Name:_________________________ Score:___________________

Year and Section:________________ Date:____________________

APPLIED ECONOMICS

Test I.

DEFINITION OF TERMS: Define the following concepts. Write your answers on a separate sheet of paper. 2 points each.

1. Applied Economics
2. Economic Theory
3. Microeconomics
4. Macroeconomics
5. Economics

Test II.

Explanation: Explain the following concepts. Compare and contrast the two concepts presented below. 10 points each.

1. Applied Economics Vs. Economic Theory

2. Positive Vs. Normative Economics

Test III.

Presentation and Explanation: Using the concept of the LAW OF SUPPLY and LAW OF DEMAND, draw a MARSHALLIAN
CROSS and provide an explanation as to why you’ve drawn that figure using the variables presented below:

EXPLANATION: 15 POINTS

GRAPH: 15 POINTS

Figure 1. Supply and Demand Trend of Buko.

June July August September

SUPPLY 100 200 220 300

June July August September

PRICE 20 25 30 30

DEMAND June July August September

100 150 200 250