2nd Semester (4th Quarter)

SUMMATIVE EXAM IN APPLIED ECONOMICS

Name: _____________________________________________ Score: __________________________

Grade & Section: ___________________________________ Date: ___________________________

I. MULTIPLE CHOICE
Read the following questions carefully. Choose the letter of the best answer and write it on the line
before the number.

_____ 1. It is a financial inflow to the government but an outflow from the firm and is mandatory,
failure to pay so is punishable by law.
A. Interest B. Minimum Wage C. Taxes D. Investment
_____ 2. It is a law that establishes a minimum amount that an employer can pay a worker for one
day of labor.
A. Civil Code of the Philippines C. Minimum Wage Law
B. Rent Control Act in the Philippines D. Tariff and Customs Code
_____ 3. It is a property used by the occupants, also known as tenants, in which owner receives
payments of from using the property.
A. Taxes B. Rentals C. Investment D. Interest Rate
_____ 4. It is the art of making an idea into a business.
A. Entrepreneurship C. Investing
B. Marketing D. Loan
_____ 5. It refers to the person who converts idea into a business
A. Investor B. Debtor C. Creditor D. Entrepreneur
_____ 6. It refers to an asset or something that you acquire with a goal of having a return from it in
a form of income.
A. Taxes B. Investment C. Interest D. Rental
_____ 7. These are taxes that are imposed on the following: alcohol, tobacco, petroleum products,
automobiles, mineral products, and non-essential goods such as jewelry and precious
stones, perfumes, yachts, and other sport vessels.
A. Community Tax C. Vat
B. Excise Tax D. Documentary Stamp
_____ 8. The regular ________________ is 30% on net taxable income.
A. Corporate Income Tax C. Documentary Stamp Tax
B. Community Tax D. Value Added Tax
_____ 9. It is required for certain documents, transactions or instruments specified in the tax code.
A. Documentary Stamp Tax C. Community Tax
B. Corporate Income Tax D. Value Added Tax
_____ 10. It refers to purchasing shares of corporate stock hoping to earn a return.
A. Investment B. Rentals C. Taxes D. Minimum Wage

_____ 11. What is the importance of SWOT analysis?

A. It will be helpful in assessing new ventures / business opportunities
B. It will be of big importance since it can analyze the rivalry within the market
C. It will be helpful since it will give us the changes that we need to adjust in the market
D. None of the above
_____ 12. It is one of the tools used in creating a business designed to help you establish if all of your
business activities are aligned to your strategy.
A. SWOT B. TOWS C. VMOST D. PESTLE
_____ 13. It is a tool used as an analytical framework that can help a company meet its challenges and
identify new markets.
A. SWOT B. TOWS C. VMOST D. PESTLE
_____ 14. SWOT analysis consist of _______________________.
A. Internal factors C. Internal & external factor
B. External factors D. PESTLE
_____ 15. It is a strategic management tool that businesses use to identify macro-economic factors that it
needs to consider.
A. Internal factors C. Internal & external factor
B. External factors D. PESTLE
_____ 16. Michael porter’s framework to analyze the potential profitability of a marketplace is composed of
_________________.
A. Three key areas C. Five Key areas
B. Four Key areas D. None of the above
_____ 17. This is a business tool in which it first matches internal factors to external factors to help identify
relevant strategic options that an organization could pursue.
A. SWOT B. TOWS C. VMOST D. PESTLE
_____ 118. It is one of the combinations in the four TOWS strategies in which it considers all strengths one by
one listed in the SWOT Analysis with each threat to determine how each internal strength can help
you avoid every external threat.
A. Strengths/Opportunities (SO) C. Weaknesses/Opportunities (WO)
B. Strength/Threats (ST) D. Weaknesses/Threats (WT)
_____ 9. It is one of the combinations in the four TOWS strategies in which it considers all weaknesses one by
one listed in the SWOT Analysis with each threat to determine both can be avoided.
A. Strengths/Opportunities (SO) C. Weaknesses/Opportunities (WO)
B. Strength/Threats (ST) D. Weaknesses/Threats (WT)
_____ 20. It is one of the combinations in the four TOWS strategies in which it considers all strengths one by
one listed in the SWOT Analysis with each opportunity to determine how each internal strength can
help you capitalize on each external opportunity.
A. Strengths/Opportunities (SO) C. Weaknesses/Opportunities (WO)
B. Strength/Threats (ST) D. Weaknesses/Threats (WT)
_____ 21. It is one of the combinations in the four TOWS strategies in which it considers all weaknesses one
by one listed in the SWOT Analysis with each opportunity to determine how each internal weakness
can be eliminated by using each external opportunity.
A. Strengths/Opportunities (SO) C. Weaknesses/Opportunities (WO)
B. Strength/Threats (ST) D. Weaknesses/Threats (WT)
_____ 22. It is one of the factors of Porter’s five forces which consist of the buyer’s ability to purchase products
based on their income.
A. Power of Buyers C. Threat of Substitutes
B. Power of Suppliers D. Competitive Rivalry
_____ 23. Is a simple but useful framework for analyzing organization's strengths, weaknesses, opportunities,
and threats.
A. SWOT B. TOWS C. VMOST D. PESTLE
_____ 24. TOWS analysis was created by ___________.
A. Michael Porter C. Edmund P. Learned
B. Heinz Weihrich D. Roland Christensen
_____ 25. One of the factors in PESTLE analysis represents demographic characteristics, norms, customs and
values of the population within which the organization operates.
A. Political B. Economic C. Social D. Technological
_____ 26. It is an analysis which is a variant of the classic business tool, SWOT analysis which matches
internal factors to help identify relevant strategic options that an organization could pursue.
A. PESTLE analysis B. TOWS analysis C. VMOST D. Porter’s Five Forces
_____ 27. It is an essential tool in creating a business which generally aligns your mission, vision objectives,
strategies and your tactics that you will use in your business organization.
A. PESTLE analysis B. TOWS analysis C. VMOST D. Porter’s Five Forces
_____ 28. This type of tools and techniques is used to identify the firm’s competitive advantage through its
strengths, to fix its weaknesses, recognize opportunities for further growth, and possible threats
that the business may face.
A. SWOT analysis B. TOWS analysis C. PESTLE analysis D. Porter’s Five Force

_____ 29. This type of analysis used in creating a business focuses on the key external forces that may
influence a business.
A. SWOT analysis B. TOWS analysis C. PESTLE analysis D. Porter’s Five Force
_____ 30. TOWS analysis is a work of _______?
A. Edmund P. Learned C. Kenneth Andrews
B. Roland Christensen D. Heinz Weihrich

II. TRUE OR FALSE

Read the following statements carefully. Write TRUE if the statement is correct; FALSE if it is
wrong. Write your answer on the space provided.

_______ 31. VMOST analysis is an essential analysis to align your strategies and your opportunities
with your mission, vision, and objectives.
_______ 32. In a SWOT analysis, opportunities refer to the external factors that can become an
advantage or can be a big help for the growth of the business.
_______ 33. Porter’s Five Forces is one of the tools used to identify the strengths and weaknesses of
a business.
_______ 34. SWOT analysis can identify the buying power of the supplier and the consumers.
_______ 35. TOWS analysis is a tool that can identify the level of rivalry among the competitors in
the market.
_______ 36. VMOST is an essential tool to use for us to identify the economic technological status of
a certain area.
_______ 37. SWOT analysis is specifically used for planning.
_______ 38. One of the types of industries in the Philippines called the agriculture is one of the most
important industries since the country is rich in agricultural lands.
_______ 39. PESTLE analysis is essential tool to be used in the planning stage in creating a business
since it will give us an important data about the political, economic, and social status of
the locality where the business shall be located.
_______ 40. To help you identify an idea for business proposal we must be knowledgeable first of the
types of industry within your locality
_______ 41. VMOST stands for Mission, Vision, Opportunities, Strength and Tactic
_______ 42. Tactics in the VMOST analysis represents what Methodology will be used to achieve
those Goals.
_______ 43. Strength and Weaknesses in a SWOT analysis represents the Internal factors while
Opportunities and Threats represents external factors.
_______ 44. Sample of strengths in a SWOT analysis are possible pollution problems, lack of training
of workers.
_______ 45. Strengths/Opportunities combination of the four TOWS analysis represents the
strategies that use strengths to maximize opportunities.
_______ 46. Weaknesses/Threats combination of the four TOWS analysis represents Strategies that
minimize weaknesses and avoid threats.
_______ 47. Weaknesses/Opportunities combination of the four TOWS analysis represents strategies
that use strengths to minimize threats.
_______ 48. Strength/Threats combination of the four TOWS analysis represents strategies that minimize
weaknesses by taking advantage of opportunities.
_______ 49. Power of the suppliers represent the level bargaining power of the supplier over the market.
_______ 50. Business tools and techniques are considered as an important part in planning to evaluate the
different aspects / factors that may affect it.