Republic of the Philippines

Department of Education
REGION III
SCHOOLS DIVISION OF TARLAC PROVINCE
GERONA NORTH DISTRICT

FIRST QUARTER EXAM in

Name: __________________________________________ Date: ____________________________

Read each question very carefully. Write the correct answer on the space provided.
1. It is a condition where there are insufficient resources to satisfy all the needs and wants of a population.
A. Shortage C. Surplus
B. Scarcity D. Equilibrium
2. It is also known as factors of production, where the resources are used to produce goods and services. These
resources are, by nature, limited and therefore, command a payment that becomes the income of the resource
owner.
A. economic resources C. political resources
B. environmental resources D. industrial resources
3. It refers to physical and human effort exerted in production. It covers manual workers like construction
workers, machine operators, and production workers, as well as professionals.
A. land C. capital
B. labor D. entrepreneurship
5. Which of the following does not belong to the group?
A. land C. capital
B. labor D. entrepreneurship
6. It involves the use of scarce resource to satisfy the unlimited needs and wants of human.
A. economics C. applied economics
B. social science D. economic model
7. It refers to the study of society and how people behave and influence the world around them.
A. economics C. applied economics
B. social science D. economic model
8. It is the application of economic theory and econometrics in specific settings with the goal of analyzing
potential outcomes.
A. applied economics C. economic model
B. social economics D. economic theory
9. It refers to the application of mathematics and statistics to the study of economic and financial data.
A. economic model C. econometrics
B. Economics D. economic theory
10. It is the formulation of general theories through testing and historical data of the phenomena.
A. economics C. applied science
B. econometrics D. social science
11. It refers to natural resources or sometimes called “free gifts of nature”.
A. land C. labor
B. capital D. entrepreneurship
12. Economic theory is all about ideas, theories and models. Applied Economics is the application of economics
theories, practices and models to real life situation.
A. Both statements are true.
B. Both statements are false
C. First statement is true; second statement is false.
Address: Quezon, Gerona, Tarlac
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 D. First statement is false; second statement is true.
13. Which of the following is an example of economic issue?
A. volcanic eruption C. drop-out rate
B. inflation D. drug addiction
14. Why would most of the Filipinos like to work in other countries?
A. looking for greener pasture C. because of inflation
B. they love to travel D. because it is safer in other countries
15. He is known to be the first person who use the phrase “applied economics”.
A. Adam Smith C. John Keynes
B. Maxx Weber D. Thomas Malthus
16. It refers to a person who does not have a job.
A. employed C. unemployed
B. underemployed D. none of the above
17. What do you call the number of people aged 15 above willing and able to work?
A. employment C. labor force
B. population D. none of the above
18. What is the condition where you cannot meet or purchase your basic necessities?
A. scarcity C. poverty
B. purchasing power D. shortage
19. The following are effects of poverty EXCEPT
A. high economic growth C. low economic growth
B. weak agricultural sectors D. increased population rates
20. The following are causes of poverty EXCEPT
A. crime C. robbery
B. malnutrition D. peace and order
21. What is market demand?
A. The household demands
B. The sum of all individual demand
C. The number of items a person is willing to buy
D. The collection of all products a person is willing to sell
22. What is market supply?
A. The firms supply
B. The sum of all individual supply
C. The number of items a firm is willing to sell
D. The collection of all products a person is willing to buy
23. Which of the following law describes the behavior of people wherein price increases the quantity of products
people buy tends to lessen and when price decreases the quantity of products people buy tends to increase?
A. Law of Supply C. Law of Diminishing Marginal Utility
B. Law of Demand D. Law of Nature
24. It is a point in a curve where the demand and supply meet or intersect.
A. Equilibrium C. Supply
B. Demand D. Origin
25. What do you call the individual sellers in the market?
A. Household C. Supply
B. Customer D. Firm
26. Which of the following is also known as individual demand?
A. Household C. Supply
B. Costumer D. Firm
27. Which of the following refers to the number of products a seller is willing to sell?
A. Equilibrium C. Supply
B. Demand D. Origin
28. Which of the following refers to the number of products a person is willing and able to buy?
A. Equilibrium C. Supply
B. Demand D. Origin
29. It is a state in the economy where there is a balance between price, quantity demand and quantity supplied.
A. Shortage B. Surplus
 C. Equilibrium D. Price Ceiling
30. A situation that arises when the price is set above the equilibrium price.
A. Shortage C. Price Floor
B. Surplus D. Price Ceiling
31. It is an economic situation that can resolved by putting products that are affected on sale.
A. Shortage C. Price Floor
B. Surplus D. Price Ceiling
32. The government imposing minimum wage is an example of _____?
A. Shortage C. Price Floor
B. Surplus D. Price Ceiling
33. Which of the following is the best solution for shortage?
A. Decrease in price C. Increase in price
B. Import D. Change business
34. Given the price of 10 with the demand of 12 and supply of 3 what situation the economy is in?
A. Shortage C. Price floor
B. Surplus D. Price ceiling
35. Ella an airline owner is affected by the pandemic for only few people are traveling. What possible solution can
she apply for her business to survive?
A. Increase price C. Shut the business
B. Put on sale D. Do nothing
36. What is surplus?
A. A consumer’s willingness to pay given a price for a particular good or service.
B. More items available for sale than people want to purchase.
C. The amount of product that producers are willing to sell given a particular price.
D. More people want an item than is available for purchase
37. It is also referred to as pure or free competition.
A. Perfect Competition C. Monopolistic Competition
B. Monopoly D. Oligopoly
38. It is a market structure wherein there are only few sellers involved.
A. Perfect Competition C. Monopolistic Competition
B. Monopoly D. Oligopoly
39. Barriers to entry and exit are blocked. Wherein no one is able to enter due to high capital needs.
A. Perfect Competition C. Monopolistic Competition
B. Monopoly D. Oligopoly
40. It is a combination of monopoly and perfect competition.
A. Perfect Competition C. Monopolistic Competition
B. Monopoly D. Oligopoly
Directions: Identify each item if true by writing T and if false write F before each number.
_______41. Oligopoly is a market structure that has few sellers.
_______42. Among all market structures monopoly is the most competitive in nature
_______43. Market structure is a descriptive organizational term for discussing the economics of the market and
other characteristics of the market.
_______44. Perfect Competition has no barrier to entry and exit
_______45. Differentiated products are goods that are similar but has distinct characteristic than others.
_______46. Low rental fees mean more businesses will be created.
_______47. High interest in external borrowings attracts potential investors.
_______48. Increase in minimum wage will increase the buying power of workers.
_______49. High tax rates mean less investors.
_______50. Entrepreneurs always consider the following when making business decisions: rental fees, tax rates,
minimum wage rate, amount of investment and the interest rate.
 Prepared by:

KRISTINE BERNADETTE T. MARTINEZ

Checked by:

JOSEPHEN D. LACAYANGA
HT – III

Noted:

WILLY Q. MAMARADLO
Principal I