Name:

Section:

True or False (2pts each)

1. Management is the study of proper utilization and allocation of available scarce resources.
2. Resources are assets that are available in producing goods or services.
3. Scarcity means that we have over supply of resources.
4. Economics is the study of living things and non living things
5. Managerial Economics is the application of economic theory and concepts to formulate decision maki
6. More competition = lesser power in market.
7. More competition = more power in market.
8. One of the functions of money is to store the value it carries.
9. Market structure is composed of different firms that sell similar products of varying qualities.
10. Market Equilibrium is where the quantity demand is not equal to the quantity supplied.
11. The Two Branches of Economics are Managers and Stockholders
12. The formula for price elasticity of demand is the total change in the quantity demanded of a good or
13. Law of Demand as Price increases, quantity demands will decrease
14. Supply is the quantity of Goods or services consumers are willing and able to sell at different prices
15. Law of Supply as price decreases, quantity supplied will also increase
16. If Central Bank produce more money, possible that inflation might happend.
17. Retail Bank a special segment of banking operation that helps individuals or organisations raise capit
18. Central bank offer their services to the general public and usually have branch offices as well as main
19. Elastic goods are most that has lot of substitutes.
20. Best example of an inelastic goods or services is electricity.

Problem (10 pts)

Megan sells avocado for PHP 30 and her Qd1 = 100. When she decides to sell it for PHP 50 her Qd2 becomes 50 . Shou
Yesterday, the price of ballpens was Php 50.00 a box and Juana were willing to buy 10 boxes. Today, the price has gone
e scarce resources.

ts to formulate decision making and future planning by Management.

s of varying qualities.
uantity supplied.

antity demanded of a good or service divided by the percentage change in the price.

ble to sell at different prices

als or organisations raise capital and provide financial consultancy services to them
branch offices as well as main offices for the convenience of their customers.

her Qd2 becomes 50 . Should Megan sell her avocado at PHP 30 or PHP 50? Is Qd Elastic or Inelastic?
. Today, the price has gone up to Php 57.50 a box and Juana is now willing to buy 8 boxes. Is Juana’s demand for ballpens elastic, in
emand for ballpens elastic, inelastic or unitary? Solve for the elasticity of demand.