Department of Education

Region V
DIVISION OF CAMARINES SUR
PRESENTACION NATIONAL HIGH SCHOOL
Presentacion, Camarines Sur
School ID: 302019

2ND SEMESTER - FIRST QUARTER EXAMINATION

Name: ___________________________________________ Grade/ Section: _______________________

Teacher: RONELLE C. SAN BUENAVENTURA, T-II Date of Examination: __________________

Test 1. Multiple Choice Directions: Read and analyze each item carefully. Write the letter of the correct
answer in a separate sheet.
______1. What do you call the application of economic principles and theories to real-world situations?
a. Applied Economics b. Economics c. Macroeconomics d. Microeconomics

______2. Which of the following statement refers to supply?

a. It is a choice you gave up c. It is the totality of our needs
b. It is the amount of goods for sale d. It refers to the economy

______3. What do you call things that you gave up when you make a choice?
a. Choice b. Problem c. Opportunity Cost d. Trade-Of

______4. Which of the following is NOT a factor of production?

a. Capital b. Land c. Labor d. Tax

______5. Which BEST describes economics as a social and an applied science?

a. The study of human behavior
b. The study of things we need to survive
c. The study of how buyers make choices when there is limited supply of resources
d. The study of how people make choices when they are faced with an unlimited supply of resources

______6. Mrs Nenita De Jesus purchased basic goods like vegetables and groceries for the consumption
of her family. These goods are _________________.
a. Consumers goods b. Luxury Goods c. Capital Goods d. Economic Goods

______7. Mr. Dennis Elecanal purchased new car as a gift for his father’s birthday. This good is _______.
a. Consumers Good b. Capital Good c. Luxury Good d. Economic Good

______8. ABM Computer shop purchased additional 10 units of computer for the business. These goods
are called _________________.
a. Consumers goods b. Capital Goods c. Luxury Goods d. Economic Goods

______9. Which is NOT considered as tangible good?

a. Cellphone b. Sack of rice c. Mask d. Training service

______10. Which is TRUE about Economics as a social science?

a. Scarce resources and limited needs drive choice
b. Economic hypotheses lead directly to predictions
c. Economics explains and predicts economic events
d. The scientific method is based on the normative analysis

______11. Which is true on the value of an economic theory in practice? It is determined by____________.
a. how well the theory can be represented by a graph. c. how well the theory can predict or explain.
b. how accurate the assumptions are. d. how economical the model is.
______12. Which of the following is the study of the aggregate economy studied as a whole?
a. Econometrics b. Mathematical economics c. Macroeconomics d. Microeconomics

______13. Business ethics refers to any behavior by businesses that may _____________________.
a. be illegal. b. violates social or moral standards. c.. result in the maximization of profits. d. All of these

______14. Businesses have responded to incentives for ethical behavior by doing ALL, EXCEPT:
a. appointing “ethics officers” to monitor ethical manners of employees.
b. lobbying for the abolition of laws that require ethical behavior.
c. providing training sessions in ethical behavior for employees.
d. establishing codes of ethical behavior for employees.

______15. Which of the following is NOT an economic agent in your locality?

a. Consumer b. Public Sector c. Producer d. None of the above

______16. The physical efort of the manpower to produce the basic needs of the consumers,
describes which factor of production?
a. Land b. Labor c. Capital d. Entrepreneur

______17. The initiative and creativity to produce something new describes which factor of
production?
a. Land b. Labor c. Capital d. Entrepreneur

______18. The equipment of the cofee shop to produce cups of cofee, are what kind of goods
or products?
a. Consumer goods b. Capital goods c. Either consumer or capital goods d. Economic goods

______19. What kind of approach is used by economists to explain how the economy works?
a. Collaborative b. positive c. experimental d. scientific

______20. The following are examples of customers’ basic needs, EXCEPT:

a. Water and shelter b. Laptop and cellular phones c. Food d. Expensive bags

______21 The ABM Manufacturing Company decides to produce more on liquid soap than bar
soap to supply the growing demands in the market. It solves issues on:
a. Whom to produce b. How much incentive c. How to produce d. What to produce

______22. Which of the following classifications DOES NOT fall under underemployment?
a. Highly skilled but working in low paying jobs c. Part-time workers who would prefer to be full time.
b. Without work and currently available for work d. Workers who are highly skilled but working in low
skill jobs

______23. What is most likely to happen when the population continues to rise?
a. Employment rate will go up c. Poverty rate will decrease
b. Resources will become scarce d. Unemployment rate will go down

______24. The fundamental economic problem that must be solved efficiently

a. Scarcity of resources b. Surplus of demands c. Health system d. Export policies

______25. Economists point out that scarcity must be addressed to protect the ___________________.
a. The poor but not the rich c. Neither the poor nor the rich
b. Both the poor and the rich d. The poor but never the rich

______26. What two factors contribute to scarcity in the production of goods and services?
a. Unlimited resources and limited wants c. Unlimited wants and limited resources
b. Unlimited resources and wants d. Limited resources and wants
______27. The economists describe the amount of resources in an economy as:
a. Always constant c. Can never decrease or increase
b. Limited at any moment in time d. Unlimited at any moment in time

______28. An increase in the price of electricity bill will force you to:
a. increases your demand for stereos and videokes.
b. increases your demand for light bulbs and aircon.
c. increases your demand for TVs and use of gadgets.
d. increases your demand for kerosene heaters and coal.

______29. Economies experience an increased in unemployment and a reduced of activity during

recession. How does recession afect the market demand for new cars?
a. Demand for new cars either has or no shift
b. Demand for new cars shifts to the right.
c. Demand for new cars shifts to the left.
d. Demand for new cars has no shift

______30. If Toyota firm is producing a car faster than people want to buy, there is _________________.
a. an excess demand of car and price can be expected to decrease.
b. an excess supply of car and price can be expected to decrease.
c. an excess supply of car and price can be expected to increase.
d. an excess demand and price can be expected to increase.

______31. If demand for sacks of rice in Aling Puring Grocery Store is price elastic, then a:
a. rise in the price of sacks of rice will raise total revenue of the grocery
b. fall in the price of sacks of rice will raise total revenue of the store
c. fall in the price of sacks of rice will lower the quantity demanded
d. rise in the price of sacks of rice won't have any effect on total revenues

______32. In the market, the price elasticity for the demand of canned goods sold by Aling Puring Grocery
Store is the ________________________.
a. ratio of the percentage change in quantity demanded for the goods to the percentage change in its price
b. ratio of the change in quantity demanded divided by the change in its price of the canned goods
c. responsiveness of revenue to a change in quantity of the canned goods
d. response of revenue to a change in the price

______33. If the cross-price elasticity between soap bar and liquid soap commodities is 1.5,
a. the two goods are luxury goods c. the two goods are substitutes
b. the two goods are complements d. the two goods are normal goods

______34. The price elasticity of demand for a certain good tends to be __________________.
a. smaller in the long run than in the short run c. smaller in the short run than in the long run
b. larger in the short run than in the long run d. unrelated to the length of time

______35. If the price elasticity of supply of cup noodles is 0.60 and the price increase by 3 percent, then
the quantity supplied for cup noodles increases by how by? Show your solution.
a. 0.60 percent b. 1.8 percent c. 0.20 percent d. 18 percent

______36. In the market, the price elasticity for the demand of ethyl alcohol sold by the ABM Drug Store is
the:
a. ratio of the percentage change in quantity demanded for the ethyl alcohol to the
percentage change in its price.
b. responsiveness of revenue to a change in quantity of the ethyl alcohol
c. ratio of the change in quantity demanded divided by the change in its price of the
ethyl alcohol.
d. response of revenue to a change in the price of ethyl alcohol
______37. If demand for the banana lakatan of a vendor in the market is elastic, then a
a. rise in the price of banana lakatan will raise the total revenue
b. fall in the price of banana lakatan will raise total revenue of the vendor
c. fall in the price of banana lakatan will lower the quantity demanded
d. rise in the price of banana lakatan won't have any efect on total revenues

______38. If the cross-price elasticity between cinnamon bread and pizza is 1.5, then ___________.
a. the two goods are luxury goods c. the two goods are substitutes
b. the two goods are complements d. the two goods are normal goods

______39. The price elasticity of demand for a certain good tends to be:
a. smaller in the long run than in the short run
b. smaller in the short run than in the long run
c. larger in the short run than in the long run
d. unrelated to the length of time

______40. If the price elasticity of supply of ripe mangoes is 0.60 and the price will increase by 3
percent, then the quantity supplied for ripe mangoes will increase by how much?
a. 0.60 percent c. 1.8 percent
b. 0.20 percent d. 18 percent

______41. Which organizational characteristics that establishes interrelationships between the buyers and
sellers in a particular market?
a. Market Structures b. Products c. People d. Sellers

______42. Which of the following is the MOST competitive market structure?

a. Perfect competition b. Oligopoly c. Monopolistic competition d. Monopoly

______43. Which of the following is the LEAST competitive market structure?

a. Perfect competition b. Oligopoly c. Monopolistic competition d. Monopoly

______44. Which of the following is NOT a feature of a monopolistic competition?

a. Numerous sellers b. Numerous buyers c. Product differentiation d. Homogenous price

______45. When the revenue is equal to price, which types of market structure?
a. Competitive monopoly b. Perfect competition c. Oligopoly d. All are types

______46. Which DOES NOT belong to the group of market structure?

a. Monopoly b. Perfect competition c. Oligopoly d. Market Competition

______47. If ABM firm sells its output in a market, with many sellers and buyers of homogeneous product,
and unlimited resource mobility, the structure is a/an
a. monopolist b. oligopolist c. monopolistic competitor d. perfect competitor

______48. If the ABM firm sells homogenous products in a market, with a single seller and many buyers,
for which there are no close substitutes to the products, it is a/an ________________________.
a. monopolist b. oligopolist c. monopolistic competitor d. perfect competitor

______49. If ABM firm sells its differentiated products in a market, with many sellers and buyers, the
structure is a/an _____________________.
a. monopolist b. oligopolist c. monopolistic competitor d. perfect competitor

______50. To reduce cyclical unemployment the government might ______________________.

a. encourages savings c. increase balance of payment
b. imposes low interest rates d. increase the budget surplus