SAN PASCUAL NATIONAL HIGH SCHOOL

San Pascual, Masbate

MIDTERM QUARTER EXAMINATION

Applied Economics
Academic Year 2018-2019
2nd Semester

Name: ____________________________________________________________ Date: ___________________

PART I. Matching type. Match column A with column B. Write the letter of your answer in your answer sheet.
COLUMN A COLUMN B
A. Resources
_____1. Economic system made with great influence from the past because it is
copying/duplicating the decision made by previous generations. B. Needs
_____2. Economic system that refers to an individual consumer and business
C. Traditional Economy
interact to solve economic problems.
_____3. Economic system with an elements of several economic system is Y. Economic problem
present and both private and public institutions exercise economic
E. Free Market Economy
control.
_____4. A type of problem which is a problem of how to make the best use of F. Mixed economy
limited, or scarce, resources.
G. Production
_____5. A branch of economics that deals with the behaviour of individual
components as an economic agent such as household, worker, firm, and H. Normative economics
individual owner of production.
X. Economic system
_____6. Branch of economics dealing with the behaviour of economy as a whole
with the view to understand the interaction between economic Z. Economics
aggregates such as employment, inflation and national GNP.
K. Capital
_____7. Economic methodology that has something to do with “what ought to
be” and involves ethics and value judgement. L. Scarcity
_____8. Economic methodology that something to do with “what is” that
M. Law of scarcity
describes facts and data in the economy.
_____9. An economic system that the society uses in allocating the scarce N. Positive Economics
resources wherein the factors of production and distribution are owned
O. Command Economy
and managed by the state.
_____10. Refers to a set of economic institutions that dominate a given economy P. Microeconomics
with the objective of solving economic problems.
R. Macroeconomics
_____11. Are the materials used in the production of goods and services.
_____12. Those products that are directly consumed by individuals to satisfy their S. Final goods and services
needs and wants.
T. Resources
_____13. The science which studies human behaviour as relationship between
ends and scare means which have alternative uses.
_____14. Refers to a physical condition where quantity desired of a particular
resource exceeds the quantity available in the absence of a rationing
system.
_____15. Represent those goods and services required for a human survival.

PART II. Multiple Choice. Read the items carefully. Write the letter of the correct answer in your answer sheet.

_____1. It states that goods are scarce because there are not enough resources to produce all the goods that the people
want to consume.
a. Law of scarcity b. problem c. consumption d. opportunity cost
_____2.The act of making goods and services.
a. labor b. marketing c. production d. economics
_____3. The act of using goods and services to satisfy human wants.
a. law of scarcity b. problem c. consumption d. opportunity cost

_____4. Refers to the cost of using them in their best alternatives.

a. law of scarcity b. problem c. consumption d. opportunity cost
_____5. A situation in which more of one good things can be obtained only by giving up of another thing.
a. trade-off b. trade-off c. product d. law of demand
_____6. Refers to the number of amount of goods and services desired by the consumers at various prices in a particular
period of time.
a. demand b. supply c. needs d. wants
_____7. It states that as price increases, quantity demand decreases; and as price decreases, quantity demanded
increases.
a. law of scarcity b. law of supply c. law of demand d. natural law
_____8. Are goods that can be used in place of another goods.
a. substitute goods b. prime goods c. complementary goods d. none of the above
_____9. Are goods that go together or cannot be used without the other.
a. substitute goods b. prime goods c. complementary goods d. none of the above
_____10. Is a tabular representation of the relationship between quantity of good demanded and the price of that good.
a. demand schedule b. supply and demand c. supply d. demand price

PART II. Identification. Read and identify the following statements below. Write your answer in your answer
sheet.
____________1. Factor of production that include the soil and source of all materials and food whether in liquid, solid,
or gaseous form, in or above the earth.
____________2. Factor of production that refers to the human effort and also to the available physical and mental
talents of the people who have to produce goods and services.
____________3. Factor of production that comes from Latin “caput” which means “head”.
____________4. Factor of production that people combining the other three factors of production to create some
products and service to sell.
____________5. Refer to a good for which demand at every price increases when income rises or vice versa.

PART III. Enumeration. Enumerate the following items below.

A. 5 Determinants of Demand
B. 5 Social Sciences that are related to Economics
C. 5 Goals of Economics

PART IV. Essay. Explain/discuss the statement below.

1. How will you considered cellular phone as need and wants. Site a situation that will illustrate
your answer. 10 points