LICEO DE BUENAVISTA, INC.

Poblacion, San Ildefonso, Bulacan

(044)326 – 2259 | SID:400916
Excellence is our commitment

MONTHLY EXAMINATION IN APPLIED ECONOMICS

Name: Date:
Grade and Section: Score:

I. Choose the letter of the correct answer. Write your answer on the space provided.

_____1. The desire, willingness, and ability to buy a good or service.

A. Supply C. Price
B. Demand D. Surplus
_____2. Refers to the various quantities of a good or service that producers are willing to sell at all possible
market prices
A. Supply C. Price
B. Demand D. Surplus
____3. The monetary value of a product as established by supply and demand
A. Supply C. Price
B. Demand D. Surplus
_____4. A table that lists the various quantities of a product or service that someone is willing to buy over a
range of possible prices
A. Supply schedule C. Demand curve
B. demand schedule D. Supply curve
_____5. The following are the factors that shifts the demand curve EXCEPT:
A. Buyer C. Expectations
B. Income D. Competitors
_____6. A table that shows the quantities producers are willing to supply at various prices
A. Supply schedule C. Demand curve
B. demand schedule D. Supply curve

_____7. This holds that producers will normally offer more for sale at higher prices and less at lower prices.
A. Law of demand C. Capital
B. Law of supply D. Law of prices
_____8. The states that quantity demanded and price moves in different direction
A. Law of demand C. Capital
B. Law of supply D. Law of price
____9. The money a business has left over after it cover its costs.
A. Price C. capital
B. Profit D.Credit
_____10. An institution that may set prices at socially desirable levels to achieve social goals
A. Economy class C. Government
B. Businessmen D. Corporate organzation

II. Identify the following statement. Write your answer on the space provided.

_PRICE Equilibrium_______11 The point where they achieve balance between the supply, demand and price
__Shortage_____________________12. The amount by which the quantity demanded is higher than the
quantity supplied
____surplus___________________13. The amount by which the quantity supplied is higher than the quantity
demanded
____price ceiling___________________14. A maximum legal price that can be charged for a product
___economic system____________________15. The mechanism through which society determines the solution
to basic economic issues
___price floor____________________16. The lowest legal price that can be paid for a good or service
_competitive price theory____________17. The theory that represents a set of ideal conditions and outcomes
and it serves as a model to measure market performance
 LICEO DE BUENAVISTA, INC.
Poblacion, San Ildefonso, Bulacan
(044)326 – 2259 | SID:400916
Excellence is our commitment

MONTHLY EXAMINATION IN APPLIED ECONOMICS

______economic system_________________18. The mechanism through which society determines the

solutions to the basic economic issues.
_mixed economy______________________19. A type of economy that blends the traditional, command and
market economy.
__traditional economy_____________________20. A type of economy where the methods are stagnant and
not progressive.

III. Identify to which type of economy is referred of the following words

A. Traditional Economy
B. Market economy
C. Command economy
D. Mixed economy
____a_______________21. Type of economy that rely upon traditions and practices
____c_______________22. The power in the economy is centralized
____b_______________23. Most democratic form of economic system
_____c______________24. People do not have the say to every decision made in the economy
__a_________________25. Instead of using money, the use barter
_______a____________26. Primarily rely upon primitive cultures
___c________________27. This economy holds upon dictatorial and communist nations
______b_____________28. Decisions are made on what goods and services to produced
____c_______________29.Decisions in this economy are imposed to the people.
_________b__________30. People preferences are reflected in the prices they are willing to pay

IV. Tell whether the following is true or false. Write G if the statement is correct and X if the statement is
incorrect.

___G______31. High prices: producers to produce more and for buyers to buy less
____X_____32. Sellers find good buys at low price
____X_____33. Shortage shows up as unsold products on suppliers’ shelves
___G______34. Prices change from one level to another gradually
___X______35. When there is a surplus, suppliers have no more product to SELL
__G_______36. Prices help buyers and sellers allocate resources between markets
_____G____37. Decrease in Demand shifts to the Left
____X_____38. The graph lists quantities supplied on the vertical axis and prices on the horizontal axis
____X_____39. STONER: factors that shift the demand curve
___X______40. BITTER are the factors that shifts the supply curve.

V. Explain the following scenarios in 2-3 sentences.

41-45. What will happen to the supply if there is an increase/ improvement in the technology used to produce a
certain product?

46-50. Explain what will happen if there is no PRICE SYSTEM in the market.