1) The price of eggs is 60 cents per dozen and Poultry owner Dennis produces 10,000 dozen eggs a month. If the price of eggs rises to 70 cents a dozen, Dennis' profit increase by $ 1,000.00. If you do a analysis in the change in profit, is there

Select the correct response:

D. none of the above

B. a correct estimate ?

C. an underestimate ?

A. an overestimate ?

2) Some companies continue in business even though they are losing money. Are they making a mistake?

Select the correct response:

B. Yes

D. none of the above

A. No

C. It depends

2) I - The following two conditions for longrun breakeven are equivalent: revenue covers total cost and prices covers average cost

Il - The following two conditions for longrun breakeven are equivalent: price covers total cost and revenue covers average cost

Select the correct response:

B. Statement I is correct, Statement Il incorrect

A. both statement I and Il are correct

C.Statement I incorrect, Statement Il is correct

D. Both Statement I and Statement Il are incorrect

3) For a given increase in price of the product, what will the increase in seller surplus be if the supply is more elastic?

Select the correct response:

C. it depends

D. none of the above

A. smaller

B. larger

4) If the supply curve slopes upward, the price elasticity of supply will be positive

Select the correct response:

B. it depends

D. Neither true nor false

C. True

A. False

5) In analyzing the present situation in the

Philippines, your older sister stated that only 5% of the population in our country has control over one half of the economy, indicating the presence of this thing in the market economy

Select the correct response:

D. Political dynasty in their respective fiefdoms or provinces

B. inequitable distribution of the fruits of economic activity

C. Imperfections

A. abuses perpetuated by those who have economic power

6) Continuation of Item No. 5 - Which has the lowest annual cost from among the different sources of funds?

Select the correct response:

E. both B & C

C. Checking Account

A. Time deposit

B. Savings deposit

D. Both A & C

7) You are wondering how the Principal Agent Problem can be solve?

Select the correct response:

B. Recognition

D. Financial stake in the Company

A. Promotion

C. A seat in the Board of the Company

8) You noticed your older sister is investing in a Blue Chip Company and this company has market power and can do the following acts except one. The one act that it cannot do is in letter

Select the correct response:

D. place TV ads on primetime telenovelas

C. choose suppliers

B. influence supply of products that it purchase

A. set prices

9) In analyzing the present situation in the

Philippines, your older sister stated that only 5% of the population in our country has control over one half of the economy, indicating the presence of this thing in the market economy

Select the correct response:

D. Political dynasty in their respective fiefdoms or provinces

B. inequitable distribution of the fruits of economic activity

C. Imperfections

A. abuses perpetuated by those who have economic power

10) As you passed an adjacent room in the CBA Building, you overheard a discussion where laws and contracts as well as the firm's limited input when viewed in the firm's goal of maximizing its value, are regarded as

Select the correct response:

A. Signals

B. Opportunities

C. Challenges

D. Constraints

11) Producers of television sets outsource production to contract manufacturers in China and elsewhere. As of November 2014, the exchange rate of the Chinese yuan to the US dollar was 16 US cents to 1 yuan. How would the appreciation of the Chinese yuan from 16 to 18 US cents affect the cost of supplying TVs to the US?

Select the correct response:

C. cheaper

B. less costly

D. unchanged

A. more costly

12) Continuation of Item No. 11 - Suppose that the Chinese yuan rises by 10% against the US dollar, which of the following can be a plausible explanation of why the US retail price of Chinese made TVs will rise by less than 10%?

Select the correct response:

D. All of the above

C. American retail supply of

Chinese-made TVs is inelastic

B. American retail demand for Chinese-made TVs is inelastic

A. the wholesale cost accounts for only part of retailer's cost

13) I - If demand increases, the price increase more in the long run

Il - If demand increases, the price increase more in the short run

Select the correct response:

D. Both Statement I and Statement I l are incorrect

C. Statement I incorrect,

Statement Il is correct

A. both statement I and Il are correct

B. Statement I is correct, Statement Il incorrect

14) Seasonal changes can affect demand & supply

I - In the market for fresh fruits & vegetables, the demand varies with the season

Il - In the market for heating oil, the supply varies with the season

Select the correct response:

D. Both Statement I and Statement Il are incorrect

A. both statement I and Il are correct

C. Statement I incorrect,Statement Il is correct

B.Statement I is correct, Statement Il incorrect

15) I - The following two conditions for short-run breakeven are equivalent: price covers variable cost and revenue covers average variable cost

Il - The following two conditions for shortrun breakeven are equivalent: revenue covers variable cost and price covers average variable cost

Select the correct response:

A. both statement I and Il are correct

C) C. Statement I incorrect, Statement Il is correct

B. Statement I is correct, Statement Il incorrect

D. Both Statement I and Statement Il are incorrect

17) I - The following two conditions for short-run breakeven are equivalent: price covers variable cost and revenue covers average variable cost

I l - The following two conditions for shortrun breakeven are equivalent: revenue covers variable cost and price covers average variable cost

Select the correct response:

A. both statement I and Il are correct

C. Statement I incorrect, Statement I l is correct

B. Statement I is correct, Statement I l incorrect

D. Both Statement I and Statement I l are incorrect

18) Maricel told her classmates that Profit as defined by economists & Accountants has no difference when in fact there is a difference based on their

Select the correct response:

C. Orientation

D. Perspective

A. Analysis

B. Functions

19) A competitive strategy of managers is to deliver this kind of profit that is above competitive level

Select the correct response:

A. continuous

C. sustained

D. optimum

B. high

20) You wonder what resources Managers must make the best use of

Select the correct response:

B. capital

D. scarce

C. equipment

A. human

21) I - The government of China has always prefer a strong yuan.

Il - China, as an economic powerhouse, has overtaken Japan about a decade ago, as the world's second largest economy Select the correct response:

B. Statement I is correct, Statement Il incorrect

A. both statement I and Il are correct

C. Statement I incorrect, Statement Il is correct

D. Both Statement I and Statement Il are incorrect

22) I -Many of the rich countries have strong currencies as evidenced by the conversion rate of the American dollars, European euros, UK pound, reaching as high as P

23.00 per one pound or euro.

Il - All developed and rich countries have stronger currencies and higher conversion rates than the Peso.

Select the correct response:

D. Both Statement I andbStatement Il are incorrect

A. both statement I and Il are correct

C. Statement I incorrect, O Statement Il is correct

B. Statement I is correct, Statement Il incorrect

22) I - In our country, those who earn more pay more taxes

Il - Employees pay smaller amount of taxes than businessmen & doctors

Select the correct response:

A. both statement I and Il are correct

D. Both Statement I and Statement Il are incorrect

B. Statement I is correct, Statement Il incorrect

C. Statement I incorrect, Statement Il is correct

24) The government of the Soviet Union subsidized bread as it is one of the staple food in the country, and so cheap bread is available to all Soviet citizens

I -Most Russian citizens are happy and cherished this situation

Il - Boris Yeltsin, Russian President, abolished the subsidy in the mid 1990s and it brought hardship and misery to Russians, making it a wrong and unpopular decision up to this day.

Select the correct response:

A. both statement I and I l are correct

D. Both Statement I and Statement Il are incorrect

B. Statement I is correct,Statement Il incorrect

C. Statement I incorrect, Statement Il is correct

25) I -Many of the rich countries have strong currencies as evidenced by the conversion rate of the American dollars, European euros, UK pound, reaching as high as P

62.00 per one pound or euro.

Il - All developed and rich countries have stronger currencies and higher conversion rates than the Peso.

Select the correct response:

D. Both Statement I and Statement Il are incorrect

A. both statement I and Il are correct

C. Statement I incorrect, Statement Il is correct

B. Statement I is correct, Statement Il incorrect

26) I - All suppliers operate at different marginal cost

Il - All users achieve different marginal benefit

Select the correct response:

B. Statement I is correct, Statement Il incorrect

D. Both Statement I and Statement Il are incorrect

A. both statement I and Il are correct

C. Statement I incorrect, Statement Il is correct

27) I - When the buyer pays for the cost of intermediation, it affects the incidence of the cost

Il - When the seller pays for the cost of intermediation, it does not affect the incidence of the cost

Select the correct response:

B. Statement I is correct, Statement Il incorrect

C. Statement I incorrect, Statement Il is correct

D. Both Statement I and Statement Il are incorrect

A. both statement I and Il are correct

28) I - In a World War Il camp, economic efficiency is achieved when every prisoner of war received an identical parcel containing cigarettes, chocolate, pen & writing paper

Il - In a competitive finance market, the invisible hand ensures that the allocation of investment funds is economically efficient

Select the correct response:

D. Both Statement I and Statement Il are incorrect

B. Statement I is correct, Statement Il incorrect

C. Statement I incorrect,Statement Il is correct

A. both statement I and Il are correct

30) San Miguel Corporation has ventured into energy & airport construction to add to its numerous business undertaking, thus widening its

Select the correct response:

D. scope

C. vertical boundaries

A. integration

B. diversification