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Republic of the Philippines
CAVITE STATE UNIVERSITY
CCAT Campus
Rosario, Cavite
(046) 437-9505 / (046) 437-6659
cvsurosario@[Link]
[Link]
DEPARTMENT OF MANAGEMENT STUDIES
BMGT 21- BASIC MICROECONOMICS
Part 1: THE OPTIMIZING INDIVIDUAL
SELF LEARNING MODULE
This module was designed and written with you in mind. It is here to help you in your journey in Learning
Basic Microeconomics. The scope of this module permits it to be used in many different learning situations
and would like to encourage independent learning activities.
This learning resources aims to provide and guide learners into learning at their own pace and time. We
understand the current situations.
This module has the following parts:
Lesson Proper: In this portion, the new lesson will be introduced to you in various
ways such as a story, a song, a poem, a problem opener, an activity, or a situation.
Application: This includes questions or blank sentence/paragraph to be filled in to process
what you learned from the lesson
Assessment: This is a task which aims to evaluate your level of mastery in achieving the
learning competency. Additional Activities In this portion, another activity will be given to you
to enrich your knowledge or skill of the lesson learned.
The following are some reminders in using this module:
Use the module with care. Do not put unnecessary mark/s on any
part of the module. Use a separate sheet of paper in answering
the exercises.
Don’t forget to answer the assessment before moving on to the
other activities included in the module. Read the instruction
carefully before doing each task.
Observe honesty and integrity in doing the tasks and checking
your answers.
Finish the task at hand before proceeding to the next.
Return this module to your teacher/facilitator once you are through with it.
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Microeconomics- Pre-Test : Answer to your best knowledge and as
honestly as you can. UNGRADED.
1. Scarcity can best be defined as:
A. A Shortage of a product C. Unlimited wants vs Limited
B. Limited wants vs unlimited resources
resources D. Where demand is greater than
supply
2. Which of the following is NOT a consumer good?
A. A bulldozer at a construction site D. a television set for sale at an
B. a Happy Meal at McDonalds appliance store
C. a pack of Doritos in a vending
machine
3. Which of the following resources would economists classify as “capital”?
A. Raw Bauxite in a South African C. a house A worker hired to repair
mine engines
B. A hammer used in framing D. Trees used to make paper
4. The law of demand states that:
A. consumers demand a larger quantity of a good when price is low.
B. consumer demand increases when price is low.
C. sellers increase supply when price is high.
D. sellers supply a larger quantity of a good when price is high.
5. Microeconomics and the Laws of Supply and Demand (Briefly Discuss your understanding)
____________________________________________________
____________________________________________________
6. Differentiate Microeconomics and Macroeconomics
____________________________________________________
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7. As the price of a good rises in a market, it acts as a signal:
A. consumers that they should buy a greater quantity of the good.
B. to consumer that they should increase their demand for the good.
C. to producers that they should supply a greater quantity of the good.
D. to producers that they should increase their supply of the good.
8. The ideal price and level of output occurs where:
A. marginal Revenue and Marginal C. Average Fixed Cost equal ATC
Cost cross D. MR = MT
B. MR = AVC
9. A point above the PPF curve represents:
A. efficiency C. Unemployment
B. inefficiency D. Unattainable
10. Organizers of many high-interest sporting events such as the Super Bowl and the World Series usually set ticket prices
lower than the equilibrium price, citing fairness to the public as their reason. What names do economists give to the
resulting set price and disequilibrium situation?
A. price floor; shortage
B. price ceiling; shortage
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C. price ceiling; surplus
D. price floor; surplus
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Application and Assessment
1. Explain the concept of Adam Smith’s Invisible Hand Theory and site personal experience to justify his Theory.
2. Discuss each of the following statements from the standpoints of equality and efficiency.
a. “Everyone in society should be guaranteed the best healthcare possible.”
b. “When workers are laid off, they should be able to collect unemployment benefits until they find a new job.”
______3. Economics is best defined as the study of:
a. how society manages its scarce resources.
b. how to run a business most profitably.
c. how to predict inflation, unemployment, and stock prices.
d. how the government can stop the harm from unchecked self-interest.
______4. Adam Smith’s “invisible hand” refers to
a. the subtle and often hidden methods that businesses use to profit at consumers’ expense.
b. the ability of free markets to reach desirable outcomes, despite the self-interest of market participants.
c. the ability of government regulation to benefit consumers, even if the consumers are unaware of the regulations.
d. the way in which producers or consumers in unregulated markets impose costs on innocent bystanders
REFERENCES AND ILLUSTRATION CREDITS:
Principles of Microeconomics (N. Gregory Mankiw), Baumol, W., Blinder A. and Solow, J. Microeconomics: Principles and Policy.
2020. Cengage Learning Baumol, W., Blinder A. and Solow, J. Basic Microeconomics. 2022. Cengage Learning Mankiw, G.
Principles of Microeconomics 2021. Cengage Learning Tucker, I., Microeconomics for Today. 2019. Cengage Learning
The Cartoon Introduction to Economics Volume One Microeconomics (Yoram Bauman, Grady Klein)
Prepared by: Richard P. Perez
