Quiz # 2

Applied Economics
I. Matching Type: Match Set A or the central economic
issues and problems to Set B or the description of economic issues.

COLUMN A COLUMN B
____1. What to produce A.the legalities of the
____2. How to produce production
____3. Whom to produce B.the nature of goods to
____4. What provision in the produce
production of products C.the allocation of the among
members of the society
D.the methods of production
II. Direction: Please match the resources with the statements.

A) Land C) Labor
B) Capital D) Entrepreneurship
1. ________________The idea for a car that runs on a rocky road
2. ________________The crude oil used by ABM Firm to produce
gasoline
3. ________________The machine used by Mang Jose, a tailor to
stitch PPEs
4. ________________The manpower to build bridges and houses
5._________________Technicians who repair computers
III. Directions: Please write TRUE if the statement is correct and FALSE if the
statement is incorrect.

1. ______Scarcity in goods and services happens if the

resources in the production are inadequate or scarce.
2. ______Customers must choose among several
alternatives if scarcity exists.
3. ______ Income inequality is the gap in income that
exists between the rich and the poor customers willing
to buy the same products.
III. Directions: Please write TRUE if the statement is correct and FALSE if the
statement is incorrect.

4. _____Shortage of goods and services is an

economic problem; and shortages are always
constant
5. _____The Build Build Build Program by the
government aims to help improve the infrastructure
projects and other programs of the country.
III. Multiple Choice.
Direction: Please choose the correct answer.

1. The fundamental economic problem that must be

solved efficiently
a) Scarcity of resources
b) Health system
c) Surplus of demands
d) Export policies
III. Multiple Choice.
Direction: Please choose the correct answer.

2. Economists point out that scarcity must be addressed

to protect the
a) The poor but not the rich
b) Both the poor and the rich
c) Neither the poor nor the rich
d) The poor but never the rich
III. Multiple Choice.
Direction: Please choose the correct answer.

3. Scarcity of resources in your locality (Manila) is evident.

Only available are fabrics, electric sewing machines and
skilled workers. The government said, you are only allowed to
work from home to be safe and free from infection of viruses.
Which items most likely you need to produce?
a) PPEs c) Sacks of rice
b) Canned goods d) Sewing machines
III. Multiple Choice.
Direction: Please choose the correct answer.

4. Manila is ranked 2nd in the most cases of COVID patients

in Metro Manila. The city needs urgent services of the
medical frontliners in curing the increasing number of
patients. There is scarcity in the raw materials for production.
To whom would you produce first the available resources?
a) Soldiers c) Medical Frontlines
b) Police Officers d) Your family
III. Multiple Choice.
Direction: Please choose the correct answer.

5. There is an urgent need of PPEs by the medical frontliners in

the City of Manila due to increasing number of COVID patients
every day. Which is not true of producing the products (PPEs)?
a. Import from China
b. TESDA students and skilled workers may produce the PPEs
c. Manufacturers/suppliers may supply the PPEs
d. Export PPEs to Japan as gross national products
III. Multiple Choice.
Direction: Please choose the correct answer.

6. 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 c. How much incentive
b. How to produce d. What to produce