First Quarter Examination in Applied Economics

Which of the following is derived from 2 Greek words OIKOS meaning household and NOMOS meaning management.

• Economics

• Microeconomics

• Macroeconomics

• Economize

It is a social science that deals with how individuals organize themselves in order to distribute scarce resources to create products and services that meet man's infinite and multiplying desires and needs.

• Microeconomics

• Economics

• Macroeconomics

• Politics

This refers the willingness of a consumer to buy a commodity at a given price.

• Supply

• Price

• Demand

• Equilibrium

A demand function shows how the quantity demanded of a good depends on its determinants, the most important of which is the price of the good. What equation to be use?

• Qd= f (P)

• Qd = s (P)

• Qd - 6-P/2

• Qd + 6-P/2

It refers to the quantity of goods that the seller is willing to offer for sale.

• Supply

• Price

• Demand

• Equilibrium

It refers the scenario wherein the percentage change in price brings about a more than proportionate change in quantity demanded.

• Elastic Demand

• Unitary Elastic Demand

• Perfectly Elastic

• Inelastic Demand

Situation wherein the firm can increase output without experiencing an increase in costs, and quickly with a change in price.

• Capacity

• Mobility of factors production

• Number of firms

• Marginal Cost

It is defined as the effect on the change in demand of one good as a result of a change in price of related to another product.

• Price Elasticity of Demand

• Income Elasticity of demand

• Cross Price Elasticity of Demand

• Price Elasticity of Supply

It refers to the characteristics of a market such as the number of and size of buyers and sellers, similarity or type of product bought and sold, degree of mobility or resources, entry and exit of firms and input owners and degree of knowledge of economic agents regarding prices, costs, demand and supply conditions.

• Supply

• Demand

• Market Structure

• Law of Supply

It refers to an asset or item that is purchased with the hope that it will generate income or will appreciate in the future.

• Investment

• Tax

• Underemployment

• Unemployment