NAME:_________________________________________

SECTION:_______________________________________

CHAPTER TEST:
APPLIED ECONOMICS

Encircle the letter of the correct answer. If the answer is NOT in a, b, or c, write the
correct answer in the blank in d.

1. It is a factor of production that refers as a risk-taker in search of profits .

a. land c. entrepreneurs
b. capital d. _______________.

2. It is a type of goods that is manufactured and used to produce other goods and services.
a. durable good c. capital good
b. consumer good d. _______________.

3. Macroeconomics is the study of performance of the economy as a whole. This are

examples of macroeconomics EXCEPT
a. monetary policy c. inflation
b. individual market d. _________.

4. It is the study of human efforts to satisfy what appears to be unlimited and competing
wants through the careful use of relatively scarce resources.
a. Social Science c. Sociology
b. Applied Science d. _______________.

5. It is a work that is performed for someone?

a. services c. labor
b. production d. _______________.

6. It is a doctrine that claims economic system should be free from government intervention
or moderation and be driven only by the market forces..
a. productivity and wealth c. economic theory
b. laissez-faire d. _______________.

7. This theory states that variations in unemployment and the rates of inflation are usually
caused by changes in the supply of money?
a. monetarism c. liberalism
b. consumerism d. _______________.
8. It is a real-life application of econometrics.
a. to track population growth c. to produce good quality products
b. to study the income effect d. _______________.

9. According to Global Security (2016), this is still a pervasive and long-standing problem in
the Philippines.
a. corruption c. unemployment
b. poverty d. _______________.

10. Price is the only factor that affects the quantity demanded, but other factors may affect
demand. The following outlines the various factors that affect demand EXCEPT
a. number of consumers c. expected income changes
b. people’s taste d. _______________.

11. In supplying goods to someone else, a business incurs costs, and it wants to get as
much as it can from the sale and have something left over at the end of the day. What is
the cost a producer is facing?
a. production cost c. supply cost
b. opportunity cost d. _______________.

12. It is an economic term for a place of rest from which there is no pressure on the part of
buyers and sellers?
a. equilibrium c. economy
b. market d. _______________.

13. It is a type of market structure that has a non-price competition as its characteristics
a. pure competition c. monopolistic competition
b. monopoly d. _______________.

14. It is a series of price cuts by all producers that may lead to usually low prices in the
industry.
a. price war c. price-fixing
b. collusion d. _______________.

15. It is an arrangement which gives a company the exclusive right to do business in a

certain area without competition
a. oligopoly c. patent
b. franchise d. _______________.