INTERNACIONAL COLEGIO DE TECNOLOGIA

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APPLIED ECONOMICS
3rd Quarter Examination
NAME: ________________________________ SCORE:
GRADE/SECTION: ______________________
TEACHER: ____________________________

General Instruction. PLEASE READ THE INSTRUCTION CAREFULLY.

AVOID ERASURES it might invalidate your answers.

MULTIPLE CHOICE. Write the letter of the correct answer in CAPITAL LETTER.

TEST I
Directions: Classify the following topics. Write MIC if it falls under Microeconomics; MAC, if it falls
under Macroeconomics.

1.________ The inflation rate in the Philippines 7.________Rental on land could not be
in the last quarter of 2013 was 4.8%. increased by landowners because of the Rent
2.________A ₱ 340-billion deficit in the Control Law.
Philippine budget is expected in the year 2015. 8.________prices of apples and grapes tend to
3.________Prices of Toyota vehicles are increase during Christmas season.
predicted to go up in December. 9.________The Philippine economy grew at the
4.________Garlic prices in the past months have rate of 5.8% in 2013.
risen because producers hoarded their supplies 10.________Philippine congress passed the
in their bodegas. Value Added Tax Law to strengthen the
5.________Unemployment rate has dropped Philippine tax system.
because of the increase in the number of OFWs.
6.________In the past year, Coca Cola was
named the fastest selling product in the market.
TEST II
Directions: Read the questions carefully. Choose the letter of the correct answer.

1. Nina purchased basic goods like vegetables and groceries for the consumption of her family. These
goods are:
A. Consumer’s goods B. Capital Goods
C. Luxury Goods D. Economic Goods

2. Dennis purchased new car as a gift for his father’s birthday. This good is a/an:
A. Consumers Good B. Luxury Good
C. Capital Good D. Economic Good

3. A Computer shop purchased additional 10 units of computer for the business. These goods are called:
A. Consumer’s goods B. Luxury Goods
C. Capital Goods D. Economic Goods

4. Which is not considered as tangible good?

A. Cell phone B. Mask
C. Sack of rice D. Training service

5. Which is true about Economics as a social science?

A. Scarce resources and limited needs drive choice
B. Economics explains and predicts economic events
C. The scientific method is based on the normative analysis
D. Economic hypotheses lead directly to predictions

6. Which is true on the value of an economic theory in practice?

A. It is determined by how accurate the assumptions are.
B. It is determined by how well the theory can be represented by a graph.
C. It is determined by how well the theory can predict or explain.
D. It is determined by how economical the model is.
7. Which of the following is the study of the aggregate economy studied as a whole?
A. Mathematical economics C. Macroeconomics
B. Econometrics D. Microeconomics

8. Which of the following are examples of human needs?

A. Water and a place to live like houses C. Flat screen televisions
B. Iced Caramel Macchiato Frappuccino D. Laptops and computers

9. Which best describes economics as a social and an applied science?

A. The study of things we need to survive
B. The study of how people make choices when they are faced with an unlimited supply of resources.
C. The study of human behavior.
D. The study of how buyers make choices when there is limited supply of resources.

10. Which of the following has NOT observed in the community during the ECQ?
A. Everyone enjoyed shopping in the market.
B. Unemployment in the community was sharply experienced.
C. Prices of commodities suddenly increased.
D. The people were reluctant of the pandemic protocols.

11. Scarcity in goods and services happens if the resources in the production are inadequate or scarce.
A. True B. False
C. Partly true D. Partly false

12. Customers must choose among several alternatives if scarcity exists.

A. True B. False
C. Partly true D. Partly false

13. Income inequality is the gap in income that exists between the rich and the poor customers willing to
buy the same products.
A. True B. False
C. Partly true D. Partly false

14. Shortage of goods and services is an economic problem; and shortages are always constant.
A. True B. False
C. Partly true D. Partly false

15. The Build Build Build Program by the government aims to help improve the infrastructure projects
and other programs of the country.
A. True B. False
C. Partly true D. Partly false

16. Which of the following is a free good?

A. A vaccination provided by the state without C. Prizes of food items given away by a
charge supermarket
B. Recycled paper D. Wind coming from the sea

17. What does a production possibility curve show?

A. The prizes of two types of products being C. The quantity of capital and consumer goods
produced that people would like to be produced
B. The maximum combination of two types of D. The relative profitability of capital and
goods that can be produced by the resources consumer goods

18. Which of the following would be an example of human capital?

A. The number of workers who worked in a C. The skills of the shoe designers at Nike
Nike Factory D. The Land that the Nike headquarters is
B. Philip Knight, the CEO of NIKE located

19. What is the difference between a Good and a Service?

A. Goods are available in unlimited quantities C. Services are available in unlimited quantities
and services are not and goods are not
B. Goods are tangible and services are not D. Goods help satisfy unlimited wants and
services do no
20. What happen every time we decide?
A. We win!
B. We incur an opportunity loss
C. We incur an opportunity cost
D. We incur an opportunity cost of multiple other option

21. Define opportunity cost.

A. The value forgone from all the other alternatives
B. The value forgone from the next best alternatives
C. The value forgone from the next two best alternatives
D. The value gained from choosing
22. Why will scarcity continue to be a problem in the future?
A. Resources will always be finite C. Prices will rise
B. Needs will decrease in the future D. Population will fall

23.

Which statement reflects the inverse relationship between quantity

demanded and price?
A. As the price goes up, quantity demanded goes up
B. As the supply goes up, the price goes up
C. As the price goes down, the quantity demanded goes up
D. As the supply goes up, the demand goes up

24.

According to substitution effect, if two items satisfy the same need and the price of one rise
A. People will buy more of the higher priced item
B. People will buy more of the lower priced item
C. The demand will go up
D. People will buy something else

TEST III
Directions: Describe the type of economic system characterized in each of the following sentences. Write
TE for Traditional economy, CE for Command Economy and ME for Market Economy.
_____30. Economy is stagnant, making use of
_____25. Prices are based on demand and practices in the olden times.
supply. _____31. Economy is backward because no new
_____26. The government decides on what technology or production methods are
goods should be produced. introduced.
_____27. Ancient methods are used in deciding _____32. It is the most democratic form of
what goods to produce. economic system.
_____28. People enjoy freedom of choice in _____33. People`s preferences are reflected in
arriving at decision on what to buy. the prices they are willing to pay in the market.
_____29. People have no freedom of choice in _____34. It exists in primitive and backward
arriving at decision on what to buy. civilization.

TEST IV.
Directions: Identify which resources is referred to the following words.

_____35. Entertainers _____41. Production equipment

_____36. Minerals _____42. Engineers
_____37. Forests _____43. Call center agents
_____38. Marines resources _____44. Business proprietor
_____39. Teachers
_____40. Technology

TEST V.
Directions: Enumerate what is being asked.
45-47 Economic Resources

48-49 Two branches of economics

50-52 Basic economic problem of society
53-55 Economic Systems

Don't think about the test; think about ME!

“GOOD LUCK”

Prepared by:
CARMELA G. LARISMA
Teacher