ABUNE GORGORIOUS SECONDARY SCHOOL
DEPARTMENT OF SOCIAL SCIENCE
st
1 Semester Economics Final exam for Grade 10
Name_________________________ Grade____ Number____ Time allowed 1:00 Hr.
I. Write “True” if the statement is correct and “False” if it is incorrect.
1. According to ordinal utility approach, a smaller bundle is always preferred to a bigger bundle. F
2. MRS is the ration of prices of two goods. T
3. An increase of price of the product leads to extension of demand. F
4. Supply is relatively inelastic to change in the short-run. T
5. Average product of labour is the measure of productivity of labour. T
6. All inputs are variable in the long run. t
7. MP and AP curves intersect at the maximum value of AP curve. T
II. Instructions: Match the phrases or words under column “B” with their best explanation
under column “A”
A B
1. The Summation of MP D A. Stage III
2. Increasing return stage C B. Stage II
3. Negative marginal returns stage A C. Stage I
4. Diminishing returns stage B D. Total Product
5. Production with two variable inputs E. In short – run production period
6. Some of the factors are fixed F. In Long-run production time
7. Inelastic demand G. Leads to shortage
8. Excess demand H. % ΔQdx < % ΔPx
III. Choose the correct alternatives for the following questions.
1. Shift and movement in demand are
A. Different B. Same C. Equal D. Complementary
2. The point at which the quantity demanded equals supplied is the_____.
A. Equilibrium point B. Surplus C. Equilibrium price D. Equilibrium Quantity
3. A case of increase in demand, supply remaining unchanged, the equilibrium price_____.
A. increases B. decreases C. Remains constant D. Becomes zero
4. ____ is derived by adding up all the individual demand.
A. Marked Demand B. Market Supply C. individual demand D. A and B
5. All of the following are determinants of demand except___.
A. Consumer income C. Price of related goods
B. Quantity supplied D. Size off population
Set By: Mamush K 1
6. A positive cross-price elasticity coefficient implies that
A. Two products are substituting C. Two products are jointly demanded
B. Two products are complementary D. Tom products have no relations
7. When demand is perfectly inelastic, the demand curve is
A. Vertical straight-line C. Linear
B. Horizontal straight line D. Steeper
8. Unitary elastic demand is represented by
A. Downward sloping demand curve C. Horizontal demand curve
B. Vertical demand curve D. Undefined
Table: 1
Income/year 10000 14000 18000 22000
Quantity/year 10 15 18 20
D
9. Based on the given table, the income elasticity (E I) and the goods at 18000 level of income is
A. 0.7- luxury good C. 0.7 – inferior good
B. 0.7 – necessity good D. 2 and luxury good
10. Suppose that there are only 4 consumers of orange in a given market (Tola, Lema, Chala and
Ujulu). Supply at 10Br. /Kg, Tola, Lema, Chala and Ujulu in that order demand 9, 5, 2 and 6 kg
of orange respectively. Then the market demand for orange at 10Br./kg is
A. 19kgs B. 22kg C. 33kgs D. 21kgs
11. Under the conditions of stable supply curve, if there is increase in demand (that is, a rightward
shift of the demand curve), what will happen?
A. Only equilibrium is increase only
B. both equilibrium price and equilibrium quantity increase.
C. equilibrium quantity decrease
D. both equilibrium price and equilibrium quantity decrease
12. As more and more units of a commodity are consumed, MU derived from each succussive unit
goes on diminished. This stated under the law of:
A. DMU B. Ordinal Utility C. Consumer equilibrium D. Demand
Table 2: Answer question 13 and 14 based on table given below
Quantity(X 0 1 2 3 4 5 6
) consumed
TU 0 8 15 20 ? 24 24
MU - 8 ? 3 1 0
13. From the given table, the Mux at Q 3 is
A. 3 B. 5 C. -5 D. -3
14. Based on the above table, the TUx at Q 4 is
A. 23 B. -23 C. 17 D. 20
Set By: Mamush K 2
15. One of the following is not the assumption of law of consumer equilibrium.
A. The LDMU operate
B. the consumer income is given but not remain constant
C. the MU of money remains constant
D. commodity prices given and remain constant
16. among the following options, one is incorrect about consumer equilibrium in case of one
commodity.
A. MUX = PX
B. If Mux > px the consumer can purchase less units of x
C. If mux < px, the consumer can reduce the consumption of x
D. Px . Qx = I
17. The relation between physical output of a production process to physical inputs is known as:
A. Consumption function B. Production function C. Utility function D. Sales function
18. The maximum value of average product of labor is
A. greater than maximum value of marginal product of labor
B. less than maximum value of marginal product of labor
C. equal to the maximum value of marginal product of labor
D. can’t compare
19. When marginal product is negative, total product is
A. increasing B. decreasing C. constant D. equal to zero
20. When average product is maximum, marginal product
A. lies above average product C. lies below average product
B. is equal to average product D. is equal to zero
21. When total product is maximum
A. Marginal product is zero C. Marginal product is positive
B. Marginal product is negative D. Average product is zero
22. Marginal product curve intersects average product at a point where:
A. Marginal product is maximum C. Marginal product is minimum
B. Average product is maximum D. Average product is minimum
IV. Answer the following questions accordingly
1. Discuss/ list at least 4 major assumptions of ordinal utility theory.
2. States the law of demand and the law of supply.
V. WORK OUT
1. Given marked demand (Qd) = 100 – 2p and market supply: P = (Qs/3 + 5)
a. Calculate the market equilibrium price and Quantity
b. Determine whether there is surplus or shortage at p = 25 and p= 15.
Set By: Mamush K 3
ECONOICS ANSWER SHEET FOR GRADE 10
Name: Grade 10: Roll No.
No True/False Matching No Choice
. .
1 1 1 11
2 2 2 14
3 3 3 15
4 4 4 16
5 5 5 17
6 6 6 18
7 7 7 19
8 8 20
9 21
10 22
11 23
12
Short answer
Set By: Mamush K 4
