Poblacion Polomolok National High School
Polomolok , South Cotabato
Summative Assessment
Applied Economics
Grade 12 – ABM1,2
Name:___________________________________________Section:_________
Score:_______
Test I.Multiple Choice.Directions: Choose the letter of the best answer. Write the letter of the correct answer on the
space provided.
1. Which of the following statements refers to demand?
A. A relationship between the price of a product and the quantity demanded during a given period.
B. It refers to a quantity of a good or service consumers would choose to buy at a particular price.
C. It shows the number of goods that consumers are willing and able to buy.
D. All of the above
2. Which of the following statements does not describe the law of demand?
A. It shows the relationship between price and quantity demanded.
B. There is a negative relationship between price and quantity demanded.
c. Price is directly affected by quantity demanded.
d. None of the above
3. Which of the following is TRUE about ceteris paribus?
a. It is only focused on market demand.
b. It refers to factors of demand shift.
c. It means that all other things held constant.
d. None of the above
4. Which of the following scenarios causes the demand to shift upward?
a. Consumers are satiated with product
b. Increase in consumer’s income
c. The price is expected to decrease next week
d. None of the above
5. Which of the following factors does not cause a shift in the demand curve?
a. Price
b. The income of consumers
c. Expectations of future prices
d. None of the above
6. The number of goods that businesses are willing and able to sell at a specific price during a particular period.
a. Supply
b. Demand
c. Quantity supplied
d. Quantity demanded
7. It refers to the number of goods that producers are willing and able to sell at different prices.
a. Supply
b. Quantity supplied
c. Both a and b
d. None of the above
8. The law of supply states that:
a. As price goes up, ceteris paribus, the producers will offer more for sale.
b. As income increases, ceteris paribus, quantity supplied also increases.
c. As price increases, ceteris paribus, quantity supplied decreases.
d. None of the above
9. The relationship between the price and quantity supplied is:
a. negative
b. positive
c. negative first, then positive
d. positive first, then negative
10. This factor causes shifts of the supply curve.
a. Price
b. The income of consumers
c. Cost of production
d. Inferior good
11. It is a situation where demand is equal to supply.
a. Price Stability
b. Fairness and Equity
c. Economic Growth
d. Market Equilibrium
12. It is a situation where demand exceeds supply.
a. Sufficient
b. Scarce
c. Shortage
d. Surplus
13. It is a situation where supply is greater than demand.
a. Shortage
b. Surplus
c. Scarce
d. Sufficient
14. In a graph, all points below the equilibrium point are:
a. Surplus
b. Shortage
c. Sufficient
d. Scarce
15. In a graph, all points above the equilibrium point are:
a. Surplus
b. Shortage
c. Scarce
d. Sufficient
Test II.Enumeration.
Non-price determinants of demand
1.
2.
3.
4.
5.
Non-price determinants of supply
1.
2.
3.
4.
5.