Concepcion National High School
Concepcion, Mabini, Bohol
Applied Economics
Midterm
Name: _______________________________
Date: ____________________
Year & Section: ________________________
Score: ___________________
Directions: Read the questions/phrase very carefully and write the word/letter of the correct answer. Please observe
cleanliness & neatness by avoiding making erasures.
Test I – Multiple Choice. Encircle the letter of the correct answer.
1. A branch of Social Science which deals with the production, distribution and consumption of goods and services
and their management
a. Applied Economics
b. Economics
c. Social Studies
d. Econometrics
2. This refers to the basic economic problem, the gap between limited resources and limitless wants
a. Scarcity
b. Needs
c. Wants
d. Resources
3. What does the word “paucity” means?
a. few
b. small in number
c. limited
d. all of the above
4. These are based on physiological, personal or socio-economic requirements necessary for you to function and
live.
a. Scarcity
b. Needs
c. Wants
d. Resources
5. It is the study of economics in relation to real world situation
a. Economics
b. Applied Economics c. Social Studies
d. Econometrics
6. Which of the following terms refers to the means to fulfilling the needs.
Scarcity
b. Needs
c. Wants
d. Resources
7. Who is considered as the “Father of Economics”?
a. Carl Marx
b. Adam Smith
c. Adam Sandler
d. Carl Malone
8. This represents all the natural resources
a. Sea
b. Land
c. Soil
d. Forest
th
th
9. Which of the following economic system involves major trading during the 16 , 17 and 18th centuries?
a. Feudalism
b. Industrial Revolution c. Mercantilism
d. Laissez-Faire
10. An economic system consisting of a strict class system including nobles, clergy and the peasants.
a. Feudalism
b. Industrial Revolution c. Mercantilism
d. Laissez-Faire
11. Which describes a demand curve?
a. horizontal line
b. slopes downward
c. slopes upward
d. bow-shaped
12. Which describes a supply curve?
a. upward slope
b. downward slope
c. horizontal line
d. vertical line
13. Total costs =
a. fixed costs + marginal costs
b. fixed costs + variable costs
14. Total profit =
a. total revenue - marginal cost
15.
16.
17.
18.
19.
20.
c. marginal costs + variable costs
d. fixed costs + variable costs + marginal costs
c. total revenue - total cost
b. total revenue + marginal cost
d. total revenue + total cost
Lower prices typically ______
a. discourage consumers from buying
c. motivate consumers to buy
b. discourage producers from leaving a market
d. motivate producers to enter a market
The wage at which the number of workers needed equals the number of workers available is called
a. balanced wage
b. fair wage
c. equilibrium wage
d. minimum wage
Workers with higher amounts of human capital tend to
a. demand less benefits
c. have fewer job complaints
b. earn higher wages
d. earn lower wages
Working in a location outside the office
a. contract work
b. outsourcing
c. self-employment
d. telecommuting
Organization of workers that seek to improve working conditions
a. labor union
b. closed union
c. open union
d. skill union
Equilibrium wage results from
a. an equal supply and demand of labor
c. a shortage of labor
b. a fluctuating supply and demand of labor
d. a surplus of labor
Test II – Matching Type. Match column A to column B. Write only the letter of the correct answer on the space
provided.
Column A
Column B
__________ 21. Microeconomics
a. Returns or comes back from an investment
__________ 22. Inflation
b. studies the overall working of a national economy
__________ 23. Mixed Economy
c. consumer’s desire to pay a price for specific goods/services
__________ 24. Demand
d. goods where demand decreases while consumer’s income increases
__________ 25. Price
e. to bring in goods from abroad
__________ 26. Law of Supply
f. movement of highly skilled professionals to another country
__________ 27. Income
g. to bring out goods to abroad
__________ 28. Law of Demand
h. person/entity which is a rival against another
__________ 29. Econometrics
i. manufacturer, processor, packager, distributor, wholesaler
__________ 30. Revenue
j. asset/item purchased with the hope to generate income in the future
__________ 31. Price Ceiling
k. price set by the government above the equilibrium determined price
__________ 32. Export
l. price charge by sellers more than a specific maximum price
__________ 33. Investment
m. studies the economy of consumers, households or individual firms
__________ 34. Brain Drain
n. an undue expansion or price increase
__________ 35. Macroeconomics
o. economic decisions are determined by both market forces and state
__________ 36. Supplier
p. the amount of money individuals earn from daily economic activities
__________ 37. Competitor
q. means of exchange/current value/rate paid or demanded in market
__________ 38. Inferior Goods
r. as the price of the goods or services increases, the quantity of goods
__________ 39. Price Floor
__________ 40. Import
and services that supplies offer will increase and vice versa.
s. as the price of the goods or services increases, consumer demand
for the good or service will decrease and vice versa
t. application of mathematics & statistics to the study of economic
financial data
Test III – Essay. Explain briefly the following phrases/ideas below. (5pts Each)
41-45. Differentiate unemployment from underemployment.
46-50. Explain what is meant by “Brain Drain”.
“Success isn’t just about what you accomplish in life; its about what you inspire others to do.”
-Anonymous***GOOD LUCK***
Prepared by: SUNNY JHUN N. PIQUERO
Teacher - II
Checked and Approved: NOEL A. CASIMSIMAN DevEdD
Head Teacher - I