Midterm Exam

Republic of the Philippines
Department of Education
Region III – Central Luzon
Schools Division Office of Pampanga
District of San Simon
Sta. Monica High School
Sta. Monica, San Simon, Pampanga
MIDTERM EXAMINATION
APPLIED ECONOMICS
I. MULTIPLE CHOICE. Write only the letter of the best answer.
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. ow to operate a business
c. people making choices because of the problem of scarcity d. the government decision-making
process
3. Scarcity exists __________

a. in all countries of the world b. only in poor nations
c. only in rich nations d. when people consumer 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. the 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. Which of the following decisions must be made by all economics?

a. How much to produce? When to produce? How much does it cost?
b. What is the price? Who will produce it? Who will consume it?
c. What to produce? How to produce it? For whom to produce?
d. none of the above
9. Because of mechanization and mass production, Pepsi Cola used machineries to produced goods,
which of the following methods used by Pepsi Cola?
a. capital-intensive production process b. labor-intensive production process
c. mixed production process d. product-based technology process
10. 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
11. 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 0-18.
a. 4 Ps b. free education c. free housing d. free meal
12. 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 b. Clean Air Act c. Ecological Solid Waste Management d. Total ban on mining
13. Which of the following solution that mitigates the limited capacity of our energy infrastructure resulted to
daily interruptions of electricity?
a. enhances transportation system
b. expanding energy production capacity
c. entices the participation of private sector on marine facilities
d. improves the collection efficiency of energy producing company
14. Which of the following positive impact of 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
15. This reflects the consumer’s desire for a commodity.

a. demand b. good c. price d. supply
16. This is the amount of commodity available for sale.

a. demand b. good c. price d. supply
17. 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. downward to right b. upward to right c. shift to left d. shift to right
18. Through information and technology improvements there is substantial lowered cost of producing cell
phones. There is a possibility that the supply will:
a. downward to right b. upward to right c. shift to left d. shift to right
19. 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. shift of the demand curve to the right and shift of the supply curve to the left
d. shift of the demand curve to the left and shift of the supply curve to the right
20. 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, this is an example occurs in ______
a. disequilibrium b. equilibrium c. market pressure d. market situation
21. If the quantity demanded is greater than quantity supplied, there is _______.
a. excess demand b. excess supply c. no excess d. competition
22. A decrease in the number of sellers shifts the demand curve to the:
a. downward b. upward c. left d. right
23. 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. the price of land or rent is negative
24.. 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 & c
25. 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
26. 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
27. Oligopoly sellers producing similar and differentiated products. This characterize that the products are
____
a. heterogeneous products b. homogenous products c. single products d. both a & b
28. Which of the following best describes perfect competition?

a. numerous firms and buyers b. few seller and buyers c. single seller and buyer d. sellers are
powerful
29. Car manufacturing firms, airlines company and telecommunication companies are an example of
_______
a. monopoly b. monopolistic competition c. oligopoly d. perfect competition
II. TRUE OR FALSE.
30. Provide free meals, housing and adequate clothing are the most appropriate intervention for the
people who are in the absolute poverty.
31. Adequate and strong infrastructure of a country has debilitating effects on the individuals,
households, business firms, and economy
32. The constrained of the productivity capacity of our economy is the prudent use of our natural
resources.
33. The supply of OFWs is positively influenced by the foreign wage rate.
34. The supply of labor is also influenced by the wage rate, if wage rate is very low, very few laborers
are willing to work.
35. The objective of the government in setting the minimum wage is to provide indecent life for workers.
36. An example of price floor is the minimum wage which used by the government to prevent from
being too low.
III. ESSAY.
37-39. Graph/Plot the hypothetical data. Determine the Equilibrium price and quantity
Price (Peanuts) Quantity Demanded Quantity Supplied
5 60 20
10 50 30
15 40 40
20 30 50
25 20 60
40-42. Make an analysis on the Law of Supply.

43-45. Make an analysis on the Law of Demand.
46-50. Analyze the effects of unemployment on the purchasing power of the people.
Prepared By: Checked & Reviewed By: Approved By:
MA. ANGELICA I. CUNANAN MARITES C. MONTEMAYOR IMDELDA R. CABRERA

SST-I HT-III/TLE SCHOOL HEAD

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Republic of the Philippines

I. MULTIPLE CHOICE. Write only the letter of the best answer.

2. Economics is the study of ____

3. Scarcity exists __________

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

5. These resources command a price.

6. Which of the following is not a resource?

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

8. Which of the following decisions must be made by all economics?

15. This reflects the consumer’s desire for a commodity.

16. This is the amount of commodity available for sale.

26. Which of the following describes monopoly market structure?

28. Which of the following best describes perfect competition?

II. TRUE OR FALSE.

40-42. Make an analysis on the Law of Supply.

Prepared By: Checked & Reviewed By: Approved By:

MA. ANGELICA I. CUNANAN MARITES C. MONTEMAYOR IMDELDA R. CABRERA

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