or service demanded per period by all the households buying in the
market for that good or service.
41. A ________ schedule is a table showing how much of a product firms will supply at different prices.

Yes or No. Shade “a” if you agree with the statement and “b” if otherwise. If your answer is “B” underline that word/s that make/s the
statement incorrect (3 points each)
42. The operation of the market depends on the interaction between buyers and sellers.
43. At equilibrium, there is no tendency for the market price to change.
44. Only in equilibrium is quantity supplied equal to quantity demanded.
45. When supply and demand both increase, quantity will increase, but price may go up or down.
46. The relative magnitudes of change in supply and demand determine the outcome of market equilibrium.

Multiple Choice (48-50 are 2 points each)
47. When quantity demanded exceeds quantity supplied:
a. price tends to rise until equilibrium is restored.
b. price tends to fall until equilibrium is restored.
c. a and b are correct
d. none of the above
48. When quantity supplied exceeds quantity demanded, price
tends to
a. price tends to rise until equilibrium is restored.
b. price tends to fall until equilibrium is restored.
c. a and b are correct
d. none of the above
49. Which among the following is useful action when there is
an excess demand for bread to restore equilibrium?
a. asks the people to limit their consumptions
b. decrease production
c. increase production
d. do nothing as it is normal
50. Which among the following is useful action when there is
an excess supply for cheese to restore equilibrium?
a. asks the people to limit their consumptions
b. decrease production
c. increase production
d. do nothing as it is normal

Prepared by: Checked by: Noted by:

JOFEL TARUC UNDAY LUCIA B. GAMMAD SHERRYLYN S. CABRERA

Subject Teacher MTII-PCI 96Officer-In-Charge