1.

This is the study that attempts to explain how an economy operates and how the consumer
attempts to maximize his/her wants within limited means.
A. Economics B. Microeconomics C. scarcity D. Macroeconomics
2.This is a condition where there are insufficient resources to satisfy all the needs and wants of a population.
A. Scarcity B. Economics C. insufficiency D. none of the above
3. It investigates the elements that contribute to economic growth, such as an increase in a country's output per capita
through time.
A. GROWTH B. BUSINESS CYCLE C. UNEMPLOYMENT D. INFLATION
4. Economics as ____________ science, because it studies human behavior and how individuals make choices in
allocating scarce resources to satisfy their unlimited wants.
A. Applied B. Scarce C. social D. econometrics
5. Why is it important that there is an application of Economics concepts?
a. When economics is applied to a firm, a household, or a country, it helps to eliminate any attempts to make a
situation appear worse or better than it is.
b. Applied economics serves as a framework for determining what activities can be taken to improve the current
economic condition in a reasonable manner.
c. Applied economics may educate you the way to avoid making costly mistakes.
d. All of the above
6. Why is economics deeply rooted within the concept of scarcity?
a. Because of scarce resources, the economy can supply only a limited amount, it cannot fulfill
all human desires.
b. Because scarcity the standard of economics
c. Because scarcity determines the economic system of a country.
d. Because scarcity identifies the most prevalent problems of the country which in turn used by economists to
come up with solutions to these problems.
7. As a student, which of the following is an application of Applied Economics work in your life situation and your family
as a whole?
a. You complain of rising prices of school supplies.
b. Your mother observed that there is an abrupt increase in the prices of basic commodities.
c. Your father opted to give you extra money for fare and prohibited you to use your own
motorcycle due to increasing prices of gasoline over the past few months.
d. You have heard from Bombo Radyo that the Sanggunian Bayan has approved the base fare for
tricycle setting the minimum fare to Php12 from Php15.
8. These resources are, by nature, limited and so, command a payment that becomes the income of the resource owner.
a. Economic Problems b. Economic Resources c. Contemporary Economic Problems d. None of the above
9. These are factors of production which incudes natural resources that are found in nature and are not man-made.
a. Land b. Labor c. Capital d. Entrepreneurial Ability/Entrepreneurs
10. These are organizers and coordinators of other factors of production
a. Land b. Labor c. Capital d. Entrepreneurial Ability/Entrepreneurs
11. These represents the major physical assets individuals and companies use when producing goods and services
a. Land b. Labor c. Capital d. Entrepreneurial Ability/Entrepreneurs
12. Which of the following statements is/are correct?
I. What to produce establishes the required quantity to be produced.
II. How to produce shows a variety of ways can be used to create a product.
a. Only I is correct b. Only II is correct c. Both I&II are correct d. Both Statements are False
13. Which of the following best describes opportunity costs?
a. Opportunity cost is the next best alternative foregone.
b. Opportunity cost is the mechanism through which society determines the solutions to the basic economic
 issues
c. Opportunity costs are the resources used to produce goods and services
d. Opportunity cost concepts proves that the government are all able to respond to the various needs and wants
of the people without having the struggle of which needs to be addressed first.
14. The following statements are true about Gross National Product (GNP) EXCEPT
a. GNP provides vital data on manufacturing, savings, investments, employment, significant company production
outputs, and other economic indicators and this data is used by policymakers to create policy papers that
legislators use to pass laws.
b. GNP data is used by economists to solve national issues such as inflation and poverty.
c. GNP becomes a more trustworthy statistic than GDP when assessing the amount of income earned by a
country's citizens independent of their location.
d. GNP measures the value of a nation’s finished domestic goods and services during a specific time period
15. The following are characteristics of a Market Economic System EXCEPT
a. Industries are owned and managed by the government
b. There is an ease of starting up a new business.
c. It has lower costs of gods.
d. There is open competition.

Given the table below are the data in calculating GNP/GDP by expenditure approach. Arrange the following variables
according to the given official formula in calculating GNP by supplying blanks below the table. Copy the format in your
activity notebook where you are going to write your answers. Here, is the official formula for calculating GNP
Y = C + I + G + (X-M)
TYPES OF EXPENDITURE AMOUNT
Capital formation ₱ 1,849,380
Household final consumption ₱ 6,442,033
Exports ₱ 3,133,507
imports ₱ 3,296,732
Government final consumption ₱ 875,291
Net factor income from the rest of the world ₱ 1,848,952

16. How much is the Investments based on the table?

a. ₱ 1,848,952 b. ₱ 1,849,380 c. ₱ 6,442,033 d. ₱ 875,291
17. How much is the Consumption expenditures?
a. ₱ 1,848,952 b. ₱ 2,724,671 c. ₱ 6,442,033 d. ₱ 7,317,324
18. Using the formula GDP = Consumption + Investment + Government Expenditure + Exports – Imports, how much is
the Gross Domestic Product (GDP)?
a. ₱9,003,479 b. ₱1,848,952 c. ₱10,852,43 d. ₱ 7,317,324
19. In the computation of Gross National Product, the value of exports is deducted from the value of imports. How
much is the Net Import of the given problem?
a. ₱ 163,225 b. ₱175, 262 c. ₱ 6,430,239 d. ₱ 1,447,780
20. How much is the expenditure of the government?
a. ₱ 1,848,952 b. ₱ 1,849,380 c. ₱ 6,442,033 d. ₱ 875,291