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
