School of Education: City College of Tagaytay

CITY COLLEGE OF TAGAYTAY
Akle St., Brgy. Kaybagal South, Tagaytay City

SCHOOL OF EDUCATION
______________________________________________________________________________________
FINAL EXAMINATION
(MAJOR EXAMINATION)
2nd Semester, SY 2020-2021
SOCS 36/ MICROECONOMICS

(COURSE CODE & TITLE)
Name ____________________________Year/Section ___________________ Score _______________

Direction: MULTIPLE CHOICE. Choose the best answer from the given choices.
What effect will each of the following have on the supply of product J (increase in supply or decrease in supply)?
1. A technological advance in the methods of producing product J.
a. Decrease in Supply b. Increase in Supply
2. A decline in the number of firms in industry of product J.
3. An increase in the prices of inputs required in the production of B.
4. The expectation that the equilibrium price J will be lower in the future than it is currently.
5. A decline in the price of product A, a good whose production requires substantially the same techniques and resources as
does the production of J.
6. The levying of a specific sales tax on product J.
7. A disastrous weather occurred that affects the production of Good J.
8. An increase in the cost of media advertisement for product J.
9. A rise in the wages of workers producing product J.
10. The granting of a 2-peso per-unit subsidy for each unit of product J produced.
B. Identify the following goods as either elastic or inelastic.

1. Milk
a. Elastic b. Inelastic
2. Movies
3. Sports Car
4. Bread
5. Electricity
6. Toothpaste
7. Airline travel
8. Rice
9. Apple Iphone Smartphone
10. Prepaid and Postpaid Services
C. Determine whether each of the following statements is true or false.

1. Firms want to earn a profit, so when the price of a good rises they are willing to supply more of it.
a. True b. false
2. A rise in the expected price of a good will increase supply, shifting the supply to the left.
a. True b. false
3. Cost-saving technological advances increase the supply of a good, shifting the supply curve to the right.
a. True b. false
4. The increased price of an input causes a decrease in supply, shifting the supply curve to the left.
a. True b. false
5. The law of supply states that producers are willing to sell less of a good or service at a higher price.
a. True b. false
6. When the price of a good changes, this results in a movement along the supply curve and a change in the quantity supplied.
SCHOOL OF EDUCATION
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a. True b. false
7. Taxes tend to increase supply; subsidies have the opposite effect.
a. True b. false
8. Supply refers to the willingness and ability of consumers to offer goods and services for sale.
a. True b. false
9. If a farmer expects the price of corn to be higher in the future, he may store some of the current crop, thereby increasing
supply.
a. True b. false
10. Input costs are a major factor that affects production costs and, therefore, supply.
a. True b. false
11. If the supply for a product is said to be elastic, this is supply for which price elasticity is less than 1.
a. True b. false
12. Supply of a good is said to be elastic if the quantity supplied responds substantially to changes in the price.
a. True b. false
13. Supply is perfectly inelastic and the supply curve is vertical if the quantity supplied is the same regardless of the price.
a. True b. false
14. The elasticity of supply varies directly with the amount of time producers have to respond to the price change.
a. True b. false
15. Elasticity of supply is a measure of a producer's ability to cope effectively with changes in demand.
a. True b. false
D. Choose the one alternative that best completes the statement or answers the question.
1. Which of these is a form of market structure?
a. Oligopoly b. Pure competition c. Monopoly d. Monopolistic competition e. All of these
2. Which of these is not a characteristic of a perfectly competitive market?
a. It is easy for firms to enter and exit the industry.
b. There are many buyers.
c. Homogenous products are sold by firms.
d. There are few firms selling differentiated products.
3. In which market structure would you most likely place the market for water and sewerage services?
a. Oligopoly b. Pure competition c. Monopoly d. Monopolistic competition e. Monopsony
4. The market for mobile prepaid and postpaid in the Philippines is a/an
5. Gasoline stations in the Philippines are best described as operating in which of the following market structures?
6. Most of the agricultural products are traded in what market structure?
7. The market structure with typical characteristics such as high barriers to entry, non-price competition and branding is
8. Monopolies are often referred to as
a. Price setters b. price takers c. price negotiators d. price makers
9. In which market structure would you most likely place the market for electric services?
10. Which of these statements about markets and industries is not false?
a. A market comprises of sellers but not buyers.
b. A market comprises of buyers but not sellers.
c. An industry comprises of sellers but not buyers.
d. An industry comprises of buyers but not sellers.
e. Market and industry include both sellers and buyers.
11. If the price of an Android smartphone is above the equilibrium price, there will be a _____ of Android smartphone and the price
will ___.
a. surplus; fall b. shortage; falls c. shortage; rise d. surplus; rise
12. When the quantity demanded exceeds the quantity supplied, then there is
a. a surplus and the price is below the equilibrium price.
b. a surplus and the price is above the equilibrium price.
c. a shortage and the price is below the equilibrium price.
d. a shortage and the price is above the equilibrium price.
13. A price below the equilibrium price results in
a. excess supply. b. a surplus. c. a shortage. d. increased supply.
14. The market for a good is in equilibrium if the
a. supply and demand are equal.
b. price equals costs plus a profit.
c. rate of technological change is steady.
d. quantity supplied equals quantity demanded.
15. A shortage causes the
a. price to fall. b. price to rise. c. same price d. none of the above
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E. In which market structure would you most likely place each of the following businesses. Write PC for perfect
competition, MC for monopolistic competition, MO for monopoly and O for oligopoly.
1. Restaurants in a large city
2. Air travel from any one airport
3. Cigarettes
4. Android smartphones
5. Sari-sari stores
6. Toothpaste
7. Banks
8. Jeans
9. Canned sardines
10. Internet Connectivity
Prepared by:
AMPARO CHRISTINE RECON-PANGANIBAN

Instructor, SOCS36
Date Submitted:
JUNE 2021
Approved by:
DR. LOPITA U. JUNG

Dean, School of Education

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CITY COLLEGE OF TAGAYTAY

Akle St., Brgy. Kaybagal South, Tagaytay City

SOCS 36/ MICROECONOMICS

Name __________________Year/Section _ Score _______

B. Identify the following goods as either elastic or inelastic.

C. Determine whether each of the following statements is true or false.

AMPARO CHRISTINE RECON-PANGANIBAN

DR. LOPITA U. JUNG

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