Immaculate Conception Catholic School- Sta.

Cruz
S.Y. 2019-2020
Pre Final exam
APPLIED ECONOMICS
Name: _____________________________________________________ Date: __________________________
Grade / Section: ______________________________________________ Mrs. Teresita M. Coroza

A. Fill in the letter of the correct answer.

ABCD Easy 1 point for correct answer and 1 point for correct explanation (14 Items)
0000 1. It is the forces that make the economies works.
a. Market forces b. Supply and Demand c. Competitive market d. Prices
Explanation:___________________________________________________________________________
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0000 2. A group of buyers and sellers of a particular good or service.
a. Market b. Consumer c.demand d. Producer
Explanation:___________________________________________________________________________
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0000 3. It refers to the behavior of people as they interact with one another in markets.
a. Market forces b. Supply and Demand c. Competitive market d. Prices
Explanation:___________________________________________________________________________
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0000 4. Buyers determine the ___________ and ______________ determine the supply.
a. Supply, buyers b. Supply, sellers c. Demand, seller d. Demand buyers
Explanation:___________________________________________________________________________
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0000 5. Which is true about a competitive market?
a. a market in which there are many sellers so that each has a negligible impact on the market supply.
b. a market in which there are many buyers so that each has a negligible impact on the market demand.
c. a market in which there are many buyers and sellers so that each has a negligible impact on the market
price.
d. a market in which there are few buyers and sellers so that each has a negligible impact on the market price.
Explanation:___________________________________________________________________________
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0000 6. Which of the following is a competitive market?
a. Perfect competitions b. Oligopoly c. Monopolistic competition d.All of the given choices
Explanation:___________________________________________________________________________
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0000 7. Which of the following statement is true about LAW of DEMAND?
a. The law of demand states that, other things equal, the quantity demanded of a good rises when the price
of the good rises.
b. The law of demand states that, other things equal, the demand of a good rises when the price of the
good rises.
c. The law of demand states that, other things in equal, the quantity demanded of a good rises when the price
of the good rises.
d. The law of demand states that, other things equal, the quantity demanded of a good falls when the
price of the good rises.
Explanation:___________________________________________________________________________
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0000 8. Demand curve is a graph of:
a. the relationship between the price of a good and the quantity supplied.
b. the relationship between the quantity demanded and supplied.
c. The relationship between the price of supply and demand.
d. the relationship between the price of a good and the quantity demanded.
Explanation:___________________________________________________________________________
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0 0 0 0 9. Which of the following statement is true about the market demand?
a. Market demand refers to the sum of all individual demands for a particular good or service.
b. Market demand refers to the individual demands for a a particular good or service.
c. Market demand refers to the supply of goods and services.
d. All of the given choices are true.
Explanation:___________________________________________________________________________
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0 0 0 0 10. In demand curve if shift to the right it is called ____________and if shift to left it is called__________
a. decrease in demand; increase in demand c. increase in demand; decrease in demand
b. Increase in supply; decrease in supply d. Decrease in supply; increase in supply
Explanation:___________________________________________________________________________
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0 0 0 0 11. The law of supply states that:
a. The quantity supplied of good rises when the price of good decreases.
b. the quantity supplied of good rises when the price of good rises.
c. the quantity demand of good rises when the price of good decreases.
d. The quantity demand of good decrease when the price of good rises.
Explanation:___________________________________________________________________________
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0 0 0 0 12. The supply schedule is the table that shows the relationship between the _________ of good and the
quantity __________.
a. price; supplied b.price; demand c. Supply; demand d. Demand; supply
Explanation:___________________________________________________________________________
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0 0 0 0 13. Which of the following is the example of normal good?
a. jewelry b. luxury car c. ferrero roche chocolate d. All of the given choices
Explanation:___________________________________________________________________________
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0 0 0 0 14. Which of the following is the example of complements on price of related goods?
a. paper and notebook b. Ketchup and mayonnaise c. car and gasoline d. Ham and hotdog
Explanation:___________________________________________________________________________
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Average 2 points for correct answer and 2 points for correct explanation (8 Items)

0000 1. Which of the following criteria is the characteristic of a perfect competition market?
a. Few sellers b. Many sellers c. Strong barriers to entry d.Products are differentiated
Explanation:___________________________________________________________________________
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0000 2. Which of the following criteria is a characteristic of a monopoly market?
a. Price taker b. Price maker c. Easy entry d. Homogeneous product
 Explanation:___________________________________________________________________________
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0000 3. A tax that raises the price of a good results in a movement along the demand curve, it decreased the amount
of goods. Which is wrong in the statement?
a. tax raises b. Demand curve c. Decreased d. good results
Explanation:___________________________________________________________________________
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0000 4. As income increase the demand for inferior good will increase. Which is wrong in the statement?
a. income increase b. demand c. inferior good d. increase
Explanation:___________________________________________________________________________
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0000 5. Demand curve the X axis: price of the good; Y axis: _____________.
a. quantity supplied b. quantity demanded c. demand schedule d. supply schedule
Explanation:___________________________________________________________________________
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0000 6. Which of the following is not a competitive market?
a. Perfect competition b. Oligopoly c. Monopoly d. Monopsony
Explanation:___________________________________________________________________________
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0000 7. What is the difference between the supply and demand curve?
a. The supply curve is downward sloping while the demand curve is upward sloping.
b. The supply curve is upward sloping while the demand curve is downward sloping.
c. The supply curve is downward sloping while the demand is also downward sloping.
d. There is no difference between the supply and demand curve.
Explanation:___________________________________________________________________________
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0000 8. When can we say that the demand and supply reached the equilibrium?
a. If the demand and supply intersect on the graph.
b. If the demand and supply are equal to its price and quantity.
c. If the demand is upward sloping and the supply is downward sloping.
d. Both A and B are the correct answer.
Explanation:___________________________________________________________________________
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Difficult 3 points for correct answer and 3 points for correct explanation (5 Items)

Demand and supply schedule.

Price of Book Quantity Demanded for Book

P 100 50
P 200 40
P 300 30
P 400 20
P 500 10
0000 1.What is the difference of the quantity demanded, if the price increase from P200 to P400?
a. 10 b. 20 c. 30 d. 40
Explanation:___________________________________________________________________________
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0000 2. What is the difference of the price if quantity demanded decrease from 50 to 30?
a. 100 b. 150 c. 200 d. 400
Explanation:___________________________________________________________________________
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Price of Cake Quantity Supply for Cake

P1200 50
P1000 40
P800 30
P600 20
P400 10
P200 0

0 0 0 0 3. What is the interval of price increase per quantity supply?

a. 10 b. 20 c. 100 d. 200
Explanation:___________________________________________________________________________
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0 0 0 0 4. If the price is P1400 what do you think is the quantity supply?
a. 60 b. 50 c. 40 d. 30
Explanation:___________________________________________________________________________
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0 0 0 0 5. How many sellers has the intention to supply cake across all prices?
a. 100 b. 50 c. 150 d. 80
Explanation:___________________________________________________________________________
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