AP-ECONOMICS 11 : Module 34

Name: Date:

TEST I. MULTIPLE CHOICE. Choose the letter of the correct answer and write it BEFORE
the number. NO ERASURES. Erasures are considered wrong.
1. This states that “as price increases, quantity demanded decreases; and as price
decreases, quantity demanded increases.”
a. Law of demand b. Law of supply c. Equilibrium
2. This states that all other things equal or constant, as the price of a good or service
rises, its quantity supplied will rise and vice versa.
a. Law of demand b. Law of supply c. Equilibrium
3. A market condition where quantity demanded equals quantity supplied
a. Law of demand b. Law of supply c. Equilibrium
4. A change in price results to a greater change in quantity demanded
a. Elastic demand b. Inelastic Demand c. Unitary demand
5. A change in price results to a lesser change in quantity demanded
a. Elastic demand b. Inelastic Demand c. Unitary demand
6. A change in price results to an equal change in quantity demanded
a. Elastic demand b. Inelastic Demand c. Unitary demand
7. No change in price, but there is an infinite change in quantity demanded.
a. Perfectly Elastic Demand b. Perfectly Inelastic Demand c. Elastic
Demand
8. A change in price creates no change in quantity demanded
a. Perfectly Elastic Demand b. Perfectly Inelastic Demand c. Elastic
Demand
9. Goods that can be consumed in place of another goods.
a. Demand Curve b. Substitutes c. Complements
10.A graphical representation of the law of demand. It has a negative slope
a. Demand Curve b. Substitutes c. Complements
11.Goods that are typically consumed together
a. Demand Curve b. Substitutes c. Complements
12.A table showing the listing of prices and quantities. It shows inverse relationship of
two variables- price and quantity of the produce
a. Supply Curve b. Supply Schedule c. Demand Schedule
13.A graphical representation of a supply schedule plotting price on the vertical axis and
quantity supplied on the horizontal axis. It is upward-sloping
a. Supply Curve b. Supply Schedule c. Demand Schedule
14.It is made up of a listing of various quantities of a commodity that the
producers/sellers are willing and able to offer at different possible prices over a given
place and time while other factors are held equal or constant.
a. Supply Curve b. Supply Schedule c. Demand Schedule
15.The change in supply is influenced by the change in the _________________
a. Demand Schedule b. Determinants of Supply c. Determinants of
Demand
16.It refers to the reaction of the producers/sellers to price change of goods or services
a. Demand Elasticity b. Supply Elasticity c. Equilibrium
17.Refers to the reaction or response of the buyers to the change in price of goods and
services.
a. Supply Elasticity b. Equilibrium c. Demand Elasticity
18.A change in price results to a greater change in quantity supplied. This means that
producers are very responsive to price change
a. Elastic Supply b. Inelastic supply c. Unitary Supply
19.A change in price results to lesser change in quantity supplied. This shows that
producers have very weak response to price change.
a. Inelastic Supply b. Unitary Supply c. Elastic Supply
20.There is an equal change between price and quantity supplied
a. Elastic Supply b. Inelastic supply c. Unitary Supply
21.Without change in price, there is an infinite change in quantity supplied.
a. Unitary Supply b. Perfect Elastic Supply c. Perfect inelastic Supply
22.A change in price has no effect on quantity supplied
a. Unitary Supply b. Perfect Elastic Supply c. Perfect inelastic Supply
23.It occurs when quantity demanded exceeds quantity supplied
a. Surplus b. Shortage c. Elasticity
24.Occurs when quantity supplied exceeds quantity demanded
a. Surplus b. Shortage c. Elasticity
25.This happens to the price when supply is lesser than demand
a. Increase b. Decrease c. Equilibrium price
26.This happens to the price when the supply is greater than the demand
a. Decrease b. Increase c. Equilibrium price
27.The measure of the sensitivity or responsiveness of quantity demanded or quantity
supplied to changes in price
a. Shortage b. Elasticity c. Surplus
28.Any one of a variety of systems, institutions, procedures, social relations, and
infrastructures whereby parties engage in exchange
a. System b. Market c. Money
29.A set of interacting or interdependent components forming an integrated whole
a. System b. Market c. Money
30.Any object or record that is generally accepted as payment for goods and services,
and repayment of debts in a given country or socio-economic context
a. System b. Market c. Money
31.A theoretical construct that represents economic processes by a set of variables and a
set of logical and/or quantitative relationships between them
a. Models b. Concentration c. Product differentiation
32.Refers to the number of buyers and sellers on each side of the market
a. Models b. Concentration c. Product differentiation
33.The process of distinguishing a product or offering from others to make it more
attractive to a particular target market
a. Models b. Concentration c. Product differentiation
34.The most common type of market. It may be wet market or dry market
a. Labor market b. Stock market c. Goods market
35.A kind of market where commodities traded consist of securities of corporations
a. Labor market b. Stock market c. Goods market
36.Where workers offer their services and employers look for workers to hire.
a. Labor market b. Stock market c. goods market
37.A system or social organization characterized by voluntary market exchanges
a. Market economy/system b. Self-sufficient Economy c. Market less Directed
Economy
38.In this system, each family provides all goods and services it needs and goes without
those it does not produce.
a. Market economy/system b. Self-sufficient Economy c. Market less Directed
Economy
39.In this system, a central agency determines all production and distribution.
a. Market economy/system b. Self-sufficient Economy c. Market less Directed
Economy
40.It is a market in which there is only one seller of a commodity for which there are no
close substitutes. A market where competition is non-existent, now and in the future
a. Pure monopoly b. Oligopoly c. Natural monopoly
41.It refers to an industry in which a single seller is required for efficient production
a. Pure monopoly b. Oligopoly c. Natural monopoly
 42.In this market model, there are only few firms, all relatively large. In short, it is a
market in which there are few sellers.
a. Pure monopoly b. Oligopoly c. Natural monopoly
43.A market structure where there is only one buyer in the market. It is the exact
opposite where there are many buyers put only one supplier.
a. Monopsony b. Collusion c. Cartel
44.This happens when businessmen connive to attain the greatest business benefits
a. Monopsony b. Collusion c. Cartel
45.An organization of businessmen that controls the price, quantity and distribution of
products to gain maximum profit.
a. Monopsony b. Collusion c. Cartel

TEST III- ENUMERATION.

1. Give the determinants of Demand

2. Determinants of supply
a.
b.
c.
d.
e.

3. Regulatory Commissions
a.
b.
c.
d.
e.

Prepared by:

Ms. Daryle Glimph Requillo