AMA COMPUTER COLLEGE

Dagupan Campus
Mid Term Examination
PRINCIPLES OF ECONOMICS
Identification:
1. Refers to a group of buyers and sellers with a particular goods or services.
2. -3. Refers to the behaviour of people as they interact with one another in market.
4. A type of market is a market in which there are many buyers and sellers so that
each has a negligible impact on the market price
5. A legal maximum on the price at which a good can be sold.
6. A legal minimum on the price at which a good can be sold.
7. A type of market place where products are the same, numerous buyers and
sellers so that each has no influence over price.
8. A type of market where there is one seller, and seller control price.
9. A type of market where there is a few sellers.
10.A type of economic system where there are products and whereas each seller
may set price for its own product.
Multiple choice:
1. The amount of a good that buyers are willing and able to purchase.
a. Quantity demanded
c. Law of supply
b. Law of demand
d. None of the above
2. A table that shows the relationship between the price of the good and the
quantity demanded.
a. Demand curve
c. Market demand
b. Demand schedule
d. None of the above
3. Refers to the sum of all individual demands for a particular goods or service
a. Demand curve
c. Market demand
b. Demand schedule
d. None of the above
4. When a fall in the price of one good reduces the demand for another good, the
two goods are called _______________.
a. Substitutes
c. None of the above
b. Complements
d. All of the above
5. When a fall in the price of one good increases the demand for another good, the
two goods are called _________________.
a. Substitutes
c. None of the above
b. Complements
d. All of the above
6. It is the amount of a good that sellers are willing and able to sell.
a. Quantity supplied
c. Supply schedule
b. Law of supply
d. Supply curve
7. This law states that, other things equal, the quantity supllied of a good rises
when the price of the good rises when the price of the good rises.
a. Quantity supplied
c. Supply schedule
b. Law of supply
d. Supply curve
8. A table that shows the relationship between the price of the good and the
quantity supplied.
a. Quantity supplied
c. Supply schedule
b. Law of supply
d. Supply curve

9. A graph that shows the relationship between the price of a good and the
quantity supplied
a. Quantity supplied
c. Supply schedule
b. Law of supply
d. Supply curve
10.Refers to the sum of all individual supplies for all individual supplies for all sellers
of a particular good and services
a. Quantity supplied
c. Supply schedule
b. Law of supply
d. Supply curve

e.
f. True or False
g.
1. Supply and demand are two words that economist used most often
2. Supply and demand are the forces that make market economies work
3. Microeconomics is about supply, demand, and market equilibrium.
4. Buyers always determine supply
5. Sellers always determine supply
6. Quantity demanded is the amount of a good that buyers are willing and able
to purchase
7. The Law of demand states that, other things equal, the quantity demanded of
a good falls where the price of the goods rises
8. The demand schedule is a table that shows the relationship between the
price of the goods
9. In a free, unregulated market system, market forces establishes equilibrium
price and exchange quantity
10.While equilibrium condition may be efficient. It may be true that not everyone
is satisfied.