Name: _______________________________________ Score:________________
Section:______________________________________ Date:________________
Periodical Test in Applied Economics
I. Modified True or False (2pts)
Direction: Write TRUE if the statement is correct but if it’s false change the underlined word or group of
words to make the whole statement true.
____________1. Scarcity is the insufficiency of resources to meet the wants of consumers
and the insufficiency of resources of producers.
____________2. Owners of lands receive a payment known as wage.
____________3. Economics is the social science that involves the use of scarce resources to
satisfy unlimited wants .
____________4. The owner of capital earns an income called Interest.
____________5. Microeconomics is a division of economics that is concerned with the
overall performance of the entire company
____________6. Market Economy or System is the authoritative system where in decision-
making is centralized in the government or a planning committee.
____________7. How to produce is a question on the production method that will be used to
produce the goods and services.
____________8. Traditional Economy or System, the methods are stagnant and therefore not
progressive.
____________9. Macroeconomics is concerned with the behavior of individual entities.
____________10. What to produce and how much is about the market for the goods. For whom will the
goods and service be produced.
II. Fill in the Blanks
Direction: Fill the blank with the appropriate words written in the box. Write your anwers on the space
provided.
Income Albert maximize capital scarce social mankind wants opportunity
material cost connected decisions risk Alfred rent Mershall
scarcity Marshall interests science satisfy Choice Chosen wage
1. ___________ ____________ described economics as study of ___________ in the ordinary business
life. It examines part of the individual and social action that is most ______________ with the
attainment and use of ___________ requisites of well-being
2. ___________ and decision making, because of the presence of ___________, there is a need for man
to make ______________ in choosing how to ___________ the use of the scarce resources to satisfy as
many _______ as possible
3. Land, soil and ________ ____________ that are found in nature and are not ________. Owners of
lands receive payment known for _______
4. Economic as _________ __________, studies how individuals make choices in allocating _______
resources to _______ their unlimited wants.
5. _________________ ________ refers to the value of the best foregone alternative.
III. Classify the following topics. Write if it is Microeconomics or Macroeconomics
1. The inflation rate in the Philippines in the last quarter of 2015 was 5.1% _____________
2. Motorists complain for high gasoline prices.___________________________
3. Garlic prices in the past months have risen because producers hoarded their supplies in their
bodegas.__________________________________
4. Philippine Economy was expanded more than 6.7% rate last year.__________________
5. In June, when the school year starts, the number of consumers of school supplies normally goes up.
B. Determine if the following value of the coefficient is Elastic, Inelastic & Unitary Elastic
1. If the price of LPG increases by 10% and as a result the quantity demanded goes down by 12
%.______________________________
2. The price of cellphone load goes up by 5% and the quantity demanded goes down by
3%________________________________
3. The price of string beans goes down by 6% and as a result the quantity demanded goes up by
6%___________________________
4. The price of All Beverages goes up by 8% and the quantity demanded goes down by
2%_________________________________
5. The price of cigarettes goes down by 11% and as a result the quantity demanded goes up by
11%______________________________
IV. Definition of Terms. (2pts.)
Direction: Define the given words based on Applied Economics.
1. Elastic-_________________________________________________________________
______________________________________________________
2. Perfect Competition-_______________________________________________________
_________________________________________________________________
3. Law of Demand-_________________________________________________________
_________________________________________________________________
4. Law of Supply-___________________________________________________________
_________________________________________________________________
5. Income Effect-__________________________________________________________
________________________________________________________________
6. Market-_______________________________________________________________
________________________________________________________________
7. Inelastic-_______________________________________________________________
________________________________________________________________
8. Demand-_______________________________________________________________
_________________________________________________________________
9. Financial Market-__________________________________________________________
__________________________________________________________________
10. Labor Market-____________________________________________________________
__________________________________________________________________
11. Macroeconomics-_________________________________________________________
________________________________________________________________________
12. Goods-__________________________________________________________________
________________________________________________________________________
13. Services-________________________________________________________________
14. Capital -_________________________________________________________________
15. Labor-__________________________________________________________________
Prepared by:
HADASSA BATI CAMAYA
