Republic of the Philippines
Department of Education
Region XI
Division of Davao de Oro
Maco North District
ANIBONGAN NATIONAL HIGH SCHOOL
Anibongan, Maco, Davao de Oro
APPLIED ECONOMICS
3
RD
GAS 12
QUARTER EXAMINATION
Name: ______________________________________________________ Date: _______________ Score: _________
TEST I – MULTIPLE CHOICE
Directions: Read and analyze each item carefully. Encircle the letter of your answer.
1. These are man-made resources used in the production of goods and services, which include machinery and
equipment.
a. Capital
b. Labor
c. Land
d. Entrepreneurial Activity
2. Soil and natural resources that are found in nature and are not man-made. Owners of lands receive a payment
known as rent.
a. Capital
b. Labor
c. Land
d. Entrepreneurial Activity
3. An individual’s activity that can turn ideas into action. It includes creativity, innovation, and risk-taking, as well
as the ability to plan and manage projects to achieve objectives.
a. Capital
b. Labor
c. Land
d. Entrepreneurial Activity
4. It covers manual workers like construction workers, machine operators, and professionals like nurses, lawyers,
and doctors. The income received by laborers is referred to as wage.
a. Capital
b. Labor
c. Land
d. Entrepreneurial Activity
5. It is the scientific study of human society and social relationships.
a. Biological science b. Earth science
c. Physical science
d. Social science
6. A division of economics that is concerned with the behavior of individual entities.
a. Consumer
b. Macroeconomics c. Microeconomics
d. Producer
7. The word macro is derived from the Greek word macros means;
a. Large
b. Medium
c. Small
d. Tiny
8. The word micro is derived from the Greek word micros means;
a. Large
b. Medium
c. Small
d. Tiny
9. It is the study that attempts to explain how an economy operates and how the consumer attempts to maximize
his/her wants within limited means.
a. Economics
b. Macroeconomics c. Microeconomics
d. Scarcity
10. It is a condition where there are insufficient resources to satisfy all the needs and wants of a population.
a. Economics
b. Insufficiency
c. Scarcity
d. None of them
11. Economics as __________ science, because it studies or observes how theories work in practice.
a. Applied
b. Scarce
c. Social
d. Psychology
12. Economics as __________ science, because it studies human behavior and how individuals make choices in
allocating scarce resources to satisfy their unlimited wants.
a. Applied
b. Econometrics
c. Scarce
d. Social
13. Which economic agent aims to maximize utility?
a. Consumers
b. Investors
c. Producers
d. The Public Sectors
14. Who aims to maximize profit among the economic agents?
a. Consumers
b. Investors
c. Producers
d. The Public Sectors
15. What are the two branches of economics?
a. Consumer and Producer
c. Normative and Positive Science
b. Microeconomics and Microeconomics
d. Sociology and Psychology
16. What is the main objective of the Public Sector in economics?
a. Maximizing profit
c. Maximizing societal well-being
b. Maximizing utility
d. Maximizing production efficiency
17. What is the primary focus of Microeconomics?
a. Issues of unemployment rates
c. Issues concerning the economy as a whole
b. Issues of gross domestic product
d. Issues affecting individuals and companies
18. What does Macroeconomics primarily study?
a. Unemployment rates and GDP
c. Effects of regulations on businesses
b. Individual and company behaviors
d. Supply and demand for specific products
19. What is the main purpose of Applied Economics?
a. Developing new economic theories
c. Predicting the outcomes of economic policies
b. Studying economic theories in isolation
d. Applying economic principles to real-world situations
20. What is the defining characteristic of an economic good?
a. It is useful but not scarce.
c. It has value and requires payment for its use.
b. It is abundant and free for everyone.
d. It is not needed for the production of goods and services.
21. Why do people have to practice economics?
a. Because of viruses/bacteria
c. Because of the scarcity of resources
b. Because of physical sciences
d. Because of astronomical phenomena
22. Which of the following statements is NOT TRUE?
a. Economics is an art.
c. Economics is both a positive and normative science.
b. Economics is a science.
d. Positive economics focuses on policy formulation.
23. Which of the following statements is TRUE?
a. All individuals are not economists.
c. All societies are faced with basic economic problems.
b. All producers belong to macroeconomics. d. The growth of national income is under microeconomics.
24. Which of the following statements is/are TRUE?
Macroeconomics examines aspects that influence individual economic choices.
Microeconomics examines the decisions of individual consumers.
a. Only 1st statement is true
c. Both statements are true
nd
b. Only 2 statement is true
d. Both statements are not true
25. Which of the following statements is/are TRUE?
Economics is an art because theories and laws are explained with the aid of numerical and statistical data.
Economics is a science because it is a systematized body of knowledge in which economic facts are studied
and analyzed.
a. Only 1st statement is true
c. Both statements are true
nd
b. Only 2 statement is true
d. Both statements are not true
26. How do economics affect business firms?
a. Through maximizes unlimited wants
b. By applying theories and law of economics
c. Through constraints and imitations of resources
d. By understanding theories and laws of economics
27. Which of the following statements is TRUE?
a. Economics is a physical science.
b. Economics didn’t use mathematical principles.
c. A knowledge of economics is needed to face problems.
d. Sociology, biology, and psychology are similar to economics.
28. Which best describes economics as social and applied science?
a. The study of human behavior.
b. The study of things we need to survive.
c. The study of how buyers make choices when there is a limited supply of resources.
d. The study of how people make choices when they are faced with an unlimited supply of resources.
29. Why do we need to know the overall performance of the entire economy?
a. To observe facts in connection with the activity that we want to investigate.
b. To shape up the economy and formulate policies for the good of the nation as an individual.
c. To take a look at how the economy operates and decide and properly allocate the use of whatever
resources are available.
d. To answer the consumer’s basic question and decide on the nature of goods that will be produced and the
quantity of these goods.
30. Which of the following situations considers economics a social science?
a. People have no freedom of choice in arriving at decisions on what to buy.
b. Philippine Congress passed the Value Added Tax Law to strengthen the Philippine tax system.
c. Economics students analyze how to maximize the use of available resources to overcome scarcity.
d. Business understands the Laws of Supply and demand by combining past sales data and marketing
research regarding their market and production decisions.
TEST II – CLASSIFICATION
Directions: Read carefully the statements or questions below. Classify the following topics. Write MIC if it falls under
Microeconomics; MAC if it falls under Macroeconomics.
___MAC_____31. The inflation rate in the Philippines in the last quarter of 2019 was 4.8%.
__MAC______32. A P340-billion deficit in the Philippine budget is expected in the year 2021.
______MIC__33. Prices of tireless vehicles are predicted to go up in December.
____MIC____34. Garlic prices in the past months have risen because producers hoarded their supplies in their
bodegas.
____MAC____35. The unemployment rate has dropped because of the increase in the number of OFWs.
___MIC_____36. In the past year, Soda Cola was named the fastest-selling product in the market.
___MAC_____37. Rental on land could not be increased by landowners because of the Rent Control Law.
____MIC____38. Prices of apples and grapes tend to increase during the Christmas Season.
____MAC____39. The Philippine economy grew at a rate of 5.8% in 2019.
____MAC____40. Philippine Congress passed the Value Added Tax Law to strengthen the Philippine tax system.
END OF TEST
NAME OF PARENT: _________________________________ SIGNATURE: _____________