CLARK EDUCATIONAL CENTER Name: Score:

PNR Site, San Carlos City, Pangasinan

2nd Mid Quarter Exam
Applied Economics ____________________________________________ _________

I. Identification. Identify the factor is: (1)Threat of New Entrants - TNE (2)Threat of Substitute products – TSP
(3) Bargaining power of supplier - BPS (4) Bargaining power of buyer – BPB (5) Rivalry among existing
competitor – REC. Write the acronym of your answer before the number. (20pts.)
BPB 1. Number of customers TNE 11. Access to latest technology
BPS 2. Supplier concentration BPB 12. Size of each buyer’s order
TNE 3. Economies of scale REC 13. Industry concentration and balance
TNE 4. Product differentiation TNE 14. Access to distribution channels
TNE/REC 5. Brand Loyalty TSP 15. Buyers propensity to substitute
REC 6. Barriers to exit BPB 16. Price sensitivity
TSP 7. Relative price performance of substitutes BPS 17. Uniqueness of each supplier’s product
REC 8. Industry growth REC 18. Quality differences
REC 9. Diversity of competitors TNE 19. Cumulative experience
BPS 10. Size of suppliers TNE 20. Government Policies

II. Fill in the Blanks. Write your answers in BOLD letters. (20pts.)
barriers to entry horizontal line limited information
market concentration Price taker total revenue
competitive market Profits product differentiation
legal barrier scale barrier benefits
Vertical line cost Monopolistic Market

1. _________________________________ is considered the most concentrated with a single seller determining the
price that would maximize the profit of the business enterprise.
2. This refer to inherent features of the industry and various means devised in the market to prevent the
entry of potential players and competitors that want to take advantage of the enormous profit in the
industry. _________________________________
3. This element refers to the unevenness on the distribution of information among the actors in the market.
_________________________________
4. In a competitive market, since the firm has no market power, it is considered a ___________________________.
5. In a competitive market where the business firm has no market power, the demand curve faced by a firm
is a _________________________________.
6. This refers to the number of sellers and buyers in the market. _________________________________
7. Investigation reveals that _________________________________is composed of two components, output
produced and the price of the commodity.
8. The demand for the product is formed primarily by the _________________________________ and satisfaction
derived by the consumer.
9. The objective of the firm is to earn _________________________________, which is the difference between
revenues and cost.
10. _________________________________refers to proprietary rights and their corresponding legal protection
extended to existing market players in the production and distribution of a product or service.
III. Essay. Why is copyright, patent, trademark and other intangible assets important to a business? (10pts.)

Prepared by:
Ms. Leah May C. Cabugao
Subject Teacher
 CLARK EDUCATIONAL CENTER Name: Score:
PNR Site, San Carlos City, Pangasinan
2nd Mid Quarter Exam
Business Ethics & Social Responsibility ____________________________________________ _________

I. Fill in the Blanks. Choose from the box the correct answer and write your answer in the space provided.
You can use the word/s more than once. (20pts.)

Stakeholder Ansoff 1970s Primary stakeholder interest

World Business Council for Sustainable Development trade corporate social responsibility

Unimportant stakeholders value creation 1960s Committee of CSR

Rhenman and Stymne trade community

1. _____________________________________defined CSR as a “continuing commitment by business to behave ethically and

contribute to economic development while improving the quality of life of the workforce and their families, local

community, and society at large.”

2. ___________________________ considered that an enterprise is obliged to adjust its objectives to balance out the

satisfaction of stakeholders.
3. ___________________________ are those whose participation is required for the company’s survival.

4. The development of the term stakeholder began in the ___________________________.

5. The phrase ______________________________ refers to the corporation’s responsibilities or obligations toward society.

6. Stake means _______________________

7. ___________________________ are “actors” outside the scope of the company who may be affected by its operations.
8-10. People engage in __________________________ and ____________________________ are responsible precisely to “the

groups and individuals who can affect or be affected by their actions” that is, the __________________________________.

II. Enumeration (15pts.)

1-10 List some of the serious problems encountered in the Philippines today

11-15 Think of one Philippine Company. List down some of its primary and secondary stakeholders.

III. Essay. (15pts.)

You are the head of the CSR committee of the company where you are employed. Which of the following do you
think is especially interesting for a company to highlight as part of its CSR and why?
• Good working environment for employees
• A good environmental policy
• Policy of not using child labour, products tested on animals, etc.
• Donating a percentage of profits to good causes
• Employing people at risk of exclusion (for instance, people with disabilities, single mothers, unemployed
people over the age of 45)

Prepared by:
Ms. Leah May C. Cabugao
Subject Teaher