SAINT MICHAEL’S COLLEGE OF LAGUNA

OLD NATIONAL ROAD, PLATERO, CITY OF BIÑAN, LAGUNA

INSTITUTE OF EDUCATION, ARTS AND SCIENCES

Final Examination in SSE 106 (Microeconomics)

First Semester, Academic Year 2021-2022

Name:___________________________________ Course and Year: _________________ Score: ____________

Instructor: Anjo E. Velasco Date: _____________________

I. Choose the best answer that corresponds to each item below.

1. It means the satisfaction obtained from the goods and services that a consumer consumes.
A. Utility C. Marginal Utility
B. Total Utility D. None of the above

2. It refers to the total amount of satisfaction one obtains from the consumption of goods and services.

A. Utility C. Marginal Utility

B . Total Utility D. None of the above
3. It is the additional satisfaction obtained from the consumption of an additional unit of goods and services.
A. Utility C. Marginal Utility
B. Total Utility D. None of the above
4. It states that the successive consumption of the same good or service increases the total utility will reach a maximum and
beyond this point, the total utility diminishes.
A. The law of Demand C. The law of Diminishing Marginal Utility
B. The law of Supply D. None of the above

5. It is a curve which shows different combinations of two goods which yield the same level of satisfaction.
A. Demand Curve C. Indifference Curve
B. Supply Curve D. None of the above
6. It shows the infinite points of combinations in the consumption of two commodities that the same budget can buy at constant
prices.
A. Budget line C. Indifference Curve
B. Supply Curve D. None of the above
7. It refers to how different industries are classified and differentiated based on their degree and nature of competition for goods
and services.
A. Market Organization C. Market Value
B. Market Structure D. None of the above
8. It occurs when there is a large number of small companies competing against each other. They sell similar products
(homogeneous), lack price influence over the commodities, and are free to enter or exit the market.
A. Monopoly C. Monopolistic Competition
B. Oligopoly D. Perfect Competition
9. It refers to an imperfectly competitive market with the traits of both the monopoly and competitive market. Sellers compete
among themselves and can differentiate their goods in terms of quality and branding to look different.
A. Monopoly C. Monopolistic Competition
B. Oligopoly D. Perfect Competition
10. It is consists of a small number of large companies that sell differentiated or identical products. Since there are few players in
the market, their competitive strategies are dependent on each other.
A. Monopoly C. Monopolistic Competition
B. Oligopoly D. Perfect Competition
11. In this market structure, a single company represents the whole industry. It has no competitor, and it is the sole seller of
products in the entire market.
A. Monopoly C. Monopolistic Competition
B. Oligopoly D. Perfect Competition
12. These are offenses committed by the employer or labor organization which violate the constitutional right of workers and
employees to self-organization.
A. Unfair Labor Practice C. Minimum Wage Law
B. Labor Issues D. None of the above
 13. It is the process of negotiations between employers and a group of employees aimed at reaching agreements that regulate
working conditions.
A. Unfair Labor Practice C. Minimum Wage Law
B. Collective Bargaining D. None of the above
14. It is the most widely recognized term in the realm of employee compensation. It is the lowest hourly wage an employer can
pay an employee for work.
A. Minimum Wage C. Prevailing Wage
B. Living Wage D. Tipped Wage

II. TRUE OR FALSE. Tell whether the statement is true or false.

_________15. Total utility increases at a diminishing rate when marginal utility is decreasingly positive.
_________16. Marginal utility measures the change in the total utility from change in the consumption of one unit of a commodity.
_________17. Indifference curve shows various combinations of goods each of which yields different levels of total utility.
_________18. A budget line shows the infinite points of combinations in consuming two goods that the same amount of budget can
buy at constant prices.
_________19. Utility is the basis of choice.
_________20. Indiference curve do not intersect.
_________21. Assuming the same amount of budget which can buy two goods, a change the entire allocation of income.
_________22. The farthest right indifference curve suggests the highest utility.
_________23. A budget line is convex in shape.
_________24. Unions have a substantial impact on the compensation and work lives of unionized workers only.
_________25. ULP is only a violation of the civil rights of both labor and management.

III. ESSAY. Explain the following:

A. Choose at least two determinants of market structure and explain how it differs in the 4 types of market structure (5pts)
B. How unions help all workers? (5pts)

PART II. FINAL EXAM (SSE 106) (60 points)

I. Compute the elasticity values and complete the table below.

Price Quantity Percent Percent Elasticity Type of

Demanded Change in Change in (Absolute Elasticity
Qd (%∆ D ¿ P(%∆ P ¿ Value)

0 16 - - - -

2 14 -0.14 0 0 Perfectly
Elastic

4 12

6 10

8 8

10 6

12 4

II. Total Utility/ Marginal Utility

A. Compute for the Marginal Utility (show your solution)

Quantity Total Utility Marginal Utility

1 10 -
2 18
 3 24
4 28
5 30
6 30

B. Plot the Total Utility and Marginal Utility Curve using the given data above.

Prepared by: ANJO E. VELASCO

Faculty

Checked by: NESTOR V. HADI, EdD

Program Chair, BSED

Approved by: ELENA R. MANALO, EdD

Administrator, IEAS