QUIZ 1
APPLIED ECONOMICS
NAME: __________________________________________ DATE: _________________
GRADE/SECTION: ____________________________
PART I. MULTIPLE CHOICE
DIRECTION: Read the following questions carefully and encircle the best answer.
1. What do you call the effective management of scarce resources to satisfy unlimited human wants
and needs?
a. Applied economics c. Social science
b. Economics d. Applied science
2. Economics comes from the two Greek words:
a. Oikos – nomus c. oikonumus
b. Oikonomia d. demos-kratos
3. A field of economics that is concerned with using economic theories and models, as well as
related principles and concepts, to understand contemporary socioeconomic issues.
a. Applied economics c. Social science
b. Economics d. Applied science
4. What is the study of society and how people behave and influence the world around them?
a. Applied economics c. Social science
b. Economics d. Applied science
5. Which part of economics whose subject matter study is individual units, for instance, a consumer,
a household, a firm, an industry, and the likes?
a. Applied economics c. Macroeconomics
b. Microeconomics d. Economics
6. It is the application of existing scientific knowledge to practical applications.
a. Applied economics c. Macroeconomics
b. Social science d. Applied economics
7. What is the fundamental concept of economics?
a. Scarcity b. Needs c. Wants d. Resources
8. The following are the economic resources and factors of production, except:
a. Land b. Labor c. Money d. Capital
9. What do you call the human inputs such as manpower skills that are used in transforming
resources from different products that meet our needs?
a. Land b. Labor c. Money d. Capital
10. What economic system is where all economic resources are owned by private entities?
a. Capitalism c. Command economic system
b. Communism d. mixed economic system
11. Which of the following is not an economic problem that hindrance to the development?
a. Poverty b. Inflation c. Scarcity d. Unemployment
12. This/ is the condition where a population is only able to meet its basic subsistence needs such as
food, clothing, and sh - [
13.
14. elter.
a. Poverty b. Inflation c. Scarcity d. Unemployment
15. It refers to the portion of the labor force that is willing to engage in productive activities yet fails to
do so.
a. Poverty b. Inflation c. Inequality d. Unemployment
16. What do you call the sustained and continual increase in the prices of goods and services.
Economic?XER F
a. Inflation b. Inequality c. Poverty d. Unemployment.
17. The following are the common causes of poverty, except:
a. Increase in population c. Laziness
b. Increase in cost-of-living d. Unemployment
PART II. FIND THE OPPORTUNITY COST
Production Possibilities table for fruit juice and cola
PRODUCT A B C D E F G H
Fruit Juice 0 10 20 30 40 50 60 70
Cola 35 30 25 20 15 10 5 0
Indicate the opportunity cost of moving from
18. A to D _____________________
19. B to H _____________________
20. C to G _____________________
21. H to C _____________________
22. G to A _____________________
PART III. ESSAY (10 POINTS)
1. What is the relationship between economics and scarcity? Explain your answer.
15. The following are the common causes of poverty, except:
c. Increase in population c. Laziness
d. Increase in cost-of-living d. Unemployment
PART II. FIND THE OPPORTUNITY COST
Production Possibilities table for fruit juice and cola
PRODUCT A B C D E F G H
Fruit Juice 0 9 18 27 36 54 63 72
Cola 42 36 30 24 18 12 6 0
Indicate the opportunity cost of moving from
16. A to C _____________________
17. B to F_____________________
18. C to H _____________________
19. H to E _____________________
20. G to D _____________________
PART III. ESSAY (10 POINTS)
1. What is the relationship between economics and scarcity? Explain your answer.
15. The following are the common causes of poverty, except:
e. Increase in population c. Laziness
f. Increase in cost-of-living d. Unemployment
PART II. FIND THE OPPORTUNITY COST
Production Possibilities table for fruit juice and cola
PRODUCT A B C D E F G H
Fruit Juice 0 8 16 24 32 40 48 56
Cola 70 60 50 40 30 20 10 0
Indicate the opportunity cost of moving from
16. A to B _____________________
17. B to G_____________________
18. C to H _____________________
19. H to F _____________________
20. G to C _____________________
PART III. ESSAY (10 POINTS)
1. What is the relationship between economics and scarcity? Explain your answer.
