NOTRE DAME OF JARO, INC.

Msgr. Lino Gonzaga St., Jaro, Leyte

MID-TERM EXAMINATION IN APPLIED ECONOMICS 12

Name: Date:________
Strand: Score:
Test I. Carefully read each sentence and write the letter of the correct answer.
1. A situation where there are not enough resources to satisfy our wants
A. surplus C. economics
B. scarcity D. none of these
2. What does "There's no such thing as a free lunch" mean?
A. Some things cost nothing. C. Most things cost something.
B. Most things cost nothing. D. Everything costs something.
3. Economic system where women tend crops and raise children while men hunt
A. mixed  C. traditional 
B. market  D. command
4. Economic system where government officials decide the distribution of all resources
A. mixed C. command 
B. market D. traditional
5. Economic system where there is resistance to the introduction of new farming methods
A. mixed C. command 
B. traditional D. market
6. Producers are looking to
A. buy goods C. find incentives
B. earn a profit D. find the latest fad
7. The money left after costs are subtracted from revenue
A. free rider C. subsidy
B. profit D. scarcity
8. A person who is free to open a grocery store is participating in a
A. command economy C. free enterprise economy
B. centrally-planned economy D. traditional economy
9. How is total revenue calculated?
A. multiply price by demand
B. multiply price by quantity sold
C. multiply change in price by change in demand
D. multiply change in price by quantity sold
10. Which describes a demand curve?
A. horizontal line C. slopes upward
B. slopes downward D. bow-shaped
11. Which describes a supply curve?
A. upward slope C. horizontal line
B. downward slope D. vertical line
12. Lower prices typically
A. discourage consumers from buying
 B. discourage producers from leaving a market
C. motivate consumers to buy
D. motivate producers to enter a market
13. The wage at which the number of workers needed equals the number of workers available is
called
A. balanced wage
B. fair wage
C. equilibrium wage
D. minimum wage

14. Workers with higher amounts of human capital tend to

A. demand less benefits
B. earn higher wages
C. have fewer job complaints
D. earn lower wages
15. Equilibrium wage results from
A. an equal supply and demand of labor
B. a fluctuating supply and demand of labor
C. a shortage of labor
D. a surplus of labor
16. Money whose value is based on the type of material from which it is made
A. commodity money C. near money
B. fiat money D. representative money
17. One of the physical properties of money is
A. acceptabilty C. scarcity
B. portability D. stability of value
18. Type of money issued by the U.S. government
A. commodity money C. near money
B. fiat money D. representative money
19. Father of modern economics
A. Alexander Hamilton C. Mr. Weissinger
B. Adam Smith D. none of these
20. Economy where everyone has a set role defined by custom
A. mixed C. command
B. market D. traditional
21. Which is NOT a factor of production?
A. land C. entrepreneurship
B. labor D. skill
22. Willingness and ability to buy a good or service
A. supply C. desire
B. demand D. affordability
23. When prices go down, the amount that people want to buy goes up.
A. law of supply C. demand schedule
B. law of demand D. supply schedule
24. An established minimum price that buyers must pay for a good or service
A. price ceiling C. minimum wage
B. price floor D. none of these
25. Only one seller in a market
 A. perfect competition C. monopolistic competition
B. monopoly D. oligopoly
26. Few sellers and many buyers
A. perfect competition C. monopolistic competition
B. monopoly D. oligopoly
27. Business owned by one person
A. sole proprietorship C. corporation
B. partnership D. franchise
28. Payments received in return for work
A. demand C. wages
B. minimum wage D. working conditions

29. The market for goldfish is competitive. From year 1 to year 2, both the price and the quantity
of goldfish increase. This is most likely caused by:
A. An increase in the supply
B. A decrease in the demand
C. An increase in the demand
D. A decrease in both the demand & the supply

30. If the price on a product goes up the quantity demanded will go down. This follows the
economic theory of:
A. Law of Demand
B. elasticity
C. income effect
D. None of the above
Test II. Complete the Demand and Supply schedule. Show your solution and create demand and
supply curve.
Demand Function: Qd= -55-15P
PRICE QUANTITY
DEMANDED
3
65
8
140
18
290

Supply Function: Qs= -25-2P

Price Quantity
Supply
2
17
6
9
8
5