1.It is derived by the interaction of supply and demand.

A. Market

B. Price

C. Quantity

D. Rate

2. What will happen when the quantity demanded is greater than the quantity supplied?

A. There is an adequate supply in the market.

B. There is shortage of supply in the market.

C. There is an excess of supply in the market.

D. There is a sufficient supply in the market.

3. What is the effect when there is a shortage of supply in the market?

A. Consumers would have to pay a higher price to get the product they want.

B. Producers will demand a higher price for the product they sell.

C. There is an increase in prices.

D. All of the above

4. What will happen to the supply when the price rise above the equilibrium?

A. There is a limited supply in the market.

B. The supply is inadequate.

C. The supply will decrease.

D. There is a surplus.

5. It is also called as maximum price.

A. Ceiling price

B. Flor price

C. Freeze price

D. Wall price

6. When the floor ceiling be introduced in the market?

A. There is adequate goods.

B. There is shortage of goods.

C. There is excess of goods.

D. There is sufficient goods.

7. What will the government do when there is a national flood shortage?

A. Imposed price ceiling.

B. Imposed price flooring.

C. Imposed price freezing.

D. Imposed price walling.

8. An economic theory that states that the price for any specific good or service is based on the relationship between its supply and demand.

A. Theory of demand.

B. Theory of goods.

C. Theory of service.

D. Theory of price.

9. It is the point at which the total number of items available can be reasonably consume by potential customers.

A. Optimal demand price

B.Optimal supply price

C. Optimal service price

D. Optimal market price

10. Deman may fluctuate depending on _________.

A. Competitors’ products

B. Affordability to the consumer

C. Item’s perceived value

D. All of the above

11. Which of the following is the characteristics of a monopolistic market?

A. There is only one seller and as such there is no competition

B. One seller has market power because the product has its own market and corresponding demand.

C. A monopolist can extract huge profit in the market because of the market power.

D. All pf the above

12. If there is a one buyer in the market it is called:

A. Monopoly

B. Oligopoly

C. Monopsony

D. None of the above

13. What type of oligopoly if the products produced by various firms are identical?

A. Pure oligopoly

B. Differentiated oligopoly

C. Syndicated oligopoly

D. Organized oligopoly

14. Which of the following market types has only few competing firms?

A. Perfect competition

B. Monopolistic competition

C. Monopoly

D. Oligopoly

15. What is the difference between perfect competition and monopolistic competition?

A. Perfect competition has a large number of small firms while monopolistic competition does not.

B. In perfect competition, firms produce identical goods, while in monopolistic competition, firms produce slightly different goods.

C. Perfect competition has no barriers to entry, while monopolistic competition does.

D. Perfect competition has barriers to entry while monopolistic does not.

16. In a perfect competition, a firm maximizes profit in the short run by deciding on ________.

A. How much output to produce

B.what price to charge

C. Whether or not to enter a marker

D. How much capital to use


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