Scribd
Upload
36 views4 pages

Applied Economics Pretest 2023-2024

The document is a pretest for applied economics consisting of 30 multiple choice questions covering key concepts in economics. It tests students' understanding of fundamental topics like the four factors of production, microeconomics vs macroeconomics, scarcity, supply and demand, inflation, GDP, money as a medium of exchange, taxes, investment, and opportunity cost. The pretest was prepared by the subject teacher to evaluate students' baseline knowledge of essential economic terms and principles.

Uploaded by

Shane Bellen
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
36 views4 pages

Applied Economics Pretest 2023-2024

The document is a pretest for applied economics consisting of 30 multiple choice questions covering key concepts in economics. It tests students' understanding of fundamental topics like the four factors of production, microeconomics vs macroeconomics, scarcity, supply and demand, inflation, GDP, money as a medium of exchange, taxes, investment, and opportunity cost. The pretest was prepared by the subject teacher to evaluate students' baseline knowledge of essential economic terms and principles.

Uploaded by

Shane Bellen
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

NAGA COLLEGE FOUNDATION, INC.

M.T Villanueva, Naga City


BASIC EDUCATION DEPARTMENT
SENIOR HIGH SCHOOL
S/Y 2023-2024

PRETEST
APPLIED ECONOMICS

Name_______________________Grade/Section____________Date________Score___

I. MULTIPLE CHOICES. (30 points).

Direction: Read each question carefully and Circle the corresponding letter of your
answer.

1. He is known as the Father of Modern Economics.


a. Adam Smith c. Karl Marx
b. Rene Descartes d. Thomas Robert Malthus

2. It is derived from the Economics etymology which came from the two Greek
words “oiko” and “nomos”
a. management of the market c. management of the bank
b. management of the money d. management of household

3. This is the insufficiency in resources to meet the wants and needs of the
consumers.
a. scarcity c. depression
b. inflation d. recession

4. These are the four (4) fundamental factors of production.


a. Land, Labor, Capital, Entrepreneurship c. Land, Wage, Rent, Capital
b. Land, Labor, Rent, Entrepreneurship d. Land, Capital, Labor, Money

5. This is the application of economic theory to determine the likely outcomes


associated with various possible courses of action in the real world.
a. Applied Economics c. Microeconomics
b. Macroeconomics d. Econometrics

6. This is a branch of economics that deals with the performance, structure,


behaviour, and decision-making of an economy as a whole.
a. Microeconomics c. Applied Economics
b. Econometrics d. Macroeconomics

7. This is a branch of economics that studies the decisions of individuals and firms
to allocate resources of production, exchange, and consumption.
a. Econometrics c. Macroeconomics
b. Microeconomics d. Applied Economics

8. This is the use of statistical methods to develop theories or test existing


hypotheses in economics or finance.
a. Econometrics c. Market Research
b. Data Analysis d. Tabulation

9. This refers to the amount of a given product or service that suppliers are willing
to offer to consumers at a given price level at a given period.
a. Supply c. Demand
b. Resources d. Surplus
10. This refers to the amount of some good or service consumers are willing and
able to purchase at each price that is based on consumer’s needs and wants.
a. Demand c. Surplus
b. Supply d. Price

11. This is the amount of an asset or resource that exceeds the portion that is
actively utilized. It causes a market disequilibrium in the supply and demand of a
product.
a. Deficit c. Equity
b. Surplus d. EquilibriumA

12. It is a condition or state in which economic forces such as quantity supplied


and quantity demanded are balanced or equal.
a. Equilibrium c. Price ceiling
b. Opportunity cost d. Price floor

13. This is the foregone benefit that would have been derived from an option not
chosen.
a. Marginal Utility c. Opportunity Cost
b. Comparative Advantage d. Aggregate supply

14. It is a condition or state in which there is an increasing level in prices while


purchasing power decline over time.
a. Inflation c. Recession
b. Deflation d. Shortage

15. The condition which obtains when the quantity demanded by consumers of a
certain commodity of service is greater than the quantity supplied.
a. Surplus c. Deficit
b. Shortage d. Inflation

16. The stock of goods that a business or a store has on hand.


a. Inventory c. Surplus
b. Resources d. Materials

17. It is an economic system in which a centralized government makes all economic


decisions and controls the means of production and determines level of a country's
output.
a. Command economy c. Capitalism
b. Free Market Economy d. Mercantilism

18. This is an economic system characterized by private ownership of the means of


production and allocation by the market system.
a. Capitalism c. Mercantilism
b. Communism d. Socialism

19. It is one of the standard branches of economics that focuses on the value of
economic fairness, or what the economy "should be" or "ought to be." It is based
on value judgments.
a. Positive economics c. Normative Economics
b. Microeconomics d. Macroeconomics

20. This is GNP means in economics.


a. General National Product c. Gross Nationalism Production
b. Gross National Product d. General Nationalism Product

21. This is GDP means in economics.


a. Gross Deficit Production c. General Deficit Production
b. Gross Domestic Product d. Gross Deflation Product
22. The function of money which means that money is an accepted means of
payment for goods and services
a. Medium of exchange c. Fiscal Deficit
b. Purchasing power d. Literacy rate

23. This is a microeconomic law that states that quantity supplied is positively
related to the price.
a. Law of Demand c. Law of Supply
b. Law of Diminishing Returns d. Law of Marginal Utility

24. This is a microeconomic law that states that quantity demanded rises as price
falls, holding all else constant.
a. Law of Supply c. Quantity demanded
b. Law of Demand d. Quantity supplied

25. It is a mandatory payment or charge collected by local, state, and national


governments from individuals or businesses to cover the costs of general
government services, goods, and activities.
a. Tax c. Revenue
b. Goods d. Services

26. This is an asset or spending on capital goods that can be used for the
production of other goods in the future.
a. Investment c. Wage
b. Labor force d. Liability

27. This refers as the lowest remuneration that employers can legally pay their
employees—considered as one of the returns to the factors of production.
a. Minimum wage c. Lease
b. Interest rate d. Investment

28. This refers to all things that are generally acceptable as means of payment for
goods and services (medium of exchange) and as payment of debts (store of
value).

a. Money c. Resources
b. Market d. Asset

29. This is the institution which facilitates the transactions between buyers and
sellers.
a. Market c. Shopping mall
b. Capital d. Convenience store

30. This is an economic term or situation which means that if you choose an
alternative, you are going to lose another.
a. Trade-off c. Equity
b. Free lunch d. Risk

Prepared by: Ms. Errocel Shane D. Bellen


Subject Teacher

Common questions

Powered by AI

Opportunity cost represents the benefits foregone when choosing one alternative over others. It is critical in decision-making as it helps evaluate the true cost of choices, ensuring resources are allocated to maximize potential benefits, thus enhancing economic efficiency .

Adam Smith is considered the Father of Modern Economics. He is significant because he laid the foundation for classical economics with his work "The Wealth of Nations," where he discusses the benefits of a free market economy and the concept of the 'invisible hand' which guides supply and demand in the market .

Microeconomics focuses on the decisions of individuals and firms regarding resource allocation, dealing with supply and demand, pricing, and individual market dynamics. Macroeconomics, on the other hand, examines the economy as a whole, focusing on national income, overall level of prices, employment, and economic growth .

The word 'Economics' is derived from the Greek words 'oiko' meaning 'house' and 'nomos' meaning 'management.' This etymology reflects its fundamental purpose of managing resources efficiently, initially at the household level but extended to broader scales like firms and nations .

Supply and demand influence market equilibrium through their interaction which determines the market price and quantity of goods. When demand equals supply, the market is in equilibrium. Changes in either supply or demand shift the equilibrium position, influencing price levels and economic stability .

A command economy is characterized by government-controlled planning and decision-making, with public ownership of the means of production. In contrast, a capitalist economy features private ownership and market-driven decisions, where supply and demand dictate economic activities .

Scarcity implies that there are limited resources to satisfy unlimited wants and needs, leading to trade-offs and prioritization of resource allocation. It necessitates decision-making by individuals and societies to optimize resource use, impacting economic strategies and policies .

Inflation erodes consumers' purchasing power by increasing the general price level, meaning that each unit of currency buys fewer goods and services over time. This impacts cost of living, savings, and economic inequality, necessitating adjusted nominal incomes to maintain living standards .

Econometrics utilizes statistical methods to test hypotheses and develop economic theories, allowing economists to quantify economic phenomena and make informed predictions. It provides a bridge between theoretical economics and empirical data analysis, enhancing accuracy and reliability in economic research .

The four fundamental factors of production: land, labor, capital, and entrepreneurship, collectively contribute to economic output by providing the necessary resources, labor, and innovative ideas required to produce goods and services. Land offers raw materials, labor supplies human effort, capital provides tools and machines, and entrepreneurship integrates these elements to create value .

You might also like