DEPARTMENT OF EDUCATION

Region I
San Fernando City
La Union

ACTIVITY SHEETS IN APPLIED ECONOMICS

QUARTER 1, WEEK 5

MELC: Differentiate various market structures in terms of:

a. number of sellers
b. types of products
c. entry/exit to market
d. pricing power
e. others
 K to 12 BEC CG: ABM_AE12-Ie-h-7

Objectives:

The learners shall be able to

1. identify market structures

2. propose and give examples of market structures
3. create the market structures (perfect competition, monopoly,
oligopoly, and monopolistic competition).

Prepared by:

Christian Paul C. Gutierrez, LPT, DBA

Master Teacher II
 Myra F. De Leon, LPT
Teacher II
Name: Date: _
Grade/Section: Score: _

Title of the Activity: Market Structures Analogy

Most Essential Learning Competency: Differentiate various market structures in terms of:
a. number of sellers
b. types of products
c. entry/exit to market
d. pricing power
e. others
K to 12 BEC CG: ABM_AE12-Ie-h-7

Market structure- This refers to the competitive environment in which buyers and sellers
operate.
Competition- This refers to the rivalry among various sellers in the market.
Monopolistic competition- A monopolistic competitive market is characterized by many
sellers of differentiated products.
Perfect competition- is a perfectly competitive market exists where there are many sellers
of homogeneous product in the market.
Monopoly- A monopoly is basically a one-firm industry. There is only one producer of a
unique product that has no available substitutes in the market.
Oligopoly- Is a market dominated by a small number of strategically interacting firms.
-is a market form in which a market or industry is dominated by a small number of
sellers (oligopolists). Because there are few sellers, each oligopolist is likely to be aware of
the actions of the others. The decisions of one firm influence, and are influenced by, the
decisions of other firms.

Directions: Explain the following questions in the space provided in the

activity sheet.

1. Enumerate and explain in your understanding the 4 types of market structures?

2. In your locality what type of market structure is dominating the market? Explain
why?

3. What is your understanding between the perfect and imperfect competition?

Name: Date: _
Grade/Section: Score: _

Title of the Activity: Choose Me

Most Essential Learning Competency: Differentiate various market structures in terms of:
a. number of sellers
b. types of products
c. entry/exit to market
d. pricing power
e. others
K to 12 BEC CG: ABM_AE12-Ie-h-7

Directions: Choose the correct answer from the choices below. Use the
space provided.

1. When there is an increase in the purchasing power, consumers can buy more goods and
services with a given amount of money. This is called .
A. Purchasing Power Loss B. Purchasing Power Gain
C. Purchasing Power D. Purchasing Power Profit
2. The following causes purchasing power loss, EXCEPT;
A. Inflation B. Technology C. Natural disasters D. Government regulation
3. is a process of moving from one country to another of “which one
is not a native or permanent resident”.
A. Exchange rate B. Import C. Migration D. Export
4. is one of the fundamental determinants of an economy’s health
aside from inflation and interest rates.
A. Exchange rate B. Taxes C. Migration D. Export
5. When a dollar could buy three avocados a decade ago, now a dollar can buy only two,
then purchasing power has over time.
A. Increased B. Decreased C. Not changed at all D. Improved
6. The following is/are reason/s why high-skilled immigrants make the receiving country
better off, EXCEPT;
A. These people bring trouble C. These people bring diverse specialty
B. These people bring diverse talents D. These people bring their expertise
7. A higher currency makes a country’s exports and imports
.
A. Cheaper; more expensive C. More expensive; more expensive
B. Cheaper; cheaper D. More expensive; cheaper
8. A declining exchange rate obviously the purchasing power
of income and capital gains derived from any returns.
A. Decreases B. Has no impact C. Increases D. Improves
9. Inelastic demand for oil means that .
A. A rise in price causes no effect on demand.
B. A rise in price causes only a small fall in demand.
C. A rise in price causes only a small fall in supply.
D. A rise in price causes only a large fall in demand.
10. An unemployed person’s purchasing power _.
A. Does not change at all B. Increases C. Decreases D. Improves
Name: Date:

Grade/Section: Score:

Title of the Activity: Purchasing Power

Most Essential Learning Competency: Differentiate various market structures in terms of:
a. number of sellers
b. types of products
c. entry/exit to market
d. pricing power
e. others
K to 12 BEC CG: ABM_AE12-Ie-h-7

Directions: Provide analysis and interpretation for your answer. Enlighten the
following questions in the space provided in the activity sheet.

1. What determines the purchasing power of a consumer? What is your purchasing

power?

2. Explain the effect of more investment to a country’s economy. How can a nation, like
the Philippines, increase its investment?
3. Does technological change lead to unemployment? Explain how technological change
or advance technology creates unemployment.

4. How will a decline in investment pull down the consumption expenditures? How are
you affected?

5. How significant is the impact of the nation’s GDP on the quality of social services
delivered by the government? Cite an example of a government service program.
Name: Date:

Grade/Section: Score:

Title of the Activity: Supply and Demand

Most Essential Learning Competency: Differentiate various market structures in terms of:
a. number of sellers
b. types of products
c. entry/exit to market
d. pricing power
e. others
K to 12 BEC CG: ABM_AE12-Ie-h-7

Directions: Choose the correct answer from the choices below. Use the space
provided.

1. It refers to the dishonest or fraudulent behavior by people with power such as

managers and other persons in authority.
A. Poverty B. Politics C. Unemployment D. Corruption
2. This occurs when there is less supply than consumer demand.
A. Surplus B. Shortage C. Poverty D. Price Change
3. This occurs when there is excess supply than consumer demand.
A. Surplus B. Shortage C. Poverty D. Price Change
4. When there is a high demand for ice cream during summer, what happens to its
price?
A. Decreases B. Remains the same C. Increases D. None of the above
5. It is harvest season and farms are producing more vegetables than households
demand. There is a?
A. Shortage B. Price Volatility C. Surplus D. Poverty
6. Consumers are alarmed because of the sudden price increase of household
commodities. There is an economic problem called?
A. Shortage B. Price Volatility C. Surplus D. Unemployment
7.This is an economic theory that can be used to explain why shortage and
surplus occur.
 A. Law of demand and supply C. Price volatility
B. Law of diminishing returns D. Unemployment
8. The law of demand states that as the price of a good or service increase, consumer
demand for the good or service .
A. Does not change B. Ceteris paribus C. Decreases D. Increases
9. When the price of an item goes up, suppliers will attempt to maximize their profits
by increasing the quantity offered for sale. This defines what law?
A. Demand curve B. Law of demand C. Law of supply D. Supply curve
10. How would one determine the equilibrium price and quantity?
A. The middle price and quantity is equilibrium.
B. Any price and quantity on the curves is the equilibrium.
C. It is the highest price and its corresponding quantity on the curves.
D. It is the point of intersection of the two curves.
11. It is a graph showing how much a product a firm will sell at different prices.
A. Supply graph B. Supply curve C. Supply schedule D. All of these are correct
12. It is the condition that exists when quantity supplied and quantity demanded at
The current price is equal.
A. Surplus B. Shortage C. Employment D. Equilibrium

Use the graph below to answer questions 13 & 14.

13. How much is the surplus?

A. ₱10,000.00 B. ₱5,000.00 C. ₱15,000.00 D. ₱20,000.00
14. What is the equilibrium point?
A. 20,000 bushels at ₱3.00 B. 35,000 bushels at ₱2.50
C. 40,000 bushels at ₱3.00 D. 40,000 bushels at ₱3.00
15. Which of the following depicts the concept of excess supply?
A. A new restaurant opens up in town and gets great reviews. There are only 15 tables
but everyone wants to get a reservation.
B. A popular artist dies, thus, there will be no more artworks from him.
C. A huge wave of new, unskilled workers comes to a city and all of the workers are
willing to take jobs at low wages.
D. None of the above.
16. A cultural trend item that was all-the-rage for some time falls out of favor and
is no longer “cool”. What happens to its demand?
A. Stays the same B. Decreases C. Increases D. Freezes
17. Corn crops are very plentiful over the year and there is more corn than
people would normally buy. To get rid of the excess supply, what should farmers do?
A. Increase the price of corn C. Do not sell the corn
B. Price of corn stays the same D. Lower the price of the corn
18. A demand curve that has steeper slope is said to be?
A. Income B. Price C. Elastic D. Inelastic
19. These are goods that can serve as replacements for one another.
A. Substitutes B. Normal goods C. Complementary D. Luxury goods
20. Goods that go together are called?
A. Substitutes B. Normal goods C. Complementary D. Luxury goods
21. The demand for these goods falls even though income/wealth increases.
A. Inferior goods B. Luxury goods C. Complementary goods D. Normal goods
22. These are natural resources that need to be extracted such as golds and diamonds.
A. Extra soft commodities B. Hard commodities
C. Commodities D. Soft commodities
23. Commodities are fundamentally uniform across producers; however, they may vary
A. Risk B. Quality C. Quantity D. None of the above
24. It is the most heavily traded commodity in the world.
A. Oil B. Corn C. Wheat D. Diamond
25. There is a between the demand for a commodity and the price of its
substitute.
A. Love-hate relationship B. Direct relationship
C. No relationship at all D. Inverse relationship
26. What do you call people who make rumors and/or assumptions for a certain
commodity price?
A. Commodity speculators B. Gossipers C. Consumers D. Producers
27. This market structure has a lot of many buyers and sellers offering identical goods
and services.
A. Monopoly B. Perfect competition
C. Monopolistic competition D. Oligopoly
28. This market is identified with its lack of substitutes because of having a singular
seller in the market.
A. Monopoly B. Perfect competition C. Monopolistic competition D. Oligopoly
29. Irene was once a Globe subscriber but switched to Sun because of its better call-and-
text promos. These telecommunications companies are examples of what market
structure?
A. Perfect competition B. Monopolistic competition C. Oligopoly D. Monopoly
30. When washing her laundry, Jane prefers liquid soap more than the bar or the
powder. The soap industry shows what kind of a market structure?
A. Perfect competition B. Monopolistic competition
C. Oligopoly D. Monopoly
Name: Date:

Grade/Section: Score:

Title of the Activity: Case Analysis

Most Essential Learning Competency: Differentiate various market structures in terms of:
a. number of sellers
b. types of products
c. entry/exit to market
d. pricing power
e. others
K to 12 BEC CG: ABM_AE12-Ie-h-7

Direction: Problem Interpretation and Analysis. Explain the following

questions on the back page of the activity sheet.
1. Explain why the following are examples of monopolistic competitions (miller 2003).

1.1 There are several fast-food restaurants in town, and they compete fiercely. Some
restaurant cooks their hamburgers over open flames, others fry their
hamburgers. Also, some served broiled fish sandwiches, while others serve fried
fish sandwiches. A few serve ice-cream cones desserts, while others offer frozen
ice-cream pie.
1.2 There is a large number of higher educational institutions (colleges and
universities) in the country. All offer similar courses and programs, but some
have better programs in business, while other stronger programs in liberal arts
and humanities. Still, others are academically stronger in the sciences.

2. A father goes to the pharmacy late at night for cold medicine for a sick child. There are
many liquid cold medicines, each of which has almost the same ingredients. Yet
medicines with brand names that the man recognizes from television commercials sell
for more than the generic versions. Explain the reason for the differences in price to the
father. Explain to him using economic terms.
3. At the beginning of each semester, the university cafeteria posts the prices of its
sandwiches. Business students note that as soon as the university posts these prices, the
area delis adjust their prices accordingly. The business students argue that this is price
collusion and that the university should be held liable. Are the students correct?
Explain your answer.