THIRD MONTHLY EXAMINATION

APPLIED ECONOMICS
Name: Score:
Section: Date:

I. Identification ______1.

I. When people faced with scarce resources,

______________1. It is the study of goods and services, they are forced to make choices.
production, consumption, and the proper allocation of II. As far as Economics is concerned, we
earth’s limited resources. cannot have two things at the same time.
______________2. It is the situation in which the people
have to choose between two things that cannot be had ______2.
or done at the same time.
______________3. It is a situations in which people I. Resources is scarce
cannot have everything that they want because of limited II. Goods and services are scarce
resources.
______________4. It is a situation in which the demand ______3.
for a product or service exceeds its supply in a market.
______________5. It is defined as the benefit you give I. The term input is a part of the more general
up because you choose to take one action in favor of term
another. II. The term resources refers to all the things
______________6. It is considered as the mother of all that are used to produce goods and
the branches of Social Science. services.
______________7. This is the science of government.
______________8. It takes a close – up view of the ______4.
economy and analyzes individual parts of an economy.
______________9. Stands back from individual parts of I. Microeconomics focuses on the behavior
an economy and takes an overall view of the economy. and decision making of the government
______________10. It refers to the process of producing II. Macroeconomics is studying the behavior of
or creating goods and services needed by the the two main actor which is the consumer
households to satisfy their needs. and the producer.
______________11. It refers to the proper utilization of
______5.
economic goods.
______________12. It refers to the marketing of goods
I. Contractionary Fiscal Policy is when the
and services to different economic outlets for allocation
government expands the money supply in
to individual consumers.
the economy.
______________13. It is the ability of an individual or
II. Expansionary Fiscal Policy is the decreased
group to carry out a particular economic activity (such as
in government spending or increased
making a specific product) more efficiently than another
taxation.
activity.
______________14. It is the lifeblood of the ______6.
government.
______________15. Shoe repair and computer I. As the price of crude oil in the world market
maintenance is an example of _______________ raise, the price of almost every goods and
services will increase
II. Increasing the wages of our labor force will
not affect the price of goods and service
For items no. 1 -10, write:
A. Statement I is TRUE and II is FALSE
B. Statement I is FALSE and II is TRUE
C. Both statements are TRUE
D. Both statements are FALSE

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______7. 4. It occurs when its productive capacity is unable
to keep pace with growing aggregate demand.
I. Luxury goods is under the category of a. Hoarding
Elastic demand b. Overheated Economy
II. Elastic demand is when price or other c. Depression
factors have a big effect on the quantity of d. Recession
consumers want to buy. 5. In economics and political science, it is the use
of government revenue collection and
______8. expenditure to influence the economy.
a. Expansionary Fiscal Policy
I. Inelastic Demand is one when there is no b. Contractionary Fiscal Policy
change produced in the demand of a c. Fiscal
product with change in its price d. Fiscal Policy
II. Basic Needs is under the category of 6. It is the exclusive possession or control of the
Inelastic demand supply or trade in a commodity or service.
a. Monopoly
______9. b. Oligopoly
c. Monopolistic Competition
I. Elastic Demand d. Duopoly
7. It is a market structure wherein a market or
industry is dominated by a small number of
sellers.
a. Monopoly
b. Oligopoly
c. Monopolistic Competition
II. Inelastic Demand d. Duopoly
8. It is a market structure wherein two suppliers
dominate the market for a commodity or service.
a. Monopoly
b. Oligopoly
c. Monopolistic Competition
d. Duopoly
______10.
9. It is a type of imperfect competition that many
producers sell products that are differentiated
I. Law of demand dictates that if the price will
form one another.
increase, the demand will decrease.
a. Monopoly
II. Law of supply dictates that if the price will
b. Oligopoly
increase, the supply will decrease.
c. Monopolistic Competition
d. Duopoly
III. Multiple Choice 10. The situation prevailing in a market in which
buyers and sellers are so numerous and well
1. It is an economic principle that describes a informed that all elements of a monopoly are
consumer’s desire and willingness to pay a price absent and the market price of a commodity is
for a specific good and service. beyond the control of individual buyers and
a. Demand sellers.
b. Supply a. Oligopolistic Competition
c. Product b. Perfect Competition
d. Scarcity c. Monopsony
2. It is a microeconomic law that states, all other d. Monopoly
factors being equal, as the price of a good or
For items no. 11 -20, write:
services increases, consumer demand for the
A. Monopoly
good or service will decrease, and vice versa.
B. Oligopoly
a. Overheated economy
C. Monopolistic Competition
b. Law of demand
D. Duopoly
c. Law of supply
E. Monopsony
d. Ceteris Paribus
3. What is the relationship of price and demand?
______11. Power Distributor
a. Direct
______12. Maynilad
b. Indirect
______13. Tarlac – Pangasinan – La Union Expressway
c. Equal
(TPLEX)
d. None of the above
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______14. Products of Uniliver
______15. Telecommunications
______16. Government
______17. Public Market
______18. Chevron
______19. Philippine Airline
______20. Jolibee Food Corp.

Demand (Show your solution)

USING OF CALCULATOR IS STRICTLY PROHIBITED

Demand Function

QD = 120-4P

Demand Schedule (1 point each)

Point QD Price
A 0
B 24
C 40
C 18
E 72

Demand Curve (5 points)

Interval

Price (5)
Demand (10)

Price Elasticity Demand (5 points)

P1 = 120 Q1 = 160
P2 = 200 Q2 = 120

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