Luzonian Center of Excellence for Science and Technology (LCEST) Inc.

3rd Floor. Bose Bldg., Maharlika Highway, Brgy. Kanluran, Calauan, Laguna
E-mail: lcest.calauan@yahoo.com, lcest.calauan@gmail.com
Tel: (049)557-6707

1st Long Quiz in Applied Economics

Name: __________________________________________ Date: ________________

Time started: ________ Time finished: _________ Score: ________________
I. TRUE OR FALSE
Directions: Read each statement below carefully. Write T if the statement is TRUE. Write F if the
statement is FALSE. Write your answer on the space provided. STRICTLY NO ERASURES.

______1. Supply is the willingness of consumer to buy a commodity at a given price.

______2. Demand refers to the quantity of goods that a seller is willing to offer for sale.
______3. In the Law of Demand, as price increases, the quantity demanded for that product decreases.
______4. In the Law of Supply, as the price increases, the quantity supplied of that product also
increases.
______5. When demand and supply curves intersect, it is called market equilibrium.
______6. Supply drives economic growth.
______7. Demand is when the public’s desires, emotions, or preferences change in favor of a product,
so does the quantity demanded.
______8. Expectations is when people expect that the value of something will rise, they demand more
of it.
______9. Demand will be determined by factors such as price, the number of suppliers, the state of
technology, government subsidies, weather conditions and the availability of workers to produce the
good.
______10. If workers become more motivated and work hard, then there will be significant increase in
output and supply.
______11. Commodity is a raw material or primary agricultural product that can be bought and sold,
such as copper or coffee.
______12. Diamond is one of the more actively traded commodities because it is used in the production
process for jewelry and other goods, but is also viewed by many as a worthwhile long-term investment.
______13. An increase in commodity prices can affect the inflation expectations of consumers to a
greater extent than price increases of many other goods categories.
______14. Fixed price is the amount of money that it is reasonable to pay for shares and bonds.
______15. Relative price is the price of a commodity such as a good or service in terms of another; i.e.,
the ratio of two prices.

II. MULTIPLE CHOICE

Directions: Read each question and answer choice carefully and choose the best answer. Encircle your
answer. STRICTLY NO ERASURES
1. It is the amount of money that is reasonable to pay for shares and bonds.
a. Relative price
 Luzonian Center of Excellence for Science and Technology (LCEST) Inc.
3rd Floor. Bose Bldg., Maharlika Highway, Brgy. Kanluran, Calauan, Laguna
E-mail: lcest.calauan@yahoo.com, lcest.calauan@gmail.com
Tel: (049)557-6707
b.

Fixed price
c. Fair price