Free Printable Applied Economics _Quarterly 3

1.

1. It is a commodity or service in short supply relative to its demand, which implies a constant availability of commodity or economic resource, relative to the demand of them.

a)

Short run

b)

Profit

c)

Scarcity

d)

Supply

2.

What is the state in which market supply and demand balance each other, and as a result prices become stable?

a)

Market Price

b)

Market Equilibrium

c)

Market Disequilibrium

3.

What is characterized by changes in conditions where supply and demand are out of balance?

a)

Market Price

b)

Market Disequilibrium

c)

Market Equilibrium

4.

What happens to the market when the chocolate bars are priced at $4 each?

a)

surplus

b)

shortage

c)

equilibrium

5.

What happens to the market when the chocolate bars are priced at $1 each?

a)

shortage

b)

surplus

c)

equilibrium

6.

Which statement below would be the most correct to describe the equilibrium price?

a)

$600

b)

$600 per month

c)

$500 per month

d)

$700

7.

Which statement below would be the most correct to describe the equilibrium quantity ?

a)

15 rental houses

b)

15000

c)

15000 rental houses

d)

15

8.

Describes very little a change in demand with a large change in price

a)

elastic

b)

inelastic

c)

demand curve

d)

price

9.

The formula for calculating elasticity of demand is:

a)

The % change in price over the % change in quantity demanded

b)

The % change in quantity demanded over the % change in price

c)

The change in price over the change in quantity demaned

d)

The change in quantity demanded over the change in price

10.

What does it mean?

PED = 0

a)

Perfectly inelastic demand

b)

Inelastic demand

c)

Unitarily elastic demand

d)

Elastic demand

e)

Perfectly elastic demand

11.

What does it mean?

PED > 1

a)

Perfectly inelastic demand

b)

Inelastic demand

c)

Unitarily elastic demand

d)

Elastic demand

e)

Perfectly elastic demand

12.

What does it mean?

% change in Quantity demanded = % change in Price.

a)

Perfectly inelastic demand

b)

Inelastic demand

c)

Unitarily elastic demand

d)

Elastic demand

e)

Perfectly elastic demand

13.

Measurement of degree of responsiveness of quantity demanded to changes in price is called

a)

Income elasticity of demand

b)

Price elasticity of demand

c)

Law of demand

d)

Cross elasticity of demand

14.

Products like pencils, books, and other school stationaries are easy to store in a warehouse. If a firm producing such goods and has a good warehousing facilities and can supply more when prices are rising, then supply will be

a)

Inelastic

b)

Unitary elasticity

c)

Elastic

d)

None of the above

15.

PES =

a)

% change in quantity supplied of the product / % change in price of the product

b)

% change in price of the product / % change in quantity supplied of the product

c)

% change in quantity supplied of the product * % change in price of the product

d)

% change in quantity supplied of the product - % change in price of the product

16.

for PES = 1

a)

PES is perfectly elastic

b)

PES is unitary elastic

c)

PES is perfectly inelastic

d)

PES is elastic

17.

If two goods have negative price cross‑elasticities of demand, the goods are:

a)

inferior goods.

b)

luxury goods.

c)

complementary goods:

d)

substitute goods.

18.

What does cross elasticity measure?

a)

Measures responsiveness of changes in quantity demanded to changes in price.

b)

Measures the responsiveness of the quantity demanded of

a good or service to a change in income.

c)

Measures the responsiveness of the quantity demanded of one good to changes in price of another good.

19.

Consumers demand more of this type of good when their income rises.

a)

Normal good

b)

Inferior good

c)

Elastic good

d)

Substitution good

20.

If the income elasticity of market demand is negative, most consumers view the good as:

a)

a luxury good

b)

having many imperfect substitutes.

c)

an inferior good.

d)

a normal good.

21.

Which one is the correct formula for Income Elasticity of demand?

a)

Percentage change in income / Percentage change in quantity demand for a good

b)

Percentage change in quantity demand for a good / Percentage change in income

c)

Percentage change in supplied for a good / Percentage change in income

d)

Percentage change in quantity demand for a good / Percentage change in its price

22.

This market structure is characterized by the lowest level of competition among producers.

a)

monopolistic competition

b)

monopoly

c)

oligopoly

d)

perfect competition

23.

Which does not belong to the group of market structures?

a)

Monopoly

b)

Oligopoly

c)

Perfect Competition

d)

Market Competition

24.

Which of the following is the least competitive market structure?

a)

Perfect competition

b)

Monopolistic competition

c)

Oligopoly

d)

Monopoly

25.

Which of the following is the most competitive market structure?

a)

Perfect competition

b)

Monopolistic competition

c)

Monopoly

d)

Oligopoly

e)

Market Competition

26.

Which of the following is NOT a feature of a monopolistic competition?

a)

Numerous sellers

b)

Product differentiation

c)

Numerous buyers

d)

Homogenous price

27.

If ABM firm sells its output in a market, with many sellers and buyers of

homogeneous product, and unlimited resource mobility, the structures is a/an

a)

monopolist

b)

oligopolist

c)

perfect competitor

d)

monopolistic competitor

28.

If the ABM firm sells homogenous products in a market, with a single seller and

many buyers, for which there are no close substitutes to the products, it is a/an

a)

monopolist

b)

oligopolist

c)

perfect competitor

d)

monopolistic competitor

29.

"obstacles or hindrances that make it difficult for new companies to enter a given market...may include technology challenges, government regulations, patents, start-up costs, or education and licensing requirements."

Which characteristic of a market is the quote describing?

a)

types of the product

b)

price control

c)

barriers to entry

d)

numbers of sellers

30.

Which type of market structure is being described in the following quote?

"To make matters worse, health care consolidation has led to the absence of any choice at all for consumers. Another study by Harvard University on hospital markets found that between 2007-2017, 11.2 million Americans were served by just a single hospital system."

a)

perfect competition

b)

monopoly

c)

monopolistic competition

d)

oligopoly

31.

Which of the following is the reason firms have little price control in a perfectly competitive market?

a)

High barriers make it difficult for firms to enter the market.

b)

Supplied products are exactly the same, so buyers purchase where the price is lowest.

c)

Low barriers reduce profit motive, so there are fewer sellers.

32.

Competition is _____ for consumers because it leads to _____ prices and _____ choices for them. In addition, competition also results in ____ quality products. This is not the case with a ______, where one seller controls the market.

Complete the sentence. Choose the correct order.

a. monopoly

b. lower

c. greater

d. higher

e. beneficial

a)

a, c , d, e b

b)

e, d, a , b, c

c)

e, b, c, d, e

d)

a, c , d, e b

33.

There are very high barriers these two structures

a)

monopoly

b)

monopolistic competition

c)

oligopoly

d)

pure / perfect competition

34.

Which structure uses differentiation to make its products unique?

a)

monopoly

b)

monopolistic competition

c)

oligopoly

d)

pure / perfect competition

35.

Differentiation is _________________.

a)

having identical products.

b)

copying another business.

c)

small differences that make your product unique.

d)

having control of the market value.

36.

The farmers' market is an example of _______________.

a)

a monopoly.

b)

a purely/perfectly competitive market.

c)

an oligopoly.

d)

a monopolistic competition.

37.

Airlines are examples of _________________.

a)

purely / perfectly competitive markets.

b)

monopolies.

c)

oligopolies.

d)

monopolistic competition.

38.

The 4 conditions for a purely / perfectly competitive market are:

a)

The products are identical.

b)

Buyers know a lot about the product.

c)

The sellers control the market price.

d)

Sellers can enter and exit the market easily.

e)

There are many buyers and sellers.

39.

Monopolies can control the price of a product because ______.

a)

They are evil.

b)

They are illegal.

c)

The have a unique product.

d)

The government supports them.

40.

What happens to a monopolistically competitive firm that begins to charge an excessive price for its product?

a)

The firm will go out of business.

b)

Consumers will substitute a rival’s product.

c)

Consumers will boycott the product.

d)

The government will regulate the price.

41.

Why does no one firm dominate in a perfect competition?

a)

No firm wants to

b)

Each firm sells to different people

c)

Each firm produces so little of the total supply that they cannot influence prices

d)

One firm will eventually dominate and make it a monopoly

42.

The capacity for innovation, investment and expansion in new markets, products and techniques.

a)

Business

b)

Businessman

c)

Entrepreneur

d)

Entrepreneurship

43.

Any person who can create something new or something different has already acquired a competitive advantage.

a)

Business

b)

Businessman

c)

Entrepreneur

d)

Entrepreneurship

44.

They’re able to not only come up with ingenious ideas, but also turn those ideas into profits.

a)

Creative

b)

Perseverance

c)

Persistence

d)

Self Confidence

45.

Entrepreneurs are dreamers and believe their ideas are possible, even when they seem unattainable.

a)

Hardworking

b)

Opportunity Seeker

c)

Optimistic

d)

Self Confidence

46.

An entrepreneur is someone who works for themselves.

a)

True

b)

False

47.

Most entrepreneurs work long hours, but they create their own schedule.

a)

True

b)

False

48.

ALL entrepreneurs have a college degree.

a)

True

b)

False

49.

Land: Oceans while Capital______________

a)

Wage

b)

House

c)

Machinery

d)

Forest

50.

What is known as forgone opportunity?

a)

Deficit

b)

Loss

c)

Opportunity cost

d)

Trade off

51.

What is an economic system wherein all resources are owned by government?

a)

Command economic system

b)

Market economic system

c)

Mixed economic system

d)

System

52.

1. It is an assumption used by economist to simplify the analysis of complex economic phenomenon which means all other things held constant.

a)

Rationality

b)

Cetris Paribus

c)

Ceteris Paribus

d)

Perfect information

53.

What is an important concept which relates opportunity cost and trade?

a)

Economic system

b)

Assumption

c)

Comparative advantage

d)

Economic development

54.

It applies the conclusions from economic theories and econometrics in dealing with practical economic issues.

a)

Home economics

b)

Socio economics

c)

Applied economics

d)

Economics

55.

1. It is one of the economic problems in the Philippines that require applied economics in order to propose solutions.

a)

Corruption

b)

Malnutrition

c)

Population growth

d)

Fraud

56.

What refers to the state or condition in which people do not have minimum standard of life deemed accepted by the society?

a)

Population growth

b)

Poverty

c)

Unemployment

d)

Illiterate

57.

It can serve as a significant tool to help address the country’s economic problem.

a)

Literacy

b)

Understanding on economic principles

c)

More Resources

d)

Have more Money

58.

It is one of the cause of poverty.

a)

Economic development

b)

Inflation

c)

Increase in mortality rate

d)

Urbanization

59.

What market structure wherein every firm is a price setter and can maximize profit?

a)

Monopoly

b)

Monopolistic

c)

Oligopopy

d)

Perfect Competition

60.

What market structure is Netflix?

a)

Monopolistic

b)

Monopoly

c)

Perfect Competition

d)

Oligopoly

61.

What market structure does not require advertisement or innovation?

a)

Monopoly

b)

Monopolistic

c)

Oligopopy

d)

Perfect Competition

62.

It is the meaning of the negative value of the slope.

a)

Direct relationship

b)

Neutral relationship

c)

Inverse relationship

d)

None of the above

63.

How does interest rates affect entrepreneurs?

a)

Low interest rate attracts more entrepreneurs to keep their extra money and spend less .

b)

High interest rate attracts more entrepreneurs to start their business in the country.

c)

Low interest rate attracts more entrepreneurs to start their business in the country.

d)

None of the above

64.

What is one of the contemporary issues faced by investors that is considered as the lifeblood of the economy?

a)

Interest rate

b)

investment

c)

minimum wage

d)

taxes

65.

What socio economic indicator served as basis in determining minimum wage?

a)

Inflation

b)

Population

c)

unemployment rate

d)

none of the above

66.

Who is the origin of the study of Economics?

a)

Adam Jones

b)

Adam Smith

c)

Albert Einstein

d)

Socrates

67.

What are the Economic Resources that are considered as factors of production?

a)

Land, Air, Manpower and Entrepreneurship

b)

Land, Water, Labor, Capital

c)

Land, Labor, Capital and Entrepreneurship

d)

Land, Water, Air and People.

Applied Economics _Quarterly 3_Long Quiz

Total questions: 67

Worksheet time: 1hrs 7mins

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