FIRST QUARTER EXAMINATION IN APPLIED ECONOMICS

Name: _______________________________________________________ Score: __________________

Grade/Strand: _________________________________________________ Date: __________________

I.Choose the letter of the correct answer.

1.What is the term being used to describe the amount of an asset or resource that exceeds the portion that
is utilized?
a.Scarcity b.Shortage c.Surplus d.Wastage
2.What is the state of an employed person not having enough paid work or not doing work that makes full
use of their skills and abilities?
a.Unemployment b.Employment c.Underemployment d.Poverty
3.It refers to the value of the best foregone alternative.
a.Scarcity b.Opportunity Cost c.Trade-off d.Explicit Cost
4.The following situations are examples showing positive economics. Which is not included?
a.Current Inflation Rate b.Rate of Population Growth
c.Number of Employed Labor d.Level of Gross National Product
5.It is the market value of final products, both sold and unsold, produced by the resources of the economy
in a given period.
a.Gross National Product b.Gross Domestic Product
c.Gross National Income d.Gross Domestic Income
6.It is where workers offer services and look for jobs, and where employers look for workers to hire.
a.Goods Market b.Labor Market c.Financial Market d.Market
7.It is the willingness of a consumer to buy a commodity at a given price.
a.Demand b.Supply c.Market d.Equilibrium
8.Which law states that, “As price increases, the quantity demanded for that product decreases”?
a.Law of Supply b.Law of Demand c.Value Added Tax Law d.Law of Inertia
9.Market equilibrium is attained when the quantity demanded is _____ to the quantity supplied.
a.directly proportional b.inversely proportional c.equal d.greater
10.A change in a determinant will lead to a proportionately greater change in demand or supply.
a.Elastic b.Inelastic c.Unitary Elastic d.Unitary Inelastic

II.Classify the following topics. Write MIC if it falls under Microeconomics; MAC if it falls under
Macroeconomics.
_____ 11.The inflation rate in the Philippines in the last quarter of 2013 was 4.8%.
_____ 12.A ₱340-billion deficit in the Philippine budget is expected in the year 2015.
_____ 13.Prices of Toyota vehicles are predicted to go up in December.
_____ 14.Garlic prices in the past months have risen because producers hoarded their supplies in their
bodegas.
_____ 15.Unemployment rate has dropped because of the increase in the number of OFWs.
_____ 16.In the past year, Coca Cola was named the fastest selling product in the market.
_____ 17.Rental on land could not be increased by landowners because of the Rent Control Law.
_____ 18.Prices of apples and grapes tend to increase during the Christmas season.
_____ 19.The Philippine economy grew at the rate of 5.8% in 2013.
_____ 20.Philippine congress passed the Value Added Tax Law to strengthen the Philippine tax system.
III.Describe the type of economic system characterized in each of the following sentences.
_____ 21.Prices are based on demand and supply.
_____ 22.The government decides on what goods should be produced.
_____ 23.Ancient methods are used in deciding what goods to produce.
_____ 24.People enjoy freedom of choice in arriving at decisions on what to buy.
_____ 25.People have no freedom of choice in arriving at decisions on what to buy.
_____ 26.Economy is stagnant, making use of practices in the olden times.
_____ 27.Economy is backward because no new technology or production methods are introduced.
_____ 28.It is the most democratic form of economic system.
_____ 29.People’s preferences are reflected in the prices they are willing to pay in the market.
_____ 30.It exists in primitive and backward civilizations.

IV.Identify which resource is referred to by the following words.

_____ 31.Entertainers _____ 36.Technology
_____ 32.Minerals _____ 37.Production Equipment
_____ 33.Forests _____ 38.Engineers
_____ 34.Marine Resources _____ 39.Call Center Agents
_____ 35.Teachers _____ 40.Business Proprietor

V.Using the following demand function, solve for the demand schedule of consumer Sherman given the
following prices for bottled water:
41-45. Qd=60-P/2
Prices Qd
₱0
2
4
6
8
10
12
14
16
Based on this schedule, construct a demand curve for Sherman.
On the other hand, for Reyjin, a seller of bottled water in the market, the supply function is given as:
46-50. Qs=5+5P
Prices Qs
₱0
2
4
6
8
10
12
14
16
Construct the supply curve of Reyjin and put it in a graph with Sherman’s demand curve.

“Kan matod na nagapayaba ga tultol man sanang estudyante pag naga-

exam, di nagakita sa iba dawa nadipisilan na.”
Prepared by:
NORBERTO J. MANJARES JR.