St. Camillus College of Manaoag Foundation Inc.

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Brgy. Licsi, Manaoag, Pangasinan, Philippines
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10
FINAL EXAMINATION 0
APPLIED ECONOMICS 11

NAME: ___________________________________________ GRADE & STRAND:

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DATE: ____________________________________________ GUARDIANS SIGNATURE:
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I. IDENTIFICATION.
Instructions: Identify what is being asked. Write your answers on the space provided below.
Any form of erasures or alterations means wrong. (20 points)
___________________1. It is a social science that deals with the efficient allocation of scarce
resources to satisfy a person's insatiable wants.
___________________2. The application of economic theories and principles to real world situations
with the desired aim of predicting potential outcomes.
___________________3. It deals with individual decision of units of economy.
___________________4. The outcome of economic behavior through judgments and prescriptions for
courses of action.
___________________5. An economic condition that is when supply is limited.
___________________6. Refers to the value of the best foregone alternative.
___________________7. The market value of final products produced within the country.
___________________8. It identifies the different methods and techniques to produce commodities.
___________________9. The relationship between scarce factor inputs and outputs of goods and
services.
___________________10. They are responsible for providing public goods and services and
regulating businesses.
___________________11. It is otherwise known as industrial goods.
___________________12. A type of goods which are not necessary but which give you pleasure or
make your life more comfortable.
___________________13. A condition in which a person or community lacks the financial resources.
___________________14. A process of combining various material inputs and immaterial inputs to
make an output.
___________________15. A form of dishonesty or criminal offence undertaken by a person or
organization.
___________________16. This economic system is stagnant and therefore not progressive.
___________________17. This is the most democratic form of economic system.
___________________18. It includes stock market where securities of corporations are traded.
___________________19. The total number of units purchased at that price.
___________________20. Refers to what a buyer pays for a unit of the specific good or service.

II. MULTIPLE CHOICE.

Instructions: Read each statement carefully and choose the letter that best corresponds to the
statement. Write ONLY the letter of your answer on the space provided. Any form of erasures or
alterations means wrong. (40 points)
______ 1. Mr. Balmond Pacis purchased basic goods like vegetables and groceries for her family.
These goods are ___________.
a. Consumers goods c. Luxury goods
b. Capital goods d. Economic goods
______ 2. Ms. Guinevere purchased new car as a gift for her father’s birthday. This good is ______.
a. Consumers goods c. Capital goods
b. Luxury goods d. Economic goods

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______ 3. ABM Computer shop purchased additional 5 units of computer for the business.
Computer is an example of ____________.
a. Consumers goods c. Capital goods
b. Luxury goods d. Economic goods
______ 4. Which of the following is not considered as tangible good?
a. Cellphone b. Mask c. Sack of rice d. Training service
______ 5. Which is true about Economics as a social science?
a. Scarce resources and limited needs drive choice.
b. Economics explains and predicts economic events.
c. The scientific method is based on the normative analysis.
d. Economic hypothesis lead directly to predictions.
______ 6. Which is true on the value of an economic theory practice? It is determined by _______.
a. how accurate the assumptions are.
b. how well the theory can be represented by a graph.
c. how well the theory can predict or explain.
d. how the parsimonious the model is.
______ 7. Which of the following is the study of the aggregate economy studied as a whole?
a. Mathematical Economics c. Macroeconomics
b. Econometrics d. Microeconomics
______ 8. Business ethics refers to any behavior by businesses that may ________.
a. be illegal. c. results in the maximization profits.
b. violates social or moral standards. d. All of the above
______ 9. Businesses have responded to incentives for ethical behavior by doing all, except
______.
a. lobbying for the abolition of laws that require ethical behavior.
b. appointing “ethics officers” to ensure that the employees behave in an ethical manner.
c. providing training sessions in ethical behavior for employees.
d. establishing codes of ethical behavior for employees.
______ 10. Which of the following is not an economic agent in your locality?
a. Producer b. Consumer c. Public Sector d. None of ABC
______ 11. What are the four main factors of production?
a. Land, Labor, Capital, Technology
b. Land, Labor, Money, Entrepreneurship
c. Land, Labor, Capital, Entrepreneurship
d. Land, Work, Money, Enterprise
______ 12. Which of the following is NOT considered a factor of production?
a. Machinery c. Money
b. Water d. Goods
______ 13. Labor refers to ___________.
a. The physical land used in production.
b. The human effort used in the production process.
c. The financial resources available for investment.
d. The ability to organize and innovate in business.
______ 14. Capital includes ___________.
a. Money and financial assets only.
b. Physical resources like land and water.
c. Human effort and skills.
d. Machinery, equipment, and infrastructure used in production.
______ 15. Which factor of production involves taking risks and organizing resources?
a. Labor b. Land c. Capital d. Entrepreneurship
______ 16. What is the main function of entrepreneurship in the production process?
a. Providing physical resources.
b. Generating profits.
c. Providing labor.
d. Investing in capital goods.
______ 17. Natural resources such as minerals and forests fall under which factor of production?
a. Labor b. Capital c. Land d. Entrepreneurship
______ 18. Which of the following is an example of human capital?
a. A piece of machinery
b. A factory building
c. The skills and knowledge of a software developer
d. A piece of land
______19. Which factor of production involves the physical space where production occurs?

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 a. Labor b. Capital c. Land d. Entrepreneurship
______ 20. What role do factors of production play in the economy?
a. They determine the distribution of wealth only.
b. They determine the prices of goods and services only.
c. They are used to produce goods and services and drive economic growth.
d. They are unrelated to the functioning of the economy.
_____21. Which of the following best describes the economic question of "What to produce?
a) How to produce goods and services efficiently
b) How much to produce based on consumer demand
c) Which goods and services to produce with limited resources
d) How to distribute goods and services equitably
_____22. When an economy decides "How to produce," it is primarily concerned with _______.
a) Determining the quantity of goods and services to produce
b) Allocating resources and selecting production methods
c) Distributing goods and services among individuals
d) Evaluating consumer preferences and tastes
_____23. The economic question of "For whom to produce?" relates to __________.
a) Deciding the best distribution channels for goods and services
b) Allocating resources among different sectors of the economy
c) Determining how to distribute income and wealth
d) Identifying the target market for specific goods and services
_____24. Which of the following is NOT one of the basic economic questions?
a) Why produce?
b) What to produce?
c) How to produce?
d) For whom to produce?
_____25. In a market economy, the answers to the four basic economic questions are primarily
determined by ______.
a) Central government planning
b) Consumer demand and market forces
c) Tradition and cultural customs
d) Resource availability and technological advancement
_____26. Which of the following is NOT considered one of the main factors of production in
economics?
a) Land
b) Labor
c) Capital
d) Demand
_____27. Human effort, skills, and abilities used in the production process are categorized as ____.
a) Land
b) Labor
c) Capital
d) Entrepreneurship
_____28. Natural resources such as water, minerals, and fertile land are classified as _______.
a) Labor
b) Capital
c) Entrepreneurship
d) Land
_____29. Tools, machinery, factories, and equipment used in production are examples of _______.
a) Labor
b) Land
c) Capital
d) Entrepreneurship
_____30. Which factor of production involves the organization and risk-taking abilities of
individuals who bring together the other factors of production?
a) Land
b) Labor
c) Capital
d) Entrepreneurship
_____31. Intellectual property, such as patents, trademarks, and copyrights, can be classified as a
form of ______.
a) Land
b) Labor

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 c) Capital
d) Entrepreneurship
_____32. Which factor of production includes the payment for the use of land, labor, and capital in
the production process?
a) Rent
b) Wages
c) Interest
d) Profit
_____33. In economics, the term "capital" typically refers to ________.
a) Money
b) Physical assets used in production
c) Human skills and knowledge
d) Natural resources
_____34. What does scarcity refer to in economics?
a) The unlimited wants and needs of individuals
b) The limited resources available to satisfy unlimited wants and needs
c) The surplus of goods and services in the market
d) The equal distribution of resources among individuals
_____35. Which of the following is a consequence of scarcity?
a) Overproduction of goods and services
b) Excess resources available for consumption
c) Trade-offs and opportunity costs
d) Equal distribution of wealth among individuals
_____36. Scarcity implies that _______.
a) All wants and needs of individuals can be satisfied
b) Resources are infinite and unlimited
c) Choices must be made about how to allocate resources
d) The market can always produce goods and services at no cost
_____37. Which of the following is NOT a result of scarcity?
a) Competition
b) Innovation
c) Surplus
d) Efficiency
_____38. What role does scarcity play in the concept of opportunity cost?
a) Scarcity leads to lower opportunity costs
b) Scarcity makes opportunity costs irrelevant
c) Scarcity forces individuals to make choices, resulting in opportunity costs
d) Scarcity increases the availability of resources, reducing opportunity costs
______39. Which of the following is a central concern of microeconomics?
a) Determining the overall level of output and employment in the economy.
b) Analyzing the behavior of individual consumers and producers.
c) Examining the effects of monetary and fiscal policies on economic growth.
d) Studying the aggregate relationships between inflation and unemployment.
______40. Which of the following is a macroeconomic issue?
a) Analyzing the price-setting behavior of a competitive firm.
b) Assessing the impact of a change in government spending on aggregate demand.
c) Determining the equilibrium price and quantity in a perfectly competitive market.
d) Studying the production decisions of an individual firm.

III. CLASSIFICATION OF GOODS.

Instructions: Pick all the goods and classify them accordingly. Write your answers on the table
provided below. Any form of erasures or alterations means wrong. (30 points)

Mrs. Lou Yi went to the market to shop various goods for her family. She purchased the
following: canned goods; fruits; vegetables, sacks of rice; kilos of meat; perfumes; packs
of toothpaste; bath soaps; jewelries; medicines; unit of aircon, additional electric fan to
ventilate her store, units of coffee maker, computer equipment and sealer machine for her
milk tea shop.
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 CONSUMER INDUSTRIAL ESSENTIAL LUXURY ECONOMIC
GOODS GOODS GOODS GOODS GOODS

IV. ESSAY.
Instructions: Answer the following question. Write your answers on the space provided. (10
points)
1. Discuss the relationship between economic growth and environmental sustainability in
developing countries. How can policymakers balance economic development goals with
environmental conservation?

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2. Discuss the concept of supply and demand, and analyze how changes in these factors affect
market equilibrium.

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Prepared by: Checked:

JAYSON B. MENDOZA DR. DOMINGO M. CABARTEJA

Subject Teacher Principal, BED

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