National Teachers College

Basic Education Department

Senior High School 50 pts
AY 2019-2020

1 st Quarterly Examination in Applied Economics

Name:_____________________________________ Date:_________________________
Grade & Section: ___________________________ Teacher: Mr. Cefrain B. Cachin, LPT
GENERAL DIRECTIONS
 This examination has 4 number of pages, with a total of 25 number of items.
 Kindly fill up the necessary information (e.g. name, grade and section, and date of examination) before
answering the test.
 Read, understand and follow every directions given in each part of the examination.
 Use Black or Blue Pen only. Answers in pencil or friction pen will not be accepted or counted.
 Please do not borrow anything from your classmate for them not to be disturbed during the test.
 Ask your teacher if you have questions and not your classmates.
 Lastly, pray for our God’s grace and guidance before answering the test.

I. Multiple Choices: Read each statement carefully. Identify what is being asked. Write the letter of the
correct answer on the space provided before each number. (20 points)

_______1. Everything has a reason. Which of the following is the best reason why we need to study
Economics?
A. Because of the shortage in the market. C. Because of the inevitable scarcity.
B. Because of the surplus in the market. D. Because of the evitable scarcity.
_______2. The effective management of our scarce resources is what we call the study of Economics. Which
of the following is the field of Economics concerned with using economic theories and models,
and related principles and concepts to understand and try to solve socioeconomic issues?
A. Rationalized Economics C. Applied Economics
B. Economics with Land Reform D. Analysis Economics
_______3. The concept of scarcity is coupled with the fact that human desires are unlimited. Which of the
following concept in Economics defined as the things that are desired but not essential for human
survival?
A. Wants C. Important things
B. Needs D. Necessary commodities
_______4. There are plenty of definition for this concept but in terms of economics, it is all the man-made
factor of production used to create another product. Which of the following terms best describe
the above mentioned?
A. Capital C. Labor
B. Entrepreneurship D. Land
_______5. Factors of Production are considered to be scarce. Which factor of production is the one
responsible for the integration of other factors of production?
A. Capital C. Labor
B. Entrepreneurship D. Land
_______6. Poverty talks about the condition where a population is only able to meet its basic subsistence.
Which of the following is a kind of poverty wherein the population are severely deprived from
their basic needs?
A. Relative Poverty C. Absolute Poverty
B. Selective Poverty D. Severe Poverty
_______7. Unemployment is one major economic problem that the Philippines is facing today. Which of the
following is a kind of underemployment where there is less demand for specific job?
A. Frictional Unemployment C. Structural Unemployment
B. Cyclical Unemployment D. Seasonal Unemployment
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_______8. Underemployment is another significant concern related to labor. There are two types of
underemployment namely Visible and Invisible. Which of the following is the characteristic that
differentiates the two kinds of Underemployment?
A. Kind of Work C. Inadequate Compensation
B. Utilization of Skills D. Working Hours
_______9. One of the effects of overpopulation is migration. Which of the following is the concept of
emigration of highly trained professionals and technical workers to another country?
A. Low Opportunity C. Brain Drain
B. High Opportunity D. Brain Gain
______10. In external migration, there are two different processes, the Emigration and the Immigration.
Which of the following is the similarity of the two terms?
A. There should be permanent settlement. C. You should have Visa.
B. There should be temporary settlement. D. You should have Permit.
______11. Cost-benefit analysis can be used in fertility rate among women. What is the reason why poor
household tend to have large families than better-off household?
A. Because the cost and benefit of rearing a child is equal.
B. Because the cost of rearing a child is high and the benefit is low.
C. Because the benefit of rearing a child is low and the cost is high.
D. Because the cost of rearing a child is low and the benefit is high.
______12. Weak infrastructure lessens the productivity of the economy. The government is considering some
options to lessen the effect of weak infrastructure by allowing the private sector to engage in the
construction of infrastructure project. Which of the following might be the negative result of this
public-private partnership?
A. The quality of the infrastructure will increase.
B. The quality of infrastructure will decrease.
C. The pricing will be high.
D. The pricing will be low.
______13. Food security is all about the availability and accessibility of the food to the people. Rice
Tariffication Law is one solution of the government to have food security in terms of rice. Which
of the following is the adverse effect of this law to the Philippines?
A. The price of the rice will increase. C. Local farmers will prosper.
B. The price of the rice will decrease. D. Local farmers will suffer.
______14. In agriculture, many of our farmers are still using traditional techniques instead of advance ones.
What is the main reason of the above situation?
A. Surplus in Manpower C. Expensive labor
B. Shortage in Manpower D. Easy to do
______15. In economy, the general concept of industries are sectors. Which sector of the economy will
provide raw materials in the production?
A. Primary Sector C. Tertiary Sector
B. Secondary Sector D. Quaternary Sector
______16. Law of demand states that if the price of certain commodity decreases, the quantity demanded will
increase and vice versa. Which of the following is not the factor affecting the demand curve?
A. Income C. Taste and Preferences
B. Taxes D. Expectations
______17. Service sector is prosperous in the Philippines like the BPO industry. Which of the following is the
major reason why companies in other countries outsource their employees here in the
Philippines?
A. Because of the cheap labor. C. Because Filipinos are hospitable.
B. Because Filipinos are good in English. D. Because of the expensive labor.
______18. You saw in the news that the price of the gasoline in the market will increase by tomorrow
morning, so the demand for the gasoline today increases. Which of the following factors affects
the demand of the gasoline today?
A. Income C. Taste and Preferences
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 B. Taxes D. Expectations
______19. In order to be a developed country, we need to attain the economic development core values. All of
the following are the core values of economic development EXCEPT?
A. Luxurious living C. Freedom
B. Self-Esteem D. Sustenance
______20. One major economic problem in the country is poverty. Which of the following is the proportion of
households in the country with family income lower than the poverty line?
A. Poverty Threshold C. Absolute Poverty
B. Relative Poverty D. Poverty Incidence
II. Problem Analysis: Identify a significant problem being experienced by your community (except the
problem in traffic). Use your knowledge of Economics to explain how this problem came about and
what can be done to address it. Use the table below as a guide. 5 points for each row guided by the
Holistic Rubrics below. (20 points)
Score Description
1.5 Problem/Issue
The statement is comprehensive and complete. Key ideas are clearly stated, explained and
well supported.
3 The statement is not comprehensive. Key ideas are addressed but not well supported.
The statement is partial or incomplete. Key ideas are not clear. Question was not
2
adequately answered.

2. Related Economic
Concepts

3. What gave rise to this

problem

4. What are the possible

solutions to this problem?

III. Essay: Read the statement carefully and write your answer on the space provided. You will be graded
based on the Rubrics below. (10 Points)

CRITERIA 5- EXCELLENT 3-GOOD 1-FAIR SCORE

Content and The message is clear, The message is good The message is weak
Relevance meaningful, well-presented and relevant to the and somehow relevant

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 and very relevant to the topic. to the topic.
topic.
The output is neat, clear The output is The output is poorly
Neatness of
and presentable somehow neat and presented
Presentation
acceptable

1. Write an essay about the causes of traffic in your locality and how you think the
government should address this problem.

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A life without purpose is worthless.

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