SANDIAT NATIONAL HIGH SCHOOL

Sandiat Centro, San Manuel, Isabela

SENIOR HIGH SCHOOL

Midterm Examination in Applied Economics 11

Name : _____________________________________Grade & Section: _________________

I. MULTIPLE CHOICE : Read carefully the following questions then circle the correct answer.

1. Economics is derived from the Greek word “oikanomia” meaning:

a. Economic management b. Household management
c. Social management d. School management

2. Economics is a social science because it deals with:

a. Human nature b. Natural resources
c. Experimentation d. Social welfare

3. Scarcity of resources means:

a. minimum resources b. excess resources
c. shortage of resources d. no resources

4. These are examples of human wants except:

a. smartphone b. perfume
c. watch d. clothing
5. In Economics, it states that where the quantity supply and quantity demand are equal.
a. Demand b. Market Equilibrium
c. Shortage d. Surplus

II. TRUE OR FALSE: Read carefully the statements. Write A if the statement is correct and B if
not.

1. The 1aw of Demand states that, if all other factors remain equal, the higher the price of a
good, the fewer people will demand that good._______
2. The 1aw of supply demonstrates the quantities that will be sold at a certain price._______
3. In 1aw of supply, producers supply more at a higher price because selling a higher quantity at a higher price
increases revenue.________
4. Time is not important to supply because suppliers must, but cannot always, react quickly to a
change in demand or price. ____________
5. When supply and demand are equal the economy is said to be at equilibrium. ___________
6. Disequilibrium occurs whenever the price or quantity is not equal to P or Q. ___________
7. Excess supply states that If the price is set too high, excess supply will be created within the
economy and there will be allocative inefficiency. ________
8. Excess demand is created when the price is set above the equilibrium price. ________
9. On the demand curve, a movement denotes a change in both price and quantity demanded
from one point to another on the curve. __________
10. A shift in a demand or supply curve occurs when a good’s quantity demanded or supplied
changes even though price remains the same. __________
 III. ANALYSIS

Determinants of Supply Shift to the right ( S) Shift to the left ( S)

Cost of Production
Technology Advance Aging
Number of Sellers
Weather Conditions Favorable condition Unfavorable condition
Price of other goods Lower price of other goods Higher price of other goods
Taxes and Subsidies
Taxes
Subsidies
Expectation of Future Price in future in future price of good
price of good

IV. ESSAY: Explain the following

1. Explain the law of demand using examples

2. Expalin the law of supply using examples
3. Explain when did a market will gain equilibrium
IV. SOLVING: Determine the Equilibrium Price and Equilibrium Quantity and Market situation
( tabular form and graphical) using the following:

1. Tabular Form
2. Graphical Form
3. Mathematical Form

Given
QD = 100 - 4p
QS = p

VI. Enumeration:
1. Enumerate the other factors affecting demand curve and supply curve.