Mary the Queen College (Pampanga), Inc.

MIDTERM EXAMINATION IN ECONOMICS 3

Macroeconomics
1ST Semester A.Y. 2013 - 2014
Name:______________________________________________Date:____________________
Year,Section and Class Time:__________________________Instructor:________________

I. Multiple Choice (20pts.)

Directions: Read and analyze each statement carefully. Choose the letter of the best
answers and write it on the space provide before the number.
______1. In a market economy, the goods produced go to those who(m)
a. have the money and desire the good.
b. the government views as best suited for consumption.
c. business firms choose to favor.
d. desires the goods least.
______2.Which is the most clearly consistent with the basic postulate of economics
with regard to human decision making?
a. People will never choose work over leisure.
b. People will buy less gas if the gasoline tax decreases 20 cents per gallon.
c. People will buy more orange juice at $2 per gallon than at $1 per gallon.
d. People will consume less beef if the price increases.
______3. Which best describes the opportunity cost of use of time and other
resources spent on attending an economics class?
a. the highest valued alternative foregone as a result of attending the class
b. the value of the time it takes to get to campus every day
c. the cost of the gasoline needed to drive your car to campus
d. transportation costs plus the cost of tuition and textbooks for the course
______4. The difference between microeconomics and macroeconomics is that
a. microeconomics involves mathematical relationships and macroeconomics
is predominantly a verbal analysis.
b. microeconomics deals with the principle of scarcity and macroeconomics
with the problem of poverty.
c. microeconomics deals with firms and individuals, while macroeconomics
focuses on highly aggregated markets for the entire economy.
d. microeconomics deals with small firms and macroeconomics with large
firms.
______5. Which is correct?
a. Industrialized countries do not face scarcity of resources.
b. Only poor households in industrialized countries face scarcity of resources.
c. Rich households in developing countries face no scarcity of resources.
d. Every household in every country faces scarcity of resources.
______6. Which will cause an outward shift in the production possibilities curve?
a. A decrease in the labor force
b. An increase in unemployment
c. Development of an improved technological method of production
d. A decrease in the stock of physical capital
______7. In Figure 2-1, point A is
a. unattainable.
b. inefficient.
c. efficient.
d. preferable to point B.

______8. In the following PPC, Points A and B indicate consumption and investment

for two economies. Other things constant, which of the economies is likely to grow
more rapidly?
a. economy A
b. economy B
c. They can be expected to grow at the same rate.
d. This is uncertain, since growth is not influenced by the factors indicated in
this hypothetical example.

______9. An economy produces only two goods, guns and butter. If the economy
operates on the periphery of its production possibilities curve, it can produce more
guns only if it
a. produces less butter.
b. charges less for guns.
c. charges more for butter.
d. chooses to produce at a point outside its production possibilities curve.
______10. A production possibilities curve outlines
a. all possible combinations of maximum outputs that can be produced.
b. all possible combinations of minimum outputs that can be produced.
c. the maximum amount of an output that can be produced, irrespective
of the amount of production of other outputs.
d. the minimum amount of an output that can be produced, irrespective
of the amount of production of other outputs.
______11. If a country invests and adds to its capital stock with the result that worker
productivity rises,
a. The production moves from one point on the PPC to another, along the curve.
b. The country ends up producing at a point inside the PPC.
c. The PPC will shift inward.
d. The PPC will shift outward.
______12. PPC can be used to explain all of the following except
a. scarcity of resources and opportunity cost
b. Economic growth
c. Gains from specialization and free trade
d. Equilibrium price and quantity of a good produced and consumed
Guns, in thousand
20
18

q
12

t
Figure 1
p

12

21

30

Butter, tons

______14. The shape of the production possibilities curve of an economy, shown in

Figure 1, implies that
a. the opportunity cost of producing guns increases as more and more guns
are produced.
b. the opportunity cost of producing guns remains constant when more and
more guns are produced.
c. the opportunity cost of producing guns decreases when more and more
guns are produced.
d. the opportunity cost of producing guns may increase or decrease when
more and more guns are produced.
______15. Which curve is downward sloping?
a. demand curve
b. supply curve
c. cost effective marginal cost curve
d. none of the above
______16. According to the law of supply,
a. producers are willing to supply larger amounts of a good as its price
increases.
b. a direct relationship exists between the price of a good and the amount
buyers choose to buy.
c. an inverse relationship exists between the price of a good and the
amount buyers wish to buy.
d. an inverse relationship exists between the price of a good and the amount
producers supply.
______17. Market equilibrium is the price at which
a. quantity demanded equals quantity supplied.
b. quantity demanded exceeds quantity supplied.
c. quantity supplied exceeds quantity demanded.
d. quantity demanded is zero.
______18. Which is a factor that may shift a supply curve?
a. Change in consumer income
b. Change in consumer preferences
c. Improvement in technology of production
d. Any one of the above may shift a supply curve.
______19. Which of the following would have no effect on the demand for television
sets?
a. a decrease in the price of television sets
b. a decrease in consumer incomes
c. a decrease in the price of radios, a substitute good
d. an increase in the price of tickets to movies, a substitute good
______20. Computers and software are complements. As the price of computers
decreases,
a. the demand for software will decrease.
b. the demand for computers will increase.
c. the demand for computers will decrease.
d. the demand for software will increase.
II. Fill in the Blank. (10pts.)
Directions: Write your answers on the answer sheet provided)
According to those who believed in a self-regulating economy, events in the
labor market will assure that any recessionary gap will be cured without the need
for government intervention in the macroeconomy. Fill in the blanks below to show
this self-regulating process.
The economy is currently in a recessionary gap. As a result, labor supply is
_______________ ( greater than, less than ) labor demand at the prevailing wage
rate. Because of that labor market condition, wages in the labor market will tend to
_______________ ( rise, fall ). When wages change, the cost of production for
business firms will _________________
( increase, decrease ). The profit potential
of business firms will then _________________ ( get better, get worse ). Finally,
because of the changing profit picture, SRAS will _____________________ (move out
to the right, move back to the left )
III. Fiscal Policy Activity (30pts) Score: __________________

Prepared by:

Approved by:

Michelin G. Danan
Instructor

Received by:

Donezza Garcia-Mariano, MAED

Course Coordinator

Kenneth O. Mendoza
Printing Office Assistant

Mary the Queen College Pampanga

Table of Specification in

ECONOMICS III
1st Semester A.Y. 2013 2014
At the end of the course, 95% of the students are expected to achieve the following with at least 85% degree
of proficiency:

1. Analyze statements about PPC

2. Describe events in the recession period
3. Accomplish a book of receipt
Content

Ap
p

Ana

TOT
AL

ITEM
PLACEM
ENT

30
1. Fiscal Policy

30
20

2. PPC

20

10
3. Recession

10

30

TOTAL

30

60

Types of Test:

I.
II.
III.

Multiple Choice
Fill in the Blanks
Fiscal Policy App

Prepared by:

Michelin G. Danan
Instructor

20
30
10
_______________
60 items

Approved by:

Donezza Garcia-Mariano, MAED

Course Coordinator

BSA III Diligence

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Name of Student
ALFARO, GRACIOUS BIANCA SIONGCO
AYSON, ABIGAIL DE LEON
BANSIL, ERICA BAYANI
BANTING, CATHERINE CLAIRE CANERO
BASCON, PAULA JANE BOLURAN
CALADIAO, CATHERINE CASILIAN
CANILAO, NAOMI GRACE POSADA
CORTEZ, ANNE TRIZHIA DE DOTE
CRUZ, LEA VANESSA TALAVERA
CRUZ, MYNA FRANCO
DAAG, ANA MIKEE PARICO
DAVID, GERALD BAYLA
DAVID, SAMANTHA PASION
DE LEON, MARLON JAMES DE GUZMAN
DEL ROSARIO, MARJORIE DANAN
ENRIQUEZ, MARK KENN FLORES
ESPINOZA, HARLIET JOY TOLENTINO
GARCIA, DIANNE DIZON
GARCIA, MAYLYN LINTAG
HERNANDEZ, MARY GRACE GUEVARRA
LAGMAN, JOANNA MEI FLORES
LAXAMANA, LEEVIN
LAYUG, JENINAH CORDOVA
LIMIN, JOAN PAULA PANAHON
MANUEL, MICHAEL OPSIMAR
MONTEMAYOR, KAI BATAC
NALUS, CHRISTELLE MANGANTI
OCAMPO, RITALYN FORBES
PACHO, RALPH RIVERA
PAGUIO, KRENEZZA QUIAMBAO
PINEDA, MARINELLE JAESSERENE MANLULU
QUINTO, KATHERINE BACANI
ROQUE, DENICA ESPELETA
SERRANO, MARRY ANN LOZANO
TUMALI, LINZAYE ENRIQUEZ
VITUG, KERSHIE MENDOZA

BSA III Kindness

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Name of Student
ALPAS, RAZEL SHANE SALAZAR
ALVERO, RODOLFO JR. MIRA
ANGELES, KIMBERLY ERICA MANALO
AVILA, MARY PAULYN ENRIQUEZ
AVILES, JENNIFER MACASPAC
BACANI, RAEZEL VELASCO
BAUTISTA, MARGIE MENDOZA
BELTRAN, DESIREE ANN BUAL
CALILUNG, ELLAYZIA KEREN GOMEZ
CAPATI, JENNILYN GEPULLA
CAROLINO, JENNY BACANI
CRUZ, LEIGH ANN CUENCO
CUSTODIO, WILSON LALIC
DANAN, JOANNE PAULA PAULE
DE JESUS, KARLA LIMPIN
DEJARESCO, FLORENCE GREI DE DIOS
DIMARUCUT, BERNADETTE RAMOS
FABIAN, JEIAR DONS REYJADO
GARCIA, ACE ASPREC
GARCIA, CAMILLE GAMBOA
GARCIA, ELLAINE JOY FERNANDEZ
GUANZON, JOEL ERESTAIN
LALIC, JAN MARGAUX ENRIQUEZ
LANSANG, KHAIRA CAYANAN
LANSANG, REY MARK DIMALANTA
LISCANO, JINGLE SERRANO
MACATUNO, JOSE RAFAEL LADIERO
MAGAT, NESTOR JR SALONGA
MERCADO, IAN JOF GALANG
MIRANDA, ERIKA ALEXANDRA BACANI
NUQUI, MARY ANN LANSANG
PANGAN, ALJHON JABULI
PANGILINAN, AIRA SALONGA
PASCUAL, CATHERINE RIVERA
PENA, EUNICE ISIP
QUIAMBAO, KAMILLE SALVILLA
ROMAN, MARIMEL DE LEON
SALAZAR, CARMIE MANALILI
SALAZAR, KATHERINE CLARISSE VILLEZA
SANGALANG, CHRISTIAN NOL ROMAN
SAPNU, JEMIMA REOBILO
SUING, CLOUDY ANNE DIAZ
TAYAG, KRISTEL ANN PAULE
TRINIDAD, SHERMAINE ALMOLANIDA
TUAZON, AURELIO JR. PRING
TURLA, MARY ROSE MENDOZA

BSA III Meekness

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Name of Student
ABEJUELA, MARVICLYN SIBUG
AGUILAR, JAY JR. ISIP
ANGELES, MAYETTE GABRINO
AVILA, AMZEL CABRERA
BUCAD, APPLE JEAN DE LEON
BUENAFLOR, KATHLENE NUCUP
CRISTORIA, CHRISTIAN MANANSALA
CUNANAN, RAZIELLE TONGOL
DAMPIL, CRISTINA IBAY
DAVID, MARY SHANELLE SIBUG
DAYRIT, MARIELA SANCHEZ
DELA CRUZ, HAZEL VALENZUELA
DIAZ, ANNALYN BASA
FERNANDEZ, JOHN MUNGCAL
GAZA, AILINE RITA CANERE
ISIP, CHARMAINE BONIFACIO
LISING, LOUISANN PABUSTAN
LOPEZ, NIKKA AMIELA MANALAC
MADRIDEJOS, CHRISTIAN YAYA
MANGIO, ANNIEZELLE GUERRERO
MARIANO, REGINE PANGILINAN
MENDOZA, MAUREEN BACANI
MERCADO, KRISELLE ANNE SANTOS
MORALES, ROMA JOY SOTTO
MUNGCAL, ANGELICA MEDINA
NICDAO, JOVEN PUNO
PANGILINAN, MHARA MARIANO
PARAS, JONALYN GAYLE MACASPAC
RAVAGO, NANETTE NACPIL
RIVERA, KATRINE MANUEL
SAMSON, MARRYDEL ENRIQUEZ
SUNGA, GENEVA MELO
SUNGA, IRISH LACAP
TIONGCO, JULIE ANNE DIWA
TOLENTINO, MARY CAMILLE UMLAS
VELASCO, ROLAIN BANAL
VILLANUEVA, PAULO JONATHAN QUIZON
YUTUC, RANNIEL OCAMPO
ZAPANTA, MARIA JONALIE DIZON
ZITA, MARJORILAN PANGAN

BSA III Obedience

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Name of Student
ALFONSO, JOLINA GATUS
ARCILLA, JOANNE ROMAN
BACANI, VENICE DIZON
BALIGUAT, JODEL SICAT
BARIN, JOVYLYN PUNO
BAUTISTA, ROZETTE SOTTO
BOJA, LAURENTE MORALES
CALILUNG, PRINCES BERISA SUAREZ
CAMPO, JONCARLO BALUYUT
DAVID, AMAPOLA MANALAC
DAVID, ANNE CATHERINE PABALAN
DAVID, SHAIRA MAE BAGANG
DE DIOS, CAMILLE SIMPAO
DELA CRUZ, MARIECAR DIWA
DELA CRUZ, WENDHIE
ESPINOZA, GLENAMAE DALIDA
FERNANDEZ, FARREN NATO
LAGMAN, JENICA SHALOM BALTAZAR
LIBUT, CARMINA RUBIA
MANGIO, MARY JOICE MANALILI
MARIANO, KAREN CALMA
MERCADO, ROSE JEAN BONDOC
MORALES, ARNEL G.
NAVARRO, JESSEL FRANCE LAPUZ
OCHOA, AMY MACASPAC
PANLAQUI, LENINA KARLA ALMARIO
RAMOS, JOHN CARLO SAMONTE
SALVADOR, REYLEN MARIE DAVID
SANTOS, TANYA CLAIRE MONTEMAYOR
SARMIENTO, KATHERINE BUAN
STO. TOMAS, ANDREW CRUZ
SUNGA, JANINE VALDERAMA
TOLENTINO, ERIC BACANI
TORRES, MA. CRISTINA HIPOLITO
TUNGCAB, MARY ROSE MANANSALA
TUNGOL, MARIANE JANE CABRERA
VALDEZ, RENZEL GALVE

BSA III Patience

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Name of Student
ABANADOR, NERISSA ROMERO
ADSUARA, AARON PAUL JAY DAVID
BALUYUT, CATHERINE AGUAS
BANAG, JOAN QUIZON
BANSIL, BERNADETTE SALAZAR
BERMUDEZ, MARY JANE FERNANDO
CASTRO, ALFIE NERY
CATAHAN, FERDIE PASCUAL
CERVANTES, RUFINO CHRISTOPHER MANABAT
CRUZ, ELVIN DATU
CUENCO, KENNETH OCAMPO
DAVID, MARLYN CAYANAN
DE DIOS, SHIELLA MAE BACANI
DIMLA, JANINE LAPID
GARCIA, JESSA LUENCE PITUC
LABITAG, JOHN NIKKO DELA CRUZ
LAXAMANA, HENRY TALAVERA
LOPEZ, KRIZZA JARIMA ROMAN
LOPEZ, ROSE ANN MAE PEREZ
LUGTU, LAWRENCE BAMBALAN
MATEO, RIZVILYN TUBIG
MENDOZA, CARLA BUCUD
MERCADO, JESSICA BACANI
OCAMPO, MARK ANTHONY LANSANG
OPIANA, CARLIANN PRINCESS ENRIQUEZ
PONCE, KIMBERLY SAMPANG
REQUILME, JOCELYN VERGARA
RODIL, MAYETH ASUNCION
ROMERO, LLOYD RJ DAVID
ROQUE, ANTHONY JOSEPH SANTOS
SARMIENTO, SANDRO SALALILA
SONZA, MARIFE YUZON
TAMAYO, RANICA TALA
TOLENTINO, EROLD MANANSALA
TUAZON, SOPHIA LORRAINE GADDI
VILLAMANCA, PAUL MARTIN FERNANDEZ