Republic of the Philippines

Department of Education
REGION IV-A CALABARZON
SCHOOLS DIVISION OF QUEZON
TUMBAGA NATIONAL HIGHSCHOOL

FIRST QUARTER EXAM

Directions: Encircle the letter of the best answer.

1. In the market, the price elasticity for the demand of canned goods sold by Daniela and C-jay
Grocery Store is the:
a. Ratio of the percentage change in quantity demanded for the goods to the percentage
change in its price.
b. Responsiveness of revenue to a change in quantity of the canned goods.
c. Ratio of the change in quantity demanded divided by the change in its price of the canned
goods.
d. Response of revenue to a change in price.
2. If demand for sacks of rice in Natasha and Elvince Grocery Store is price elastic, then a:
a. Rise in the price of sacks of rice will raise total revenue of the grocery.
b. Fall in the price of sacks of rice will raise total revenue of the store.
c. Fall in the price of sacks of rice will lower the quantity demanded.
d. Rise in the price of sacks of rice won’t have any effect on total revenues.
3. If the cross – price elasticity between soap bar and liquid soap commodities is 1.5,
a. The two goods are luxury goods
b. The two goods are complements
c. The two goods are substitutes
d. The two goods are normal goods
4. The price elasticity of demand for a certain good tends to be:
a. Smaller in the long run than in the short run.
b. Smaller in the short run than in the long run.
c. Larger in the short run than in the long run.
d. Unrelated to the length of time.
5. If the price elasticity of supply of cup noodles is 0.60 and the price increase by 3 percent, then
the quantity supplied for cup noodles increases by how by?
a. 0.60 percent b. 0.20 percent c. 1.8 percent d. 18 percent
6. An increase in the price of electricity bill will force you to:
a. Increase your demand for kerosene heaters and coal.
b. Increase your demand for light bulbs and aircon.
c. Increase your demand for stereos and videokes.
d. Increase your demand for TVs and use of gadgets.
7. The market demand curve for apple shows the
a. Effect on market supply of a change in the demand for apple.
b. Quantity of an apple that consumers like to buy at different prices.
c. Marginal cost of producing and selling different quantities of an apple.
d. Effect of advertising expenditures on the market price of an apple.
8. Economies experience an increased in unemployment and a reduced of activity during
recession. How does recession affect the market demand for new cars?
a. Demand for new cars shifts to the right.
b. Demand for new cars shifts to the left.
c. Demand for new cars has no shift.
d. Demand for new cars either has or no shift.
9. The market supply curve for gasoline shows the
a. Effect on market demand of a change in the supply of gasoline.
b. Quantity of gasoline that firms offer for sale at different prices.
c. Quantity of gasoline that consumers are willing to buy at different prices.
d. All of the above are correct.
10. If Toyota firm is producing a car faster than people want to buy, there is
a. An excess supply of car and price can be expected to decrease
b. An excess supply of car and price can be expected to increase
c. An excess demand of car and price can be expected to decrease
d. An excess demand and price can be expected to increase
11. What do you call to the payment for the use of land?
a. Rent b. spending c. income d. capital
12. It refers to income less spending.
a. Taxes b. Capital c. Savings d. Investments
13. It is building up the capital stock for more future production and consumption
a. Interest rate b. Investments c. Income d. Capital
14. It can be classified as machineries, equipment, buildings and construction.
a. Spending b. Savings c. Capital d. Assets
15. It refers to the lowest wage permitted by law below which if paid by employer will subject
him to penalty from the government.
a. Minimum Wage c. Maximum Wage
b. Maximum Salary d. Minimum Salary
16. Payment for public goods and services by citizens.
a. Savings b. Debt c. Tax d. Capital
17. It is consumed to fuel day to day expenditures.
a. Debt b. Spending c. Capital d. Investments
18. It is the rate of conversion of the Philippine peso to a foreign currency such as US dollar.
a. Foreign dollar exchange rate c. Domestic peso exchange rate
b. Foreign exchange rate d. Domestic exchange rate
19. It is the amount of interest due per period, as a proportion of the amount lent, deposited or
borrowed.
a. Investment rate c. Interest rate
b. Accrued interest d. Compound interest
20. A person who takes the risks that is necessary to seek new business opportunities and develop
new ways of doing things.
a. Inventor b. Scientist c. Entrepreneur d. Government
21. It is the lifeblood of the economy.
a. Borrowings b. Investments c. Savings d. Tax
22. As Filipino entrepreneur, why is it important to consider the tax rate of the country?
a. Because every single centavo given to tax means additional burden on the part of the
entrepreneur.
b. Because it is an obligation of the entrepreneur to pay tax.
c. Because the tax rate in the Philippines is low compared to other countries.
d. Because the products in the Philippines is tax-free.
23. Are Filipino entrepreneurs affected by the widespread of COVID-19?
a. Yes b. No c. I’m not sure d. None of the
above
24. What agency of the government is authorized to check if the employer follows the rules and
regulations in setting up minimum wage in his company?
a. DOLE b. BIR c. DTI d. DENR
25. What will happen if there are influxes of investment in the country?
a. It will create jobs. c. More foreigners in the country.
b. It will result to colonial mentality. d. Foreigners will invade the country.
26. It is one of the numerous infrastructures, systems, institutions, social relations, and procedures
wherein buyers and sellers usually interact with each other to exchange goods and services.
a. Market b. Economy c. Business d. Malls
27. It deals with strategic decision making and focuses on both economics and marketing
professional entrepreneurs precisely judge industry, policy changes, market news.
a. Market b. Market Structures c. Business d. Economy
28. Which of the following are the types of market structure?
I. Monopoly
II. Business
III. Oligopoly
IV. Economy
V. Market
VI. Monopolistic Competition
VII. Perfect Competition
a. I, II, III, VII C. I, III, VI, VII
b. II, IV, V, VI D. All of the above
29. It usually emerges because there is a high barrier to enter and exit in a particular market
a. Business b. Market c. Monopoly d. Economy
30. Are monopolistic price setters?
a. Yes, because they are the only producer of the product they sell.
b. Yes, because they are not the only producer of the product they sell.
c. No, because the government doesn’t allow them.
d. No, because no one will buy.
31. Do monopolies cause deadweight loss in the economy?
a. Yes, because they are illegal businesses.
b. Yes, because they are not price setters.
c. Yes, because they can minimize their output production to put higher prices and gain
more profit.
d. No, they uplift the economy.
32. It pertains to the situation where several companies sell the same yet slightly different
products.
a. Monopoly b. Trade c. Monopolistic Competition d. Market
33. In monopolistic competition, can every firm set the price?
a. Yes, because their products are different in their own way.
b. No, because that is not allowed.
c. No, because no one will buy if they increased the price
d. Yes, because are not included in the market.
34. In a monopolistic competition, can consumers prefer one product over another?
a. Yes, it’s their right.
b. No, that’s not allowed.
c. No. their preference does not matter.
d. Yes, but they are not allowed to buy it.
 35. Is there a type of market structure wherein the market has full control over implying prices?
a. Yes, but that is only if there are uniform prices that depend on the demand and supply.
b. No, the market doesn’t have the power to do that.
c. No, different companies will protest if that happened.
d. Yes, but only in foreign countries.
36. What do you call the market structure where many products are similar that may substitute
each other since they have the same features, price, and quality?
a. Market c. Monopolistic Competition
b. Perfect Competition d. Economy
37. Can companies manufacture identical products that are not branded?
a. Yes, there is a specific market structure for that.
b. No, companies won’t agree with producing identical products and not branding it.
c. No, that is not allowed.
d. Yes, but that is only for free trial.
38. It is a type of market structure where firms dominate the market by supplying either similar or
differentiated products.
a. Similar Market c. Oligopoly
b. Monopoly d. Differentiated Market
39. Are the participants in oligopolies price setters or takers?
a. They are price setters. C. They are both.
b. They are price takers. D. None of the above.
40. Can different firms be interdependent with each other?
a. Yes, what a single firm does can significantly affect the firms.
b. No, they have their own businesses.
c. No, that’s not allowed.
d. Yes, but that is illegal.

Prepared by:

JAYSAN R. BALUNAN
Subject Teacher

Noted By:

JOEVELYN L. BANQUILES
Head Teacher 1