SAINT MICHAEL’S COLLEGE OF LAGUNA

OLD NATIONAL ROAD, PLATERO, CITY OF BIÑAN, LAGUNA

INSTITUTE OF EDUCATION, ARTS AND SCIENCES

Midterm Examination in SSE 106 (Microeconomics)

Second Semester, Academic Year 2020-2021

Name:___________________________________ Course and Year: _________________ Score: ____________

Instructor: Anjo E. Velasco Date: _____________________

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

1. A branch of economics that is concerned with aggregates.

A. Microeconomics C. Macroeconomics
B. Capitalism D. None of the above

2. Which of the following is NOT applicable in the study of macroeconomics?

A. To decide between two manufacturers when we are buying computers.
B . To understand the role of government in the economy.
C. To analyze the balance of trade in the country
D. To understand the nature of business cycles.
3. Which of the following variables is NOT included in the study if microeconomics?
A. sari-sari store C. total income of households
B. resource owner D. San Miguel Corporation
4. Goods that are used to produce other goods.

A. Essential Goods C. Consumer Goods

B. Capital Goods D. None of these
5. A factor of production that organizes and coordinates other factors.
A. Land C. Capital
B. Labor D. Entrepreneurship
6. Resources that command a price.
A. Free C. Natural
B. Economic D. All of these
7. An economic system that is known as mixed economy.
A. Capitalism C. Socialism
B. Socialism D. None of these
8. Which characteristics does not belong to capitalism?
A. free competition C. economic freedom
B. profit motive D. government intervention
9. Whish stage in the scientific approach does logic apply to?
A. observation C. identification of problems
B. deduction D. empirical testing
10. Which of the following will result to a shift in the demand curve?
A. Income C. Season
B. Taste D. All of these
11. In a demand function, if the price is zero, quantity demanded is equal to __________.
A. zero C. slope
B. intercept D. none of these
12. Demand curve will shift to the right because __________________, other factors remaining constant.
A. Income decreases C. Price of the commodity is expected to increase
B. Population decreases D. All of these
13. The law of demand refers to the:
A. positive relationship between price and quantity demanded
B. inverse relationship between price and quantity supplied
C. inverse relationship between price and quantity demanded
D. positive relationship between price and quantity supplied
 14. Which of the following would cause the demand to increase, other factors held constant?
A. increase in household income C. decrease in the price of a substitute good
B. increase in price D. none of the above
15. Which of the following is NOT a determinant of supply?
A. Number of sellers C. Price expectations
B. Cost of production D. None of these
16. Supply curve will shift to the _______________ when the price of the commodity is expected to increase tomorrow, other
factors remaining constant.
A. right C. all of these
B. left D. None of these
17. Assuming that a typhoon devastated the rice farm in Central Luzon, what will happen to the supply of rice assuming other
factors remain constant?
A. supply will decrease C. supply will remain the same
B. supply will increase D. none of the above
18. Market equilibrium exists when Qs is _____________ than/to Qd.
A. greater C. equal
B. less D. none of the these
19. Surplus will ___________ the price of a commodity.
A. increase C. not change
B. decrease D. none of the these

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

_________20. Economics as a science follows the scientific approach in arriving at conclusions.

_________21. Microeconomics is concerned with the performance of the economy as a whole or its major aggregates.
_________22. Money is a resource and classified as capital.
_________23. The physical effort expended by miners and steel workers represents labor resources.
_________24. Coal deposit in the ground is an example of a capital resource.
_________25. The reward for labor is wage.
_________26. The reward for capital is interest.
_________27. Human wants are insatiable over an aggregate period of time because man is never contented.
_________28. Essential goods are always free
_________29. Laissez faire means no government intervention.
_________30. A demand curve is a negatively sloping curve.
_________31. There is a movement along the demand curve when income changes.
_________32. A movement along a given demand curve is the change in the quantity demanded due to changes in the price of the
product when all other factors held constant.
_________33. Supply function has a negative slope.
_________34. The law of supply refers to the positive relationship between price and the quantity supplied.
_________35. If two goods are complementary, an increase in the price of one will cause the demand for the other to increase.
_________36. If pork is a substitute for beef, its quantity demanded will tend to increase as the price of pork decreases.
_________37. Price is the most important determinant of demand and supply.
_________38. Surplus occurs when quantity supplied is greater than quantity demanded.
_________39. When excess demand occurs in an unregulated market, there is a tendency for price to rise
_________40. Economics is a ___________ science.

III. Answer the following problems: (50 POINTS)

A. Use the demand equation below.

Q_d=12-2P

Q_s=2+3P

1. Complete the table below. (show your solution)

Price Quantity Quantity Surplus Shortage
Demanded Supplied
1
2
3
4
5
 2. Compute the equilibrium price and quantity.

3. Plot the demand curve using the demand schedule above. Please label your graph properly.

Prepared by: ANJO E. VELASCO

Faculty

Checked by: NESTOR V. HADI, EdD

Program Chair, BSED

Approved by: ELENA R. MANALO, EdD

Administrator, IEAS