Republic of the Philippines

DEPARTMENT OF EDUCATION
Region 02
Division of Tuguegrao City
CAGAYAN NATIONAL HIGH SCHOOL
Tuguegarao City
FIRST QUARTERLY EXAMINATION-SECOND SEMESTER
APPLIED ECONOMICS
School Year 2018-2019

I. IDENTIFICATION. Write the letter of the correct answer on the answer sheet provided. You can use the
table below for your answer.
A Services I Wages
B Entrepreneur J Capital
C Profit K Labor
D Land L Interest
E Not enough of everything to satisfy M Land, Labor, Capital, Entrepreneurial ability
everybody’s wants
F Goods N Production
G Rent O Consumption
H Economics

1. Factors of production value

2. Scarcity
3. Natural Resources
4. Capital
5. Entrepreneurial ability
6. Human resources
7. Intangible items
8. Risk taker
9. Price paid for the use of labor
10. Machinery and tools are examples of which factors of production
11. Tangible items of value
12. The return for land
13. Social science that describes how society chooses from among scarce resources
14. The act of making goods and services
15. The act of using the goods produced

B. Classify the following topics. Write MIC if it falls under MICROECONOMICS; MAC, if it falls under
MACROECONOMICS.
11. The inflation rate in the Philippines in the last quarter of 2018 was 6.6%.
12. Prices of Toyota vehicles are predicted to go up in December 2018
13. Unemployment rate has dropped because of the increase in the number of OFWs.
14. Garlic prices in the past months have risen because producers hoarded their supplies
in their bodegas.
15. A P340-billion deficits in the Philippine budget is expected in this year.
16. Decision of the worker to work less due to low wages
17. Total of laborers and unemployment
18. Firms reaction due to increased in demands for its product
19. Effects on total production of coconut in the Philippines
20. Government legislations aimed at increasing taxes for profits for all firms in the Philippines

III. MULTIPLE CHOICES. Read each question carefully and choose the letter of the best answer from
the given choices. Write the letter of the best answer.
21. Which of the following statement about market is correct?
a. It is an interaction between buyers and sellers of trading or exchange.
b. It is where a person who has excess goods can dispose to those who need it.
c. It is engage in the commercial promotion, sale, or distribution of.
d. All of the above
22. A type of market which includes the stock market where securities of corporations are traded.
a. Good Market c. Labor Market
 b. Financial Market d. Competitive Market
23. What type of market where workers offer services and looks for jobs, where employers look for
workers to hire.
a. Good Market c. Labor Market
b. Financial Market d. Competitive Market
24. Which of the following will an increase in demand accompanied by a simultaneous decrease in supply
results in?
a. A change in equilibrium quantity c. Decrease in equilibrium price
b. A decrease in equilibrium quantity d. Increase in equilibrium price
25. Demand shows the relationship between
a. Income and quantity needed per unit of time
b. Price of a good and the available quantity of that good per unit of time
c. The price of a good and the quantity consumers are willing and able to buy in a given time period
d. Income and quantity demanded per unit of time
26. Which of the following non-price determinants of demand does not belong to the group?
a. Cost of production c. Price of related goods
b. Number of consumer d. Taste for a product
27. Which of the following non-price determinants of supply does not belong to the group?
a. Consumer’s income c. Availability of raw materials
b. Technology d. Production cost
28. The curve shows the relationship between the price of a good and the quantity that consumers are
willing to purchase at each price is the
a. Supply curve c. Production possibilities curve
b. demand curve d. consumption curve
29. If equilibrium is present in the market,
a. The price of the product will tend to rise
b. Quantity demanded equals quantity supplied
c. Quantity demanded exceeds quantity supplied
d. Quantity supplied exceeds quantity demanded
30. Which of the following correct with respect to a firms supply of a given product? The supply curve
shows
a. The amount of profit that will be earned for various output levels
b. The amount of the good that will be able available for sale at various prices
c. An inverse relationship between price and quantity supplied
d. The amounts of a good that will be sold at various prices
31. If the real income o the consumer decreases, and as result, this demand for product X increases, it can
be concluded that product X is a/an
a. Complementary goods c. Inferior good
b. Normal good d. substitute good
32. If beer and junk food are complementary goods, then an increase in the price of beer will result in:
a. An increase in the demand for junk food are complimentary goods, then an increase in the price of
beer will result in;
a. An increase in the demand for junk food
b. An increase in the demand for beer
c. a decrease in the demand for junk food
d. A decrease in the demand for beer
33. Which of the following will cause the demand curve for gasoline to shift to the right?
a. A fall in the price of cars
b. an increase in the supply of gasoline
c. a fall in the price of gasoline
d. A rise in the price of cars
34. When there is a shortage in a market?
a. A consumers are willing to buy more of the good at the current price
b. The equilibrium price is below zero
c. Quantity supplied exceeds quantity demanded
d. Firms are willing to sell more of the gods at the current price
35. In perfect competition:
Statement I – There is a large number of independent sellers.
Statement II – Products are identical or homogeneous.
Statement III – No single seller and no single buyer can influence the change
a. All statements are true c. Statement I and II is true
 b. Only statement I is false d. All statements are false
36. In imperfect competition under monopoly:
Statement I – There is limited control of price
Statement II – There is only one producer or seller
Statement III – Products are unique in the sense that there is no good or close substitute
available.
a. All statements are true c. Statement I and II is true
b. Only statement I is false d. All statements are false
37. In imperfect competition under monopolistic competition:
Statement I – There is a large number of sellers acting independently.
Statement II – Products are unique
Statement III – Entry of new firms in the market is relatively easy
a. All statements are true c. Statement I and II is true
b. Only statement II is false d. All statements are false
38. In imperfect competition under oligopoly:
Statement I – There are very few firms which dominate the market
Statement II –There is a price agreement among the producers to promote their own
Statement III – The entry of new competitors in the market is difficult.
a. All statements are true c. Statement I and II is true
b. Only statement I is false d. All statements are false
39. What is the difference between perfect competition and monopolistic competition?
a. Perfect competition has a large number of small firms while monopolistic competition does not
b. In perfect competition, firms produce identical products, while in monopolistic competition does not
c. Perfect competition has no barriers to entry, while monopolistic competition does
d. Perfect competition has barriers to entry while monopolistic competition does not
40. Which of the following market types has all firms selling products so identical that buyers do not care
from which firm they buy?
a. Perfect competition b. Monopolistic competition c. Oligopoly d. Monopoly
41. Which of the following is the best example of a perfect competitive markets?
a. Diamonds c. athletic shoes
b. Soft drinks d. Farming
42. Which of the following market types has the fewest number of firms?
a. Perfect competition c. Monopolistic competition
b. Monopoly d. Oligopoly
43. Which of the following market types has a large number of firms that sell similar but slightly different
products?
a. Perfect competition c. Monopolistic competition
b. Oligopoly d. Monopoly
44. Which of the following market types has only a few competing firms?
a. Perfect competition c. Monopolistic competition
b. Oligopoly d. Monopoly
45. One of the requirements for a monopoly is that
a. The product cannot be produce by small firms
b. There are several close substitutes for the product
c. There is a unique product with no close substitutes
d. Products are high priced
46. An industry with large number of firms, differentiated products, and free entry and exit is called
a. Oligopoly c. Monopolistic competition
b. Monopoly d. Perfect competition
47. Marketing consists of what?
a. selling at lower price than rivals sells for
b. Producing more output to lower average costs
c. advertising and packaging
d. None of these
48. In monopolistically competitive seller can convince buyers that its products is of better quality and value
than products sold by rival firms,
a. Demand increases c. The firm gains more control over its price
b. Demand more inelastic d. all of these
50. A differentiated products has
a. Many perfect substitutes c. No close substitutes
b. Close but not perfect substitutes d. No substitutes of any kind
 51. It is anything that is generally accepted in payment for goods and services?
a. Money b. Wages c. Capital d. None of these
52. What do you call the raw materials or primary agricultural products that can be bought and sold in the
market like corn, crude oil, copper, etc?
a. Commodities b. Luxury goods c. Both a and b d. Neither a nor b
53. It is defined as the people who are willing and able to work.
a. Labor force b. Underemployment c. Full time workers d. Both a and c
54. What goods will consumers shift in when the price of a particular item increases?
a. Substitute goods b. Complementary goods c. basic goods d. none of these

IV. COMPUTATION. Compute for the Quantity Demand and Supply schedules for T-shirts

Prepared by: Certified Correct:

BABYLYN T. IMPERIO RICHARD N. ROMERO, DME

Subject Teacher Subject Coordinator

Recommending Approval: Approved:

MARIA DIGNA A. TURINGAN NOEMI O OBCENA Ph.D

Assitant Principal II, for Academemics Principal IV

NAME:___________________________________ GRADE/ SECTION: __________ SCORE:

1 11 21 31 41 51
2 12 22 32 42 52
3 13 23 33 43 53
4 14 24 34 44 54
5 15 25 35 45 55
6 16 26 36 46 56
7 17 27 37 47 57
8 18 28 38 48 58
9 19 29 39 49 59
10 20 30 40 50 60

DO COMPUTATIONS HERE:

55- 56.