I Will Not Record Those Answers Copied From Their Classmates or From The Internet

MICROECONOMICS
FINAL ACTIVITIES AND EXAM
Instruction: Instructions: Encode your answers in Microsoft Word..
1. Send it starting June 1-June 5, 2020 only via email ( [email protected] ) .

2. Subject and FILENAME : MICROECONOMICS-FULL NAME- SECTION ( Ex. Microeconomics-Karen Joy Panes- A)
3. Save 1 FILE ONLY for activities 1-4.
4.I will not record those answers copied from their classmates or from the internet.
5. PLEASE FOLLOW INSTRUCTIONS.
READ YOUR NOTES.
For essay questions, limit your answers to 100 words per item.
Activity 1- Consumer Behavior Theory

1. What happens if your allowance increases from Php 150/day to Php 250/day .Would you change your taste
and preference, or would you stick with your old consumption patterns?
2. Why do some people buy expensive branded things even if they do cannot afford them?
3. Why do some people perceive inexpensive goods to be less satisfying?
ACTIVITY 2- Production Theory

1. Why do some sari-sari stores close as fast as they open?
2. How important is the concept of least cost combination?
3. Why do some businesses choose to operate at a loss rather than to stop production altogether?
Activity 3-Theory of costs

1. If most of your costs are fixed, is it better to produce as much as you can?
2. Why do some businesses begin selling at lower than market prices?
3. What is the difference between break-even in the SR and break-even in the LR?
Activity 4- Market Structures

1. Why can't MERALCO distribute electricity to the entire country?
2. Why can our government not control gasoline prices?
1
FINAL EXAM- MICROECONOMICS ( 2 PTS EACH)
Instructions: Choose the letter of the best answer. USE CAPITAL LETTER.
For Items 1-15

Write
A- If Both Statements are True;
B -if both statements are False;
C -if Statement I is True and Statement II is False;
D -if Statement I is False and Statement II is TRUE.
1. Statement I: Economics deals with two things; scarce resources and limited human demands.
Statement II: Microeconomics focuses on the behavior of a particular market.
2. Statement I: Macroeconomics studies the entire economy.

Statement II: Microeconomics begin with how growth and output are measured and how multipliers work.
3. Statement I: Generally, when price increases, quantity demanded increases.

Statement II: The law of supply states that as price decreases, quantity supply also decreases.
4. Statement I: The law of demand states that when price decreases, quantity demanded increases.
Statement II: As a general rule, when the price increases quantity supplied decreases.
5. Statement I: Human wants are always fulfilled because of the unlimited resources.
Statement II: Whenever a consumer’s needs or wants are met, he/she positively achieves a degree of
happiness and satisfaction.
6. Statement I: Whenever the consumer is faced with a selection of the alternatives, he/she will always choose
the product that will give him/her more pleasure.
Statement II: The law of diminishing marginal utility occurs when the consumer uses up a good or service and
tends up to be less satisfied with it through time.
7. Statement I: The utility-maximization rule does center only on the amount of satisfaction the consumer gets.
Statement II: Affordability does not depend on the buyer’s income.
8. Statement I: The paradox of value states that a good with more value in use has the same value with the
value in exchange.
Statement II: Income effect occurs when a consumer experiences an increase in his/ her budget.
9. Statement I: The lowest points of the average cost curves indicate the best quantity output.
Statement II: The break-even point is where total revenue equals total cost.
10. Statement I: The law of diminishing marginal returns states that as you place in additional input while
others inputs are fixed, the output lessens.
Statement II: In a short run production, a firm adjusts only its variable input whereas in a long run production,
al inputs are variable.
11. Statement I: Pure completion happens when there are many sellers with heterogeneous products with a
free entry of new firms.
Statement II: Monopoly occurs when there are only one seller of one product.
12. Statement I: Oligopoly occurs when there are few sellers with differentiated products and there is a
restriction for new entries.
Statement II: All competitors are price takers except in monopoly where the monopolist is a price maker.
13. Statement I: The easiest to penetrate are pure competition and monopolistic competition.
Statement II: Monopoly permits competition.
14. Statement I: In the law of demand, price is directly proportional to quantity.

Statement II: In the law of supply, price and quantity are inversely proportional.
2
15. Statement I: Shortage is experienced when price is below the equilibrium price.
Statement II: A surplus is experienced when the price of a good is above the equilibrium price.
16. Which of the following terms is included in the scope of Macroeconomic?
a. Consumer c. Inflation
b. Producer d. Specific market
17. Angel considers T-shirt and gym classes to be complementary goods. How will Angel react if the price
of gym classes increases?
a. Her quantity demanded of gym classes will c. Her quantity demanded of gym classes will
increase, and her demand for t-shirts will decrease, and her demand for t-shirts will be
decrease. unaffected.
b. Her quantity demanded of gym classes will d. Her quantity demanded of gym classes will
decrease, and her demand for t-shirts will increase, and her demand for t-shirts will increase.
decrease.
18. Your roommate just bought an iPod for P20,000.00. She would have been willing to pay P25,000.00 for a
machine that could store and replay that much music. How much consumer surplus does your roommate
enjoy from the iPod?
a. P25,000.00 c. P45,000.00
b. P5,000.00 d. P20,000.00
19. The economist Bobby recently found a pair of P10.00 arch supports that saved him from the pain of major
foot surgery. As he stated on his blog (econlog.econlib.org), he would have been willing to pay P100.00 to
fix his foot problem, but instead he only paid a few dollars. ------ a. How much consumer surplus did Bobby
enjoy from this purchase? *
a. P10.00 c. 0
b. P100.00 d. P90
20. Jenny thinks that the price of books will decrease next week. If everything else is equal, which of the
following would reflect how Jenny's behavior will change in response to her expectations?
a. Jenny will demand more complementary goods to books

b. Jenny's demand for books today will decrease
c. Jenny will move to a new, lower quantity along her demand curve
d. Jenny's demand for books today will increase
21. As a result of an increase in consumer incomes, the demand for fish has decreased. Based on this
information, what can we definitely say about what type of good a fish is?
a. It is a complement good. c. It is a normal good.
b. It is an inferior good. d. It is a substitute good
22. When the price of olive oil goes up, what probably happens to the demand for corn oil?
a. The demand for corn oil increases c. a change in the price of olive oil has no effect on
b. The demand for corn oil decreases the demand for corn oil.
d. a decrease in demand for olive oil leads to the
decrease in the demand for corn oil.
23. When the price of petroleum goes up, what probably happens to the demand for natural gas? *
a. A change in the price of petroleum has c. The demand for natural gas decreases
no effect on the demand for natural gas d. The demand for natural gas increases
b. a decrease in demand for petroleum
leads to the decrease in the demand for
natural gas.
24. If everyone thinks that the price of tomatoes will go up next week, what is likely to happen to demand
for tomatoes today?
3
a. The demand for tomatoes decreases d. Expectations about the price of
b. The demand for tomatoes increases tomatoes has no effect on the demand
c. The price of the tomatoes start to for tomatoes today
increase
25. If Ivana plans to buy Laptop that costs P35,000.00. She only has a cash amounting to P30,000. How much
is is Ivana’s Cash surplus/ shortage?
4
a. P5,000.00 surplus c. P35,000.00 surplus
b. P5,000.00 shortage d. P 0
Submit the ANSWER KEY ONLY for Final Exam Starting June 1-June 5,2020 only .
Send your answers to 0946-7102-986 only.
Please do not forget to indicate your Name, subject and section.
Please follow instructions. Thank you and Keep safe everyone .

I Will Not Record Those Answers Copied From Their Classmates or From The Internet

Uploaded by

Copyright:

Available Formats

I Will Not Record Those Answers Copied From Their Classmates or From The Internet

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

I Will Not Record Those Answers Copied From Their Classmates or From The Internet

Uploaded by

Copyright:

Available Formats

MICROECONOMICS

FINAL ACTIVITIES AND EXAM

Instruction: Instructions: Encode your answers in Microsoft Word..

1. Send it starting June 1-June 5, 2020 only via email ( [email protected] ) .

READ YOUR NOTES.

Activity 1- Consumer Behavior Theory

ACTIVITY 2- Production Theory

Activity 3-Theory of costs

Activity 4- Market Structures

For Items 1-15

2. Statement I: Macroeconomics studies the entire economy.

3. Statement I: Generally, when price increases, quantity demanded increases.

14. Statement I: In the law of demand, price is directly proportional to quantity.

16. Which of the following terms is included in the scope of Macroeconomic?

a. Jenny will demand more complementary goods to books

Please follow instructions. Thank you and Keep safe everyone .

You might also like