APPLIED ECONOMICS

1. One of the disadvantages of this type of 10. Which of the following is NOT an example
business according to activities is managing of a business that involves agriculture.
the inventory. A. Corn farming B. Furniture Making
A. Merchandising B. Service C. Hog raising D. Poultry Farming
C. Manufacturing D. Production
2. A competitive advantage method that For questions 11-14 Choices are A- Impact
seek strategic alliance with other within on Consumers, B- Impact on Supplier, C-
related or within businesses. Impact on Government, and D-Impact on
A. Alliance B. Cost Advantage Households
C. Defensive Strategy D. Differentiation 11. If a new business provides new goods
3. Which of the following doesn't supports and services, better quality of goods and
the idea of competitive advantage? more options, the consumer can benefit
A. Highlights the benefits a customer from it.
receives when they do business with you. 12. New business mean employment
B. It sets your business apart from your opportunities for the unemployed
competitor. individuals.
C. It could be your product, service, 13. Establishment of a new business will
reputation, or even your location. benefit the government through revenues
D. Lowering barriers to new entrants and no collected on the taxes imposed on the
defense of intellectual property. incomes of the businesses.
4. Which principle is being referred to by the 14. A new business will provide opportunities
statement "A business must be dynamic." for other businesses that will supply them
A. Autonomy B. Scalability their needs.
C. Big Ideas D. Sustainability 15. Restaurants, hotels, and other tourism-
5. An analytical framework or guide used to related services are considered as
assess and evaluate the competitive customer-oriented businesses. What type of
strength and position of a business industry does these businesses belong?
organization. What analytical framework is A. Hospitality industry
being referred to? B. News Media industry
A. Environmental Analysis C Worldwide Web industry
B. Porter's Five Forces Analysis D. Health Care industry
C. Industry Analysis 16. When business make sure that the
D. SWOT Analysis products or services their customers are
6. The process of selling goods and services using solve their problems better than their
through sales channel to reach its rivals then the business_______
consumers explain what kind of activity. A. Change behavior with customer service
A. Buying B. Discounts B. Encourage customers to look for value.
C. Retail D. Trade C. Influence consumers emotionally
7. Which of the following is a form of business D. Offer social responsibility.
organization that has an exclusive control 17. What is the best thing to do for a business
over the business? who wants to contribute to community
A. Corporation B. Partnership development?
C. Cooperative D. Sole Proprietorship A. By not paying the correct taxes to the
8. Which of the following is a form of business government
organization which normally exist for a life of B. By proving benefits and incentives to
50 years and is renewable for another 50 selected employees only
years. C. By providing goods and services to
A. Cooperative B. Corporation selected customers only
C. Partnership D. Single Proprietorship D. By providing jobs or employment to the
9. In putting up a business, it is essential that community.
a/an ________ analysis first be made.
A. Environmental B. Industry
C. Porter's Five Forces D. SWOT
 APPLIED ECONOMICS
For questions 18-22: A- STRENGTH, B-
WEAKNESS, C- THREAT, OR D- OPPORTUNITY.
18. We can respond very quickly as we have
no red tape, and no need for higher
management approval.
19. Our competitors may be slow to adopt
new technologies.
20. Rising costs of raw materials needed to
produce product.
21. Our company has little market presence
or reputation.
22. We can give good customer care, as the
current small amount of work means we
have plenty of time to devote to customers.
23. If a business has a strong support in the
market, then your business has______.
A. Opportunity C. Weakness
B. Strength D. Threat
24. Which of the following business is
engage in the production that converts raw
materials into finished products?
A. Agribusiness C. Retail and Services
B. Manufacturing D. International Trade
25. Agribusiness is a business that deals with
production and distribution of
A. agricultural products C. Retail products
B. car making D. basket making
26. Which of the following statement is NOT
true about environmental analysis?
A. It is a process by which organization
monitor their relevant environment.
B. It helps identifies opportunities, plan and
does take action.
C. It identifies strengths and weaknesses of
the business.
D. It study various factors affecting the
business.
27. When business treats their customers as
VIP's and provides exceptional customer
service then the businesses can expect to
A. Encourage customers to look for value
B. Influence customers emotionally
C. Influence customers to change their
behavior with excellent service
D. Offer social responsibility to customers
28. Laguna Technopark is a huge,
industrialized area covering portions of
Biñan and Santa Rosa, Laguna. The
industrial estate hosts over 100,000
employees directly employed by various
locator-companies in the industrial park. In
2020, it marked its 30 years of contribution to
the region's economic progress as shown in
its direct through the payment of taxes.
A. Impact on the Government
C. Impact on Investors
B. Impact on Households
D. Impact on Suppliers
29. After agreeing into a contract with a
supplier, this action is important to ensure
that they provide service that was agreed
upon.
A. Monitor the supplier's performance.
B. Follow up order C. Check price list
D. Request for discounts and allowances
30. The business needs to influence these
individuals or companies to patronize their
products.
A. capital B. supplier
C. consumer D. entrepreneur
31. A determinant of spending, wherein by
altering level of savings will likely arise to
higher
A. Expectations C. The Level of Savings
B. Interest Rates D. The Level of Production
32. What might be the help of SWOT analysis
in a new established business?
A. can be subjective when it comes to
categorizing strengths, weaknesses,
opportunities, and threats
B. internally focused and sometimes
overlooked the larger picture
C. meets its challenges and identifies new
markets
D. organizations can sometimes overlook
important strategic contacts
33. Businesses are reliant on this industry to
provide materials/services to operate their
businesses.
A. Consumer C. Supplier
B. Entrepreneur D. Income
34. When businesses put an emphasis on the
crucial role of emotions on consumers'
behavior to respond positively, then the
business can expect to
A. Customers to change their behavior with
excellent service
B. Encourage customers to look for value
C. Influence customers emotionally
D. Offer social responsibility to customers
35. Which of the following best describes the
importance of Porter's Five Forces Analysis?
A. understand the factors affecting
profitability in a specific industry
B. understand the areas of strength that can
be pinpointed and exploited
 APPLIED ECONOMICS
C. understand the internal and external
factors
D. understand the possibility of competition
in the market.
36. How do businesses contribute to
community development?
A. By not paying the correct taxes to the
government.
B. By proving benefits and incentives to
selected employees only.
C. By providing goods and services to
selected customers only.
D. By providing jobs or employment to the
community.
For Questions 37-41: A- Political, B-
Economic, C- Social, D- Technological, E-
Environmental, F- Legal
37. Although some of these factors overlap
with the Political factors, they generally
include more specific laws and policies such
as discrimination laws, copyright laws,
consumer protection laws, and more.
38. These factors help the marketer to
understand their customers' needs more
clearly that includes demographic
considerations, lifestyle trends, consumer
belief, and others.
39. These factors consist of ecological
aspects like weather and climate,
environmental offsets, etc.
40. These factors play a pivotal role in
deciding the supply-demand models in the
economy, it has a long-term influence on a
business, be it direct or indirect.
41. These factors involve research &
development (R&D) activities, automation,
technical awareness, etc.
42. It refers to the influences of
governmental policies may have on a
business.
43. How does a business enterprise achieve
business viability?
A. If the company is economically viable,
environmentally sound and socially
responsible
B. If the business is financially sound in the
current period only
C. If the business is not able to sustain its
operations in the long-term
D. If the business is profitable but struggles
with adequate cash flow
44. Landbank lowered its interest rates on
savings deposits from to .10% to .05% in the
3rd Quarter of 2021, the lower interest rate
will result to a/an_________.
A. Decrease in Savings and Decrease in
Consumer Spending
B. Decrease in Savings and Increase in
Consumer Spending
C. Increase in Savings and Increase in
Consumer Spending
D. Increase in Savings and Decrease in
Consumer Spending
45. A competitive advantage that employ
and gained by businesses that seek
cooperation within or related industries is
termed as________
A. Alliance C. Defensive strategy
B. Cost leadership D. Differentiation
46. When businesses promote their brand as
environmentally green and socially
responsible, then the business can expectto
A. Encourage customers to look for value
B. Influence customers emotionally
C. Influence customers to change their
behavior with excellent service
D. Offer social responsibility to customers
47. Which of the following top tools and
techniques will NOT result to a more efficient
business?
A. Longer meetings fuel efficiency.
B. Stay connected on the move
C. Use technology to speed up workflow.
D. Use time more efficiently.
48. How would you distinguish primary
industry from secondary industry?
A. extracting the natural resources
B. dependent on primary industries
C. deals with the output produced by the
primary industry
D. requires manufacturing plants, factories,
machinery, and energy
49. How would you classify a business whose
assets ranges from P15,000,001 to
P60,000,000?
A. Large scale businesses
C. Small scale businesses
B. Medium scale businesses
D. Small-medium scale businesses
50. When you receive a proposal for new
investor, then your business has
A. Opportunity C. Weakness
B. Strengths D. Threat