FINAL TERM EXAMINATION

AECNMM1
SECOND SEMESTER A.Y 2021 -2022

I. MULTIPLE CHOICE. Instructions: write the answer that best described the statement. Write your
answer before each number. Please use capital letters. Any erasure/modification/alteration is
considered wrong. (2 points each)
1. It is designed to measure the response of quantity demanded when price changes.
A. Elasticity C. Elastic
B. Elasticity of Demand D. Elasticity of Supply

2. It is the ratio or percentage in quantity to percentage change in price along the given supply
curve.
A. Elasticity of Demand C. Price Elasticity of Supply
B. Elasticity of Supply D. Price Elasticity of Demand

3. It focuses on analysis of the behavior of individual economic agent.

A. Economics C. Macroeconomics
B. Macro aspect D. Microeconomics

4. It refers to the amounts of goods and services that a consumer is willing and able to
purchase.
A. Concept of Supply C. Elasticity of Demand
B. Concept of Demand D. Elasticity of Supply

5. It refers of the amount of goods and services that firm is willing and able to offer for sale.
A. Concept of Supply C. Elasticity of Demand
B. Concept of Demand D. Elasticity of Supply

6. It summarizes the transactions between and among the different economic agents.
A. Diagrams C. Circular Flow
B. Illustrations D. Figures

7. It shows that when price increases, quantity decreases.

A. Law of Supply C. Law of Demand
B. Law of the concept of Supply D. Law of the concept of Demand

8. It shows that when price increases, quantity increases also.

A. Law of Supply C. Law of Demand
B. Law of the concept of Supply D. Law of the concept of Demand

9. The relationship of price and quantity in the law of demand is _____.

A. Positive C. Indirect
B. Direct D. Negative

10. The relationship of price and quantity in the law of supply is ____.
A. Indirect C. Negative
B. Direct D. Positive

11. The elasticity coefficient is more than or greater than one.

A. Elastic C. Unitary
B. Inelastic D. Perfect Elastic

12. The elasticity coefficient is less than one.

A. Elastic C. Unitary
 B. Inelastic D. Perfect Elastic

13. The elasticity coefficient is equal to one.

A. Elastic C. Inelastic
B. Unitary D. Perfect Elastic

14. These are factors affecting the demand to increase and decrease, EXCEPT one.
A. Raw materials C. Consumer Tastes
B. Producer Preferences D. Price of related goods

15. When an elasticity value is less than one, the demand is ____.
A. Unitary C. Inelastic
B. Elastic D. None of the Above

16. The curve of demand points____.

A. Vertical C. Downward
B. Horizontal D. Upward

17. The curve of supply points_____.

A. Vertical C. Downward
B. Horizontal D. Upward

18. These are factors affecting the supply to increase and decrease, except one.
A. Technology C. Producers Tastes
B. Producer Preferences D. Consumer preferences

19. It is the representation of the law of supply.

A. Supply Curve C. Supply Slope
B. Demand Curve D. Demand Slope

20. It is the representation of the law of demand.

A. Demand Curve C. Supply Slope
B. Supply Curve D. Demand Slope

21. It is the sum of total variable cost and total fixed cost.
A. Marginal total cost C. Average total cost
B. Total cost D. Total Profit

22. It shows the total cost over the number of quantities sold.
A. Marginal total cost C. Average total cost
B. Total cost D. Total Profit

23. It is the difference of the total revenue minus total cost.

A. Marginal total cost C. Average total cost
B. Total cost D. Total Profit

24. The difference between the change of total cost over the change of quantity.
A. Total cost C. Average total cost
B. Marginal total cost D. Total Profit

25. It calculates the price times the number of products being sold.
A. Total revenue C. Total cost
B. Marginal total cost D. Total Profit

26. It shows the expenditures of the producer on a daily basis.

 A. Total revenue C. Total variable cost
B. Marginal total cost D. Total fixed cost

27. It refers to an expenditures of a producer on a monthly basis.

A. Total revenue C. Total fixed cost
B. Total cost D. Total variable cost

28. This cost is the foregone opportunity of choosing an alternative measures.

A. Opportunity cost C. Total fixed cost
B. Total cost D. Average cost

29. This is related with the product being sold by the producer.
A. Quantity C. Quantity supplied
B. Quantity foregone D. Quantity demanded

30. It is a concept that relates about stock of assets and value foregone.
A. Opportunity cost C. Profit
B. Revenue D. Cost

II MODIFIED MULTIPLE CHOICE. Instructions: write the answer that best described the statement.
Write your answer before each number. Please use capital letters. Any
erasure/modification/alteration is considered wrong. Below are the different characteristics of four
market structures in each country. State whether each characteristic falls under the following:

A. Pure competition C. Oligopoly

B. Monopolistic competition D. Pure Monopoly

a 31. It is known as perfect competition.

b 32. Their products are differentiated in the market.

d 33. The firms are known as the price makers but not all the time.

c 34. It had an independent decision about price and output.

c 35. It has a few sellers but control all the sales in the industry.

b 36. There are barriers to entry.

d 37. It has a single seller in the market.

d 38. It blocked all entry of those who will join the market.

a 39. It has multiply or many sellers.

a 40. Consumers are being charged with a lower price.

III MODIFIED MULTIPLE CHOICE. Instructions: write the answer that best described the
statement.
Write your answer before each number. Please use capital letters. Any
erasure/modification/alteration is considered wrong. Below are the different descriptions of
government rules and regulations. State whether each description falls under the following;

A. Fiscal policy C. Supply-side policy

B. Monetary policy D. Microeconomics

b 41. It controls the supply of money in a country.

c 42. It speaks of lower barriers in the market system.

d 43. It looks at the behavior of individual people and companies within the economy.

b 44. It rests on the relationship between the rates of interest in an economy.

a 45. It refers to government budget to influence economic activity.

c 46. It contributes to a faster underlying-rate of growth of real national output.

d 47. These are policies that lower unemployment.

b 48. A policy that composed of expansionary and contractionary policy in more strict sense.

a 49. The interest is more on decision making of a consumer.

c 50. The interest is on how specific parties choose to use limited resources that are available to
them.

IV MODIFIED MULTIPLE CHOICE. Instructions: write the answer that best described the
statement.
Write your answer before each number. Please use capital letters. Any
erasure/modification/alteration is considered wrong. Below are the different government rules
and regulations. State whether each rule or policy falls under the following;

A. Fiscal policy C. Supply-side policy

B. Monetary policy D. Microeconomics

51. It shows credit facility loans

52. This includes broad money aspects.

53. It involves discount rate.

54. This is all about consumer price index.

55. It shows holiday pay.

56. It talks on the sick leaves, vacation leaves and emergency leaves of employees.
57. It focuses on the consumer demand on a particular goods and services.

58. It concerns about government regulation on individual markets.

59. All about tariffs and duties.

60. It shows the foreign exchange in the market.