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MT-Quiz #2

ManEco

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10 views

MT-Quiz #2

ManEco

Uploaded by

Geezele Nequinto
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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MANAGERIAL ECONOMICS 1st Sem, AY 24-25

NAME: ___________________________ SECTION: _______________________ DATE: ___________

Test I. True or False. Write T if the statement is True and F if the statement is False. Strictly NO ERASURES.
1. Income elasticity of demand is only applicable to quantity demanded.
2. Elasticity may be determined depending on the necessity of a good.
3. A perfect inelastic supply is depicted as a horizontal line.
4. Cross-price elasticity may determine whether two goods are substitutes or complements.
5. Price, being the dependent variable, is in the numerator of the different formula for elasticity.
6. The midpoint method provides a less accurate quantitative measure as it allows for uniformity in a volatile
movement in quantity and price.
7. The more specific indication of a product, the more inelastic it shall be
8. An answer of less than 1 in IED means that the good is inferior
9. Negative amounts in the computation of elasticity does not mean it is inelastic
10. PED observes the quantity demanded of a good.
11. It is assumed that spending is equal to savings or income.
12. Indifference curve provides that two commodities shall always have equal consumption.
13. The law of diminishing marginal utility means that an increase in consumption shall mean a decrease in one’s
satisfaction.
14. Indifference map differs from the indifference curve as the former contains the latter.
15. Consumer theory has two assumptions
16. Consumption is the same as utility
17. Higher income may mean a shift of indifference curve to the right
18. The budget line is considered a limitation of consumption
19. Utils are measure of how much of the commodity has consumed.
20. Indifference curves never intersect.
Test II. Identification. Correct spelling only
______________ 1. Certain combinations of two commodities that will yield them a certain level of utility.
______________ 2. The measure of percent increase in the quantity demanded of goods and services when
there is a percent increase in the income.
______________ 3. Based on the number of utils or the unit of satisfaction.
______________ 4. CPED less than zero.
______________ 5. Refers to the measure of the responsiveness of quantity demanded or quantity supplied
to one of its determinants.
______________ 6. Measure of percent increase in the quantity supplied of goods and services when there is a
percent increase in the price of such.
______________ 7. Satisfaction received from consuming a good or service.
______________ 8. Measure of percent increase in the quantity demanded of goods and services when there is a
percent increase in the price of another goods or services.
______________ 9. CPED greater that zero.
______________ 10. The study of how people decide to spend their money based on their individual preferences and
budget constraints.

Test III. Enumeration


Assumptions in consumer theory. (2 points each)
1.
2.
3.
4.
Conditions to maximize utility of an individual
5.
6.
Properties of consumer preferences
7.
8.
9.
Test IV. ACRONYM. Wrong spelling, no points.
1. PED –
2. IED –
3. CPED –
4. PES–
5. ICL –
6. LODMU –
7. MRS –

MTP-Q2
MANAGERIAL ECONOMICS 1st Sem, AY 24-25

Test I.
1-5 T, F,T,T, F 6-7 F,F,F,T,T 11-15 T,T,T,T,F 15-20 F,F,T,F,T

TEST II.
1. Consumption Bundles
2. Income Elasticity of Demand
3. Cardinal Values
4. Complement / Complementary Goods
5. Elasticity
6. Price Elasticity of Supply
7. Utility
8. Cross-Price Elasticity of Demand
9. Substitutes / Substitute Goods
10. Consumer Theory

TEST III.
1. The spending on any goods or services is exactly equal to the individual’s savings and income.
2. People are aware of the range of products available in the market.
3. People are aware of the prices of the products in the market.
4. People are aware of the function of the product.
5. The decision must lie on the budget line.
6. The decision must lie on the indifference curve that is depicting the most preferred combination of the consumer.
7. Completeness
8. Transitivity
9. Non-Satiation

1. PED – Price Elasticity of Demand


2. IED – Income Elasticity of Demand
3. CPED – Cross-Price Elasticity of Demand
4. PES– Price Elasticity of Supply
5. ICL – Income Consumption Line
6. LODMU – Law of Diminishing Marginal Utility
7. MRS – Marginal Rate of Substitution
8.

MTP-Q2

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