REPUBLIC OF THE PHILIPPINES
ILOCOS SUR POLYTECHNIC STATE COLLEGE
TAGUDIN CAMPUS
TAGUDIN,ILOCOS SUR
MICROECONOMICS
(SS 108)
AY.2021-2022
Name:JEAN MARIE M. ORDINARIO Score:________
Course and Year:UNITING Equivalent Rating:_______
I.TRUE OR FALSE.WRITE TRUE IF THE STATEMENT IS CORRECT AND IF FALSE UNDERLINE THE WORD OR
STATEMENT THAT MAKES IT FALSE AND WRITE THE PROPER WORD OR GROUP OF WORDS TO MAKE IT
TRUE IN THE SPACE PROVIDED.
Productivity 1. Synergy is the delivery of quality programs in instruction, research, extension,
production and development of responsive, proactive professionals and graduates and professing
determination and hard work in the system.
Resiliency 2. Ingenuity refers to the renewal and motivational strategies, looking at the bright side of
academic life and cultivating positive attitudes amidst failures and adversities.
Accountability 3. Productivity means the responsibility, answerability, transparency, impartiality,
decisiveness and delegation of work roles and streamlining of functions.
TRUE 4. Ingenuity refers to prudent use of resources, prudence in spending, cost cutting measures
and deciding the best possible action considering circumstances.
TRUE 5. Synergy pertains to the teamwork, collaboration, orchestration, subordination and of all
partner agencies, sponsors and stakeholders, parents, alumni and communities.
TRUE 6. Excellence refers to global orientation, borderless perspective, equal opportunities,
empowerment, and transformation, multi-tasking and leading by example.
8547 7. The Ilocos Sur Polytechnic State College (ISPSC) was created on February 24, 1998 by
virtue of Republic Act 8874 authored by Congressman Eric D. Singson and signed into law by then
President Fidel V. Ramos.
TRUE 8. The College shall primarily give professional and technical training both in the
undergraduate and the graduate levels in the fields of economics, agriculture, fishery, trade, home
industry, engineering, education, forest research and conservation, management, finance, accounting
and business administration, public administration and other fields as may be relevant, besides
providing for the promotion of scientific and technological researches which the College deems
necessary in carrying out its objectives.
TRUE 9. The College shall offer undergraduate, graduate and short-term technical courses within its
area of specialization as the Board of Trustees may deem necessary to carry out its objectives,
particularly in order to meet the needs of the province.
TRUE 10. Mission of the college is to improve the lives of people and communities through quality
instruction, innovations, productivity initiatives, environment and industry-feasible technologies,
resource mobilization and transformation outreach programs and services.
II. A Identification.Identify what is being asked below. Write the correct answer in the space
provided for.
Allocation and efficient 1. Economics is the proper _______ and _______ use of available
resources for maximum satisfaction of human wants.
Economics 2. It is concerned with production, distribution, and use of material goods and services,
and the study of human efforts to satisfy unlimited wants with unlimited resources.
Scarcity 3. __________ arises from the assumption of of unlimited wants and desires and the fact
that resources to obtain goods and services are limited.
maximum satisfaction 4. Economics is concerned with obtaining ____________ through the
efficient use of scarce resources.
Opportunity Cost 5. ______________ is the value of benefits forgone from alternative uses of
resources.
Production 6. ____________ simply means the process of transforming raw materials to a finished
product. It brings about the creation or addition of utility. People obtain utility by getting things that
give them pleasure and avoiding the things that give them pain.
Distribution 7. ___________ refers to the physical apportionment of goods and services from the
producers to the consumers or it is simply called as marketing distribution or trade.
Consumption 8. __________ is the process of using goods and services in the direct satisfaction of
human wants. It is regarded as the most important function in economics because it is the ultimate
end of economic activity. Without consumption there would be no need for production and
distribution.
Exchange 9. __________ is the transfer of ownership over goods and services from one person to
another. This is anchored on the use of money.
Positive Economics 10. ______________deals with what is or the scientific analysis of economic
behavior while normative economics deals with what should be or suggests what ought to be.
Goods11. __________refers to things that are produced, traded, sold,bought,and utilized which
satisfy a person’s wants and desires.
Essential Goods12. _____________________ are goods that are used to satisfy the basic needs of
man such as food, clothing, shelter, and medicine.
Consumers 13. ______________ are people who use goods and services. SERVICES are the
efforts rendered by someone for a price such as haircuts, doctor’s visit ,or economic consulting.
Value 14. __________ is an assignment of worth basically expressed in terms of price. The
assignment is usually based on the usefulness or scarcity of the item.
Economic Good15. ___________ is a kind of good that commands a price. They can only be
acquired only at a cost.
Free Goods16. ______________ are goods that have no price and are available at more than the
amount people want.
Land17. __________ includes all natural resources, including mineral deposits, water, air, trees,
poultry, livestock, and all other forms of these raw materials used in production.
Labor 18. __________ is any form of human effort like physical or mental, which is exerted in the
production of goods.
Labor 19. ___________is any form of human effort like physical or mental, which is exerted in the
production of goods.
Microeconomics 20. ________________ is the division of economics that studies the economy in
parts. It deals with the economic behavior of individual units such as the consumers, firms and
owners of the factors of production.
II .B Multiple Choice. Write the letter of your choice on the blank provided for.
A. 1. Economics is concerned with.
A. Production, distribution and utilization of goods and services
B. The efficient allocation of scarce resources
C. The maximum satisfaction of unlimited human wants
D. None of the above
C 2. A branch of economics that studies the economy as a whole.
A. Positive economics
B. normative economics
C. macroeconomics
D. microeconomics
B. 3. In general, the reason why we economize is due to
A. Instinct
B. Scarcity
C. Self-interest
D. Rational behavior
D 4. The primary activity in an economy is____________.
A. consumption
B. distribution
C. exchange
D. production
A. 5. Knowledge-based economies are successful because they emphasize the maximum utilization
of_______________.
A. land and capital
B. distribution
C. exchange
D. production
B. 6. It refers to the ability to organize resources in the production of goods or provision of services.
A. Leading
B. Management
C. Administration
D. Entrepreneurship
B. 7. These are special type of goods that are made in order to produce other goods.
A. Consumer goods
B. Capital goods
C. Free goods
D. Essential goods
B 8. Also known as the price theory
A. Macroeconomics
B. Microeconomics
C. Normative economics
D. Positive economics
A. 9. It is quantity divided by price
A. Value
B. Needs
C. Wants
D. Service
D.10. It deals with facts and cause effect relationships, and aims to explain economic behavior
A. Macroeconomics
B. Microeconomics
C. Normative economics
D. Positive economics
A 11. A market is characterized by___________
A. A physical structure where buyers and sellers transact business.
B. A face-to-face exchange of goods and services between buyers and sellers.
C. A mechanism or institution that links potential buyers and potential sellers
D. None of the above
B. 12. An increase in the quantity demanded by a consumer for product X is caused
by_______________.
A. An increase in the supply of the product X.
B. A decrease in the price of product X.
C. A decrease in consumer’s income.
D. An increase in the cost of producing product X.
D. 13. Demand for cell phones increases despite the increase in price.This is due to an increase
in____________.
A. The average income of consumers.
B. The number of consumers in the market.
C. Increased awareness of the benefits of the product.
D. All of the above.
B. 14. If two goods X and Y are substitutes for each other, an increase in the price of X
will___________.
A. Increase the demand for X.
B. Increase the demand for Y.
C. Increase the quantity demanded for X.
D. Decrease the quantity demanded for Y.
A. 15. If the income of consumer A increases and his/her demand for a good Z increase, then it can
be concluded that good Z is ___________.
A. A substitute good.
B. A complementary good
C. A normal good
D. An inferior good
A. 16. The law of demand can be applied in________.
A. Marketers for goods and services
B. Marketers for products and resources.
C. Purely competitive markets.
D. All of the above.
C. 17. A decrease in consumer demand for product X is caused by__________.
A. Consumer expectation of a lower price for product X in the future.
B. Improved quality of product X makes it more desirable to consumers.
C. An increase in the cost of producing the product
D. An increase in the price of substitute good for product X.
C 18. An increase in consumer income will increase demand implies.
A. There is an increase in quantity demanded at all possible prices.
B. There is a shift in the entire demand curve to the right.
C. Both A and B
D. Neither A nor B
D. 19. The law of demand can be explained by__________.
A. Income effect which means a lower price of a product enables the buyer to purchase more of
the product.
B. Substitution effect which means as the price of a commodity increases, consumers tend to buy
substitute products which has become relatively cheaper.
C. Relationship marketing which is the building of a long- term supplier-customer relationship, as
exemplified by the suki system among Filipinos.
D. Both A and B
D 20. The law of demand states that as other things are held constant increase in price
will_______________.
A. Demand increase
B. Demand decrease
C. Quantity demanded increase
D. Quantity demanded decrease
21.If the supply curve shifts to the right on a graph, there has been__________.
A. An increase in supply
B. A decrease in supply
C. An increase in quantity supplied
D. A decrease in quantity supplied
22. An increase in supply of broadband services is caused by ___________.
A. An increase in the cost of providing the service.
B. An increase in the number of telecommunication companies with franchise
C. An increase in the cost of providing the service.
D. An increase in tax rates of telecommunication companies.
23.Which of the following situation will cause a decrease in supply of cotton clothes?
A. A decrease in the price of raw cotton
B. An increase in the price of silk which is substitute raw material for making clothes.
C. A decrease in the wages of factory workers in the garments industry
D. A decrease in the number of garment manufacturers using cotton as raw material.
24.Which of the following situations will increase the supply of pork?
A. Decreased cost of fertilizer
B. Decreased number of pork vendors
C. Discovery of miracle feeds that will fatten piglets to 80-90 kilos in two and a half
months only and not the usual four months
D. Increased business tax charged to hog dealers and pork vendors.
25. Which statement is true regarding the supply of corn?
A. Seller expectation of a higher future price of corn increases the current supply of corn
B. The discovery and use of BT corn seeds decrease the supply of corn
C. A lower cost of shipping corn from Mindanao to Luzon decreases the supply of corn in Luzon.
D. Increased area planted of corn increases the corn supply.
III. Illustrate and Elaborate.
Hypothetical Market
Situation Pric Deman
e d
A 10 60
B 20 50
C 30 40
D 40 30
E 50 20
F 60 10
In the graph of the demand curve, price is measured at the vertical or Y axis while the demand is
measured at the horizontal or X axis. The demand curve slopes downward from northwest to
southeast. This means that the lower the price, the higher the demand. The higher the price, the
smaller the demand.
Schedule of Supply
Hypothetical Market
Situation Pric Suppl
e y
A 10 20
B 20 40
C 30 60
D 40 80
E 50 100
F 60 120
In the graph of the supply curve, price is measured at the vertical or Y axis while the demand is
measured at the horizontal or X axis. The demand curve slopes upward from northwest to southeast.
This means that the lower the price, the smaller the supply. The higher the price, the higher the
supply.
B. Illustrate and Explain Market Equilibrium. Show A Hypothetical Market situation through
a Demand and Supply Curve then point out the market equilibrium and explain.
PER
KILO
Explanation: The illustration shows a hypothetical market situation through a demand and supply wherein the
intersecting point is the market equilibrium. In this illustration, the equilibrium price is 400 while the
equilibrium quantity is 50 kilograms. This means that at 400, the amount that buyers want to buy is just equal
to the amount that sellers want to sell.
PREPARED BY:
RICHARD PETER A. ANDAYA,Ph.D
ASSISTANT PROFESSOR IV
NOTED BY:
SHIRLEY P.PALMA,Ph.D
DEAN ,CTE
