Which of the following is not a component of Demand?

Surplus
When graphing supply and demand, price is always on which axis
Vertical
The supply curve always slopes in what direction?
Up
The Law of Supply states:
as price increases, supply increases
Which of the following is not a component of demand?
Surplus
It is the measure of how much buyers and sellers respond to changes in market
conditions.
Elasticity
If you slow down buying because of  a price increase, your demand is 
Elastic
If you spend a very small proportion of your income on a product, then
The demand for that product will tend to be price inelastic.
When the percentage change in the price exceeds the percentage change in quantity
demanded, then demand is
Inelastic.
Which of the following is an example of a good with inelastic demand? 
Life-Saving Medicine
If a good has a lot of substitutes, then its demand will tend to be
 Elastic
Mercedes makes a luxury car called the Maybach which sells for approximately
$490,000. base price. One would expect the demand for this product to be…
Elastic
If billionaire Bill Gates decides he has to have a Maybach, for him it has demand that 
Inelastic
Total revenue is defined as 
The total amount of money a company takes in for selling its goods
A graph that shows a product with elastic demand will tend to be…
Flatter
Flatter.
What type of business consists of two or more people?
Partnership
A person who takes a risk to produce goods and services in search of profit 
Entrepreneur
What kind of business is BEST described by these statements?

I am the only owner of my business. 

I take all the risks of doing business. 
I keep all the profits. 
Sole Propreitorship
A form of business organization that is authorized to act as a legal entity regardless
of the number of owners. 
Corporation
What type of business structure is owned by many people?
Corporation
A condition where there are insufficient resources to satisfy needs and wants of a
population.
 Scarcity
This is the authoritative system wherein decision-making is centralized in the
government or a planning committee. This kind of economy holds true in dictatorial,
socialist, and communist nations
Command Economy
The study of how society manages its scarce resources.
Economics
What is the study of economic behavior and decision making of small units, such as
individuals, families, and businesses called?
Microeconomics
Defined as the market value of final products produced within the country
Gross Domestic Products
A field that applies of economic theories and principles to real-world situations with
the desired aim of predicting potential outcomes.
Applied Economics
A field that applies of economic theories and principles to real-world situations with
the desired aim of predicting potential outcomes.
Social Science
__________________ are the producing units in the economy.
 Household

What can happen in a planned economy that does not

happen in a market economy?

The allocation of resources can take account of the total effects on society.
Which of the following is a factor of production?
The skill of the managers of a business
In a Market structure called 'Monopoly' there will:
One firm
Monopoly and Monopolistic Competition mean the same:
False
The main difference between Oligopoly and duopoly is
 No. of Firms
Tick the boxes that belong to Imperfect competition:
Monopoly, Monopolistic, Monopsony
Ice Cream in the Philippines.
Oligopoly
The state of balance when demand is equal to supply.
Equilibrium
Which one of the following is the best explanation of market equilibrium?
Where market supply equals market demand
A table showing how much of a good or service consumers will want to buy at
different prices
Demand Schedule
shortages occur when the quantity demanded exceeds the quantity supplied. When
the market price is held below the equilibrium price.
Shortage
The actual amount of a good or service people are willing to sell at some specific
price.
Quantity Supplied
Porter’s five forces is an industry analysis model. The five forces are: inter rivalry of
competitors, bargaining power of customers, bargaining power of suppliers, threat of
new entrants and what?
Threat of Substitutes
In a SWOT analysis,   are external environmental trends that may be advantageous
for the organisation in question.
 Opportunities
In a SWOT analysis, strengths and weaknesses are external factors.
'False'.
A SWOT analysis is used to analyse an organisation’s current
Situation
In a SWOT analysis, which two elements are part of the internal environment?
Weaknesses and Strengths
An evaluation of the possible or probable effects of external forces and conditions on
the survival and growth of the business.
Environmental Analysis
Who are the major businesses in the industry?
Competition
This involves a look at economic factors such as income of the people, specifically the
target market, economic conditions such as inflation, recession, prosperity, demand,
and supply in the market.
 Economic Forces
Who will you sell your product to?
Customers
The study of cultural practices to identify the goods and services that will fit into
celebrations and spending behavior.
Cultures and Lifestyles
This includes a look at the population size, the geography of the place where
business will be located, land distribution, climate, and in today's global warming
situation, whether or not the area is prone to flood or earthquake.
Physical Environment
A business function completed by business owners and other individuals to assess
the current business environment.
Industry Analysis
The type of government, the stability and strength of the government, and good
leadership are factors that can be advantage to a business.
Political Factors
These are goods that can be used in place of another.
Substitutes
The one who will distribute the products.
Suppliers
Circular flow only moves in one direction, with little to no leakages in the market.
False'
Which of the following is attached to households on the circular flow diagram?
Goods and Services
The circular flow of a market economy also assumes that consumers spend all their
money on goods, services, and consumption. This means that there is no _________ on
the part of the consumer.
Saving
Which of the following is part of the circular flow diagram?
Resources
What are the firms responsible putting out into the market?
Goods and Services
Economic fluctuations: The construction industry is very sensitive to the general level
of economic activity in the economy. When the economy is doing well, construction
does well but when the economy is doing poorly, construction activity and
employment can drop dramatically.
- Employment in manufacturing is declining but output is increasing (i.e. more output
is being produced by fewer people). This is due to increasing productivity arising
from the use of new technologies such as automation, robotics and ICT.
- High labour and other costs have made Irish firms less competitive compared to
many competitors in countries with lower costs.
- Relocation of operations: Declining employment in the secondary sector is being
caused by firms relocating their manufacturing operations to lower cost countries
and to be nearer expanding foreign markets. → Trends and challenges facing the
secondary sector
True'.
Globalization of services: Future growth for Irish service-based industries lies in
developing more international markets for their services. This is already happening in
telecommunications, financial services, software development and advertising and is
being made possible through the use of ICT such as the internet.
'False'.
Enterprise refers to the human creativity and initiative required to pull together the
three other factors of production and start a business to provide goods and services.
It is the combination of the other three factors of production to make a
profit. → Enterprise
True'.
Service industries do not manufacture physical products but provide services to other
businesses and consumers. E.g. advertising, telecommunications, tourism, music, legal
services. → Service industries
True'.
An industry is a group of businesses engaged in producing similar goods and
services, such as the tourism, computing and fashion design industries. Industries can
be grouped into three basic sectors of the economy:
- The primary sector
- The secondary sector
- The tertiary sector → Industry
True'.
When total utility is at its maximum, marginal utility is…
Equal to zero
The total satisfaction received from consuming a given total quantity of a good or
service, while marginal utility is the satisfaction gained from consuming an additional
quantity of a particular good or service.
 Total Utility
Describes how consumers make decisions on what to buy Consumption refers to the
use of goods and services to satisfy human wants directly.
Consumer Behavior
It refers to the additional utility derived from consuming an additional unit of the
good
Marginal Utility
To maximize utility, a consumer with a fixed budget will purchase quantities of goods
so that the ratios of the marginal utility of each good to its.
Price are equal
Input refers to the resources used to produce goods and services.
'True'
Output refers to the product created as a result of the combination of input in the
production process.
True'.
Which cost increases continuously with the increase in production?
 Variable cost.
External economies go with size and internal economies with location.
True'.
The use of economic resources to create goods and services that will be used to
satisfy human wants.
Production
Combination of desire, ability, and willingness to buy a product. → Demand
True'.
Principle that more will be offered for sale at higher and prices and less at lower
prices. → Law of Supply
'True'.
The condition in which human wants are forever greater than the available supply of
time, goods, and resources.
Scarcity
The creative ability of individuals to seek profits by taking risk and combining
resources to produce innovative products.
Entrepreneurship
Provides a means to clearly show economic relationships in two-dimensional space.
Economic analysis is often concerned with two variables confined to the upper-right
(northeast) quadrant of the coordinate number system.
 Graphs
The branch of economics that studies, decision making by a single individual,
household, firm, industry, or level of government → Macroeconomics
False'.
Economic policies for determining the amount of money supply, rates of interest &
excha'nge rates → Monetary Policy
'True'.
Monopoly and Monopolistic Competition mean the same:
'False'.
Law of supply: suppliers will offer more for sale at _____ prices and less for sale at
_____ prices.
 high, low
A form of business organization that is authorized to act as a legal entity regardless of
the number of owners. 
 Corporation
Changes in price cause a LARGE change in quantity demanded.
 Elastic Demand
What type of business consists of two or more people?
Partnership
Any natural resource provided by nature that is used to produce goods and services
Land
Corporations are in business for what?
 Profit
In a Market structure called 'Monopoly' there will:
One Firm

 What is the study of economic behavior and decision makings of small units, such as
individuals, families, and businesses called?
 Microeconomics
What are the four factors of production?
 Land, capital, labor, entrepreneurs
Amount that producers bring to the market at at any given price.
Quantity Supplied
Satisfaction or usefulness obtained from acquiring one more unit of a product.
Marginal Utility
Amount of money, resources, raw materials, labor, and production it takes to make a
good, item, or service.
Cost of Production
What is a payment made by an employer to an employee?
 Wage
3 Factors Affecting Elasticity of Demand → Necessity, substituitability, income
'True'.
Amount demanded at any given price.
 Quantity Demanded
Changes in price cause a SMALL change in quantity demanded. -INELASTIC DEMAND
'True'.
Human-made goods that are used to produce other goods and services
Capital
The main difference between Oligopoly and duopoly is
 No. of Firms
Variable plus fixed costs, all costs associated with production.
Total Costs
Demand: shift left=______ in demand.
Decrease
The mental and physical capacity of workers to produce goods and services
 Labor
An analysis limited to statements that are verifiable
Positive Economics
Lowest legal price that can be paid for a good or service.
Price Floor
Measure of the way in which the quantity supplied responds to a change in
price. → Elasticity of Demand
False'.
Listing showing the quantity demanded at all possible prices that might prevail in the
market at any given time.
Demand Schedule
An analysis based on value judgments or opinions and use words such as good, bad,
ought to, and should.
Normative Economics
The branch of economics that studies decision making for the economy as a
whole → Microeconomics
'False'.
What type of business structure is owned by many people?
Corporation
A person who takes a risk to produce goods and services in search of profit 
Entrepreneur
Graph showing the quantities supplied at each and every possible price in the marker.
Supply Curve
The basic categories of inputs used to produce goods and services.
Resources
What kind of business is BEST described by these statements?
I am the only owner of my business. 
I take all the risks of doing business. 
I keep all the profits. 
Sole Proprietorship
List the four market structures in order from least competitive to most competitive.
Monopoly, Oligopoly, Monopolistic Competition, Perfect Competition
What is it called when you have limited quantities of resources used to meet
unlimited wants?
Scarcity
What are the three basic economic questions?
What?, How?, Whom?
A Latin phrase that means while certain variables change, "all other things remain
unchanged."
Ceteris Paribus
What is the measure of how consumers react to a change in price? 
 Elasticity
The study of how society chooses to allocate its scarce resources to the production of
goods and services in order ot satisfy unlimited wants → Microeconomics
'False'.
Decision making based on extra benefit/cost of an action.
Marginal Analysis
Supply curve that shows the quantities offered at various prices BY ALL FIRMS that
sell product in a given market. → Cost of Production
False'.
Occurs when two variables are unrelated → Independent relationship
True'
Extra revenue from the production of one additional unit.
Marginal Revenue
The product created as a result of the combination of inputs in the production
process.
Output
Retailers are wholesalers or brokers who buy in big quantities from manufacturers,
add a mark-up to their purchase price and sell to distributors
'False'.
The resources used in the production of goods & services. It refers to the use of
economic resources to create goods and services that will be used to satisfy human
wants.
 Inputs
The Law of Diminishing Marginal Utility states that as additional units of a good are
consumed, the additional utility derived from each additional unit tends to diminish,
while keeping consumption of other goods constant.
'True'.
Goods that are ready for direct consumption and are then sold to customers for their
use.
Final Goods
These are semi-processed goods which are not ready for final use by the consumer,
which have undergone some processing but need to go through additional
 Final Goods
processing before they can be actually used by the consumer. These are supplied to
final good firms for conversion into goods in their finished stage.
Intermediate Goods
The combined production of several units of a given set of inputs.
Total Product
These are unprocessed goods like raw materials, logs, and wheat, they are materials
extracted from their sources and do not undergo any process of production.
 Raw Materials
The additional output produced by an additional unit of the input and is equal to TP/
i.
Marginal Product
An equation showing the maximum output of a commodity that a firm can produce
per period of time with each set of inputs.
Production function
It shows the relationship between utility and consumption.
Utility Function
It refers to the average contribution per unit of input and is equal to TP/i.
 Average Product
This sector processes raw materials from agriculture, fishery and forestry into
intermediate products which are further processed into final products
Industrial Sector
It produces the intangibles supporting and complementing production in the other
sectors as well as among its own industries.
Service Sector
It studies the conditions in an industry at a particular time, including the behavior of
and relations between competitors, suppliers, and customers.
Industrial analysis
An entity organized by people with similar needs to provide themselves with goods
or services or to jointly use available resources to improve their income.
 Cooperative
A regular payment, usually on an hourly, daily or weekly basis, made by an employer
to an employee, especially for manual labor.
Wage
It is a legal entity that is separate from its owners, the shareholders. No shareholder is
personally liable for the debts, obligations or acts of the corporation.
Corporation
A business with total assets worth below P1,500,001.
 Micro Business
The Law of Diminishing Marginal Returns states that additional output starts to
diminish at a certain point as additional units of a variable input are combined with
one or more fixed inputs.
True'.
It refers to the combined utility derived from consuming certain units of a good.
Total utility
This is undertaking by a person or a group of persons who are partners, or of
stockholders who own a juridical entity known as a corporation whose main objective
is to earn profit for owners.
 Business
The basic consuming unit, makes use of goods and services which are available in the
economy.
Household
Production refers to the use of goods and services to satisfy human wants.
False'.
Consumers are a business’ source of raw materials, intermediate goods or final
products and services.
False'
Those that cannot be readily changed during the time period under consideration
except at a very great expense.
 Fixed Inputs
This includes a look at the population size, the geography of the place where
business will be located, land distribution, climate, and today’s global warming
situation, whether or not the area is prone to flood or earthquake.
Physical Environment
A form of business organization that is owned by a single individual who is singly
responsible for running the business and is accountable for all debts and obligations
related to the business.
Sole Proprietorship
A form of business organization in which two or more persons combine their
resources in a business with a view to making profit.
Partnership
The commonly accepted measure of market concentration. It is calculated by
squaring the market share of each firm competing in a market, and then summing
the resulting numbers.
HERFINDAHL-HIRSCHMAN INDEX (HHI)
These are domestically produced goods sold to foreign countries.
Exports
Those that can be changed easily and on short notice.
Variable Inputs
The basic facilities, services and installations needed for the functioning of a
community or society.
 Infrastracture
This involves a look at economic factors such as income of the people, specifically the
target market, economic conditions such as inflation, recession, prosperity, demand,
and supply in the market.
 Economic Forces
It refers to goods purchased from a foreign country
 Imports
It is the basic producing unit, delivers the goods and services to the household for its
consumption.
 Business Firms
Production is the transformation of inputs into outputs of goods & services.
'True'
An act or process of trying to get or win something over one’s rivals.
Competition
It is a tool that lists the strengths, weaknesses, opportunities, and threats that face
the business.
SWOT Analysis
A written estimate of anticipated government revenues and expenditures during a
specific period of time.
National Budget
Consumer Theory describes how consumers make decisions about what to buy
given their income and prices of goods and services.
'True'.
A Business with total assets worth from P15,000,001 to P60,000,000. Large scale
business is one with total assets in excess of P60,000,000.
Medium Business
It refers to the additional utility derived from consuming an additional unit of the
good.
Marginal Utility
A Business with total assets worth from P1,500,001 to P15,000,000.

 Small Business

t is an aggregation of the different businesses engaged in the same kind of

undertaking.

 Industry

The term used for satisfaction derived from consuming a good/service.

Utility

Refers to an evaluation of the possible or probable effects of external forces and

conditions on the survival and growth of the business.

 Environmental Analysis

Target market refers to the group of customers the business aims to cater to.

'True'.

A principle or body of principles to guide decisions and achieve rational outcomes.

Policy

The value of a particular monetary unit in terms of the goods and services that it can
buy.

Purchasing Power