Republic of the Philippines

Department of Education
Region 02
SCHOOLS DIVISION OFFICE OF ISABELA
Alibagu, City of Ilagan, Isabela
DON MARIANO MARCOS NATIONAL HIGH SCHOOL
School ID: 300529
Ipil, Echague, Isabela, 3309
S.Y 2021-2022

FIRST SUMMATIVE TEST IN APPLIED ECONOMICS

Name _____________________________ Grade and Section _______________ Score______

TEST I. MULTIPLE CHOICE

Directions: Read the following items and encircle the letter of your choice.

1. What do you call the science of making choices?

A. Economics D. Economics as Social Science
B. Economics as Applied Science E. Resources
C. Human Wants
2. What do you call the science that deals with the allocation of scarce resources in order to meet the
unlimited human wants?
A. Economics D. Economics as Social Science
B. Economics as Applied Science E. Resources
C. Human Wants
3. What do you call the science that applies economic theory and econometrics in specific setting
with the goal of analyzing potential outcomes?
A. Economics D. Economics as Social Science
B. Economics as Applied Science E. Resources
C. Human Wants
4. What do you call the products of nature, qualities of individuals, and man-made things which are
used in producing goods or services?
A. Economics D. Economics as Social Science
B. Economics as Applied Science E. Resources
C. Human Wants
5. It can be described as differentiated or expanded human needs.
A. Economics D. Economics as Social Science
B. Economics as Applied Science E. Resources
C. Human Wants
6. What do you call the condition where there are insufficient resources to satisfy all the need and
wants of a population?
A. Allocation D. Human Needs
B. Opportunity Cost E. Capital
C. Scarcity
7. It is a man-made resources used in production of goods and services which include machineries
and equipment.
A. Allocation D. Human Needs
B. Opportunity Cost E. Capital
 C. Scarcity
8. Refers to the value of the foregone alternative.
A. Allocation D. Human Needs
B. Opportunity Cost E. Capital
C. Scarcity
9. These can be portrayed as basic necessities for material survival.
A. Allocation D. Human Needs
B. Opportunity Cost E. Capital
C. Scarcity
10. It is a social mechanism to respond to the economic problem of scarcity.
A. Allocation D. Human Needs
B. Opportunity Cost E. Capital
C. Scarcity
11. Because of scarcity, there is a need for a man to make decisions in choosing how to maximize the
use of the scarce resources to satisfy as many wants as possible.
A. True C. False
B. Sometimes true D. Sometimes false
12. Economics is a social science because it studies human behavior just like psychology and
sociology.
A. True C. False
B. Sometimes true D. Sometimes false
13. The study of society and how people behave influence the world around them.
A. True C. False
B. Sometimes true D. Sometimes false
14. Relative scarcity explains why there are some products that are very expensive in the Philippines.
A. True C. False
B. Sometimes true D. Sometimes false
15. In making choices, trade – offs are involved.
A. True C. False
B. Sometimes true D. Sometimes false
16. This is the application of economic theories and principles to real world situations with the desired
aim of predicting potential outcomes.
A. Applied Economics C. Natural Resources
B. For whom to produced D. What to produce
17. This came from natures that are used in production including land, raw materials and natural
processes
A. Applied Economics C. Natural Resources
B. For whom to produced D. What to produce
18. Once the goods are produced, how they shall be distributed?
A. Applied Economics C. Natural Resources
B. For whom to produced D. What to produce
19. Goods and services to be produced are based on the needs of the consumers.
A. Applied Economics C. Natural Resources
B. For whom to produced D. What to produce
20. This has something to do with the combination of resources to be used.
A. Applied Economics C. For whom to produced
B. Natural Resources D. How to produce
21. In the subject Principles of Marketing the word “Market” is usually used as another term for?
A. Costumer B. Consumer C. Benefactor D. Beneficiary
22. In the context of supply and demand discussions, demand refers to ____________________.
A. To the quantity of good that is desired by buyers.
B. To the quality of good that is desired by buyers.
C. Refers to the specific amount of that product that buyers are willing to but at a given price.
D. All of the above
23. Quantity demanded refers to the ___________ amount of that product that buyers are willing to but
at a given price.
A. Desired B. Specific C. General D. Large
24. Demand Relationship refers to the relationship between ________ and _______________.
A. Price and quality of product C. Quality and quantity of product
B. Price and quantity of product D. Amount and quality of product
25. It is the relationship between price and the amount of good and service supplied.
A. Demand Relationship C. Significant Relationship
B. Significant Difference D. Supply Relationship
26. The law of demand states that: all other things remain constant (Ceteris Paribus), a. the higher the
price of a good the lesser the demand for that good and b. the lesser the price the higher the
demand.
A. A and B are correct C. A is correct B is incorrect
B. A is incorrect and B is correct D. A and B are incorrect
27. The relationship between the price and demand is inversely related.
A. True B. False C. Sometimes True D. Sometimes False
28. Means that if the price of Product A increases, the consumer will look for its substitute and will
cause decrease in quantity demanded for Product A.
A. Reverse Effect B. Normal Effect C. Ripple Effect D. Substitute Effect
29. ________means how much the market can offer.
A. Demand B. Supply C. Quantity D. Quality
30. The law of supply states that the quantity of products offered to be sold is directly related with the price. A.
It means that when the price increases the quantity supplied increases too and B. if the price decreases the
quantity supplied is still the same.
A. a and b - are correct C. a is correct - b is incorrect
B. a is incorrect - b is correct D. a and b - are incorrect
31. What do you call the graphical representation that shows the relationship between the price of a good and
the quantity demanded for that good at a given price?
A. Demand Schedule B. Demand Curve C. Supply Schedule D. Supply Curve
32. What do you call the table that shows the prices of a good and the quantity supplied at each price at a given
point of time?
A. Demand Schedule B. Demand Curve C. Supply Schedule D. Supply Curve
33. What do you call the table that shows the price of a good and the quantity demanded for that good at a given
price within a given period?
A. Demand Schedule B. Demand Curve C. Supply Schedule D. Supply Curve
34. States that the quantity of products offered to be sold is directly related with the price.
A. Law of Supply C. Law of Demand
B. Law of Supply and Demand D. Law of Economics
35. The following factors may be affected by change in demand EXCEPT:
A. Taste and Preference C. Income
B. Population Change D. Physical Change
36. What is the main determinant of the quantity demanded and quantity supplied?
A. Price B. Prize C. Quality D. Product
37. If the price increases, the demand will _______.
A. Increase B. Decrease
 38. If the price increases, the supply will ________.
A. Increase B. Decrease
39. The increase in the number of substitutes/alternative products will result in __________ of demand.
A. Increase B. Decrease
40. Shortage may cause price to ________.
A. Increase B. Decrease
41. Increase in income may _________ demand.
A. Increase B. Decrease
42. Is used to define the change in behavior of the sellers or buyers because of the change in price and/or other
determinants of supply and demand.
A. Flexibility B. Ability C. Agility D. Elasticity
43. The percentage change in quantity demanded is greater than the percentage change in price. It has more than
1 elasticity coefficient.
A. Elastic B. Inelastic C. Unitary D. Perfectly Elastic
44. The percentage change in price is equal to the percentage change in quantity demanded.
A. Elastic B. Inelastic C. Unitary D. Perfectly Elastic
45. It means that the decision of the consumer to buy the product is not that affected by the increase or decrease
in price.
A. Elastic B. Inelastic C. Unitary D. Perfectly Elastic
46. When at the same price, the change of demand is infinite.
A. Elastic B. Inelastic C. Unitary D. Perfectly Elastic
47. When there is no change in demand despite of the changes in price. Elasticity coefficient is zero.
A. Elastic B. Inelastic C. Unitary D. Perfectly Inelastic
48. It has more than 1 elasticity coefficient. It means that if the price will increase there is a greater possibility
that the consumer will not buy the product or may decrease the quantity of the product to buy.
A. Elastic B. Inelastic C. Unitary D. Perfectly Elastic
49. The percentage change in quantity demanded is lesser than the percentage change in price.
A. Elastic B. Inelastic C. Unitary D. Perfectly Elastic
50. It means that if the price increase by 1 % the demand will decrease by 1 % also and vice versa.
A. Elastic B. Inelastic C. Unitary D. Perfectly Elastic
TEST II. MATCHING TYPE
Directions: Match the following items in COLUMN A to the COLUMN B. Write the letter that
corresponds to your answer on the spaces provided.

Answer Column A Column B

1. Is a condition where there are insufficient resources to satisfy A. Allocation
all the need and wants of a population.
2. A man-made resources used in production of goods and B. Scarcity
services which include machineries and equipment.
3. Refers to the value of the foregone alternative. C. Opportunity
Cost
4. It can be portrayed as basic necessities for material survival. D. Human
Needs
5. A social mechanism to respond to the economic problem of E. Capital
scarcity.
6. It is a science of making choices F. Economics
as Applied
Science
7. A science that deals with the allocation of scarce resources to G. Economics
meet the unlimited human wants.
 8. A science that applies economic theory and econometrics in H. Human
specific setting with the goal of analyzing potential Wants
outcomes.
9. These are products of nature, qualities of individuals, and I. Economics
man-made things which are used in producing goods or as Social
services Science
10. It can be described as differentiated or expanded human J. Resources
needs.

TEST III. IDENTIFICATION

Directions: Identify the following sentences or phrases whether appears to be government programs or
activities in response to pandemic or not. Write APPLIED if yes, otherwise ECONOMICS.
___________1. Allowing of opening of restaurants and dining in.
___________2. Allows continuous business operation.
___________3. Budget realignment for carrying out urgent measures.
___________4. Conduct health awareness.
___________5. Continuous mass gatherings in different places.
___________6. Creation of Inter Agency Task Force (IATF).
___________7. Distribution of Social Amelioration Fund to needy families.
___________8. Granting interest free loans.
___________9. Mass lay-off
___________10. Non disruption of transportation particularly public utilities.
___________11. Non-declaration of state of calamity.
___________12. Provision of basic necessities to the marginal sector.
___________13. Provision of cash subsidy program to the members of the poorest.
___________14. Strengthen and intensify social safety nets.
___________15. Swabbing of residents in locked down areas.

TEST IV. ESSAY

Directions: Answer or discuss briefly but substantially.
1. Because of COVID 19 PANDEMIC it brought negative effects in our Philippine Economy, some
business establishments closed most especially on the part of micro-business owners, and some
lost their jobs. Now that we are back to normal situation, what is the best thing to do uplift our
Philippine Economy? (5 points) As a student, what is your best contribution to uplift our
economy? (5 points)
2. What is substitution effect? Cite a particular instance wherein substitution effect arise. (5 points)

Prepared by:

HERMAN B. ATIP, JR.

Teacher III

Noted by:

SAMUEL R. APOSTOL, EdD

School Principal IV