APPLIED ECONOMICS

JACQUELYN J. SALVADOR MST-SOCIAL STUDIES

SAINT PAUL UNIVERSITY TUGUEGARAO CITY MS. L. TAGUIAM
General Directions:
• Use BLACK PEN ONLY. STRICTLY NO ERASURES
• Read each question and each option carefully. Encircle the option that best answer what is asked.
∙ ANSWERS MUST BE IN CAPITAL LETTERS ONLY
1. The ideas and principles that aim to describe how economies work
a. microeconomics b. macroeconomics c. economic theory d. applied economics
2. It is the study of economics in world situations as opposed to the theory of economics.
a. microeconomics b. macroeconomics c. economic theory d. applied economics
3. It refers to the whole aggregate economy
a. microeconomics b. macroeconomics c. economic theory d. applied economics
4. Looks at economics at the individual consumer company level
a. microeconomics c. economic theory
b. macroeconomics d. econometrics
5. The application of statistical and mathematical theories in economics for the purpose of testing hypotheses and forecasting future
trends.
a. microeconomics b. macroeconomics c. economic theory d. econometrics
6. Refers to the large set of inter-related production and consumption activities that aid in determining how scarce resources are allocated
a. economics b. macroeconomics c. economic theory d. applied economics
7. The absence of peace
a. War b. Pollution c. political corruption d. unemployment
8. The abuse of government leaders to extract and accumulate for private enrichment, and to use politically means to maintain their hold
on power
a. War b. Pollution c. political corruption d. unemployment
9. The contamination of air water and soil by substances that are harmful to living organisms
a. War b. Pollution c. political corruption d. unemployment
10. An economic condition wherein individuals of working age actively seeks jobs yet remain to be jobless.
a. War b. Pollution c. political corruption d. unemployment
11. The following are the basic economic problems except:
a. How to produce? c. what to produce
b. For whom to produce d. where to produce
12. The society must decide how to allocate its resources between the different productive activities. They must also determine how they
are going to distribute the goods and services of consumption between individuals that compose it
a. The first statement is correct c. the second statement is correct
b. Both statements are correct d. both statements are wrong
13. He is often credited with providing the first clear and simple explanation of the economic problem
a. Samuel Carrera b. Paul Mc Cartney c. Samuel Davidson d. Paul Samuelson
14. Refers to how the production of the needs and wants of the target market
a. How to produce? b. For whom to produce c. what to produce d. where to produce
15. Refers to designing a system of distribution of the goods and services produced
a. How to produce? b. For whom to produce c. what to produce d. where to produce
16. Determine which of the productive resources will be used and how much of the final product will be obtained from these
a. How to produce? b. For whom to produce c. what to produce d. where to produce
17. When the supply and demand curves intersect, the market is in equilibrium. This is where the quantity demanded and quantity
supplied are equal. The corresponding price is the equilibrium price or market-clearing price, the quantity is the equilibrium quantity.
a. The statement is true c. the statement is false
b. The statement is partly true d. the last sentence is wrong
18. It is where the supply and demand intersect
a. Equilibrium price c. equilibrium quantity
b. Demand d. supply
19. The amount of product that is offered for sale at all possible prices in the market
a. Equilibrium price c. equilibrium quantity
b. Demand d. supply
20. Quantities of a particular good or service that consumers are willing and able to buy at different possible prices
a. Equilibrium price c. equilibrium quantity
b. Demand d. supply
21. The law of demand states that
a. Consumers buy more of a good when its prices decreases and less when its prices increases
b. Consumers buy more when their income goes down
c. Consumers buy more goods when its prices increases and more when its prices increases
d. Consumers buy less goods when its prices decreases and less when prices decreases
22. The market structure where there is a large numbers of buyers and sellers
a. Perfect competition c. monopolistic competition
b. Oligopoly d. monopoly
23. The market structure where there is the so-called non-price competition in the form of advertising and product innovation
a. Perfect competition c. monopolistic competition
b. Oligopoly d. monopoly
24. The market structure where there are few sellers and entry and exit to such competition is very difficult
 a. Perfect competition c. monopolistic competition
b. Oligopoly d. monopoly
25. The market structure where there is a single producer and seller
a. Perfect competition c. monopolistic competition
b. Oligopoly d. monopoly
26. The financial capability of the consumer to acquire goods and services
a. Interest of the people b. Purchasing power c. trends d. decision making
27. The following are the contemporary issues affecting the purchasing power of the people except:
a. Exchange rate c. oil price hike
b. Unemployment d. purchasing power
28. It is simplest and least regulated form of organization
a. Limited Liability Company c. Partnership
b. Single proprietorship d. Corporation
29. It is easy to form and can provide additional financial and managerial resources
a. Limited Liability Company c. Partnership
b. Single proprietorship d. Corporation
30. Composed of one or more “members”, which provides the owner(s) protection of personal assets while allowing them to be taxed as if
they were either partners or a sole proprietorship
a. Limited Liability Company c. Partnership
b. Single proprietorship d. Corporation
31. Marketers conduct SWOT analysis to assess an organization’s
a. Selling power, Weaknesses, Organizational market, Threats
b. Strength, Weaknesses, Opportunities, Threats
c. Selling power, Workable competition, Opportunities, Timetable
d. Strength, Workable Competition, Organizational Market, Timetable
32. Government regulations and legal factors are assessed in terms of their ability to affect the business environment and trade markets
a. Political c. Economic
b. Social d. Technological
33. A business can analyze the socio-economic environment of its market
a. Political c. Economic
b. Social d. Technological
34. How technology can either positively or negatively impact the introduction of a product or service into a marketplace is assessed here
a. Political c. Economic
b. Social d. Technological
35. The following are some Common Analysis Tools and Techniques in creating business except
a. VMOST c. SWOT
b. PEST d. KIYX
36. The following are types of industries except
a. Agribusiness c. International trade
b. Micro enterprise d. Retail and Services
37. A good that can be used in place of another
a. substitutes c. customer
b. competition d. supplier
38. Study of aggregates as the production, consumption and income of the population as a whole
a. Microeconomics c. Applied Economics
b. Macroeconomics d. Economic Science
39. The following are factors that affects the demands of consumers except:
a. Availability of complementary goods c. income
b. Availability of substitute goods d. number of suppliers
40. The following are factors that affects the supply except
a. New products b. Government Policy c. changes in the number of sellers in the market d. AENHS
41. What is scarcity?
a.the act of being afraid
b. the excess of the product that has’nt been sold
c. the inability to satisfy the unlimited wants and needs of people
d.the amount of goods and services consumers want
43. when a limited amount of resources are available, consumers must:
a.demand more
b. choose an alternative
c. wait
d. fight for them
44. All are alternatives to scarcity except:
a. wish
b. ration
c. trade
d. substitute
45. When scarcity exists, the choices societies make for the use of that scarce resources is called
a. bartering
b. distribution
c. surplus
d. shortage
46. An example of a non scarce good is
a. shark meat
b. air
c. chicken meat
 d. pork
47.Economics is the study of _______________.
a. scarcity
b. business
c. stock markets
d. money
48.A point that is located inside the production possibility curve is
a. efficient
b. unattainable
c. more efficient than points on the curve
d.inefficient
49. what is a key feature of a market economic system/
a. producers and consumers are motivated by self- interest and profit
b. all answers are correct
c. prices adjust based on supply and demand
d. all resources are privately owned by producers and consumers
50. The ______________ of a decision is the value of the good or service forgone.
a. opportunity cost
b. efficiency
c. economics
d. scarcity

APPLIED ECONOMICS (TOS)

# of
Subject Content % # of Items Rem. Under. App Ana. Eval
hours
applied science and
its utility in
addressing the
16 50% 25 1,2,14-16,41,43,45,47,49 3-12 17-20
economic
problems of the
country
the law of supply
and demand, and
factors affecting 16 50% 25 21,22,23,29,30,42,44,46,48,50 31-40 24-28
the economic
situation
32 100% 50 10 18 12
10 18 12
25% 45% 30%