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SUMTEST CHAPTER 1 (Student Copy)

This document appears to be an exam for a class on applied economics. It contains multiple choice questions, fill-in-the-blank identification questions, and questions to classify as microeconomics or macroeconomics. The exam covers topics like economic systems, costs, unemployment, inflation, budgets, and taxes. It aims to test students' understanding of foundational economic concepts.

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Ann Cuartero Sanchez
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165 views

SUMTEST CHAPTER 1 (Student Copy)

This document appears to be an exam for a class on applied economics. It contains multiple choice questions, fill-in-the-blank identification questions, and questions to classify as microeconomics or macroeconomics. The exam covers topics like economic systems, costs, unemployment, inflation, budgets, and taxes. It aims to test students' understanding of foundational economic concepts.

Uploaded by

Ann Cuartero Sanchez
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Name: ________________________________________ Date: ___________________________

Year & Section: _________________________________ Score: ___________________________


APPLIED ECONOMICS
SUMMATIVE TEST
(Chapter 1)
I. Multiple Choice. Encircle the letter of the correct answer.
1. Which of the following is the most democratic form of economic system where the workings of demand and
supply determine the decisions on what goods and services to produce?
a. Command Economy c. Free Market Economy
b. Traditional Economy d. Market Economy

2. What type of cost that refers to the value of a foregone alternative?


a. Labor Cost b. Opportunity Cost c. Direct Cost d. Variable Cost
3. What division of economics that is concerned with the overall performance of the entire company?
a. Macroeconomics c. Microenvironment
b. Macroenvironment d. Microeconomics
4. What resources are being used in the production of goods and services and it also includes machines,
equipment and where the owner earns an income called interest?
a. Capital b. Labor c. Land d. Rent
5. It is the means through which society determines the answers to the basic economic problems of a nation.
a. Economic System b. Economic Resources c. Economic Rent d. Poverty line
6. What situation where people who are willing and able to work are seeking work but not cannot find jobs?
a. Unemployment c. Inactive
b. Underemployment d. Disengaged
7. It refers to a payment made to or for a factor of production over and above the amount expected by its
owner.
a. Payoff c. Lease
b. Economic Income d. Economic Rent
8. It is the study of society and how people behave and influence the world around us.
a. Psychology c. Social Science
b. Economics d. Metaphysics
9. It is the state of being extremely poor and the condition where people’s basic needs for food, clothing and
shelter are not being met.
a. Scarcity b. Poverty c. Deficiency d. Paucity
10. This refers to the physical, human effort exerted in production,
a. Capital b. Labor c. Land d. Rent
II. Identification. Write your answer in the blank before the number.
_____________________1. It refers to soil and natural resources which are found in nature and not man-made.
_____________________2. It is concerned with the behavior of individual entities such as the consumer, the
producer, and the resource owner.
_____________________3. It refers to a minimum income level used as an official standard for determining the
proportion of a population living in poverty.
_____________________4. It is an authoritative system wherein decision-making is centralized in the
government or a planning committee.
_____________________5. It is an economy where decisions are based on traditions and practices upheld over
the years and passed on from generation to generation.
_____________________6. It is the market value of final products, both sold and unsold, produced by the
resources of the economy in a given period.
_____________________7. It is defined as the market value of final products produced within the country.
_____________________8. He is an economic Icon and an example of how a leader of a previously undeveloped

country can lead to overcome its country’s basic economic problems and move
toward economic growth.
_____________________9. A type of scarcity where a good is scarce compare to its demand.
____________________10. A type of scarcity where supply is limited.

III. Classification. Write MIC if it falls under Microeconomics; MAC, if it falls under Macroeconomics.
____________________1. The inflation rate in the Philippines in the last quarter of 2013 was 4.8%.
____________________2. A P340-billion deficit in the Philippine budget is expected in the year 2015.
____________________3. Prices of Toyota vehicles are predicted to go up in December.
____________________4. Garlic Prices in the past months have risen because producers hoarded their supplies
in their bodegas.
____________________5. Unemployment rate has dropped 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.
____________________7. Rental on land could not be increased by landowners because of the Rent Control
Law.
____________________8. Prices of apples and grapes tend to increase during Christmas season.
____________________9. The Philippine economy grew at the rate of 5.8% in 2013.
___________________10. Philippine congress passed the Value Added Tax Law to strengthen the Philippine tax
system.

“There are no limits to what you can accomplish, except the limits you place on your own thinking”
-Brian Tracy

Prepared y:

CHARRY ANN S. GUJILDE


Subject Teacher

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