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Midterm Exam

This document contains a midterm exam for a managerial economics course. It includes 43 multiple choice questions testing concepts like: 1. Liberalism in economics, capitalism, and the free market. 2. Factors of production like land, capital, labor. 3. Entrepreneurship, risk-taking, and business. 4. Demand curves, determinants of demand, elasticity, inelastic demand. 5. Supply curves, determinants of supply, equilibrium between supply and demand. 6. Relationship between supply, demand, price, and value of money. The questions cover core economic topics for business management and test students' understanding of fundamental

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245 views

Midterm Exam

This document contains a midterm exam for a managerial economics course. It includes 43 multiple choice questions testing concepts like: 1. Liberalism in economics, capitalism, and the free market. 2. Factors of production like land, capital, labor. 3. Entrepreneurship, risk-taking, and business. 4. Demand curves, determinants of demand, elasticity, inelastic demand. 5. Supply curves, determinants of supply, equilibrium between supply and demand. 6. Relationship between supply, demand, price, and value of money. The questions cover core economic topics for business management and test students' understanding of fundamental

Uploaded by

Charm Banlaoi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Exact College of Asia

Managerial Economics
Midterm Examination
Test I: Instruction: Please answer the following statement by answering through multiple
choice. Or choose the best answer.

1. Liberalism in economy is to allows free reign in the practice of business.


a. Democratic form of Government c. Free Market
b. Capitalism d. Fair Comp
2 . Land is essential aspect in doing a business in a certain country.
a. Capital c. Factor of Production
b. Investment d. Budget

3.Entrepreneurship is essential in running a business in a certain area.


a. Business c. risk taking activity
b. Finance
4. Labor needs the use of physical effort of the people to execute production system to do
the work.
a. factor production b. cost of production
b. Investment c. savings
5. In a curve the difference between Price and Quantity demanded.
a. Straight curve presentation c. down ward sloping curve
b. Criss-cross presentation
6. Supply Refers to the number of products in the market.
a. necessity c. Available
b. wants
7.Market means
a. Place for gathering of people c. Number of people with willingness and money
b. Stock Exchange b. Place of Transaction
8. Transaction means
a. exchange c. system of buying selling
b. trade d. Marketing practice
9. Bonus
10. Market is made up of
a. Businessmen c. Buyers and sellers
b. Retailers d. Traders
11. Demand is illustrated in a hypothetical form
a. graph c. computer-aided design schedule
b. schedule
12.size of the market means
a. Factor of Production c. NonPrice determinant of demand
b. cost of Production
13. Average income of consumers
a. NonPrice determinants of demand b. Market
14. Enumerate the 8 ff NonPrice Determinants of demand
- Average Income of Consumers
- Size of the Market
- Price and Availability
- Preference or taste
- Special Influences
- Expectation about the future for Economic Condition
21. Supply is
a. number of people in the market c. Number of products available in the market
b. Production Capacity
22. Supply curve is represented in
a. Upward Sloping curve d. straight line
b. Downward sloping curve
23. Supply represents the
a. cost and income c. Price and Product supply
b. Price and cost
24. Enumerate the 8 following determinant of supply
● Cost of Production
● Number if suppliers
● Prices of goods and services related in production
● Taxes and Subsidies
● Technology
31.When supply increase and demand goes down
a. Prices down and value money goes down b. Price goes and value of money up
32. When the supply goes down and demand goes up means
a. Price goes down and value of money goes up
b. Price goes up and value of money goes up
33. Price is composed of
a. Price and profit b. Cost and profit
34. when QD and QS meet
a. Disequilibrium d. Equilibrium point
c. equality
35.Elasticity of demand means a responsiveness of price to changes of commodity demand
A, True b. false
36. Demand changes affect the price
a. True b. False
37. Elastic demand is a type of demand where quantity demanded bought will be greatly
affected by changes in price
a. true b. false
38. Inelastic demand includes product such as
a. Luxury products b. deluxe products c. high-end products d. semi high-end
products
39.Elstic demand includes products such
a. deluxe products b. luxury products
40. Bonus
41. Solving Problems
Elastic Demand
a. Original Quality of Sugar = 11,000 kilos b. Quantity demanded = 10,000 kilos
Original price= P 27.00 Kilos Original price= P3.00
New Quantity + 17,000 Kilos New Quantity Demanded= 12,000 Kilos
New price = P 31.00 Kilos New Price P 4.00
Solve for the elasticity coefficient

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8.
9.
10.a
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