Professional Documents
Culture Documents
Quiz 1
Quiz 1
MULTIPLE CHOICE: Read and analyze the statement or situation carefully then answer the question that follows by choosing the letter that corresponds to the best
answer. Write your answer on the answer sheet provided.
1. Which of the following issues that will fit to the concepts of microeconomics?
a. The unemployment rate increases by 10%.
b. Currently, the Philippines is on the peak of the business cycle.
c. The sales of clamps and sea foods decline because of red tide.
d. Answer not given
2. When an 18 year old man chooses to work in a factory rather than to attend on college as a Business Economics student, what is his opportunity cost?
a. A Bachelors degree who may earn Php15, 000 a month after 5 years.
b. The tuition fee costing Php24, 000 a year, travel and project expenses worth Php75, 000 a year.
c. A salary of a factory worker earning Php8, 000 a month.
d. All of the above
3. The following are the main assumption about Product Possibilities Frontier. Which is not included?
a. There are only two goods produced within the economy.
b. The PPF curve bowed about the origin.
c. Not all resources is being utilized for two goods.
d. All of the above are the assumptions of PPF.
For number 4-10, refer to the Product Possibilities Frontier for Lumber and Paper in terms of thousands.
10. At point B, what is the opportunity cost of producing 80, 000 units of lumber?
a. 40, 000 units of paper
b. 20, 000 units of paper
c. 60,000 units of paper
d. There is no opportunity cost.
11. Which of the following can you considered belong to the demand of a CAR worth Php800, 000?
a. A carpenter who wants to buy a car with Php799, 000.00
b. Henry Sy who wants to purchase a chopper with Php30,000,000.00
c. Joana, an 8 year old girl who have Php801,000.00
d. Xintel, 20 year old who have Php800,000.00
13. What changes will occur in the demand and supply model for commodity X if its price decreases?
a. Movement along the curve (Qd increases)
b. Movement along the curve (Qd decreases)
c. Movement along the curve (Qs increases)
d. Both A and C
e. Both B and C
14. Which of the following have an effect to the quantity demanded of Commodity Zebra?
a. Price of commodity Zebra
b. Price of Commodity Tiger (substitute)
c. Income
d. Technology
16. You are the manager of KOTCHI Corporation. One of the manufacturers of car in the country. There is news that the car being produced by your firm emits
a gas that can harm the health of the consumer. What will be the effect of this information to the goods produced by your company?
a. Quantity supplied increases.
b. The price of cars will increase.
c. Demand for the product will decline.
d. Quantity demanded for the car will decline.
17. If the price of sardines increases, which of the following will occur?
a. Quantity supplied will decrease
b. Quantity supplied will increase
c. Supply will increase
d. Supply will decrease
22. Looking at the graph at right side, what is the equilibrium price?
a. $3 b. $2 c. $1 d. Answer not given
24. Suppose the firm acquires new technology, what will happen to the equilibrium point?
a. P* increases while Q* decreases
b. P* decreases while Q* increases
c. Both P* and Q* increases
d. Both P* and Q* decreases
25. Suppose the income of the household increases considering that the model is an inferior good, what will happen to the equilibrium point?
a. P* increases while Q* decreases
b. P* decreases while Q* increases
c. Both P* and Q* increases
d. Both P* and Q* decreases
26. Suppose the income of household increases and the good is inferior, and the technology increases simultaneously, what will happen to the equilibrium
point?
a. P* increases while Q* decreases
b. P* decreases while Q* increases
c. Both P* and Q* increases
d. Both P* and Q* decreases
28. Given the mathematical model of supply and demand, how will you determine which is the demand model?
a. In mathematical demand model, the coefficient of price is positive
b. In mathematical demand model, the coefficient of price is negative
c. In mathematical demand model, the coefficient of price is either positive not negative.
d. Answer not given
29. The demand and supply model is Q = 300 – 2P and Q = 150 + 3P respectively, what is the P*?
a. 50 b. 30 c. 20 d. 10
31. Supposed the supply shift due to an increase in the number of seller, the new supply model is Q = 100 + 8P, what is the new P*?
a. 50 b. 30 c. 20 d. 10
33. What is the first name of your instructor in ECO 201? ____________________________
34. What is the middle name of your instructor in ECO 201? _________________________
35. What is the last name of your instructor in ECO 201? ____________________________
END OF EXAMINATION