RAMON PASCUAL INSTITUTE

PRE-FINAL EXAMINATION
Applied Economics
S.Y. 2019-2020
NAME: ____________________________________ DATE: ____________________
GRADE & STRAND: __________________________ INSTRUCTOR: _____________

I. Encircle the letter of your correct answer.

1. It is a schedule that shows the level of consumption at alternative prices at a given point in time.
A. Demand C. Supply
B. Demand Curve D. Supply Curve
2. It shows the amount of output producers are willing to sell at alternative prices at a given point in time.
A. Demand C. Supply
B. Demand Curve D. Supply Curve
3. The formation of taste is influenced by several factors:
A. Peer pressure, family and power of advertisement
B. Peer pressure, culture and power of advertisement
C. Peer pressure, purchasing power and family
D. Peer pressure, family and environment
4. To the ________, his willingness to purchase the commodity at the market implies that the additional
satisfaction he derives from the commodity is equivalent to the market price.

A. Supplier C. Buyer
B. Producer D. Consumer

5. To the __________, the prices as payment for the sale of a commodity it implies that the price can
compensate for the additional costs incurred in producing a unit of commodity.

A. Supplier C. Buyer
B. Producer D. Consumer
6. This factor can allow business firms to lower their production costs and can make them more competitive.
A. Low Capital C. Business Permit
B. Improvements in Technology D. Positive Reviews from Consumers

7. It is a schedule that shows positive or direct relationship between the price of the commodity and the
quantity supplied in the market.

A. Demand Curve C. Supply

B. Demand D. Supply Curve

8. It describes the decision of a consumer to substitute an expensive good with cheaper goods when there is
a price change.

A. Income Effects C. Business Impact

B. Substitution Effects D. Global Crisis

9. What is the effect of high wage rate in the demand for labor?
A. The demand for labor is low
B. There is no effect in the demand for labor
C. The demand for labor is high
D. The supply of labor is low
10. This is the price of the foreign currecy.
A. Exchange rate C. Migration Rate
B. Wage rate D. Labor rate
11. This is the price of the labor.
A. Exchange rate C. Migration Rate
B. Wage rate D. Labor rate
12. These are the major categories in the changes in the supply curve.
A. Movement along the supply curve D. A and B
B. Movement beyond the supply curve E. A and C
C. Shifts in the supply curve
13. In this type of market structure, No single seller has power to determine the price and the level of output
in the market

A. Oligopoly C. Monopolistic Competition

B. Monopoly D. Perfect competition

14. In this type of market structure, there is no competition.

A. Oligopoly C. Monopolistic Competition

B. Monopoly D. Perfect competition

15. In this type of market structure, sellers can ignore or cooperate with each other

A. Oligopoly
B. Monopoly
C. Monopolistic Competition
D. Perfect competition
II.Write T if the statement is TRUE and F if the statement is FALSE.
___1. A higher level of income will give consumer higher capacity to consume.
___2. The demand for a good and service may also be influenced by prices of other goods and services.
___3. The expectation or prospect on what is going to happen to the prices cannot influence the demand.
___4. The size and characteristic of the market can also influence the demand for a commodity.
___5. Business establishments should not be required to pay a number of taxes to various levels of the
government.
___6. A higher cost may encourage business firms to supply more of the commodity since they can sell it at
reduced price.
___7. Increase in sales tax and other business taxes may encourage the sellers to increase their supply of the
commodity in the market.
___8. The main motivation to supply goods is to gain profit which is based on the costs of production of a firm
and the price of the commodity.
___9. In a market economy, consumption of a commodity implies that you need to purchase the good or
service.
___10. Aside from the price of the commodity, there are other things that may influence the sellers to supply
the commodity.

III. Identify the factor that affect the demand or supply. Choose the letter of your answer from the box below
and write it on the line provided before each number.
a. Income e. Taste
b. Expectation f. Market
c. Prices of other Commodities g. Taxes
d. Price of Production Inputs h. Technology
____1. Since it is a monetary expense on the part of the firms, the payment of taxes can be considered as part
of cost of production.
____2. Some of the dealers will keep a higher inventory of rice currently so they can sell it in the future with
higher returns.
____3. Adapting the modern method in planting fruit and vegetables.
____4. Utilizing up to date machines for the production of goods.
____5. When the price of the production increases, there will be an increase in the cost of production at every
level of production.
____6. A higher level of salary will give a consumer a higher capacity to consume.
____7. The prospect that the price of US dollar will decline tomorrow, people will postpone their purchase of
US dollars.
____8. The demand for a good or service may also be influenced by prices of other goods and services.
____9. The size and characteristic of the marketplace can also influence the demand for a commodity.
____10. When the price of beef increases, the demand for chicken will increase since beef and chicken may be
considered as substitute goods.
____11. It is influenced by several factors such as cultural values, peer pressure, or the power of advertising.
____12. If you believe that the price of gasoline will increase tomorrow, there is a tendency for consumers to
increase their consumption today.
____13. On the celebration of the New Year’s Eve, it is customary for families to have round fruits at their fruit
plate to attract good luck.
____14. When the price of bread decreases the demand for butter may increase since butter and bread may
be considered as complementary goods.
____15. Richer families have higher levels of consumption while poorer families have lower and limited
consumption basket.
IV. Write ↑ if the demand increases, ↓ if the demand decreases, and ↔ if there is no effect to the level of
demand.
______ 1. To prevent respiratory disease like 2019 Novel Corona Virus, the health department advised people
to use mask.
______ 2. OFWs were asked to go back to the country following the conflict in the Middle East.
______ 3. A particular law was implemented to reduce the population of the country.
______ 4. A new trend of clothes has recently become popular in the market.
______ 5. The celebration of the feast is approaching.
______ 6. The people involved in the pork barrel scam have been exposed.
______ 7. The consumers have already gotten fed up in eating fried chicken.
______ 8. People prefer to eat lechon with sauce.
______ 9. The authority has been investigating on the corruption in the country.
______ 10. The government approved the salary increase among public employees.
______ 11. Ronan informed everybody the importance of saving money through Facebook.
______ 12. Kyle will run for the presidential position in order to uplift the lives of the poor in the Phillipines.
______ 13. Cindy ceased the supply of rice across the National Capital Region.
______ 14. Philmae wants to pass a bill concerning effective waste management.
______ 15. Lyca and April threw money in the street after winning the lottery.

V. Put the following brand, company or firm in their proper column.

ROLEX SAMSUNG AIR ASIA CARROT APPLE APPLE INC.

MERALCO SUZUKI COLGATE KFC NU SKIN MAYNILAD

TAWAS CEBU PACIFIC MCDO GILETTE PETRON PRINGLES

CALTEX FRONTROW FISHBALL KWEK KWEK PAMPERS MANG INASAL

MONOPOLY OLIGOPOLY PERFECT COMPETITION MONOPOLISTIC

COMPETITION

VI. Draw the demand curve of the demand schedule below and tell whether it has a positive or negative
effect.

Demand PRICE OLD QD NEW QD Schedule of

Tamarind 10 72 83
28 63 75
37 60 65
43 51 54
49 45 50
56 33 42
60 20 30
 Prepared by:

Ms. Marinelle C. Lopez

And Paula Jean E. Gado