22.what does elastic demand mean in a perfectly competitive market?

a.A change in the amount of production of a Pc firms is too insignificant to influence a change in the market price

b.All of the choices

c.When a Pc firm increases price it would experience an increase in sales.

d.Goods produced in the perfectly competitive market have no close substitute as alternative for consumers

23. what does the government implement to protect the producer's income during the existence of production surplus?

a.Price floor

b.Price control

c.Price celling

d.The government absorbs the surplus

24. the law of supply is best illustrated by which of the following scenarios?

a.Magnolia decrease the supply of chicken due to the increase in price of chicken

b.Del monte increased the supply of pineapple juice due to the decrease in labor cost

c.Procter and gamble increased the supply of tide due to the price increase of laundry soap

d.A furniture shop decreased the supply of wooden chair due to the decrease in wood supply

25. when graphed, marginal product and average product intersects at

a.Maximum height of marginal product

b.Maximum height of average product

c.Minimum height of average product and Maximum height of marginal product

d.Maximum height of average product and Minimum height of marginal product

26. which of the following statement is true?

a.GNP are goods produces within the territorial boundaries of the country using domestically owned factors of production

b.Total payments to all the production factors equals GNP

c.GNP can be computed as the sum of all the value added of all the enterprise in each stage of production

d.GNP = C + I + G + (X-M)

27. During budget deficits the government resort to borrowing. From which local financial institutions should the government borrow in order not to cause an inflationary borrowing?

a.Commercial banks

b.Central banks

c.Central bank and other lending agencies

d.Commercial banks and other lending agencies

e.Central and commercial banks

f.Other private lending agencies

28. according to statistics, the Philippine natural resources have started to be depleted due to the increase in population. Which of the four common economic goals should be prioritized by the government?

a.Balance foreign exchange

b.Equitable distribution of income and wealth among individuals and regions

c.Increase in per capital income

d.Full employment and/or development of its resources

29. price of a commodity is the principle determinant of production in

a.Combination of command economy and market economy

b.Tradition economy

c.Market economy

d.Command economy

30

31. the demand curve of a firm in a pure competition market is

a.Downward sloping

b.Truncated

c.Horizontal

d.Kinked

32. which type of goods affected by inflation?

a.Inelastic goods

b.Elastic goods

c.Griffin goods

d.All of the above

33. it is a factor affecting demand that makes consumer buy more than his consumption for future use

a.Income effect

b.Changes in prices of related goods

c.Price expectation

d.Change in population

34. increase in total supply can be brought about by

a.Increase in taxes applied to manufacturing

b.Expected increase in selling price of produced commodity

c.Automation of production process

d.Increase in price of raw materials

35. among the following determinants, which influences a firm to expands its investments?

a.Higher interest rate

b.Lower rate of RIO

c.Low supply of raw materials

d.Increase in rate of sales

36. a type of economy where tradition determines the current level of output for commodity or service produced

a.Market economy

b.Command economy

c.Combination of command economy and market economy

d.Tradition economy

37. in a command economy, the three basic economic problems are resolved by

a.Sole individual or experts who determine the what, how and for whom of production

b.The past production experiences

c.The current market prices of commodity

d.The needs of the community

38. a firm that experiences proportionate rate of increase in both inputs is called

a.None of the choices

b.Decreasing cost firm

c.Increasing cost firm

d.Constant cost firm

39. how does open market operations tighten credit?

a.Through CB's selling of government securities

b.Through KB's lower interest rates

c.Through KB's buying of government securities

d.Through KB's higher interest rates

40. what is the condition when profit is maximized in an oligopolistic market having the sweezy model

a.All of the choices

b.MC=MR

c.None of the choices

d.MR is truncated below the demand curve

e.Price is stable even if costs change

41. what does a shift of both demand and supply curves mean?

a.Decrease in quantity bought, decrease in quality sold

b.Increase in quantity bought, decrease in quality sold

c.Increase in quantity bought, increase in quality sold

d.Decrease in quantity bought, increase in quality sold

42. how does the supply of money cause inflation?

a.Increase in money supply with no corresponding increase on transacted goods, increasing price

b.Decrease in money supply decreasing demand, decreasing price

c.Decrease in money supply increasing demand, thus increasing price

d.Increase in money supply with corresponding increase on transacted goods, keeping price unaffected

43. the only market structure that can afford a high fixed cost in establishing the firm inherent to technology

a.Monopolistic competition

b.Pure monopoly

c.Oligopoly

d.None of the choices

44. which of the following statement is not true about household consumption and savings?

a.None of the choices

b.As internet rates on savings increase, consumption decrease, savings increase

c.As family income increase, expenditure on food decreases

d.As income increase, consumption increases, savings increases

45. favorable balance on trade means

a.Greater export activities than import activities

b.Equal import and export levels

c.Greater import activities than export activities

d.More imported goods in the local market than local goods in the international market

46. with the inflow of investment into the economic circular flow

a.Income is unchanged

b.Savings decrease

c.Consumption increases

d.Consumption decrease

47. which of the following may have caused a rightward shift of a supply curve?

a.Expected price increase

b.Technologically innovative process of production

c.None of the choices

d.Increase in production cost

48. what type of oligopoly leads to pure monopoly

a.Market sharing cartel

b.Sweezy model

c.Duopoly model

d.Centralized cartel

49. graphing the costs curves of production, at which point is a firm said to be operating on a maximum level?

a.At the intersection of MC and ATC

b.At the intersection of AVC and ATC

c.At the intersection of MC and AVC

d.At the intersection of MC, AVC and ATC

50. the kinked demand curve of an oligopoly's firm is caused by

a.Oligopolies cannot increase sales volume through price cut because his rivals would surely follow him

b.Oligopolies cannot increase price if his rivals would not follow him

c.Oligopolies cannot dictate price change in the market

d.Price in an oligopolistic market is dictated by the firm with biggest market share