NEW ERA UNIVERSITY

COLLEGE OF BUSINESS ADMINISTRATION

MID TERM EXAMINATION – BASIC MICROEC0NOMICS SET – B

NAME: ___MAGDATO, JUSTINE MARVIN M.________ SCORE: __________________

Subject/Section: BASIC MICROECONOMICS/1REM___ Date: _MARCH 17, 2022______

MULTIPLE CHOICE: Write the letter of your choice in the space provided for. Write NEU if answer is not given.

__C____1. Who offers economics resources?

a) household b) producer
c) resource owner d) a and c
__A____2. To meet the physiological needs of a human being, a construction worker should earn P1,500.00 a
day. This is an example of
a) normative economics b) positive economics
c) macroeconomics d) microeconomics
__B____3. The two division of economics are
a) Normative and positive economics
b) Macroeconomics and microeconomics
c) Positive and macroeconomics
d) Normative and microeconomics
__C____4. Economics is not about ____ to think, but ____ to think
a) what, who b) how, what
c) What, how d) how, who
__D____5. The second principle of economics is that we have _____ wants.
a) limited b) different c) wordy d) unlimited
__A____6. Consumer choice is Answer not given
a) buying branded clothes b) prefers to eat at Viking
c) travel abroad vs local d) pain reliever than dental services
__B____7. Scarcity means that society must make a.
a) goods b) choice c) natural resources d) services
__A____8. Of the following, which is most likely to be a normal good?
a) hamburger b) used clothing c) car d) low-rent housing units
__C___ 9. In a market system, prices are determined by
a) corporate executives b) government bureaucrats
c) supply and demand d) production costs
__B___10. All of the following are examples of constraints faced by decision makers, except one. Which of the
exception?
a) income for a consumer b) natural resources for a firm
c) consumer wants d) wealth for a consumer
__C___ 11. This is a type of Economic System that still existing today like the swapping of cellphones, trading of
vehicles and also called barter system.
a) Mixed Economic System b) Command
c) Tradition d) Market Economy
__A___ 12. Natural materials are to forests, land, minerals while _______ resources are to knowledge and skills
a) human b) man made c) natural d) labor
__D___ 13. It is a cost that you have to sacrificed or the value foregone alternative.
a) sunk b) fixed c) variable d) opportunity
__A____14. Goods that go together is called complement, which is not belong to this? Answer not given
a) labor and capital b) car and gasoline c) nail and hammer d) cell phone and load
BONUS 15. bonus

II. Prepare a Supply Schedule for the following data: (5 points)

Price of bread ranges from P 5.00 – 15.00
Quantity Supplied ranges from 30 – 50 pieces

Price Quantity Supplied

5 50
10 40
15 30
 III. Prepare a graphical form for the above data. (5 points)

60

50
QUANTITY SUPPLY

40

30

20

10

0
0 2 4 6 8 10 12 14 16
PRICE

VII. Essay: (5 points each)

1. Define market.

Economists employ a different definition of the word "market" than the general public. The concept of a
marketplace comes to mind when we hear the term market. These are the shops where people buy and sell goods.
However, market refers to the buying and selling of a product, as well as the establishment of its price, in a broad
sense. In this context, the phrase refers to the innumerable decisions made by commodity producers (the supply side
of the market) and customers (the demand side of the market), which together decide the commodity's price level.

2. Differentiate Macroeconomics and Microeconomics.

Macroeconomics and microeconomics are two types of economics. What is the difference between them, and
what is their purpose? Economics is the study of how limited or finite resources are distributed and consumed both
individually and collectively. However, economics is divided into two categories. Microeconomics is one of them.
Microeconomics is concerned with how individuals and corporations manage the economy. Microeconomics uses a
bottom-up strategy in which all sectors of the company are encouraged to contribute. Because they can consider a
larger number of viewpoints while making decisions, this leadership style allows for more communication and mobility.
Macroeconomics, on the other hand, examines the entire economy. They use a top-down approach in macro,
attempting to find the large picture and all of its components. These elements are frequently the driving force behind
the finished result. For example, they assist in the development of suitable resource distribution strategies at the
macroeconomic level, such as unemployment and inflation. To put it another way, macroeconomics is concerned with
the entire economy rather than a single corporation.

As student you should be seen as questioning, exploring, initiating, emerging, enabling, solving problem and
concept builder. Good luck!