Name:________________________________________ Score:________________________

Directions: Read the statement carefully. Write TRUE if the statement is correct, and FALSE if it is otherwise.

I. Poverty and Unequal Distribution of Income

___________1. Poverty is a restricting condition inexperienced by millions of families that prevents them in attaining the
minimum level of consumption for subsistence living.
___________2. Families with limited or without resources can earn sufficient income that can provide the minimum nutritional
requirements for daily living and basic necessities.
___________3. Related with the presence of resources, poor families are faced with bottomless economic opportunities.
___________4. Because they have partial schooling, they are often unskilled and cannot find decent and sustained
employment.
___________5. If poor families are given resources but are not properly trained and monitored in managing these resources
may end up consuming the resources that were supposed to give them continued income in the future.
___________6. There are two categories of poverty, the poverty threshold and the poverty incidence.
___________7. Poverty threshold is the income needed to purchase.
___________8. Poverty incidence is the proportion of households in the country with family income higher than the poverty
threshold or poverty line.
___________9. Absolute poverty is the lack of income to buy the basic food and necessities for subsistence living.
___________10. The per capita food threshold during the first semester of 2014 was estimated at PHP 10,534 per year or
approximately PHP 29 per day.
___________11. Those below the poverty threshold are considered rich since they can have the income to purchase the
minimum nutritional requirement for daily subsistence.
___________12. Relative poverty on the other hand, refers to the structure on how the national income is being distributed
among households in an economy.
___________13. The poor households are poor because their income and other resources are lower than the income and
resources of other households.
___________14. Poor households from the perspective of relative poverty do not necessarily mean that they do not have
sufficient income to purchase the minimum requirements for daily survival.
___________15. Immediate interventions for absolute poverty as long term solutions are to provide free meals, housing, and
adequate clothing.
___________16. Providing long term measures like credit, skills and entrepreneurial training, and cash transfers are suggested
solutions that should be implemented to lessen poor families.
___________17. If poor households are given a resource like sari-sari store without the other interventions there is a chance
that the resource-enhancing program may succeed.
___________18. Poor households tend to have high discount rate on future goods.
___________19. Cash transfer program may be introduced to ensure that the resource-enhancing program will become
effective.
___________20. Poor families should be trained but not how to expand their livestock and sustain their sari-sari store rather
trained in some dissimilar skills.
___________21. Measures like progressive taxation, income transfers, and other programs meant to improve the income
distribution can also be implemented in the absolute poverty.
___________22. Discounts are given to senior citizens in their purchase of goods and services is a program meant to augment
the limited income of senior citizens who are mostly retired individuals.
___________23. Subsidies and grants given to students from all households so they can enroll in the state universities and
colleges are also practical measures of addressing relative poverty.
___________24. The payment of income tax below a certain income threshold is another initiative meant to improve income
distribution and mitigate relative poverty.
___________25. The Philippines needs to aggravate absolute poverty significantly and craft less importance on equitable
distribution of income.

II. Demographic Changes and its Economic Implications

___________26. 27 million in 1960 and in 2015, the population reached 102 million people increased by 75 million for 65 years.
___________27. The country is now considered the thirteenth (13th) largest country in the world.
___________28. Measures in managing the population growth has been hotly debated in the country in recent years and among
those groups who opposed was under the religious sector.
___________29. Rapid population growth will reduce the available land per person and can’t put a toll on productivity of the
agricultural sector.
___________30. There is burden on the government to provide the social services which doesn’t include education, health, and
housing to an expanding population.
___________31. Allocating a larger proportion for its budget for social services it is left with unlimited funds for other investments
and infrastructure development.
___________32. Rapid population growth can preserve the environment as the expansion of people demands more land for
housing and other economic activities.
___________33. Increases in population imply additional consumers and savers that can expand the economy while additional
laborers can be the source of productivity, creativity, and entrepreneurship.
___________34. In more independent world, surplus labor brought about by rapid population growth can move temporarily or
permanently to countries experiencing slow population growth and deficiency in labor services.
___________35. Pessimist views the population growth is not the cause of environmental degradation but the excessive
demand of people in highly developed countries.
___________36. Economics perspective uses the economics of childbirth as a basis of analysis.
___________37. Childbirth analysis looks at the benefits and cost of not having a child.
___________38. The cost-benefit analysis can explain why fertility rate among women in poor households is higher compared
with better-off households.
___________39. Poor families tend to have small families because they consider fewer children as practical investments in the
future.
___________40. The opportunity cost of having children is low since women of poor households are usually not working.
___________41. Well-to-do families consider children as investments that can enhance family income in the future.
___________42. The opportunity cost of having a child is high which is further augmented by high cost of rearing and educating
a child of well-to-do families.
___________43. One of the implications of an expanded population is the enlargement of the labor force in the future.
___________44. Expanded labor force is not well-trained due to limited resources of the family and the government; this may
end up as unemployed manpower.
___________45. An expanded labor force set in an environment with limited employment opportunities in the locality may push
people to migrate internally and externally.
___________46. External migration can reduce the labor in sending regions in domestic economy which can exacerbate their
already sluggish economic performance.
___________47. Receiving regions of internal migrants may experience urban congestion, formation of informal settlers, and
other social problems.
___________48. Those who are more able but cannot be absorbed by other regions in the domestic economy may end up
migrating abroad.
___________49. For highly trained professionals and technical workers, it can result in brain drain and can exert talent strain in
certain industries.
___________50. External migration may engender a culture of dependency as recipients of remittances may be content with the
external income transfers rather than work.

III. Low Investment in Human Resource Development

___________51. A highly trained workforce is more productive than a pool of unskilled workers.
___________52. Skills training and investment in education can’t shape human capital of a nation.
___________53. Modern economies go beyond formation of human capital and pursue the development of knowledge capital in
pushing their economies forward.
___________54. Human capital is formed through heavy investments in higher education, science and technologies, and
research and development.
___________55. Low school participation can contribute to limited employable skills.

IV. Weak Infrastructure

___________56. We need roads, bridges, and other networks in transportation and communication because these grids link
economic sectors tightly.
___________57. A well-developed energy infrastructure can be relied in supplying cheap electric power to households,
businesses, and other sectors.
___________58. Philippines is among the high-income countries that has strong infrastructure.
___________59. The adequate infrastructure of a country has debilitating effects on the individuals, households, business firms,
and economy.
___________60. The huge traffic problem is very wasteful as it makes workers less productive since they spend more time on
the road commuting.
___________61. Congestion in our roads has also increase national income measured in terms of delayed deliveries, missed
business opportunities, and huge energy consumption.
___________62. Unlimited capacity of our energy infrastructure has resulted in daily interruptions of electricity in many regions
in the country.
___________63. The construction of infrastructure is not the function of the government rather focuses on the war on drugs.
___________64. Private sector shouldn’t be allowed to engage in the construction and management of infrastructure projects
even in a case of government low funds.
___________65. Several highway projects in the country were funded by the Japanese, US, and European Union government
agencies as well as the World Bank and other international development agencies.

V. Pursuing Food Security

___________66. One of the concerns of the government is to ensure food security for some.
___________67. The importance of agriculture in our economy emanates from its role as the main supplier of food grains to the
growing population.
___________68. A vibrant agriculture may result an unstable society with spread of poverty while insufficiency of food may invite
inflationary pressures or dependence on imports.
___________69. A sluggish agriculture has implications on the poverty reduction and the development of other economic
sectors.
___________70. One of the initiatives to increase the productivity of the agricultural sector is the need to invest in irrigation
facilities.
___________71. One of the initiatives to increase the productivity of the agricultural sector is the need to provide high-cost
fertilizers and inputs.
___________72. One of the initiatives to increase the productivity of the agricultural sector is the need to organize cooperatives.
___________73. One of the initiatives to increase the productivity of the agricultural sector is the need to construct farm-to-
market roads.
___________74. One of the initiatives to increase the productivity of the agricultural sector is the need of diminishing agricultural
extension programs.
___________75. Development of post-harvest facilities can’t contribute to agricultural productivity.

VI. Slow Adoption of Modern Technology

___________76. One common feature that prevents these economic sectors in realizing their growth potentials is the slow
adoption of modern technology in their processes of production and distribution.
___________77. Technology is the manner of processing raw materials or intermediate inputs into transformed outputs through
the use of factor inputs.
___________78. A technology that is based in the used of labor is called a capital-extensive.
___________79. A labor-extensive technology refers to use of more capital relative to labor in the production process.
___________80. In agricultural, many farmers are still using traditional farming techniques instead of advanced ones because of
cheap labor brought about by the surplus of manpower in the sector.

VII. Environmental Sustainability and the Country’s Development Thrust

___________81. The environment is part of natural resources where we derive income from the utilization of its wealth.
___________82. Moderate use of our natural resources may compromise its ability to provide income and other benefits in the
future.
___________83. The capacity of land resources to be productive rests on the proper use of fertilizer and pesticides.
___________84. Fishing can drastically reduce marine resources that can be harvested in the future.
___________85. Excessive logging accompanied by forest clearings, forest fire, and excessive pasturing can reduced our rain
forest.
___________86. A sustainable environment is not threatened by wastes discharges by productive and distributive activities of
various sectors.
___________87. Pollution tax, pollution limits, and management plan are measures to sustain environment.
___________88. A total log ban may preserve our tress in the forests for a longer period of time but it can also deny
employment and income to thousands of workers in the forestry industry.
___________89. A total log ban won’t affect those in the furniture and construction industries.
___________90. A total ban in mining is too extreme since it does not consider the positive contributions of mining to our
economy.