Applied Economics

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Multiple Choice: Encircle the letter of the correct answer. 1. It refers to the value of the best forgone alternative. A. trade-off B. choice C. opportunity cost D. decision making 2. It is also known as factors of production, where the resources are used to produce goods and services. These resources are, by nature, limited and therefore, command a payment that becomes the income of the resource owner. A. economic resources C. political resources B. environmental resources D. industrial resources 3. It refers to physical and human effort exerted in production. It covers manual workers like construction workers, machine operators, and production workers, as well as professionals. A. land B. labor C. capital D. entrepreneurship 4. It is the formulation of general theories through testing and historical data of the phenomena. A. Economics C. Econometrics B. Applied Science D. Social Science 5. It involves the use of scarce resource to satisfy the unlimited needs and wants of human A. Economics C. Applied Economics B. Social Science D. economic model 6. Economic theory is all about ideas, theories and models. Applied Economics is the application of economics theories, practices and models to real life situation. A. Both statements are true. B. Both statements are false C. First statement is true; second statement is false. D. First statement is false; second statement is true. 7. One of the interventions implemented by the government to control population explosion is A. Republic Act No. 10354 C. Republic Act No. 13354 B. Republic Act No. 10135 D. Republic Act No. 10034 8. Which of the following can be used to measure the relative poverty percentage? A. Lorenz curve and Poverty incidence B. Poverty threshold and Poverty incidence C. Lorenz Curve and Gini coefficient D. Poverty threshold and Lorenz Curve 9. What is a condition where you cannot meet or purchase your basic necessities? A. scarcity C. poverty B. purchasing power D. shortage10. The following are causes of poverty EXCEPT A. high economic growth C. low economic growth B. weak agricultural sectors D. increased population rates