APPLIED ECONOMICS

SUMMATIVE TEST
(45-items)

I. IDENTIFICATION. Identify as to what type of industry it belongs.

1. It is a business sector encompassing farming and farming-related commercial activities.

2. It engages in the transformation of goods, materials or substances into new products.
3. It involves import and export process.
4. It involves the process of selling consumer goods or services to customers through multiple channels of distribution to earn a profit.
5. It involves the exchange of products and services from one country to another.
6. Companies in this industry encompass all aspects of food production.
7. This refers to the activity of selling goods or services directly to consumers or end-users.
8. It includes grocery, drug, department and convenient stores, beauty salons and rental places.
9. It allows countries to expand their markets for both goods and services that otherwise may not have been available domestically.
10. It is the production of products for use or sale using labor and machines, tools, chemical or biological processing or formulation and
is the essence of secondary industry.

II. TRUE/FALSE:
1. Franchising is a business arrangement in which one company gives another company permission to manufacture its product using
the company’s brand name for a specified payment.
2. The agribusiness input sector includes all resources involved in producing farm commodities.
3. Climate change has placed intensifying pressure on many companies in the manufacturing industry.
4. Consumer Services is a general term that describes work that offers support to a business but does not produce a tangible product.
5. Agribusiness provides people with food, clothing and shelter.
6. Export are goods and services produce in one country and purchased by residents of another county.
7. Manufacturing is important because it allows manufacturers to focus on producing goods without having to be distracted by individual
buyers/customers.
8. Shearing is the process of heating plastic until it becomes liquid.
9. Import refers to the goods and services purchased into one nation from another.
10. A country may export products or services which it cannot produce.

III. Enumeration: (25 points)

 Manufacturing Cost (3)

 Major sectors of agribusiness (3)
 Types of Manufacturing process (6)
 Forms of International Business (5)
 Types of Import (2)
 Advantages of International Trade (3)
 Disadvantages of International Trade (3)