MT. MORIAH CHRISTIAN ACADEMY, INC.

Mid Term Examination

Subject: APPLIED ECONOMICS Grade Level:____12___

NAME:_________________________________________ Section: ______________Score: __________________

Prepared by: _____ Cristy R. Garcia______________ Checked by: ________________________________

l. MULTIPLE CHOICE: Choose and encircle the letter of the correct answer.
1
1. Which of the following is not a component of demand?
A. Desire C. Ability
B. Surplus D. Willingness 
2. The demand curve slopes in which direction?
A. Down C. Right
B. Up D. Left
3. When each additional unit of a product gives you less utility it is known* as what?
A. Marginal analysis C. Diminishing marginal utility
B. Marginal cost and benefit D. Diminishing marginal return
4. The supply curve always slopes in what direction?
A. Down C. Right
B. Up D. Left 
9. When there is a shortage of supply of certain good what should be done?
A. Increase supply C. Increase price
B. Decrease price D. Increase demand
1. A group of people buying and selling goods or services. This is the definition for:
A. Demand C. Market
B. Equilibrium D. Supply  
4. In the Law Of Supply an increase in price results in:
A. Decrease of quantity supplied C. Decrease of quantity demanded
B. Increase of quantity supplied D. Increase of quantity demanded  
6. What occurs when quantity supplied is greater than quantity demanded at ruling price?
A. Excess Demand C. Comparative Static Analysis
B. Equilibrium Price D. Excess Supply
8. Which 2 of the following would be considered to be normal goods?
A. TV/ Radio C. Public Transport
B. Mobile Phone D. Bargain Goods
10. Law of demand shows relation between:
A. Income and price of commodity C. Price and quantity of a commodity
B. Income and quantity demand D. Quantity demanded and quantity supplied
13, The following are causes of shift in demand except
A. Change in income C. Change in price
B. Change in fashion D. Change in prices of substitutes
3. Which of the following will move the demand curve for pork to the right?
  A. An increase in the price of beef C. A reduction in the cost of corn that is used to feed pigs
B. A reduction in the price of pork D. All of the above
5. Which of the following provides an example of complementary goods
A. Pepsi and Coca-Cola C. French fries and catsup
  B. Milk and orange juice D. Beef and pork
7. An increase in the price of chicken feed shifts the supply curve for eggs to the left and moves buyers along the demand
curve. In the jargon of economics, we have had a change in:
A. supply and a change in quantity demanded. C. quantity supplied and a change in quantity demanded.
 B. supply and a change in demand. D. quantity supplied and a change in demand

1
 MT. MORIAH CHRISTIAN ACADEMY, INC.

4. If both the demand curve and supply curve move to the left, we can predict:
A. price will fall, but we cannot predict quantity.
B. price will rise, but we cannot predict quantity.
 C. quantity will rise, but we cannot predict price.
 D. quantity will fall, but we cannot predict price.
2. Suppose that there has been a decline in the price of pork. What effect will this have on the market for beef?
A.  It will decrease demand and decrease supply.
B.  It will decrease demand and decrease quantity supplied.
C.  It will decrease quantity demanded and decrease supply.
D. It will decrease quantity demanded and decrease quantity supplied.
8. Suppose that both the price of gasoline and the amount of gasoline sold decline. Which of the following would account
for this?
A. A shift left of the demand curve, but no change in the supply curve
B. A shift right of the demand curve, but no change in the supply curve
C. A shift left of the supply curve, but no change in the demand curve
D. A shift right of the supply curve, but no change in the demand curve

2
MT. MORIAH CHRISTIAN ACADEMY, INC.

3
MT. MORIAH CHRISTIAN ACADEMY, INC.