APPLIED ECONOMICS due to wear and tear.

Money entering the

4TH QUARTER EXAM economy and the spending of households
depend on (9) _________________ in terms
MEJIA, JUSTIN B.
of borrowing and building up of savings
respectively. But there is also money leaving
the economy which are called (10)
Name: _______________________________
_______________. An example of money
________ Teacher
leaving the economy are (11)
: ________________________
________________, where households decide
Section: ______________________________
to postpone spending for future use.
_________ Date:
________________________
Part III: MULTIPLE CHOICE
Score: _________
1. Which refers to expenditure or capital
spending?
Quarter 4 Quiz
A. Savings C. Interest rates B. Investments D.
Applied Economics
Rentals
2. Which refers to the cost of borrowing
This quiz contains 100 points
and the return on savings?
A. Investments C. Savings B. Rentals D.
Part I
Interest rates
Investments interest rates savings
3. This is defined as setting aside current
depreciation injections
income for future use.
leakage economic rent factor income
A. Interest rate C. Investment B. Savings D.
payments circular flow of economic
Rentals
activity
4. This refers to the plant, equipment, and
Business revenues factors of
other assets that help with production.
production
A. Capital assets C. Capital investment B.
Capital accumulation D. Capital formation
5. Which refers to the lowest legal wage
companies can pay workers?
A. Minimum wage C. Compensation B.
The (1) _________________________ shows
Subsidies D. Financial aid
the transfer of payments and resources in an
6. This is money entering the circular flow
economy. The households and firms are
of economic activity.
involved in the transfer of payments and
A. Leakage C. Factor payments B. Investment
resources. The households or consumers pay
D. Business revenues
for the goods and services from firms. The
7. This refers to the monetary
payments received by the firms are called (2)
compensation paid by an employer to an
______________________. Firms need (3)
employee in exchange for the work or
____________________ to be able to make or
service rendered.
produce goods or services. There is additional
A. Donation C. Income B. Wage D. Grant
value added to the goods and services
8. This is money withdrawn or leaving the
produced based on the land and natural
corcular flow of economic activity.
resources utilized which is called (4)
A. Investment C. Business revenues B. Factor
__________________. Firms pay for the
payments D. Leakage
resources they use through (5)
9. Which economic term refers to the
_____________________. There are
inputs needed to create or produce goods
contemporary issues faced by the Filipino
and service?
entrepreneur in the economy. These are
A. Factors of production C. Raw materials B.
explained below: to continue the production
Factor income D. Capital
of goods and services, firms need money for
10. The amount of money paid to the
capital spending called (6)
government by workers and business
___________________. The money entering
owners.
the economy are (7) ___________________.
A. Returns C. Taxes B. Financial obligations
This money is also used to cover (8)
D. Subsidies
_________________ costs of capital assets
MEJIA, JUSTIN B.
11. What do you call the amount applied on
the sale of goods and services?
A. Percentage tax C. Income tax B. Value
added tax D. Capital gains tax
12. This is a business tax that is regulated
in the Philippines which is imposed on
individuals or businesses that sell or rent
out goods and services with annual sales
not exceeding PHP 3 Million and is not
VAT registered.
A. Value added tax C. Percentage tax B.
Capital gains tax D. Income tax
13. These economic products that are
consumed collectively, like highways,
sanitation, schools, national defense, police
and fire protection.
A. National products C. Public goods and
services B. Government provisions D.
Common goods and services
14. This is the value which the existence of
land and natural resources adds to the
goods and services made because these
were produced on the land itself.
A. Rent C. Surplus payment B. Income D.
Economic rent
15. Refers to the amount or income that
will cover the expenses to be able to acquire
or get what you need to survive overtime.
A. Purchasing power C. Cost of living B.
Disposable income D. Savings
IV. TRUE OR FALSE
Write TRUE if the statement is correct, and
FALSE if the statement is wrong.
1. Monopoly is the least competitive market
structure.
2. Collusion happens only in a monopoly.
3. Products in a duopoly is slightly
differentiated.
4. In a monopoly, the company has limited
access to available technology.
5. There are few sellers in an oligopoly.
6. In economies of scale, increasing the
production decreases the cost of producing
each additional unit of the product.
7. There are two (2) dominant companies in a
duopoly.
8. The main goal of monopoly, oligopoly, and
duopoly is to maximize profit.
9. Sellers in oligopoly are price takers.
10. Barriers to entry is high in a duopoly.
11. The payment or monetary compensation
made by an employer in exchange for labor is
called wage
MEJIA, JUSTIN B.
12. Cost of living is the income that will cover
the expenses to be able to acquire or get what
you need to survive overtime.
13. Investments are capital spending to build
up your capital assets to increase production
and sales.
14. Capital assets are the machines,
equipment, and buildings/ physical structures
used in production of goods and services.
15. A cost-benefit analysis should begin with
compiling a comprehensive list of all the costs
and benefits associated with the project or
decision.
16. The cost-benefit analysis adds up the total
costs of a program or activity and compares it
against its total benefits.
17. A major disadvantage of cost-benefit
analysis lies in forcing people to explicitly
and systematically consider the various
factors which should influence the strategic
choice.
18. A cost-benefit analysis is a technique that
compares the relative costs to the effects of
two or more courses of action.
19. A cost-benefit analysis is a process that
the businesses use to analyze decisions.
20. Applied Economics is the study of Human
Behavior and Society.
Part V. Essay
1. Why investment is essential for economic
growth? (5points)
2. If you were given a chance to be a President of
the Philippines, what platform can you impose
to boost the economic status of the
country? (5points)
3. Why economics considered as branch of social
science?(5points)
4. Why Taxes are compulsory payments by
individual and organizations to the
government? (5points)