2. 1. What is the main focus of economics
as an applied science?
Ⓐ Developing economic theories
Ⓒ Analyzing market demand and
supply
Ⓑ Understanding human behavior
Ⓓ Solving real-world economic
problems
3. 1.What is the main focus of economics
as an applied science?
Ⓐ Developing economic theories
Ⓒ Analyzing market demand and
supply
Ⓑ Understanding human behavior
Ⓓ Solving real-world economic
problems
4. 2.What is the nature of economics as a social
science?
Ⓐ It studies human behavior only.
Ⓑ It is the study of how individuals make
decisions.
Ⓒ It is primarily concerned with predicting
market trends.
Ⓓ It analyzes the production and distribution
of goods and services.
5. 2.What is the nature of economics as a social
science?
Ⓐ It studies human behavior only.
Ⓑ It is the study of how individuals make
decisions.
Ⓒ It is primarily concerned with predicting
market trends.
Ⓓ It analyzes the production and distribution
of goods and services.
6. 3. How do government policies affect
income distribution in the Philippine
economy?
Ⓐ By reducing poverty rates
Ⓒ By encouraging entrepreneurship
Ⓑ By increasing income inequality
Ⓓ By promoting equitable distribution
of wealth
7. 3. How do government policies affect
income distribution in the Philippine
economy?
Ⓐ By reducing poverty rates
Ⓒ By encouraging entrepreneurship
Ⓑ By increasing income inequality
Ⓓ By promoting equitable distribution
of wealth
8. 4. What is the ceteris paribus
assumption?
Ⓐ No variables change
Ⓑ Only one variable changes at a
time
Ⓒ All variables are held constant
except one
Ⓓ All variables are allowed to
change simultaneously
9. 4. What is the ceteris paribus
assumption?
Ⓐ No variables change
Ⓑ Only one variable changes at a
time
Ⓒ All variables are held constant
except one
Ⓓ All variables are allowed to
change simultaneously
10. 5. How does cost minimization relate to profit
maximization?
Ⓐ They are totally unrelated concepts
Ⓑ Profit maximization involves increasing
costs
Ⓒ Cost minimization is the same as profit
maximization
Ⓓ Cost minimization ensures that profits are
maximized
11. 5. How does cost minimization relate to profit
maximization?
Ⓐ They are totally unrelated concepts
Ⓑ Profit maximization involves increasing
costs
Ⓒ Cost minimization is the same as profit
maximization
Ⓓ Cost minimization ensures that profits are
maximized
12. 6. How does the concept of trade-off relate to
opportunity cost?
Ⓐ They are totally unrelated concepts
Ⓑ Trade-off is the opposite of opportunity
cost
Ⓒ Both involve making choices and
sacrificing one alternative over the other
Ⓓ Opportunity cost involves maximizing
benefits while trade-off
involves minimizing all costs
13. 6. How does the concept of trade-off relate to
opportunity cost?
Ⓐ They are totally unrelated concepts
Ⓑ Trade-off is the opposite of opportunity
cost
Ⓒ Both involve making choices and
sacrificing one alternative over the other
Ⓓ Opportunity cost involves maximizing
benefits while trade-off
involves minimizing all costs
14. 7. What are the primary factors of
production in economics?
Ⓐ Goods, services, and capital
Ⓒ Supply, demand, and equilibrium market
Ⓑ Land, labor, and entrepreneurship
Ⓓ Consumption, production, and
distribution
15. 7. What are the primary factors of
production in economics?
Ⓐ Goods, services, and capital
Ⓒ Supply, demand, and equilibrium market
Ⓑ Land, labor, and entrepreneurship
Ⓓ Consumption, production, and
distribution
16. 8. How might a government subsidy to
farmers impact the supply of agricultural
products in the market?
Ⓐ It increases supply. Ⓒ It has no real
effect on supply.
Ⓑ It decreases supply. Ⓓ It depends on
other market factors.
17. 8. How might a government subsidy to
farmers impact the supply of agricultural
products in the market?
Ⓐ It increases supply. Ⓒ It has no real
effect on supply.
Ⓑ It decreases supply. Ⓓ It depends on
other market factors.
18. 9. Samsung phone models were once on the recall by
the manufacturer due to an incident of burning
Samsung phone while charged in an airplane. This has
created a gadget controversy and its sales were affected
for some time. What do you think happened to its
demand curve?
Ⓐ The curve shifted to the left.
Ⓒ There was a movement along the curve to the left.
Ⓑ The curve shifted to the right.
Ⓓ There was a movement along the curve to the right
19. 9. Samsung phone models were once on the recall by
the manufacturer due to an incident of burning
Samsung phone while charged in an airplane. This has
created a gadget controversy and its sales were affected
for some time. What do you think happened to its
demand curve?
Ⓐ The curve shifted to the left.
Ⓒ There was a movement along the curve to the left.
Ⓑ The curve shifted to the right.
Ⓓ There was a movement along the curve to the right
20. 10 .What does price elasticity of demand
measure?
Ⓐ The responsiveness of quantity supplied to
changes in price
Ⓑ The responsiveness of quantity demanded to
changes in price
Ⓒ The responsiveness of quantity supplied to
changes in income
Ⓓ The responsiveness of quantity demanded to
changes in income
21. 11. What does price elasticity of demand
measure?
Ⓐ The responsiveness of quantity supplied to
changes in price
Ⓑ The responsiveness of quantity demanded to
changes in price
Ⓒ The responsiveness of quantity supplied to
changes in income
Ⓓ The responsiveness of quantity demanded to
changes in income
22. 12. If the price elasticity of demand for a
product is 0.5, what does this indicate?
Ⓐ Demand is elastic
Ⓒ Demand is unitary elastic
Ⓑ Demand is inelastic
Ⓓ Demand is perfectly elastic
23. 13. If the price elasticity of demand for a
product is 0.5, what does this indicate?
Ⓐ Demand is elastic
Ⓒ Demand is unitary elastic
Ⓑ Demand is inelastic
Ⓓ Demand is perfectly elastic
24. 13. If the price of a good increases
by 10% and the quantity demanded
decreases by 15%, what is the price
elasticity of demand?
Ⓐ 0.67 Ⓑ 1.5 Ⓒ 1.67
Ⓓ 2.0
25. 14. If the price of a good increases by
10% and the quantity demanded
decreases by 15%, what is the price
elasticity of demand?
Ⓐ 0.67 Ⓑ 1.5 Ⓒ 1.67
Ⓓ 2.0
26. 14. Philippines particularly Mindanao is
rich in bananas as agricultural produce.
Exporting bananas and importing
computers as finished goods exchanged are
recorded in this part of our Gross National
Product.
Ⓐ investment
Ⓑ consumption
Ⓒ balance of trade
Ⓓ government spending
27. 14. Philippines particularly Mindanao is
rich in bananas as agricultural produce.
Exporting bananas and importing
computers as finished goods exchanged are
recorded in this part of our Gross National
Product.
Ⓐ investment
Ⓑ consumption
Ⓒ balance of trade
Ⓓ government spending
28. 15. The responsiveness of your demand for
Tiktok platform over Reels on Instagram, in
relation to changes in the demand of other
related services like editing platforms like
Capcut and KineMaster on social media can
be expressed through this.
Ⓐ Price elasticity Ⓒ Demand elasticity
Ⓑ Income elasticity Ⓓ Cross price
elasticity
29. 15. The responsiveness of your demand for
Tiktok platform over Reels on Instagram, in
relation to changes in the demand of other
related services like editing platforms like
Capcut and KineMaster on social media can
be expressed through this.
Ⓐ Price elasticity Ⓒ Demand elasticity
Ⓑ Income elasticity Ⓓ Cross price
elasticity
30. 16. How does a perfectly elastic
demand curve appear on a graph?
Ⓐ As a vertical line
Ⓒ As an upward-sloping curve
Ⓑ As a horizontal line
Ⓓ As a downward-sloping curve
31. 16. How does a perfectly elastic
demand curve appear on a graph?
Ⓐ As a vertical line
Ⓒ As an upward-sloping curve
Ⓑ As a horizontal line
Ⓓ As a downward-sloping curve
32. 17. Which side of the market is
more likely to negotiate to the
government for price floor?
Ⓐ buyers Ⓑ sellers
Ⓒ consumers Ⓓ laborers
33. 17. Which side of the market is
more likely to negotiate to the
government for price floor?
Ⓐ buyers Ⓑ sellers
Ⓒ consumers Ⓓ laborers
34. 18. Onion prices have soared since September
2022 reaching their peak of Php 400-700 per
kilogram, even higher than the world price by $2
or Php100. To address this issue, the
government, headed by Department of
Agriculture, has set this price cap from a goal of
Php170 to a price cap Php80 this year. Price cap
is equitable to
Ⓐ bid price Ⓑ ask price
Ⓒ price floor Ⓓ price ceiling
35. 18. Onion prices have soared since September
2022 reaching their peak of Php 400-700 per
kilogram, even higher than the world price by $2
or Php100. To address this issue, the
government, headed by Department of
Agriculture, has set this price cap from a goal of
Php170 to a price cap Php80 this year. Price cap
is equitable to
Ⓐ bid price Ⓑ ask price
Ⓒ price floor Ⓓ price ceiling
36. 19. Miss Daquis, a fresh graduate of a
university, will be joining the job-seeking
sector or the potential labor force of the
economy. If she will not get a job in a couple
of weeks or months of searching, she will be
counted as part of this sector.
Ⓐ labor force
Ⓑ unemployed
Ⓒ underemployed
Ⓓ hidden unemployment
37. 19. Miss Daquis, a fresh graduate of a
university, will be joining the job-seeking
sector or the potential labor force of the
economy. If she will not get a job in a couple
of weeks or months of searching, she will be
counted as part of this sector.
Ⓐ labor force
Ⓑ unemployed
Ⓒ underemployed
Ⓓ hidden unemployment
38. 20. Filipinos searching for greener
pastures resulting to reduction of
quality and quantity of human capital in
a phenomenon called “brain drain” is
attributed to an issue on ____________.
Ⓐ inflation
Ⓑ migration
Ⓒ balance of trade
Ⓓ foreign exchange rate
39. 20. Filipinos searching for greener
pastures resulting to reduction of
quality and quantity of human capital in
a phenomenon called “brain drain” is
attributed to an issue on ____________.
Ⓐ inflation
Ⓑ migration
Ⓒ balance of trade
Ⓓ foreign exchange rate
40. 21. Yhojie has a difficulty adjusting to hia
lifestyle in Davao since he only brought just
a little amount of yen his Japanese father
gave him for a month-long vacation. This
issue is an example of a/an ____________
concern of an economy.
Ⓐ inflation Ⓑ migration
Ⓒ balance of trade Ⓓ foreign exchange
rate
41. 21. Yhojie has a difficulty adjusting to hia
lifestyle in Davao since he only brought just
a little amount of yen his Japanese father
gave him for a month-long vacation. This
issue is an example of a/an ____________
concern of an economy.
Ⓐ inflation Ⓑ migration
Ⓒ balance of trade Ⓓ foreign exchange
rate
42. 22. Considering the potential separation
of Mindanao from the rest of the
Philippines, which economic factor
would be most affected?
Ⓐ Inflation rate
Ⓒ Unemployment rate
Ⓑ Exchange rate
Ⓓ Gross Domestic Product (GDP)
43. 22. Considering the potential separation
of Mindanao from the rest of the
Philippines, which economic factor
would be most affected?
Ⓐ Inflation rate
Ⓒ Unemployment rate
Ⓑ Exchange rate
Ⓓ Gross Domestic Product (GDP)
44. 23. Which of the following scenario represents edge in
taxation that tax benefit is maximized, burden is minimized?
Ⓐ regulation of business permits to prevent overcrowding
Ⓑ public school system to educate children of poor families
Ⓒ public service rehabilitating war-torn and post-conflict
areas
Ⓓ tax credits offered to individuals or companies for
donations made to charitable organizations supporting
underprivileged communities or disaster relief efforts
45. 23. Which of the following scenario represents edge in
taxation that tax benefit is maximized, burden is minimized?
Ⓐ regulation of business permits to prevent overcrowding
Ⓑ public school system to educate children of poor families
Ⓒ public service rehabilitating war-torn and post-conflict
areas
Ⓓ tax credits offered to individuals or companies for
donations made to charitable organizations supporting
underprivileged communities or disaster relief efforts
