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APPLIED ECONOMICS - PART 2 (50 QUESTIONS)

Total questions: 50

Worksheet time: 50mins

Name
Class
Date
1.

1. Which of the following explains economics pertains to the study on how society creates its material wealth, how it makes this wealth available to its people with minimum difficulties, and how it expands its wealth.

a)

Anthropology

b)

Political Science

c)

Psychology

d)

Social Science

2.

Economics is the study of ____________.

a)

How to make money

b)

How to operate a business

c)

People making choices because of the problem of scarcity

d)

The Government decision process

3.

Scarcity exists _____________.

a)

In all countries of the world

b)

Only in poor nations

c)

Only in rich nations

d)

When people consume beyond their needs

4.

Microeconomics approaches the study of economics from the viewpoint of __________.

a)

Economy wide effects

b)

Individual or specific markets

c)

The national economy

d)

Operation of the Bangko Sentral ng Pilipinas

5.

These resources command a price.

a)

Economic resources

b)

Free resources

c)

Natural resources

d)

All of the above

6.

Which of the following is not a resource?

a)

Capital

b)

Labor

c)

Land

d)

Money

7.

This is an analysis of economics which deals what should be.

a)

Economic problem

b)

Economic solution

c)

Normative Economics

d)

Positive Economics

8.

Because of mechanization and mass production, Pepsi Cola used machineries to produced goods. Which of the following methods is used by Pepsi Cola?

a)

Capital-intensive production

b)

Labor-intensive production

c)

Mixed production process

d)

Product-based technology process

9.

Karen is the procurement officer of ABC Company. She bought 10 boxes of bond paper for office consumption. Which of the following market best matches to the given example?

a)

Business market

b)

Consumer Market

c)

Government market

d)

Reseller market

10.

This is a human development measure of the Philippine government that provides conditional grants to the poorest of the poor, to improve health, nutrition, and education of children aged 18.

a)

4 Ps

b)

Free Education

c)

Free housing

d)

Free meal

11.

The excessive use of our natural resources may compromise its ability to provide income and other benefits in the future. Which of the following should be adopted and strictly implemented to protect our environment?

a)

Animal Welfare Act

b)

Clean Air Act

c)

Ecological Solid Waste Management

d)

Total ban on Mining

12.

Which of the following solution mitigates the limited capacity of our energy infrastructure that resulted to daily interruptions of electricity?

a)

Enhance transportation system

b)

Expanding energy production capacity

c)

Entice the participation of private sector on marine facilities

d)

Improve the collection efficiency of energy producing company

13.

Which of the following has a positive impact in the increase of population to a country?

a)

Additional consumers that can expand the economy

b)

Additional waste that can increase junk shop businesses

c)

Increase of purchasing power to buy more goods or services

d)

All of the above

14.

This reflects the consumer’s desire for a commodity.

a)

Demand

b)

Good

c)

Price

d)

Supply

15.

This is the amount of commodity available for sale.

a)

Demand

b)

Good

c)

Price

d)

Supply

16.

An increase in income received from incentives, bonuses and thirteenth month pay increases the purchasing power of the consumers. This shows that the demand curve will _______.

a)

Move downward to right

b)

Move upward to right

c)

Shift to Left

d)

Shift to right

17.

Through information and technology improvements, there is substantial lowered cost of producing cell phones. There is a possibility that the supply will:

a)

Move downward to right

b)

Move upward to right

c)

Shift to left

d)

Shift to right

18.

Which of the following describes equal proportion in demand and supply?

a)

shift of the demand curve to the right and shift of the supply curve to the right

b)

shift of the demand curve to left and shift of the supply curve to the left

c)

demand and supply curve are in a point of equilibrium

d)

shift of the demand curve to the left and shift of the supply curve to the right

19.

When the amount that buyers are willing to buy is not the same as the amount the producers are willing to sell at a given price, is an example of_________.

a)

Disequilibrium

b)

Equilibrium

c)

Market Pressure

d)

Market Situation

20.

If the quantity demanded is greater than quantity supplied, there is _______.

a)

Excess Demand

b)

Excess supply

c)

No Excess

d)

Competition

21.

A decrease in the number of seller shifts the demand curve to:

a)

Downward

b)

Upward

c)

Left

d)

Right

22.

Which of the following describes economic situation when there is a very high demand for land for rent?

a)

Price of land or rent is very low

b)

Price of land or rent is very high

c)

Price of land or rent is manageable

d)

Price of land or rent is negative

23.

If the acquisition price of a land is very high, how condominiums recoup the cost?

a)

Charge high rental rates

b)

Charge low rental rates

c)

Per day charges of rates

d)

Both A and C

24.

The government agency that monitor the price ceiling of the commodities.

a)

Department of Interior and Local Government

b)

Department of Justice

c)

Department of Labor and Employment

d)

Department of Trade and Industry

25.

Which of the following describes monopoly market structure?

a)

Few Buyer

b)

Few Seller

c)

Single buyer in the market

d)

Single seller in the market

26.

Oligopoly sellers producing similar and differentiated products. This characterizes that the products are ________.

a)

Heterogeneous products

b)

Homogeneous products

c)

Single products

d)

Both A and B

27.

Which of the following best describes a perfectly competitive market?

a)

A market that sells a variety of goods and services

b)

A market such that several firms are competing fiercely

c)

A market with many sellers and buyers

d)

A market such that the government controls the market price

28.

Car manufacturing firms, airlines company and telecommunication companies are an example of _________.

a)

Monopoly

b)

Monopolistic competition

c)

Oligopoly

d)

Perfect Competition

29.

Man’s mental and physical efforts exerted in production:

a)

Capital

b)

Entrepreneur

c)

Labor

d)

Land

30.

Which of the following statements is incorrect:

a)

Normative economics deals with what actually is taking place in economy

b)

Positive economics deals with what should take place in the economy

c)

Positive economics and normative economics are always identical

d)

Positive economics need not conform with normative economics.

31.

Which of the following is not classifiable as a natural resource?

a)

Capital

b)

Forests

c)

Land

d)

Minerals

32.

An increase in income shifts the demand curve upward rather than downward because:

a)

income increases demand

b)

increase in income decreases price

c)

price is increased

d)

none

33.

A decrease in the number of seller shifts the demand curve to:

a)

Downward

b)

Upward

c)

Leftward

d)

Rightward

34.

If the cost of product of pork increases, supply will:

a)

Decrease

b)

Increase

c)

Remain constant

d)

It depends

35.

What kind of graph is shown on the leftside?

a)

Elastic

b)

Inelastic

c)

Perfectly Inelastic

d)

Perfectly Elastic

36.

What kind of graph is shown on the leftside?

a)

Elastic

b)

Inelastic

c)

Perfectly Inelastic

d)

Perfectly Elastic

37.

What kind of graph is shown on the leftside?

a)

Elastic

b)

Inelastic

c)

Perfectly Inelastic

d)

Perfectly Elastic

38.

What kind of graph is shown on the leftside?

a)

Elastic

b)

Inelastic

c)

Perfectly Inelastic

d)

Perfectly Elastic

39.

Assume Samantha likes hot dogs and hamburgers equally, and the price of hamburgers (a normal good) declines. She will most likely purchase more hamburgers; this is

a)

a reflection of the income effect

b)

a reflection the substitution effect

c)

a reflection of the income and substitution effect

d)

no reflection of income and substitution effect

40.

If the price of a good declines from $5.00 per unit to $4.00 per unit, and you continue to purchase 5 units of this good, as you had in the past, your real income has

a)

decreased by $5.00

b)

increased by $4.00

c)

decreased by $4.00

d)

increased by $5.00

41.

In moving along a given demand curve, quantity changes in response to a change in

a)

Consumer Taste

b)

Consumer Income

c)

Consumer Expectations

d)

Price of the Good

42.

Which of the following would not be considered compliments?

a)

Shoes and socks

b)

Tennis Racquet and Tennis Balls

c)

Coke and Pepsi

d)

Automobiles and Gasoline

43.

Refer to Exhibit 3-2. A shift from S to S` would illustrate:

a)

a decrease in supply

b)

a decrease in quantity supplied

c)

an increase in quantity supplied

d)

an increase in supply

44.

Refer to Exhibit 3-2. Which of the following would not cause the shift from S to S`?

a)

an increase in the price of resources

b)

an improvement in technology

c)

a decline in taxes

d)

an increase in the number of producers

45.

Refer to Exhibit 3-3. At a price of $1.00,

a)

the market generates a shortage

b)

the market generates a surplus

c)

the market generates equilibrium

d)

the supply will shift outward

46.

Refer to Exhibit 3-3. A shortage would be properly indicated by the distance:

a)

A-B

b)

A-D

c)

C-D

d)

B-C

47.

In order to park on campus, one must purchase an expensive parking permit; yet there still is difficulty finding a parking spot. This indicates ________.

a)

parking permits are priced to high

b)

parking permits are priced to low

c)

we need more parking spots

d)

the first year students should not be allowed to have cars on our campus

48.

As a certain type of clothing becomes more fashionable, we would expect its equilibrium price:

a)

to decrease and quantity will remain constant

b)

and quantity will decrease

c)

to increase and quantity to decrease

d)

and quantity to increase

49.

If supply and demand both shift outward, but demand shifts outward more than supply, the equilibrium price:

a)

will increase and quantity will increase

b)

will increase and quantity will decrease

c)

will decrease and quantity will decrease

d)

will decrease and quantity will increase

50.

An increase in the tax on gasoline would

a)

shift the supply curve outward

b)

shift the supply curve inward

c)

shift the demand curve outward

d)

shift the demand curve inward