Republic of the Philippines

DEPARTMENT OF EDUCATION
REGION XI
Division of Davao Occidental
TUBALAN COMPREHENSIVE NATIONAL HIGH SCHOOL
Tubalan, Malita, Davao Occidental
S.Y. 2022-2023
Senior High School Department

APPLIED ECONOMICS
3rd Quarter EXAMINATION

Name :__________________________________ Grade and Section :____________

Teacher: WALTER VON J. MORALES Score :____________

Multiple choice: Choose the letter of the correct answer to the questions below.
Direction: Write the LETTER of your choice on the space provided.

_____1. What division of Economics deals with the economic behavior of the individual units such as
consumers, firms, the owners of factors of productions?
A. Macroeconomics C. Micro Market
B. Macro Market D. Microeconomics
_____2. Which of the following is a situation wherein the amount of something available is insufficient to satisfy
the desire for it?
A. Resources B. Scarcity C. Unlimited D. Wants
_____3. The following are the relations of Economics to Science, EXCEPT what?
A. Literature B. Mathematics C. Natural Science D. Politics
_____4. Which of the following Economic Resources is a manmade resources used in the production of goods
and services?
A. Capital B. Labor C. Land D. Money
_____5. What is the ultimate end of an economic activity?
A. Consumption C. Production
B. Distribution D. Public Finance
_____6. What type of economics affects the whole nation and deals with the management of income,
expenditures, wealth or resources of a nation?
A. Business Economics C. International Economics
B. Household Economics D. National Economics
_____7. Which of the following deals with the economic behavior of the whole economy?
A. Macroeconomics C. Microeconomics
B. Macro market D. Micro market
_____8. Which of the following is Which of the following is Which of the following is wise production and use of
wealth to meet the demands or needs?
A. Business C. Enterprise
B. Economics D. Output
_____ 9. 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
_____10. Mr. Jundy Estela purchased a new limited car as a gift to his wife on her birthday. What classification
of good is this?
A. Capital Good C. Economic Good
B. Consumer Good D. Luxury Good
_____11. R&J Engineering Works acquired additional equipment for the business. What type of good is this?
A. Capital Good C. Economic Good
B. Consumer Good D. Luxury Good
_____12. Which of the following is an example of intangible good?
A. Cellular phone C. Insurance policy
B. Bags D. Laptop
_____13. An old man is working in a manufacturing company for almost 20 yrs. He is in charge in machine
operation and also troubleshooting. What classification of resource is stated here?
A. Capital B. Labor C. Land D. Production
_____14. The physical effort of the manpower to produce the protective devices of the front liners is described
as what factor of production?
A. Capital B. Labor C. Land D. Product
_____15. Which of the following are examples of human necessities?
A. LED
B. Laptops and desktop computers
 C. Milk tea, ice cream and hamburger
D. Water, and a secured place to live like houses
_____16. This refers to the resource mix and technology applied in production.
A. For whom to spend C. What to produce and how much
B. How to produce D. When to produce
_____17. The basic question in economics asking about the market for the product.
A. For whom to produce C. How much to produce
B. For whom to spend D. Where to produce
_____18. The economic system that based on the working of demand and supply, decisions are made on what
goods and services to produce.
A. Command economy C. Overflow economy
B. Market economy D. Traditional economy
_____19. The subject that help you to budget effectively and efficiently allocate the use of whatever resources
that are available.
A. Accounting B. Commerce C. Economics D. Marketing
_____20. In monopolistic competition, each firm supplies a small part of the market. This occurs because______.
A. There are barriers to entry.
B. There are no barriers to entry.
C. There are a large number of firms.
D. Firms produce differentiated products
_____21. Economics that deals with what is happening such as the current inflation rate, the number of
employed laborers, what is the papulation rate, etc.
A. Negative economics C. Overload economics
B. Normative economics D. Positive economics
_____22. Refers to economic which embodies the ideal rate of population growth or the most effective tax
system or in other words “what should be”.
A. Negative economics C. Overload economics
B. Normative economics D. Positive economics
_____23. Which of the following best describe Gross Domestic Product or GDP?
A. Foreign residents C. Made in the Philippines
B. Made by Filipinos D. Residents of a country
_____24. Which of the following is NOT a fact about Gross National Product (GNP)?
A. Excluded import components C. Residents of a country
B. Made by Filipinos D. Within a country’s boarders
_____25. In monopolistic competition, the products of different sellers are assumed to be
A. Identical perfect substitutes.
B. Similar but slightly different.
C. Either identical or differentiated.
D. Unique without any close or perfect substitutes.
_____26. Which of the following is different about perfect competition and monopolistic competition?
A. In monopolistic competition, entry into the industry is unblocked.
B. Perfect competition has a large number of independently acting sellers.
C. Only firms in monopolistic competition can earn an economic profit in the short run.
D. Firms in monopolistic competition compete on their product's price as
well as its quality and marketing.
_____27. In an industry with a large number of firms,
A. Collusion is impossible.
B. Competition is eliminated.
C. One firm will dominate the market.
D. Each firm will produce a large quantity, relative to market demand.
_____28. Which is the least essential statement about the Philippines’ basic economic problems?
A. Economic resources may not be enough to support growing population
B. Poverty is another significant socio-economic problem in of our country
C. Unemployment is still a main problem of the Philippine economy
D. Work from home and home schooling affects our economy
_____29. What is the main economic issue and problem that decimated the source of living for tricycle, taxi,
bus, and jeepney drivers due to the CoViD-19 pandemic?
A. Business closures and trade disruption
B. Disruptions in public transportations
C. Decimation of the tourism industry
D. Workplace absenteeism

_____30 What microeconomic law states that all other factors being equal, as the price of a good or service
Increases, consumer demand for the goods or services will decrease and vice versa?
A. Ceteris paribus C. Law of Supply
B. Law of Demand D. Law of Supply and Demand
_____31. Which law states that all other factors being equal, as the price of a good or service increases, the
quantity of goods or services that suppliers offer will increase?
A. Ceteris paribus C. Law of Supply
B. Law of Demand D. Law of Supply and Demand
_____32. What economic term refers to the willingness of the consumer to buy a commodity at a given price?
A. Demand C. Price
B. Equilibrium D. Supply
_____33. What economic term refers to the quantity of goods that the seller is willing to offer for sale?
A. Demand C. Price
B. Equilibrium D. Supply
_____ 34. Choose the economic term that refers to the quantity of a commodity that producers are willing to
sell at a particular price at a particular point in time?
A. Quantity supplied C. Supply Schedule
B. Supply D. Supply curve
_____35. Classify the following factors affecting the demand of a commodity. Which does NOT belong to the
group?
A. Income C. Price of Production Inputs
B. Market D. Taste
_____36. Classify the following factors affecting the supply of a commodity. Which does NOT belong to the
group?
A. Market C. Taxes
B. Price of Production Inputs D. Technology
_____37. Applying the law of demand, other things remaining the same,
A. As the demand for cheeseburgers increases, the price of a cheeseburger will fall.
B. As income increases, the quantity of cheeseburgers demanded will increase.
C. As the price of a cheeseburger rises, the quantity of cheeseburgers demanded will decrease.
D. As the price of a cheeseburger rises, the quantity of cheeseburgers demanded will increase.
_____38. Being a grade 12, what commodities are in demand to you and other learners during this school
year?
I. Branded school bag III. Smartphone
II. Laptop IV. Wifi

A. I & II C. II & IV
B. II & III D. III & IV
_____ 38. Analyze the given choices; what does it mean when economists speak of references as influencing demand?
A. an individual's attitudes toward goods and services.
B. directly observable changes in prices and income.
C. the availability of a good to all income classes.
D. the excess of wants over the available supplies.
_____39. What do you call the situation where there is an excess supply for the quantity demanded?
A. Shortage B. Surplus C. Equilibrium D. Breakeven
_____40. What do you call the situation where there is an excess demanded for the quantity supplied?
A. Shortage B. Surplus C. Equilibrium D. Breakeven
_____41. Which of the following is an example of a monopolistically competitive industry?
A. wheat farming
B. colleges and universities
C. the local electricity producer
D. the domestic automobile producing industry
_____42. When there is equilibrium, the supply and demand are usually?
A. Conflicting B. Unstable C. Balanced D. Matched
_____43. What is defined as the price at which the producer can sell all the units he wants to produce?
A. Fixed Price B. Book Value C. Par Price D. Equilibrium Price
_____44. What acts as a signal for shortage and surpluses?
A. Demand B. Supply C. Price D. Goods

_____45. Which statement about price is NOT TRUE?

A. Prices are decided by interactions between the buyer and the seller
B. If a good is in a shortage, prices tend to rise
C. If a good is in a surplus, prices tend to fall
D. Price doesn’t really help resources from goods with little demand to goods
or services
_____46. Which is a situation that causes price to go up due to scarcity when quantity
is less than demand?
A. Shortage B. Equilibrium C. Surplus D. Price Floor
_____47. Which situation causes price to go down due to oversupply when the
 demand is less than the quantity supplied?
A. Price Ceiling B. Surplus C. Shortage D. Equilibrium
_____48. . The market type known as perfect competition is __________?
A. Dominated by fierce advertising campaigns.
B. Almost free from competition and firms earn large profits.
C. Highly competitive and firms find it impossible to earn an economic profit in the long run.
D. Marked by firms continuously trying to change their products so that
consumers prefer their product to their competitors' products.
_____49. What is called as the desire of a consumer to purchase goods or services at a given price?
A. Supply B. Equilibrium C. Price Specification D. Demand
_____50.What is the difference between perfect competition and monopolistic competition?
A. Perfect competition has barriers to entry while monopolistic competition does not.
B. Perfect competition has no barriers to entry, while monopolistic competition does.
C. Perfect competition has a large number of small firms while monopolistic competition does not.
D. In perfect competition, firms produce identical goods, while in
monopolistic competition, firms produce slightly different goods.
48. What happens when the percentage change in quantity demanded is greater
than the percentage change in price, and the coefficient of the elasticity is
greater than 1?
A. Inelastic Supply
B. Elastic Demand
C. Inelastic Demand
D. Elastic Supply
49. When the percentage change in demand is equal to the percentage change in
price, the product is said to have?
A. Unstable Elastic Demand
B. Stable Elastic Demand
C. Hybrid Elastic Demand
D. Unitary Elastic Demand
50. What is defined as the relationship between changes in quantity demanded
for a good and a change in real income?
A. XED B. YED C. PES D. PED
1. What is the difference between perfect competition and monopolistic
competition?
A. Perfect competition has barriers to entry while monopolistic competition
does not.
B. Perfect competition has no barriers to entry, while monopolistic
competition does.
C. Perfect competition has a large number of small firms while monopolistic
competition does not.
D. In perfect competition, firms produce identical goods, while in
monopolistic competition, firms produce slightly different goods.
2
3. Which of the following market types has all firms selling products so identical
that buyers do not care from which firm they buy?
A. Monopoly C. Monopolistic competition
B. Oligopoly D. Perfect competition
4. Perfect competition is characterized by all of the following EXCEPT
A. Large number of buyers and sellers.
B. Considerable advertising by individual firms.
C. No restrictions on entry into or exit from the industry.
D. Well-informed buyers and sellers with respect to prices.
5. Which of the following is the best example of a perfectly competitive market?
A. Athletic shoes B. Diamonds C. Farming D. Soft drinks
6. Which of the following market types has the fewest number of firms?
A. Monopoly C. Monopolistic competition
B. Oligopoly D. Perfect competition
7. Which of the following market types has a large number of firms that sell similar
but slightly different products?
A. Monopoly C. Monopolistic competition
B. Oligopoly D. Perfect competition
8. Which of the following market types has only a few competing firms?
A. Monopoly C. Monopolistic competition
B. Oligopoly D. Perfect competition
15
9. In a perfectly competitive market, the type of decision a firm has to make is
different in the short run than in the long run. Which of the following is an
example of a perfectly competitive firm's short-run decision?
A. The profit-maximizing level of output
B. Whether or not to enter or exit an industry
C. What price to charge buyers for the product
D. How much to spend on advertising and sales promotion
10. In perfect competition, a firm maximizes profit in the short run by deciding
A. What price to charge.
B. How much capital to use.
C. How much output to produce.
D. Whether or not to enter a market.
.