FIRSTPERIODICAL EXAMINATION

in
APPLIED ECONOMICS
GRADE 11-SUMMER

I. MULTIPLE CHOICE. Write only the letter of the best answer.

1. Which of the following explains economics pertains to the study on how society creates its
material wealth, how it makes this wealth available to its people with minimum difficulties, and
how it expands its wealth.
a. anthropology b. political science c. psychology d. social science
2. Economics is the study of ____
a. how to make money b. ow to operate a business
c. people making choices because of the problem of scarcity d. the government
decision-making process
3. Scarcity exists __________
a. in all countries of the world b. only in poor nations
c. only in rich nations d. when people consumer beyond their
needs
4. Microeconomics approaches the study of economics from the viewpoint of
a. economy wide effects b. individual or specific markets
c. the national economy d. the operation of the Bangko Sentral ng
Pilipinas
5. This resources command a price.
a. economic resources b. free resources c. natural resources d. all of the
above
6. Which of the following is not a resource?
a. capital b. labor c. land d. money
7. This is an analysis of economics which deals what should be?
a. economic problem b. economic solution c. normative economics d. positive
economics
8. Which of the following decisions must be made by all economics?
a. How much to produce? When to produce? How much does it cost?
b. What is the price? Who will produce it? Who will consume it?
c. What to produce? How to produce it? For whom to produce?
d. none of the above
9. Because of mechanization and mass production, Pepsi Cola used machineries to produced
goods, which of the following methods used by Pepsi Cola?
a. capital-intensive production process b. labor-intensive production process
c. mixed production process d. product based technology process
10. Karen is the procurement officer of ABC Company, she bought 10 boxes of bond paper for
office consumption. Which of the following market best matches to the given example?
a. business market b. consumer market c. government market d. reseller
market
11. This is a human development measure of the Philippine government that provides conditional
grants to the poorest of the poor, to improve health, nutrition, and education of children aged 0-
18.
b. 4 Ps b. free education c. free housing d. free meal
12. The excessive use of our natural resources may compromise its ability to provide income and
other benefits in the future. Which of the following should be adopted and strictly implemented
to protect our environment?
a. Animal Welfare b. Clean Air Act c. Ecological Solid Waste Management d. Total
ban on mining
13. Which of the following solution that mitigates the limited capacity of our energy
infrastructure resulted to daily interruptions of electricity?
a. enhance transportation system
b. expanding energy production capacity

1st Quarter Exam Prepared by: Syrene Grace L. Fronda

 c. entice the participation of private sector on marine facilities
d. improve the collection efficiency of energy producing company

14. Which of the following positive impact of the increase of population to a country?
a. additional consumers that can expand the economy
b. additional waste that can increase junk shop businesses
c. increase of purchasing power to buy more goods or services
d. all of the above
15. This reflects the consumer’s desire for a commodity.
a. demand b. good c. price d. supply
16. This is the amount of commodity available for sale.
a. demand b. good c. price d. supply
17. An increase in income received from incentives, bonuses and thirteenth month pay increases
the purchasing power of the consumers. This shows that the demand curve will ____
a. downward to right b. upward to right c. shift to left d. shift to right
18. Through information and technology improvements there is substantial lowered cost of
producing cell phones. There is a possibility that the supply will:
a. downward to right b. upward to right c. shift to left d. shift to right
19. Which of the following describes equal proportion in demand and supply?
a. shift of the demand curve to the right and shift of the supply curve to the right
b. shift of the demand curve to left and shift of the supply curve to the left
c. shift of the demand curve to the right and shift of the supply curve to the left
d. shift of the demand curve to the left and shift of the supply curve to the right
20. When the amount that buyers are willing to buy is not the same as the amount the producers
are willing to sell at a given price, this is an example occurs in ______
a. disequilibrium b. equilibrium c. market pressure d. market
situation
21. If the quantity demanded is greater than quantity supplied, there is _______.
a. excess demand b. excess supply c. no excess d. competition
22. A decrease in the number of seller shifts the demand curve to the:
a. downward b. upward c. left d. right
23. . Which of the following describes economic situation when there is a very high demand for
land for rent?
a. price of land or rent is very low b. price of land or rent is very high
c. price of land or rent is manageable d. the price of land or rent is negative
24.. If the acquisition price of a land is very high, how condominiums recoup the cost?
a. charge high rental rates b. charge low rental rates c. per day charges of rates d.
both a & c
25. The government agency that monitor the price ceiling of the commodities.
a. Department of Interior and Local Government b. Department of Justice
c. Department of Labor and Employment d. Department of Trade and Industry
26. Which of the following describes monopoly market structure?
a. few buyer b. few seller c. single buyer in the market d. single seller in the
market
27. Oligopoly sellers producing similar and differentiated products. This characterize that the
products are ____
a. heterogeneous products b. homogenous products c. single products d. both a &
b
28. Which of the following best describes perfect competition?
a. numerous firms and buyers b. few seller and buyers c. single seller and buyer d.
sellers are powerful
29. Car manufacturing firms, airlines company and telecommunication companies are an
example of _______
a. monopoly b. monopolistic competition c. oligopoly d.
perfect competition

1st Quarter Exam Prepared by: Syrene Grace L. Fronda

II. TRUE OR FALSE.
30. Provide free meals, housing and adequate clothing are the most appropriate intervention
for the people who are in the absolute poverty.
31. Adequate and strong infrastructure of a country has debilitating effects on the individuals,
households, business firms, and economy
32. The constrained of the productivity capacity of our economy is the prudent use of our
natural resources.
33. The supply of OFWs is positively influenced by the foreign wage rate.
34. The supply of labor is also influenced by the wage rate, if wage rate is very low, very few
laborers are willing to work.
35. The objective of the government in setting the minimum wage is to provide indecent life
for workers.
36. An example of price floor is the minimum wage which used by the government to
prevent from being too low.

III. ESSAY.

37-39. Graph/Plot the hypothetical data. Determine the Equilibrium price and
quantity
Price (Peanuts) Quantity Demanded Quantity Supplied
5 60 20
10 50 30
15 40 40
20 30 50
25 20 60

40-42. Make an analysis on the Law of Supply.

43-45. Make an analysis on the Law of Demand.
46-50. Analyze the effects of unemployment on the purchasing power of the people.

1st Quarter Exam Prepared by: Syrene Grace L. Fronda

2. Man’s mental and physical efforts exerted in production:
a. capital b. entrepreneur c. labor d. land
3. |Economics is a ________ science.
a. natural b. physical c. political d. social
4. Economics is the study of the __________ and __________ use of scarce resources to produce
commodities for the maximum satisfaction of unlimited wants and needs.
a. allocation, efficient b. proper allocation, efficient
c. scarce resources, efficient d. scarce resources, effectives
5. These goods are used in the production of other goods.
a. capital goods b. consumer goods c. products d. services
6. Which of the following statements is incorrect:
a. normative economics deals with what actually is taking place in economy.
b. positive economics deals with what should take place in the economy.
c. positive economics and normative economics are always identical.
d. positive economics need not conform with normative economics.
7. Which of the following is not classifiable as a natural resource:
a. capital b. forests c. land d. minerals
8. An increase in income shifts the demand curve upward rather than downward because:
a. income increases demand b. increase in income decreases price c. price is increase d.
none
9. A decrease in the number of seller shifts the demand curve to the:
a. downward b. upward c. left d. right
10. If the cost of product of pork increases, supply will:
a. decrease b. increase c. remain constant d. it depends
11. Which of the following describes economic situation when there is a very high demand for
land for rent?
a. price of land or rent is very low b. price of land or rent is very high
c. price of land or rent is manageable d. the price of land or rent is negative
12. If the acquisition price of a land is very high, how condominiums recoup the cost?
a. charge high rental rates b. charge low rental rates c. per day charges of rates d.
both a & c
13. Which of the following describes monopoly market structure?
a. few buyer b. few seller c. single buyer in the market d. single seller in the
market
14. Oligopoly sellers producing similar and differentiated products. This characterize that the
products are ____
a. heterogeneous products b. homogenous products c. single products d. both a &
b
15. Which of the following best describes perfect competition?
a. numerous firms and buyers b. few seller and buyers c. single seller and buyer d.
sellers are powerful

II. TRUE OR FALSE. Write T if the statement is true and F if the statement is false.

1st Quarter Exam Prepared by: Syrene Grace L. Fronda

16. Philippines needs US dollars to pay for our imports.
17. There is a huge profit in monopoly market structure.
18. There is no brand loyalty on products or services in perfect competition.
19. Opportunity cost is a factor that producers need to take into consideration in producing a
product.
20. We can meet the unlimited wants and needs through an efficient use of the factors of
production.
21. The supply of US dollars, is based on the inflows of US dollars into the country brought by
export receipts.
22. The supply of labor is also influenced by the wage rate, if wage rate is very low, very few
laborers are willing to work.

III. IDENTIFICATION. Tell whether the curve will shift to the right or to the left. Write A if it
shifts to the right and B if it shifts to the left.
23. Decrease in population
24. Increase in taste and preferences
25. Increase in technology
26. Decrease in cost of production
27. Increase in income

IV. ENUMERATION.
28-30. What are the three basic economic problems?

V. ESSAY.
31-35. One of the basic problems confronting the development of the Philippines is
poverty. Formulate
a program that aims to alleviate poverty.

36-45. Plot the hypothetical data. State the law of supply and demand. Determine and
explain the
equilibrium price and quantity.
Price (Peanuts) Quantity Demanded Quantity Supplied
5 60 20
10 50 30
15 40 40
20 30 50
25 20 60

46-50. Make a Venn Diagram analyzing the effects of oil price increase on the
purchasing power of the
people

1st Quarter Exam Prepared by: Syrene Grace L. Fronda

 Prepared by:

Vanessa F. Salinas

1st Quarter Exam Prepared by: Syrene Grace L. Fronda