Good Samaritan Colleges

Burgos Avenue Cabanatuan City

College of Arts and Sciences
PRELIMINARY EXAMINATION
In
Basic Economics with LRT
Name: ____________________________
Permit No:_________________________

Course and Year:______________________

I. MULTIPLE CHOICE (20 PTS.)

Instruction: Select the correct answer of the following question. Shade the letter of your
best answer on your answer sheet. STRICTLY NO ERASURES AND
SUPERIMPOSITIONS ALLOWED.
1. The one that purchases goods and services.
A. Household
B. Firm

C. Land
D. Capital

2. It refers to the physical and mental effrorts of human used to produce goods and services.
A. Household
B. Firm

C. Land
D. Capital

3. It refers to all natural resources such as terrain of land, water, air and the like, it is paid in
terms of rent.
A. Household
B. Firm

C. Land
D. Capital

4. The part of income that is used to purchase goods and services that the individual or
household needed.
A. Net Income
B. Disposable Income

C. Gross Income
D. Non- Disposable Income

5. The part of income that is not used for consumption, it is also called savings
A. Net Income
B. Disposable Income

C. Gross Income
D. Non- Disposable Income

6. Those commodities that performs the same function and can satisfy the same needs and
wants.
A. Normal Goods
B. Inferior Goods

C. Substitute Goods
D. Complementary Goods

7. A type of goos which are consumed hand on hand

A. Normal Goods
B. Inferior Goods

C. Substitute Goods
D. Complementary Goods

8. It refers to the statement that can be resolved by reference to analysis and empirical evidence.
A. Normative Economics
B. Positive Economics

C. Microeconomics
D. Macroeconomics

9. It refers to the statement of opinion and stating what should be done or what ought to be.
A. Normative Economics
B. Positive Economics

C. Microeconomics
D. Macroeconomics

10. These are types of products which are tangible and can be consumed the physical aspect of
it.
A. Sales
B. Goods

C. Services
D. Fees

11. These are intangible products that are consumed in terms of experience.
A.Sales
B. Goods

C. Services
D. Fees

12. Is the ratio or measure of the responsiveness of the buyers and sellers to price change
A. Supply
B. Demand

C. Elasticity
D. Utility

13. It is the level of Satisfaction

A. Supply
B. Demand

C. Elasticity
D. Utility

14. Macroeconomics is concerned with

A. Unemployment
B. Inflation

C. Interst Rates
D. All of the above

15. In the market of grapefruit, all other things being equal, an increase in the price of grapefrit
will cause
A. Decrease in the demand curve
B. Increase in the demand curve
C. Increase in the quantity demanded
D. Decrease in the quantity demanded
16. The demand curve for grapefruit will shift with
A. Change in the price of grapefruit
B. Change in the number of farmers
C. Change in the number of consumers
D. Global climatic change owed to the greenhouse effect
17. Suppose the demand curve for banana declines because President Noynoy Aquino claims to
dislike it, then
A. The demand curve shifts to the left
B. The demand curve shifts to the right
C. The demand curve is constant
D. None of the above

18. The other things equal is an assumption applied to law of demand does not assume

constancy of
A. Consumers Income
B. The number of consumer
C. The price of good being studied
D. Consumers taste and preference
19. Suppose that a company is accused of discriminating against woman in its hiring practices.
If the civil right advocates form a boycott of the companys products the result would be
A. An increase in the products prices
B. Excess supplies of the product
C. Excess demand for the products
D. Decrease in the demand curved of the product
20. If youre going to resolve an economic problem, which of the following will you do first
A. Formulate hyphothesis or wise guess
B. Determine the problem
C. Gather pertinent data
D. Analyze and interpret the data gathered
II. IDENTIFICATION (25 PTS)
A. Instruction: Identify the word or term described. STRICTLY NO ERASURES AND
SUPERIMPOSITIONS ALLOWED.
1.

Economics is a field of knowledge that studies the ______, ______,and ______, of goods
and services.
2. A situation when available resources are not enough to meet the objective.
3. The value of the best alternative forgone when an item or activity has been chosen.
4. The individual who invest capital, take the risks to produce goods and services.
5. Deals with the individual behavior of firms and household
6. Studies the aggregate behavior of the economy as a whole.
7. The amount of the goods and services that the consumer are willing and able to buy in
different prices at a particular time.
8. States that as the price of commodity increases all other thing remains constant, quantity
demanded decreases.
9. It refers to the amount of quantity of goods and services producers can offer.
10. States that Ceteris Paribus; price and quantity supplied are directly proportional.
11. It is determined by the intersection of the demand and supply curve.
12. It refers to the amount of money that the individual or households receives in providing
factors of production
13. A Greek word which means home management, and is the basic unit of society in Greece.
14-15. Father of modern Economics, book written by him which became the reference book of
economists in solving problems related to ecnomic activities.
B. Instruction: Determine whether the words or phrase being enumerated are concern of
Microeconomics or Macroeconomics. Write MIC if it is concern of microeconomics and
MAC if it is concern of macroeconomics.
1.Unemployment
2.Price of Rice
3.Number of goods produced by Uniliver
4.Politics
5.Price of fuel

6.Employment rate in Robina Corp.

7. National Output
8. Money Supply
9. Oil Price hike of Petron Fuels
10. Aggregate Expenditures

III. ENUMERATION (15 PTS)

Instruction: Enumerate the following on your answer sheet. ERASURES AND
SUPERIMPOSITIONS ARE CONSIDERED WRONG.
1-3 Forms of presentation of Demand
4-10 Changes in Supply curve brougt by Non-Price factor
11-15 Classification of Elasticity demand
IV. SOLVING PROBLEM (30 PTS)
Given the following algebraic expression for supply and demand, calculate the
equilibrium price and quantity; solve the equation for P and Q.
Graph the supply curve and deman curve. Show how equilibium can be found.
1.
2.

Qd= 15-3P; Qs= 5+2P

Qd= 26-4P: Qs= 10+4P

Using the data below, solve for the price elasticity of demand and tell whether it is
elastic, inelastic or unitary.
PERIOD
1
2
3
4
5

QUANTITY
342
418
272
261
393

A. Ed for periods 1 and 2?

B. Ed for periods 1 and 5?

Prepared by: Jenny-Vi S. De Dios

God Bless! :)
Why worry, when you can PRAY?

PRICE
28
23
30
19
26