MIDTERM EXAM

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1. A social science which deals with the allocation of scarce resources to satisfy the unlimited human wants.

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2. The application of economic theory and econometrics in specific settings with the goal of analyzing potential outcomes.

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3. It deals with the economic behavior of the whole economy or its aggregates such as government, business and households.

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4. Desires of consumers that have to be satisfied.

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5. A condition where there are insufficient resources to satisfy all the needs and wants of a population.

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6. Payment made to labor.

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7. It is a finished product which is used to produce other goods.

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8. It deals with the economic behavior of individual units such as the consumers, firms, and the owners of the factors of production.

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9. Man’s needs required for his survival.

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10. It is also termed as human resource.

Multiple Choice

11. There is scarcity of resources because:

• Man’s wants are unlimited

• Man’s wants are limited

• Man’s wants are enough

• Man’s wants are satisfied

Multiple Choice

12. An economic resource that includes the natural resources:

• Land

• Labor

• Capital

• Entrepreneur

Multiple Choice

13. Economics is a social science because it deals with:

• A. Human nature

• B. Natural resources

• C. Experimentation

• D. Plants and animals

Multiple Choice

14. It is a finished product which is used to produce other goods:

• A. Land

• B. Labor

• C. Capital

• D. Entrepreneur

Multiple Choice

15. The economic problem that refers to the nature of goods and services the economy should produce:

• A. What to produce

• B. How to produce

• C. How much to produce

• D. For whom to produce

Multiple Choice

16. It is also termed as human resource:

• A. Land

• B. Labor

• C. Capital

• D. Entrepreneur

Multiple Choice

17. Macroeconomics deals with the following except:

• A. Gross National Product

• B. Employment

• C. National Income

• D. Price of rice

Multiple Choice

18. The word economic is most closely associated with the word:

• A. free

• B. scarce

• C. unlimited

• D. unrestricted

Multiple Choice

19. Economics is important so that we may able to:

• A. Understand problems facing the

       citizens and family

• B. Help the government promote

      growth and improve quality of life

• C. Analyze fascinating patterns of

      social behavior

• D. All of the above

Multiple Choice

20. Man’s mental and physical efforts exerted in production:

• A. Land

• B. Labor

• C. Entrepreneur

• D. Capital

Multiple Choice

21. It reflects the desire of the consumer for a commodity:

• A. Demand

• B. Supply

• C. Market

• D. Supply schedule

Multiple Choice

22. The quantities consumers are willing to buy of a good at various prices:

• A. Demand

• B. Supply

• C. Market

• D. Demand schedule

Multiple Choice

23. Demand for television increases despite the increase in price, is due to a change in:

• A. Supply

• B. Quantity demanded

• C. Demand

• D. None of the above

Multiple Choice

24. The ceteris paribus assumes that:

• A. Price factor is constant

• B. Price factor is not constant

• C. Non-price factor is not constant

• D. Non-price factor is constant

Multiple Choice

25. An increase in income shifts the demand curve upward rather than downward because:

• A. Increase in income, decreases

      price

• B. Price is constant

• C. Income increases demand

• D. None of the above

Multiple Choice

26. Which of the following is true?

• A. The lower the price of a good, the

      smaller the quantity that will be

      offered by the supplier.

• B. The lower the price of a good, the

       bigger the quantity that will be

       demanded       by the buyer.

• C. All of the above are true.

• D. None of the above is true.

Multiple Choice

27. The following are the determinants of demand, EXCEPT:

• A. Income

• B. Number of sellers

• C. Price expectations

• D. Prices of related goods

Multiple Choice

28. Which of the following is NOT true?

• A. The demand curve is upward

      sloping to the right while the

      supply curve is downward

      sloping.

• B. An increase in population results

      in a greater demand since there

      will be more consumers as

      population increases.

• C. Taste or preferences may vary

      from person to person.

• D. None of the above

Multiple Choice

29. It refers to the quantity of a commodity which buyers will buy at a given time and place will vary inversely with the price.

• A. Law of Supply

• B. Law of Demand

• C. Price elasticity

• D. Law of Demand and Supply

Multiple Choice

30. A shift in the consumer’s demand curve means:

• A. a change in the entire demand

      curve

• B. a change in the quantity

      demanded

• C. both a and b

• D. neither a nor b

Multiple Choice

31. The amount of commodity available for sale.

• A. Demand

• B. Supply

• C. Market

• D. Supply schedule

Multiple Choice

32. The quantities producers are willing to offer for sale at various prices.

• A. Demand

• B. Supply

• C. Market

• D. Supply schedule

Multiple Choice

33. If the cost of production of pork increases, supply will:

• A. increase

• B. decrease

• C. remains constant

• D. it depends

Multiple Choice

34. The ceteris paribus assumes that:

• A. Price factor is constant

• B. Price factor is not constant

• C. Non-price factor is not constant

• D. Non-price factor is constant

Multiple Choice

35. If the cost of producing a good decrease, the:

• A. supply curve will shift to the

      right

• B. supply curve will shift to the left

• C. demand curve will shift to the

      right

• D. any of these may happen

Multiple Choice

36. A shift in the producer’s supply curve means

• A. a change in the entire supply

      curve

• B. a change in the quantity

      supplied

• C. both a and b

• D. neither a nor b

Multiple Choice

37. The following are the determinants of supply, EXCEPT:

• A. Income

• B. Number of sellers

• C. Technology

• D. Taxes ad subsidies

Multiple Choice

38. The supply curve is positively sloped because:

• A. Any increase in the cost of

      production will result to a higher

      price.

• B. The lower the price, the larger

       supply the consumers are

       willing to buy.

• C. The higher the price, the higher

       the quantity that suppliers are

       willing to sell.

• D. The larger the quantity supplied,

       the lower the price.

Multiple Choice

39. It refers to the quantity offered for sale that will vary directly to price.

• A. Law of Supply

• B. Law of Demand

• C. Price elasticity

• D. Law of Demand and Supply

Multiple Choice

40. Which of the following statement is NOT true?

• A. The supply of a product is the

       quantity of goods that sellers are

       willing to sell.

• B. The demand curve is upward

       sloping to the right while the

       supply curve is downward

       sloping.

• C. The lower the price of the good,

       the smaller the quantity that will

       be offered by    the supplier.

• D. None of the above.

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41. Market equilibrium is the general agreement of the buyer and the seller in the exchange of goods and services at a particular quantity.

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42. The legal minimum price imposed by the government on certain goods and services is called price ceiling.

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43. A condition in the market where the quantity supplied is more than the quantity demanded is called surplus.

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44. Adam Levine is a British economist who introduced a kind of pricing scheme by combining the law of demand and the law of supply.

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45. The quantity of a commodity which buyers will buy at a given time and place will vary inversely with the price is called demand.

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46. The legal maximum price imposed by the government is called floor price.

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47. Law of Demand means that as price increases quantity supplied also increases; and as price decreases, quantity supplied also decreases.

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 48. Price Control is the specification by the government of minimum or maximum prices for certain goods and services.

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49. Shortage is a condition in the market in which quantity demanded is higher than quantity supplied at a given price.

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50. Ceteris Paribus means all other things equal or constant.