DEMAND

1. This is a concept which falls under microeconomics and macroeconomics that refers to the
individual’s needs and desires, their ability and willingness to purchase goods/services at a
specific price. (Remembering)
a. Demand c. Market Demand
b. Quantity Demanded d. Aggregate Demand

2. Paul is studying at Samar State University. He enjoys and consumes Kopiko Blanca everyday
especially when he is reviewing for a test. His desire for Kopiko Blanca dissipated when the
price of the product increased. Paul is exhibiting what kind of concept? (Understanding)
a. Law of Purchasing Power c. Law of Consumer
b. Law of Demand d. Law of Price

3. Mark and his classmates are in a karenderiya deciding for their lunch on the afternoon. Mark
has chosen the pinakbet over the adobo because it is affordable and conforms to his budget
as a student. Which determinants of demand has affected Mark’s demand for Adobo?
(Analyzing)
a. Preferences c. Demographic Characteristics
b. Prices of Related Goods and d. Income
Services

4. Changes in the demand curve occurs either if there is change in the price or involves other
variables other than the price which then affect the quantity demanded. Evaluate the following
statements bellow and determine which entails a shift in the demand curve. (Evaluating)

I. Sibuyas is one of the primary ingredients to Cristina’s dishes. However, Cristina was
saddened when the price of sibuyas increased which pushed her to purchase less
amount than usual.
II. Derek loves Nike shoes. He was so excited when the brand announced a 30% sale on
the first week of March 2023.
III. Troy was able to treat himself to Jollibee right after he received his monthly allowance
and scholarship.
IV. Meredith loves coffee and tea. However, ever since the incident of milk tea poisoning
which happened last 2015 in Sampaloc, Manila, she never dared to try or consume
milk tea since then.
a. I only
b. I & II only
c. III & IV only
d. II, III and IV only

5. In Catbalogan city, launder services charge 160 pesos for every 6 kg of launder per month.
With the current inflation, this caused the service to double. With the use of demand schedule
and curve, how you interpret the above situation? (Applying)
a. The demand curve for laundry services will extend as the price of the service
doubles.
b. The demand curve for laundry services will shift to the left as the price of laundry
services doubles.
c. The demand curve for laundry services will contract as the price of the
service doubles.
 d. The demand curve for laundry services will shift to the right as the price of laundry
services doubles.

6. The market demand curve shows:

a. The effect on market supply of a change in the demand for a good or service.
b. The quantity of a good that consumers would like to purchase at a different
prices.
c. The marginal cost of producing and selling different quantities of a good.
d. The effect of advertising expenditure on the market price of a good

7. Mr. Michael is selling flowers during valentine's day. He is expected to sell 100 bouquet of
flowers at a price of 300 pesos. Then, he decided to increase the price up to 350 pesos to
make more profit out of it. Now, did Mr. Michael sell all of the bouquet of flowers at a price
of 350?
a. Yes, because the flowers are beautiful.
b. Yes, because of the high demand and the willingness to pay of the
consumers.
c. No because it's not worth it
d. No because of the over pricing

8. It states that the more of an item the consumer's consume, the less the satisfaction he/she
gets from each unit consumed or used.
a. Law of demand
b. Substitutional effect
c. Diminishing marginal utility
d. Income effect

9. It is the resultant change in demand of a good or service caused by an increase or

decrease in a consumer's purchasing power.
a. Law of demand
b. Diminishing marginal utility
c. Substitutional effect
d. Income effect

10. At a price of 899 pesos, the manufacturer of aquaflask is willing to produce 5,000 units per
quarter. At a price of 1,000 pesos, it is likely that the manufacturer will be willing to produce
_________.
a. More than 5,000 units per quarter
b. 5,000 units per quarter
c. Less than 5,000 units per quarter
d. It is impossible to predict the effect of a higher price on the number of units of a
product that a firm will be willing to produce
SUPPLY
1. Which of the following would not shift the supply curve?
a. Progress in technology
b. A change in price
c. Increase tax and changes in regulatory
d. Changes in production cost

2. It shows the quantities supplied at different prices during a particular period, all other things
unchanged.
A. Market supply schedule
B. Market supply curve
C. Individual supply schedule
D. Supply schedule

3. The concept of law of supply states_________________.

A. The consumer's desire and willingness to buy a product or service at a given period
or over time.
B. Ceteris paribus as the price of a good rises the quantity supplied of the good falls as
the price of a good rises, the quantity supplied of a good falls at a given period of time.
C. The willingness and ability of a seller to produce and offer to sell at different of a good
and prices for a period of time.
D. Ceteris paribus, as the price of a good rises the quantity supplied of the good
rises as the price of a good falls, the quantity supplied of a good falls at a given
period of time.

4. A supply curve upward sloping because

A. It shows a positive correlation between a product cost and the quantity produced by a
firm.
B. as price increases, suppliers can justify producing at higher marginal costs as long as
MC=P
C. It shows a positive correlation between a product price and the quantity
produced by a firm
D. As price increases, suppliers can justify producing at higher marginal costs as long
as MC>P

5. Let assume that Aling Norma has 25 sacks of garlic stocked in her store. She need to sell
them at a given price of 3000 to 5000 per sacks. However, the buyer wanted to double the
quantity regardless its price. What does the situation indicate?
A. The quantity supplied is fixed and supply curve is vertical
B. The quantity supplied is fixed and supply curve upward sloping
C. The price increased so does the quantity supplied
D. The law of supply holds most of the production goods.
6. A decrease in supply is, graphically, represented by:
A. A leftward shift in the supply curve.
B. A rightward shift in the supply curve.
C. A movement up and to the right along a supply curve.
D. A movement down and to the left along a supply curve.

7. When the supply of apple increases, the change is geometrically best described as:
A. a leftward shift of the supply curve.
B. a rightward shift of the supply curve.
C. an upward shift of the supply curve.
D. a downward shift of the supply curve.

8. Which of the following is NOT a determinant of the supply of good Y?

A. The cost of raw materials used to produce good Y
B. The technology used to produce Y.
C. The number of sellers of good Y.
D. All of the above are determinants of the supply of good Y.

9. Your supply curve for hours to work at part-time jobs is probably upward-sloping because:
A. Successive hours of work have increasingly high opportunity cost to you.
B. The average opportunity cost of the hours you work increases with the number of
hours you work.
C. You can make more money at a higher wage rate.
D. Employers are willing to pay more for workers who can work longer hours.

10. Ms. Reyes is planning to hold back most of her beauty products this year because of the
higher price that is expected next year, what will be the current supply curve of the said
product?
A. The supply curve will shift rightward
B. The supply curve will shift leftward
C. The supply curve has no changes
D. None of the above
MARKET EQUILIBRIUM
1. It is the price at which the quantity demanded of a good is equal to the quantity supplied.
(Remembering)
A. Equilibrium Price
B. Market-Clearing Price
C. A only
D. B only
E. Both A and B

2. Which of the following best describes equilibrium in a market? (Understanding)

A. The price of a good makes the quantity buyers want to buy the same as the
quantity sellers wish to provide.
B. The price is such that the quantity supplied is greater than the quantity demanded.
C. The price is such that the quantity demanded is greater than the quantity supplied.
D. There are more people who want to buy a good than are sellers willing to sell at the
current price.
E. There are more people who want to sell the good than buyers willing and able to
purchase the product at the current price

3. Last year, the price of onions peaked at 700 pesos per kilo from the usual less than 100 pesos
per kilo. If you were the seller, what would you have done to bring the market at rest, taking the
law of demand into consideration? (Apply)
A. Sauté the onions.
B. Auction all the onions.
C. Reduce your onion inventory.
D. Lower the price of the onion.
E. Cut back the onion production.

4. Please refer to the market for puto-puto shown on the right. Which of the following explains
why 7 pesos is not the equilibrium price in the market for puto-puto? (Analyse)

A. The quantity demanded and quantity

supplied are equal.
B. The quantity demanded is greater than
the quantity supplied.
C. The demand is greater than the supply.
D. The quantity supplied is greater than the
quantity demanded.
E. The supply is greater than the demand.
5. Which of the following statements about the language of demand and supply is/are incorrect?
(Evaluate)
A. Excess Supply is a condition in which the quantity supplied is greater than the
quantity demanded.
B. Equilibrium is the state of either surplus or shortage in a market.
C. Excess Demand is a condition which the quantity demanded is less than the quantity
supplied.
D. Both A and B
E. All except A

6. Which of the following can change equilibrium price and quantity?

I. When there is a change in demand but not in supply.
II. When there is a change in supply but not in demand.
III. When there is a change in both supply and demand.

A. I only
B. II only
C. III only
D. I, II and III

7. Yeri, a Grade 8 student who is an avid watcher of the television show Maria Clara at Ibarra,
decided to read the book to catch up with the events in the series. While on her way to the
bookstore, she was worried she wouldn’t get any copy of it due to the sudden rise in the
demand created by the said show. Luckily, the seller on the shop said they have enough in
store and Yeri was able to get one for herself. Which of the following conditions describe the
situation?
A. Yeri purchased the book less than its original price.
B. Yeri purchased the book at its original price.’
C. Yeri purchased the book higher than its original price.
D. Yeri got the book for free.
E. Yeri pays the book in a weekly installation.

8. What will happen to the price of a product if its demand rises greater than the fall of its supply?
A. Price will fall
B. Price remains the same
C. Price will increase
D. Both A and B
E. Both B and C

9. What happens to the equilibrium price and equilibrium quantity when there is a fall on the
demand while supply remains the same?
A. Price falls; equilibrium quantity falls
B. Price falls; equilibrium quantity increases
C. Price increase; equilibrium quantity falls
D. Price increases; equilibrium quantity increases
E. Price falls; equilibrium quantity falls
10. What happens to equilibrium quantity when the fall on demand is equal to the rise in the supply
of a product?
a. Equilibrium quantity rises
b. Equilibrium quantity falls
c. Equilibrium quantity will remain the same
d. Equilibrium quantity will rise and then fall after a day
e. Equilibrium quantity will fall and then rise again after a day.

GROSS DOMESTIC PRODUCT

1. Select the best statement that defines GDP. (EVALUATE)
A. Monetary value of all final goods and services produced within a nation in a
particular year.
B. National income minus all non-income charges against output.
C. Monetary value of all economic resources used in producing a year's output.
D. monetary value of all goods and services, final and intermediate, produced in a specific
year.

2. Which of the following is an intermediate good? (APPLY)

A. The purchase of gasoline for a ski trip to Colorado
B. The purchase of a pizza by a college student.
C. The purchase of baseball uniforms by a professional baseball team.
D. the purchase of jogging shoes by a professor

3. GDP differs from NDP in that: (ANALYZE)

A. GDP is based on gross exports, while NDP is based on net exports.
B. GDP includes, but NDP excludes, indirect business taxes.
C. Net investment is used in calculating GDP and gross investment is used in calculating
NDP.
D. Gross investment is used in calculating GDP and net investment is used in
calculating NDP.

4. Final goods and services refer to: (REMEMBER)

A. Goods and services that are unsold and therefore added to inventories.
B. Goods and services whose value has been adjusted for changes in the price level.
C. Goods and services purchased by ultimate users, rather than for resale or further
processing.
D. The excess of U.S. exports over U.S. imports.

5. Suppose the total market value of all final goods and services produced in a particular country
in 2004 is $500 billion and the total market value of final goods and services sold is $450
billion. We can conclude that: (CREATE)
A. GDP in 2004 is $450 billion.
 B. NDP in 2004 is $450 billion.
C. GDP in 2004 is $500 billion.
D. inventories in 2004 fell by $50 billion.

6. The net domestic product of a country is defined as the measure of a country's economic
output that has been adjusted for what? (Create)
A. The amount of tax on production.
B. The amount of output that has been consumed
C. The amount of tax on the consumption
D. The number of people who consume the output

7. What does the word domestic in Gross Domestic Product refer to? (Evaluate)
A. All goods and services that are produced within a nation's domestic borders
B. All goods and services that are produced outside a nation's borders
C. The type of takes the government events
D. The amount of deprecation claimed by firms in an economy All goods and
services that are produced in other nations and sold there

8. Which of the following is not a method to calculate Gross Domestic Product? (Analyze)
A. Diminishing cost method
B. Expenditure method
C. Product method
D. None of the above

9. Which of the following is the best explanation of disposable income? (Apply)

A. All the income a person or business makes during a specific period of time
B. At of the income a person or business makes during a specific period of time less taxes
owed on the income
C. Gross income
D. An increase in the wealth of a person or business during a specific period of time
less mandatory expenses

10. Which of the following statements is true about Nominal Gross Domestic Product?
(Understand)
A. It shows a more accurate picture of a country’s economy as compared to real GDP
B. It is calculated by considering the current prices
C. It is calculated by considering the base prices
D. None of the above

11. Net National Product at factor cost is also known as _________. (Remember)
A. Personal Income
B. National Income
C. Net Domestic Product
D. Gross National Product