Subject: Applied Economics
Grade Level: Grade 11
Topic: Basic Economic Problems in the Philippines
Questions Section:
Question 1: What is the primary economic problem that arises due to limited resources in the
Philippines?
A) Inflation
B) Unemployment
C) Scarcity
D) Trade Deficit
Question 2: Which of the following best describes the term "opportunity cost"?
A) The total cost of an investment
B) The benefit lost when choosing one alternative over another
C) The price of goods in the market
D) The amount of money saved
Question 3: What economic issue is often associated with a high unemployment rate in the
Philippines?
A) Decreased production
B) Increased savings
C) Higher wages
D) Economic growth
Question 4: In the context of food security, what is a significant challenge faced by the Philippines?
A) Overproduction of crops
B) Climate change and natural disasters
C) Excessive imports
D) High levels of urbanization
Question 5: Which of the following is a consequence of inflation in the Philippine economy?
A) Increased purchasing power
B) Decreased cost of living
C) Erosion of savings
D) Higher employment rates
Question 6: What role do remittances play in the Philippine economy?
A) They decrease national income
B) They contribute to poverty alleviation
C) They lead to inflation
D) They are not significant
Question 7: Which of the following correctly identifies a basic economic problem?
A) Balancing the budget
B) Determining the price of goods
C) Allocating limited resources
D) Managing inflation rates
Question 8: What is the primary cause of income inequality in the Philippines?
A) Equal distribution of resources
B) Variations in educational attainment and job opportunities
C) Government regulations
D) High levels of foreign investment
Question 9: Which economic indicator is most commonly used to measure the overall health of the
economy?
A) Gross Domestic Product (GDP)
B) Unemployment Rate
C) Inflation Rate
D) Balance of Trade
Question 10: What is the impact of the informal economy on the overall economic problems in the
Philippines?
A) It reduces poverty levels
B) It contributes to tax revenue
C) It complicates labor statistics and economic planning
D) It has no significant impact
Answer Key Section:
Question 1: What is the primary economic problem that arises due to limited resources in the
Philippines?
Answer: C) Scarcity
Rationale: Scarcity refers to the fundamental economic problem of having seemingly unlimited
human wants in a world of limited resources, which is a key concept in understanding economics.
Question 2: Which of the following best describes the term "opportunity cost"?
Answer: B) The benefit lost when choosing one alternative over another
Rationale: Opportunity cost is a crucial concept in economics that helps individuals and businesses
make informed decisions by considering the cost of forgoing the next best alternative.
Question 3: What economic issue is often associated with a high unemployment rate in the
Philippines?
Answer: A) Decreased production
Rationale: High unemployment typically leads to a decrease in production, as fewer people are
available to work, which can adversely affect economic growth.
Question 4: In the context of food security, what is a significant challenge faced by the Philippines?
Answer: B) Climate change and natural disasters
Rationale: The Philippines is prone to natural disasters and climate change impacts, which threaten
food security by affecting agricultural productivity.
Question 5: Which of the following is a consequence of inflation in the Philippine economy?
Answer: C) Erosion of savings
Rationale: Inflation leads to a decrease in the purchasing power of money, which erodes savings and
can negatively impact individuals' financial security.
Question 6: What role do remittances play in the Philippine economy?
Answer: B) They contribute to poverty alleviation
Rationale: Remittances from overseas Filipino workers are a significant source of income for many
families, helping to reduce poverty levels in the country.
Question 7: Which of the following correctly identifies a basic economic problem?
Answer: C) Allocating limited resources
Rationale: Allocating limited resources is a fundamental economic problem that societies must
address to effectively manage scarcity.
Question 8: What is the primary cause of income inequality in the Philippines?
Answer: B) Variations in educational attainment and job opportunities
Rationale: Differences in education and job opportunities lead to disparities in income, contributing
significantly to income inequality.
Question 9: Which economic indicator is most commonly used to measure the overall health of the
economy?
Answer: A) Gross Domestic Product (GDP)
Rationale: GDP is a key economic indicator that measures the total value of all goods and services
produced in a country, providing insight into its economic health.
Question 10: What is the impact of the informal economy on the overall economic problems in the
Philippines?
Answer: C) It complicates labor statistics and economic planning
Rationale: The informal economy can obscure accurate economic data, making it challenging for
policymakers to plan effectively and address economic issues.
