ONG CHE TEE - BACONG HIGH SCHOOL

Sacsac, Bacong Negros Oriental

Applied Economics
Midterm Examination
Name:__________________________________Grade/Section:_______________Date:___________

I. MULTIPLE CHOICE. Encircle only the letter of the best answer.

1. Which of the following explains economics pertains to the study on how society creates its material wealth,
how it makes this wealth available to its people with minimum difficulties, and how it expands its wealth.
a. anthropology b. political science c. psychology d. social science
2. Economics is the study of ____
a. how to make money b. ow to operate a business
c. people making choices because of the problem of scarcity d. the government decision-making
process
3. Scarcity exists __________
a. in all countries of the world b. only in poor nations
c. only in rich nations d. when people consume beyond their needs
4. Microeconomics approaches the study of economics from the viewpoint of
a. economy wide effects b. individual or specific markets
c. the national economy d. the operation of the Bangko Sentral ng Pilipinas
5. This resources command a price.
a. economic resources b. free resources c. natural resources d. all of the above
6. Which of the following is not a resource?
a. capital b. labor c. land d. money
7. This is an analysis of economics which deals what should be?
a. economic problem b. economic solution c. normative economics d. positive economics
8. Which of the following decisions must be made by all economics?
a. How much to produce? When to produce? How much does it cost?
b. What is the price? Who will produce it? Who will consume it?
c. What to produce? How to produce it? For whom to produce?
d. none of the above
9. Because of mechanization and mass production, Pepsi Cola used machineries to produced goods, which of
the following methods used by Pepsi Cola?
a. capital-intensive production process b. labor-intensive production process
c. mixed production process d. product based technology process
10. Karen is the procurement officer of ABC Company, she bought 10 boxes of bond paper for office
consumption. Which of the following market best matches to the given example?
a. business market b. consumer market c. government market d. reseller market
11. This is a human development measure of the Philippine government that provides conditional grants to the
poorest of the poor, to improve health, nutrition, and education of children aged 0-18.
b. 4 Ps b. free education c. free housing d. free meal
12. The excessive use of our natural resources may compromise its ability to provide income and other benefits
in the future. Which of the following should be adopted and strictly implemented to protect our environment?
a. Animal Welfare b. Clean Air Act c. Ecological Solid Waste Management d. Total ban on mining
13. Which of the following solution that mitigates the limited capacity of our energy infrastructure resulted to
daily interruptions of electricity?
a. enhance transportation system
b. expanding energy production capacity
c. entice the participation of private sector on marine facilities
d. improve the collection efficiency of energy producing company
14. Which of the following positive impact of the increase of population to a country?
a. additional consumers that can expand the economy
b. additional waste that can increase junk shop businesses
c. increase of purchasing power to buy more goods or services
d. all of the above
15. This reflects the consumer’s desire for a commodity.
a. demand b. good c. price d. supply
16. This is the amount of commodity available for sale.
a. demand b. good c. price d. supply
17. When prices increases, the amount demanded will fall and when price decreases, the amount demanded will
rise.
a. Law of supply b. Economic turmoil c. Law of demand d. Law of Price
18. When price increases, the quantity supplied will also increase and conversely, when price falls, the quantity
supplied will fall.
a. Law of supply b. Related supply c. Law of demand d. Law of Price
19. Which of the following is not classifiable as a natural resource:
a. capital b. forests c. land d. minerals
20. There are many buyers in the market but they cannot control the price; There are many sellers in the market,
like the buyers, they too cannot control price.
a. Monopoly b. Perfect competition c. Monopolistic competition d. Oligopoly
21. There is only single seller; Many buyers are available
a. Monopoly b. Perfect competition c. Monopolistic competition d. Oligopoly
22. If the cost of product of pork increases, supply will:
a. decrease b. increase c. remain constant d. it depends
23. . Which of the following describes economic situation when there is a very high demand for land for rent?
a. price of land or rent is very low b. price of land or rent is very high
c. price of land or rent is manageable d. the price of land or rent is negative
24.. If the acquisition price of a land is very high, how condominiums recoup the cost?
a. charge high rental rates b. charge low rental rates c. per day charges of rates d. both a & c
25. The government agency that monitor the price ceiling of the commodities.
a. Department of Interior and Local Government b. Department of Justice
c. Department of Labor and Employment d. Department of Trade and Industry
26. Which of the following describes monopoly market structure?
a. few buyer b. few seller c. single buyer in the market d. single seller in the market
27. Oligopoly sellers producing similar and differentiated products. This characterize that the products are ____
a. heterogeneous products b. homogenous products c. single products d. both a & b
28. Which of the following best describes perfect competition?
a. numerous firms and buyers b. few seller and buyers c. single seller and buyer d. sellers are powerful
29. Which of the following describes monopoly market structure?
a. few buyer b. few seller c. single buyer in the market d. single seller in the market
II. TRUE OR FALSE.
30. Provide free meals, housing and adequate clothing are the most appropriate intervention for the people
who are in the absolute poverty.
31. There is a huge profit in monopoly market structure.
32. The constrained of the productivity capacity of our economy is the prudent use of our natural resources.
33. The supply of OFWs is positively influenced by the foreign wage rate.
34. The supply of labor is also influenced by the wage rate, if wage rate is very low, very few laborers are
willing to work.
35. The objective of the government in setting the minimum wage is to provide indecent life for workers.
36. An example of price floor is the minimum wage which used by the government to prevent from being
too low.
III. ESSAY.
37-46. One of the basic problems confronting the development of the Philippines is poverty. Formulate
a program that aims to alleviate poverty. 10pts
47-53. Make an analysis on the Law of Supply. 7pts.
54-60. Make an analysis on the Law of Demand. 7pts.