11/24/2018 Prelims

Question 1 The graphical representation of elastic showing a vertical curve indicates:

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a. Perfectly elastic price Supply elasticity

b. Perfectly elastic price demand elasticity

c. cross price elasticity

d. Perfectly inelastic price demand elasticity

Question 2 If the price elasticity of demand is unitary; increasing the price of the product would result to:
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Select one:
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a. The revenue will not change
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b. Increase in the total revenue

c. Decrease in the total revenue

d. Zero revenue

Question 3 Goods that directly satisfy human want are:

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a. Consumer goods

b. None of the choices

c. Complementary goods

d. Capital goods

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11/24/2018 Prelims
Question 4 The table or list of the prices and the corresponding volume consumers are willing to buy or availed of is also called:
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answered
Select one:
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a. Supply Schedule
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b. None of the choices

c. All of the choices

d. Demand Schedule

Question 5 If the quantity demanded is 10,000 bags rice and the quantity supplied is 6,000 bags, then the price of rice in the market is:
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a. equal to the equilibrium price.
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b. less than the equilibrium price

c. greater than the equilibrium price.

d. None of the choices

Question 6 True or False. If the statement is true, write the word True. If False, write False and replace the underlined word with
Not yet the correct term. Note that the system accepts an exact answer. Wrong spelling is considered wrong.
answered
For example:
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1.00 Q: Whales are reptiles. A: False - mammals
Any mechanism by which seller sand buyers negotiate an exchange is called a market.

Answer: True

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11/24/2018 Prelims
Question 7 True or False. If the statement is true, write the word True. If False, write False and replace the underlined word with
Not yet the correct term. Note that the system accepts an exact answer. Wrong spelling is considered wrong.
answered
For example:
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1.00 Q: Whales are reptiles. A: False - mammals
The price elasticity of demand measures how much the quantity supplied of a product respond to a change in its price.

Answer: True

Question 8 Which of the following statements is not true:

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a. The demand for commodities differs
b. Price expectation affects supply

c. None of the choices

d. Consumers and producers react to changes in price

Question 9 Coca Cola and Pepsi Cola are substitutes, hence:

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Select one:
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a. All of the choices
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b. the price of Coke will decrease when PepsiCo increase its price
c. None of the choices

d. the demand for PepsiCo increases when Coke increase its price
e. the price of Coke will increase when PepsiCo decrease its price

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11/24/2018 Prelims
Question 10 True or False. If the statement is true, write the word True. If False, write False and replace the underlined word with
Not yet the correct term. Note that the system accepts an exact answer. Wrong spelling is considered wrong.
answered
For example:
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1.00 Q: Whales are reptiles. A: False - mammals
A shift in the demand curve to the right signifies reduction in demand.

Answer: False- increase

Question 11 True or False. If the statement is true, write the word True. If False, write False and replace the underlined word with
Not yet the correct term. Note that the system accepts an exact answer. Wrong spelling is considered wrong.
answered
For example:
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1.00 Q: Whales are reptiles. A: False - mammals
Normal goods have positive income elasticity since the demand for such goods decreases when the income increases.

Answer: False - positive

Question 12 If the supply and demand curves intersect at a price of 89 pesos, any price below that would result to:
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Select one:
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a. A shortage

b. A surplus

c. A status quo

d. An equilibrium

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11/24/2018 Prelims
Question 13 True or False. If the statement is true, write the word True. If False, write False and replace the underlined word with
Not yet the correct term. Note that the system accepts an exact answer. Wrong spelling is considered wrong.
answered
For example:
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1.00 Q: Whales are reptiles. A: False - mammals
Product interdependence can be measured using the cross price elasticity.

Answer: True

Question 14 True or False. If the statement is true, write the word True. If False, write False and replace the underlined word with
Not yet the correct term. Note that the system accepts an exact answer. Wrong spelling is considered wrong.
answered
For example:
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1.00 Q: Whales are reptiles. A: False - mammals
Economic resources are limited and can be combined to produce commodities.

Answer: True

Question 15 A graphical representation of elasticity showing a very steep curve is an indication of:
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Select one:
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a. Inelastic price demand elasticity

b. Elastic price demand elasticity

c. Perfectly Elastic elasticity

d. Unitary elasticity

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11/24/2018 Prelims
Question 16 Defined economics as a study of people in the ordinary business of life.
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Select one:
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a. Alfred Marshall
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b. Alfred Toefler

c. Adam Smith
d. Lionel Richie

Question 17 True or False. If the statement is true, write the word True. If False, write False and replace the underlined word with
Not yet the correct term. Note that the system accepts an exact answer. Wrong spelling is considered wrong.
answered
For example:
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1.00 Q: Whales are reptiles. A: False - mammals
Answers to the three basic economic problems are arrived at in the market.

Answer: True

Question 18 True or False. If the statement is true, write the word True. If False, write False and replace the underlined word with
Not yet the correct term. Note that the system accepts an exact answer. Wrong spelling is considered wrong.
answered
For example:
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1.00 Q: Whales are reptiles. A: False - mammals
Political science is the science of reasoning and correct thinking to determine validity of a given statement.

Answer: False - logic

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11/24/2018 Prelims
Question 19 Supply elasticity is affected not only by price but by any of the following:
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a. The ability of producer to respond to price changes
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b. All of the choices
c. The time given for the supplier to react.

d. The cost of storage and product type

Question 20 When the quantity demanded remained unchanged as its price changes, the coefficient of price elasticity is:
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Select one:
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a. Zero
b. Less than one

c. Greater than one

d. Equal to one

Question 21 True or False. If the statement is true, write the word True. If False, write False and replace the underlined word with
Not yet the correct term. Note that the system accepts an exact answer. Wrong spelling is considered wrong.
answered
For example:
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1.00 Q: Whales are reptiles. A: False - mammals
Surplus refers to the negative difference between quantity supplied and quantity demanded.

Answer: False - positive

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11/24/2018 Prelims
Question 22 What type of price demand elasticity will be manifested by an insulin dependent diabetic patient on cost of insulin:
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Select one:
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a. Elastic
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b. Perfectly Inelastic
c. Inelastic
d. Perfectly Elastic

Question 23 True or False. If the statement is true, write the word True. If False, write False and replace the underlined word with
Not yet the correct term. Note that the system accepts an exact answer. Wrong spelling is considered wrong.
answered
For example:
Marked out of
1.00 Q: Whales are reptiles. A: False - mammals
Ceteris paribus indicates that something would be the case other things being equal.

Answer: False - constant

Question 24 True or False. If the statement is true, write the word True. If False, write False and replace the underlined word with
Not yet the correct term. Note that the system accepts an exact answer. Wrong spelling is considered wrong.
answered
For example:
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1.00 Q: Whales are reptiles. A: False - mammals
Statistics is a tool in economics.

Answer: True

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11/24/2018 Prelims
Question 25 If the income elasticity is positive but less than one, the commodity is:
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a. Luxury
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b. Inferior
c. Substitute
d. Necessity

Question 26 True or False. If the statement is true, write the word True. If False, write False and replace the underlined word with
Not yet the correct term. Note that the system accepts an exact answer. Wrong spelling is considered wrong.
answered
For example:
Marked out of
1.00 Q: Whales are reptiles. A: False - mammals
Graphs are visual representation of data that display relationships among variable.

Answer: True

Question 27 True or False. If the statement is true, write the word True. If False, write False and replace the underlined word with
Not yet the correct term. Note that the system accepts an exact answer. Wrong spelling is considered wrong.
answered
For example:
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1.00 Q: Whales are reptiles. A: False - mammals
Steel bars and cement used in construction are consumer goods.

Answer: Fale - capital

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11/24/2018 Prelims
Question 28 True or False. If the statement is true, write the word True. If False, write False and replace the underlined word with
Not yet the correct term. Note that the system accepts an exact answer. Wrong spelling is considered wrong.
answered
For example:
Marked out of
1.00 Q: Whales are reptiles. A: False - mammals
Product X is unitary elastic, since its price demand elasticity is computed at –1.

Answer: False - 1

Question 29 The effect of market prices going down is shown by the demand and supply curves:
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answered
Select one:
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a. All of the choices
b. Shift of the demand curve to the right
c. Shift of the supply curve to the left

d. Movement along the demand and supply curves

Question 30 True or False. If the statement is true, write the word True. If False, write False and replace the underlined word with
Not yet the correct term. Note that the system accepts an exact answer. Wrong spelling is considered wrong.
answered
For example:
Marked out of
1.00 Q: Whales are reptiles. A: False - mammals
Household and individual consumption is the driving force in any economy.

Answer: True

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