Applied Economics

Quiz #1
I. IDENTIFICATION
Direction: Read and analyze the statement below. Write the answer on your paper.
1.It is the study of social behavior guiding in the allocation of scarce resources to meet the unlimited needs
and desires of the individual members of a given society.
2. It is a mechanism of distributing limited resources to meet the expanding human wants.
3. It is a situation wherein the amount of something available is insufficient to satisfy the desire for it.
4. It is described as differentiated or expanded human needs.
5. It is the study that analyzes human behavior while taking the result s of the other group as description
and explanation on human environment.

6. It deals with the economic behavior of the whole economy or its aggregate.
7. It deals with the economic behavior of the individual units such as consumers, firms, the owners of
factors of productions.
8. It is the study of how economic theories and models are used to explain why certain events occur, predict
the likely effects of events and government actions and recommend courses of action for business
and government to follow.
9. It is a situation in which people have to choose between two things (or activities) that cannot be had
(or done) at the same time.
10. It is the value of something that must be given up to acquire or achieve something else.

II. ENUMERATION
11-13 Basic Economic Questions
14-16 Three Economic Systems of Allocation
17- 20 Four Factors of Production
21-23 Basic forms of Business Ownership
24-25 Types of Markets in simplified circular flow of economic activity

III. ESSAY
26-30 What is the essence of studying Economics?
31-35 Explain what it means to “think at the margin” and how it is related to applied economics.
36-40 Explain how “circular flows in the market economy” works.