SANTIAGO CAMPUS

1st PERIODICAL EXAM

ECON 2122 - ECONOMICS

1st Semester SY 2018 – 2019

Name __________________________________________________________________

Section __________________________ Date ________________Score____________

General Directions: (Please read before you start the exam)

1. No permit, No Uniform, No ID, No exam.
2. Mobile phone or any electronic gadget is not allowed while the exam is going on.
3. Anyone caught cheating in any form shall have zero marks in this exam.
4. Conversation in any language is prohibited.
5. Comment or report of the assigned proctor/s about any untoward incident during the exams that
affects the score is considered final and unappealable.
6. Use blue or black pen only.
7. Read and follow the instruction of each type of test very carefully.
8. PERFECT SCORE is 85 POINTS.

A. MULTIPLE CHOICE: Read each question carefully, and then WRITE YOUR ANSWER
BEFORE THE NUMBER that best fits the question Be wary of the options, choose only the best.
ONLY THE BEST. You will only get wronged and hurt if you choose the wrong ones. It is only your
conscious choice that will dictate your fate. MAY THE FORCE BE WITH YOU.

1. When quantity supplied is greater than quantity demanded, you have a ____________.
a. Shortage c. surplus
b. Deficit d. equilibrium
2. An increase in the price of jelly causes a decrease in demand of peanut butter. The products
are
a. Substitutes c. Complements
b. Unrelated d. Demand Elastic
3. A demand schedule shows ______________.
a. The listing of quantities demanded at various prices
b. the upward sloping curve
c. fluctuations in demand that occurred over time
d. the fluctuations of demand that are to come in following year
4. Consumer willingness to replace a costly item with a less costly item is?
a. The substitution effect c. the income effect
b. Complementary d. unit elastic
5. When a products need is not urgent, demand is
a. inelastic c. elastic
b. complementary d. unit elastic
6. All of the following can change the supply curve EXCEPT
a. cost of labor
b. expectation that prices are about to increase
c. change in demand for the product
d. # of sellers
7. If a market is at equilibrium and if there is a sudden increase in demand, you have a
a. surplus c. shortage
 b. Stays the same d. Compliments
8. Quantity supplied is equal to quantity demanded
a. Market Equilibrium c. Surplus
b. Shortage d. Marginal Utility
9. All of the following can move the supply curve except
a. # of sellers c. Cost of Labor
b. change in demand d. future price
10. The Law of Supply states:
a. as price increases, supply increases
b. as prices decrease, supply increases
c. as price increases, quantity demanded decreases
d. as price decreases, quantity demanded decreases
11. A surplus happens when
a. prices are too low relative to consumer demand.
b. prices are too high relative to consumer demand.
c. prices are too low relative to producer demand
d. prices are too high relative to producer demand.
12. If a consumer knows that a product will be going on sale this week, how will his/her CURRENT
demand be affected?
a. it will go up
b. it will go down
c. it will stay the same
d. what does this have to do with the price of tea in China?
13. The law of demand...
a. the desire to own something.
b. when a good’s price is lower, consumers will buy more of it.
c. When a good’s price is higher, consumers will less more of it.
describes how much of a good is offered for sale at a specific price.
d. the higher the price, the larger the quantity produced.
14. Opportunity Cost is
a. The alternatives you didn't choose
b. The second best alternative
c. The negative aspects of an action
d. The choice you made
15. What is the difference between cost and opportunity cost?
a. Cost refers to the negative aspects a decision could have whereas opportunity cost only
refers to the alternative you didn't choose
b. Opportunity cost refers to the negative aspects a decision could have whereas cost only
refers to the alternative you didn't choose
c. They are interchangeable (they mean the same thing but are different parts of speech)
d. There are multiple opportunity costs to an individual’s decision but only one cost
16. The study of economics includes all of these as part of its definition except
a. Unlimited wants and needs but limited resources
b. The way we use scarce resources
c. The decisions we make
d. Business opportunities created
17. The three essential economic questions that should be asked when developing a product or
service are:
a. Why, What, and When? c. Who, What, and When?
b. Who, What, and How? d. Who, What,When,Where,Why, and How?
18. The basic problem of economics that develops because humans have unlimited wants but
limited resources.
a. Absolute Advantage c. Economics
b. Scarcity d. Comparative Advantage
19. Goods or services that are not necessary, but that we desire or wish for. Examples: video
games, toys
a. demand c. Needs
 b. Wants d. Presents
20. When something given up for something else is called?
a. Choice c. Capitalism
b. Inflation d. Opportunity Cost
21. The reason why you can't have everything you want is because of ___________________.
a. Opportunity Cost c. Scarcity
b. Incentive d. Choice
22. Iron, minerals, coal and plants are examples of which productive resource?
a. Land c. labor
b. Entrepreneurship d. capital
23. Which of the following is NOT one of the three basic questions of economics when looking at
economic systems?
a. What goods should be produced?
b. What is the price of the goods?
c. How should the goods be produced?
d. Who gets to consume the goods?
24. A science that examines how goods and services are produced, sold, and used.
a. Factors of Production c. Capitalism
b. Profit d. Economics
25. Products are commonly known as
a. needs and wants c. goods and services
b. factors of production d. functions of business
26. Supply means that a seller is ______________and _____________ to sell a good.
a. willing and happy c. willing and able
b. willing and hopeful d. willing and joy
27. Which of the following is an elastic supply?
a. Expensive Jewelry c. Flags
b. Expensive Paintings d. None of the above
28. Which of the following is an example of an inelastic supply?
a. Candy c. Flags
b. Expensive Painting d. None of the above
29. If the cost of resources goes up, what happens to supply?
a. Go up c. Go down
b. Stay the same d. None of the above
30. A garbage truck driver is an example of which Factor of Production?
a. Labor (a) c. land
b. Entrepreneurship d. capital
31. The people who decide to buy.
a. Producers c. Consumers
b. Economist d. Entrepreneurs
32. What is an entrepreneur?
a. A person who starts a new business.
b. A leader of a country.
c. A worker in a factory.
d. A student in college.
33. As prices go up, ______________ goes down.
c. Supply c. Demand
d. Utility d. None of the above
34. The amount of money a person makes.
a. Income c. Demand
b. Elasticity d. None of the above
35. What is this picture of?
 a. Demand Schedule c. Demand Curve
b. Utility d. None of the above
36. Demand includes people who are willing and _____________ to buy a product.
a. Able c. Hopeful
b. Elastic d. None of the above
37. When the price of a product goes up, but the demand does not change much.
a. Elastic c. infinite
b. Inelastic d. None of the above
38. Which of the following could be a substitute for a soft drink?
a. Bread c. Water
b. Shirt d. None of the above
39. If the price on a product goes up the quantity demanded will go down. This follows the
economic theory of:
a. Law of Demand c. elasticity
b. income effect d. None of the above
40. 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
41. The elasticity of demand for tissues is 0.66. This means the demand for tissues is
a. Elastic c. unit elastic
b. inelastic d. really expensive
42. The formula for PES is
a. % change in P/% change in Qs
b. % change in Qs/% change in P
c. % change in P/% change in Qd
d. % change in Qd/% change in P
43. The value of PES is between 0 and 1 when
a. quantity supplied increases more than proportionately compared to price rise.
b. quantity supplied increases less than proportionately compared to price rise.
c. quantity supplied increases more than proportionately compared to price fall.
d. quantity supplied increases less than proportionately compared to price fall.
44. he supply of perishable goods such as bananas is more price _______ than durable goods
such as smart phones because of lack of ________ for perishable goods.
a. inelastic, good weather c. elastic, good weather
b. inelastic, stock d. elastic, stock
45. Individuals buy __________ from businesses.
a. Products c. profit
b. Resources d. income

B. IDENTIFICATION: Write A in the blank if it Shifts to the right and B if it shifts to the left.
I. Demand II. Supply
_____________ 1. Increase in population _____________ 1. Increase in cost of population
_____________ 2. Decrease in income _____________ 2. Increase in technology
_____________ 3. Increase in income _____________ 3. Decrease in cost of population
_____________ 4. Increase in taste _____________ 4. Typhoon hits the rice lands
_____________ 5. Decrease in population _____________ 5. Decrease in technology
 C. COMPUTATION: Compute for the ARC and POINT elasticity and indicate if it is Elastic,
Inelastic or Unitary. (5 points each) use the back portion of your test paper.

POINT P(P) Q
A 8 0
B 7 10
C 6 20
D 5 30
E 4 40
F 3 50
G 2 60

1. Point Elasticity of point B and point C.

2. Point Elasticity of point D and point E.
3. Point Elasticity of point F and point G.
4. Arc Elasticity of point B and point C.
5. Arc Elasticity of point D and point E.
6. Arc Elasticity of point F and point G.

Ang pagmomove-on ay parang exam lang yan.

-pag hindi mo alam LET GO kana…pero may time parin na babalikan mo dahil
umaasa kana malalaman mo ang sagot kahit hindi na talaga 😂🤣😅😆😁😄
Prepared by:

Randy G. Tabaog, LPT

Instructor

Checked by:

Engr. Mary Jane Laranang, MIT, MCP

College Dean