Professional Documents
Culture Documents
TEST I. MULTIPLE CHOICE: Read and analyze each item carefully. Write the letter corresponding the best
answer on your answer sheet.
A. Land C. Capital
B. Labor D. Entrepreneur
D. Any of these
A. Deflation C. Growth
6. Demand for smart phone increases despite the increase in price, is due to a change in:
A. Supply C. Demand
7. Single firms that sell in the market and have no close substitutes.
B. Monopoly D. Oligopoly
8. Macroeconomics deals with the following except:
A. Salary C. Interest
B. Rent D. Profit
A. Land C. Entrepreneur
B. Labor D. Capital
A. Wage C. Profits 65
B. Rent D. Interest
15. The economic problem that refers to the nature of goods and services the economy should produce:
A. What to produce C. How much to produce
16. In a market economy, the basic economic problems are solved by:
20. A market structure that implies an ideal situation for the buyers and sellers.
B. Monopoly D. Oligopoly 66
Write TRUE in the space provided if the statement is correct and FALSE if incorrect.
_____________ 1. A market is a mechanism of interaction between buyers and sellers for trade or
exchange. The consumer sells and the seller buys
. _____________ 2. The demand for a product is the quantity of a good that the buyers are willing to
buy at certain prices. A demand schedule shows the different quantities that will be sold by the sellers
given various prices.
_____________ 3. A demand function shows how the quantity demanded of a good is dependent on its
determinants, the most important of which is the price of the goods itself.
_____________ 4. One of the non-price determinants of demand is taste. Taste or preference may vary
from person to person.
_____________ 5. The consumers’ income does not influence the demand for goods and services. The
increase in demand due to an increase in income is not experienced in the economy.
______________ 6. An increase in population results in a greater demand since there will be more
consumers as population increases.
______________ 7. The supply of a product is the quantity of goods that sellers are willing to sell. The
supply schedule shows the different quantities that will be sold.
______________ 8. The demand curve is upward sloping to the right while the supply curve is
downward sloping.
______________ 9. When the income of the consumer increases it can shift the demand curve upward
to the right representing increase in demand.
______________10. Expectations as to future incomes and price may cause a shift of the demand
curve.
FLORANTE R. PASTOR
Subject Teacher