APPLIED ECONOMICS

QUIZ #3 WEEK 3
 Directions: Read carefully each item. Use a
separate sheet for your answers, write only the
letter of the best answer for each item.

1.What economic term refers to the amount

of some goods or services that are consumers
willing and able to purchase at each price?
A. Demand C. Market
B. Equilibrium D. Supply
 Directions: Read carefully each item. Use a
separate sheet for your answers, write only the
letter of the best answer for each item.

2. What economic term refers to the

quantity of goods that the seller is
willing to offer for sale?
A. Demand C. Price
B. Equilibrium D. Supply
 Directions: Read carefully each item. Use a
separate sheet for your answers, write only the
letter of the best answer for each item.

3. Which refers to the quantity of a commodity

that producers are willing to sell at a particular
price at a particular point in time?
A. Quantity supplied B. Supply
C. Supply schedule D. Supply curve
 Directions: Read carefully each item. Use a
separate sheet for your answers, write only the
letter of the best answer for each item.

4. Choose the word that makes the statement

incorrect in this statement – “In substitution effects
of goods, when the price of mango increases,
pineapple can be a substitute for mango.”
A. Increases B. Pineapple
C. Substitute D. Substitution effects
 Directions: Read carefully each item. Use a
separate sheet for your answers, write only the
letter of the best answer for each item.
5. Headline news today, September 28, 2020, that the price
of gasoline per liter will rise on September 30, 2020. What is
the result of this news?
A. Supply of gasoline decreases.
B. The price of a liter of gasoline falls today.
C. Today's demand for gasoline increases.
D. Today's supply of gasoline increases.
 Directions: Read carefully each item. Use a
separate sheet for your answers, write only the
letter of the best answer for each item.

6. What microeconomic law states that all other

factors being equal, as the price of a good or
service increases, consumer demand for the goods
or services will decrease and vice versa?
A. Ceteris paribus C. Law of Supply
B. Law of Demand D. Law of Supply and
Demand
 Directions: Read carefully each item. Use a
separate sheet for your answers, write only the
letter of the best answer for each item.

7. Which law states that all other factors being

equal, as the price of a good or service increases,
the quantity of goods or services that suppliers
offer will increase?
A. Ceteris paribus C. Law of Supply
B. Law of Demand D. Law of Supply and Demand
 Directions: Read carefully each item. Use a
separate sheet for your answers, write only the
letter of the best answer for each item.

8. Classify the following factors affecting

the demand of a commodity. Which does
NOT belong to the group?
A. Income C. Price of Production Inputs
B. Market D. Taste
 Directions: Read carefully each item. Use a
separate sheet for your answers, write only the
letter of the best answer for each item.

9.Classify the following factors affecting the

supply of a commodity. Which does NOT
belong to the group?
A. Market
C. Taxes
B. Price of Production Inputs D.
Technology
 Directions: Read carefully each item. Use a
separate sheet for your answers, write only the
letter of the best answer for each item.
10. Applying the law of demand, other things remaining the same,
A. As the demand for cheeseburgers increases, the price of a
cheeseburger will fall.
B. As income increases, the quantity of cheeseburgers demanded will
increase.
C. As the price of a cheeseburger rises, the quantity of cheeseburgers
demanded will decrease.
D. As the price of a cheeseburger rises, the quantity of cheeseburgers
demanded will increase.
Directions: TRUE OR FALSE: Write the word TRUE if
the statement is correct and FALSE if it is incorrect
about the non-price determinants of demand and supply.

11. A good for which consumers’

tastes and preferences are greater,
its demand would be large, and its
demand curve will therefore lie at a
higher level.
Directions: TRUE OR FALSE: Write the word TRUE if
the statement is correct and FALSE if it is incorrect
about the non-price determinants of demand and supply.

12. The higher income means greater

purchasing power.
13. When the price of a substitute for a
good fall, the demand for that goodwill 66
decline, and when the price of the substitute rises,
the demand for that goodwill increase.
Directions: TRUE OR FALSE: Write the word TRUE if
the statement is correct and FALSE if it is incorrect
about the non-price determinants of demand and supply.

14. If the factors of production become cheap, the

supply will decrease, and vice versa. If the factors of
production become cheap, the supply will decrease,
and vice versa.
15. The volume of production or supply is also
influenced by progress in the the technique of
production.
Directions: Answer briefly but accurately the
question below. Write your answer in a separate
sheet of paper. (5 points)
COVID-19 is a public health crisis, but it
has significant economic effects. During
the period of ECQ until this time, what did
you observed about the economy in our
country and your community regarding
the demand and supply of goods services?