Applied Economics

APPLIED ECONOMICS
1. The process by which one or two or more persons engage in commercial activity for profit.
a. Business c. Trade
b. Commerce d. Partnership
2. Persons or company who supplies goods and services.
a. Consumer c. Government
b. Creditors d. Suppliers
3. The capability of a system to expand its total output under an increased volume of work when
resources are added.
a. Autonomy c. Profitability
b. Big ideas d. Scalability
4. A business which has its own identity and is distinct from the owners is called ____.
5. A business with the main purpose of gaining profit is called ___________.
6. A business that creates its own plan to expand its economic growth.
b. Big Ideas d. Scalability
7. Which brand of drinks may be a very good substitute for Coca-Cola?
a. Mirinda c. Sarsi
b. Pepsi d. Seven-Up
8. Industry rivalry among companies of the same or related industry is called_______.
a. Competition c. Alliance
b. Distribution d. Threats
9. Competitive advantages that can also be gained by business that seek cooperation within or
related industries is termed as____.
a. Alliance c. Defensive strategy
b. Cost leadership d. Differentiation
10. Individuals who will buy the products and services in the market.
a. consumers c. government
b. creditors d. supplier
11. Margarine is a good substitute for ____________________.
a. butter c. cheddar
b. cream cheese d. Olive oil
12. A strategy that businesses often use marketing and some ads are against the competitors.
a. Advertising c. Alliance
b. Cost Leadership d. Defensive Strategy
13. An advantage that occurs when a business is able to offer the same quality product as its
competitors, but at a lower price.
a. Differentiation c. Defensive Strategy
b. Alliance d. Cost Leadership
14. Gained by using defensive strategy the business to set them apart itself from its competitors.
a. Defensive Strategy c. Differentiation
15. Products use as replacements to other products that gives the same purpose.
a. clone c. original
b. substitutes d. brand.
PRINCIPLES
1. Scalability- A business must be scalable for it to be successful. Scalability is the capability of a
company to sustain or improve its performance in terms of profitability or efficiency when its sales
volume increases.
2. Big Ideas- A business is no more effective than the idea upon which it is built. Business creates its
own plan to expand its economic growth.
3. Systems- A business is a system in which all parts contribute to the success or failure of the whole.
In this system, everything must work together from employee to president; from equipment to
resources.
4. Sustainability- A business must be dynamic- able to thrive through all economic conditions, in all
markets, providing meaningful highly differentiated results to all of its customers. Such differentiation
is the key to survival.
5.Growth- Growth is essential in business. Without continued growth, operations will stagnate. This
can result in lowered standards of quality for products or services, decreased customer service, and
poor employee morale.
6. Vision- A business must manifest the higher purpose upon which it was seeded, the vision it was
meant to exemplify, the mission it was intended to fulfil.
7. Purpose- A business is the fruit of a Higher Aim in the mind of the person who conceived it.
8. Autonomy- A business is not part of the owner's life, but is, in fact, its own entity.
9. Profitability- A business is an economic entity, driving an economic reality, creating an economic
certainty for the communities in which it thrives.
10. Standards- A business creates a standard against which all businesses are measured as either
successful, or not.
TOOLS
1. Use technology to speed up workflow- Businesses should be looking to innovations in technology
to solve day-to-day inconveniences and to increase efficiency.
2. Shorter meetings fuel efficiency- Hold a brief meeting standing up, every morning, where each
person explains what they are going to work on that day to ensure everyone is on the right track and
not wasting time on non-urgent tasks.
3. Smart office space pays- Office space can involve a big outlay for SMEs, but it is also an area where
some smarter thinking can make a real difference.
4. Advertisement- Advertising keeps your business top of mind so consumers think of it when they
require or need a service or product.
5. Small changes, big savings--One way of improving efficiency is for business owners to make small
changes to the way they handle their company's expenses.
6. Keep a firm grip on cash flow-"Cash is King not profit”. Ensure the right management of your inflow
and outflow of cash.
7. Stay connected on the move- The growing trend towards mobile and flexible working means that
employees are permanently connected and on the go.
8. Use time more Efficiently-Being more efficient is more about being than doing. It's probably 90%
mindset, (Allan, 2013). In addition, “The shorter the amount of time you allow yourself, the more you
will get done”.
9. Get the best deal on insurance- Businesses need insurance because it helps cover the costs
associated with property damage and liability claims.
10. Don't be lax with the legal
In the hectic process of starting up a business, the founders often put off sorting out the legal matters
until later, or not at all.
1.Cost Leadership-an advantage occurs when business is able to offers same products at a lower price.
2.Differentiation-Find attributes that is important and set them apart from their competitors.
3.Defensive Strategies-used a defensive strategy to distance themselves from competitors.
4.Alliances-advantage of seeking strategic alliance with other within related or within businesses.
CUSTOMERS-Individuals or companies who desires to possess or make use of products and services.
They play a huge role in the success of your business.
SUPPLIERS-Provide inputs that the firms in an industry need to create the goods and services that they
in turn sell to their buyers
SUBSTITUTES-Goods/services that can be used in place for another
FALSE- LARGE_____1. One of the strategies of suppliers is to provide discounts to clients who buy
small quantities of a specific good or service.
TRUE_____2. In business, competitors are a must to ensure quality products and services.
FALSE- BIGGER___3. Affordable price means lesser market share.
TRUE____4. Soya milk is an example of substitute product for fresh milk.
FALSE- HIGH____5. Low quality means high satisfaction to customers.
1.These are individuals/group of individuals who buy goods and services for personal and business
use.
a. Consumer c. Government
b. Creditors d. Suppliers
2.The capability of a company to produce or increase output when resources are added is called
_______________________.
b. Durability d. Scalability
3.Business is a legal entity that is separate and distinct from owner.
b. Durability d. Scalability
4.Ford and Toyota sells the same products; it evident that there is a ____________ .
a. Competition c. Alliance
b. Distribution d. Threats
5.Competitive advantages can also be gained by business that seeks association or cooperation with
other business:
a. Alliance c. Defensive strategy
b. Cost leadership d. Differentiation
6. Individual or firms who desire products and services in the market for consumption or business.
a. Consumers c. Government
b. Creditors d. Supplier
7. Which does not belong to the group?

a. Colgate c. Close-Up
b. Head and Shoulders d. Hapee
8. A strategy that businesses use to distinguish themselves apart from their competitors.
9. This method occurs when a business is able to offer the same quality product as its competitors and
sell it at a lower price.
10. The advantage gained by this type of strategy is that it allows the business to further distance
itself by using defensive method.
a. Defensive strategy c. Diffrerentiation
11. An economic activity that is engage in buying and selling of goods and services in exchange of
money.
a. Business c. Trade
b. Commerce d. Partnership
12. Business ability to use its resources to produce profit.
a. autonomy c. profitability
b. big idea d. scalability
13. These are alternative goods that can easily replace by other products either perfectly or in part.
a. brand c. original
b. clone d. substitutes
14. Printed and online promotion is needed in starting your business.
a. advertising c. profitability
b. big ideas d. scalability
15. Entrepreneurs think big and make this idea into a reality for the success of their business.
a. autonomy c. profitability
b. big idea d. scalability
1. A group of businesses or manufacturers that produces a particular products or services

a. Enterprise c. Logistics
b. Industries d. Trade
2. The process of selling consumer goods or services to customers through multiple channels of
distribution to earn a profit
a. Barter c. Wholesale
b. Retail d. Trade
3. This is an agribusiness which involves planting rice, the staple food of the Filipinos.
a. Goat Raising c. Rice Farming
b. Fish Pens d. Vegetable Farming
4. A business which involves raising of domesticated type of birds like chicken, ducks, and geese
for meat and egg production.
a. Cattle Raising c. Fish Pens
b. Corn Farming d. Poultry Raising
5. The process of converting raw materials, components, or parts into finished products by used
tools, machinery and labor.
a. Agribusiness c. Retail and Services
b. Manufacturing d. International Trade
6. Agribusiness is a business that earns most or all of the revenue from ___________________.
a. Agricultural products c. Retail products
b. Car making d. Basket making
7. Other term for this Pig Raising is
a. Duck Raising c. Goat Raising
b. Cattle Raising d. Hog Raising
8. Medicines, cosmetics, and stationery are called soft goods or ______________.
a. Arts c. Hard goods
b. Consumables d. Substitutes
9. An agribusiness that produce yellowish cereal plant and also use for animal feeding.
a. Hog Raising c. Furniture Making
b. Corn Farming d. Poultry Raising
10. These are examples of agribusiness except __________.
a. Hog Raising c. Water Drinking Business
b. Corn Farming d. Poultry Farming
11. A business that deals with the production of agricultural products.
12. People need water to quench their thirst and this is one of the reason why this business is
thriving.
a. Drinking Water Business c. Bakery
b. Soap Manufacturing d. Furniture Making
13. This industry is involved in the extraction of raw materials includes mining activities, forestry,
and fishing for human use.
a. Primary Industry c. Tertiary Industry
b. Secondary Industry d. Quaternary Industry
14. This industry processing of primary materials into usable products.
15. During pandemic crisis, hospitality and health care services are essential and these are
classified as_____.
Classification of Industry
Primary Working with or extraction of raw e.g. mining activities, fishing
materials/natural resources forestry and agriculture
Secondary Making or converting raw materials into e.g. car manufacturing,
usable products through processing and bakeries
manufacturing.
Tertiary Service industries or providing essential transportation, finance,
services and support to allow other levels of utilities, retail, housing,
industry to function. banking, and other services
Quaternary Dramatic growth of this new sector. Working ICT industries, R & D
with creation and transfer of information industries-eg.Synergy, Lexmark
(ICT, media sharing) including research and R & D, STRAND
development. As well as knowledge based
services like consultation.
Quinary control the industrial and government Eg. Government Owned
decision-making processes includes industry Controlled Corporation
executives and management and bureaucrats Executives,
and elected officials in government.
Agribusiness - a business that earns most or all of its revenues from agriculture. An
agribusiness tends to be large scale operations and deals with farming, processing and
manufacturing, packaging and distributing agricultural products.
Manufacturing - The process of converting raw materials, components, or parts into
finished goods that meet a customer’s expectations or specifications
Retail and Services - Retail is the process of selling consumer goods or services to
customers through multiple channels of distribution to earn a profit and usually it’s
done directly to its final consumer. Retailing includes subordinated services, such as
delivery. The term “retailer” is also applied where a service provider services the small
orders of a large number of individuals.
International Trade - International trade is the exchange of capital, goods, and
services across international borders or territories, significant share of gross domestic
product (GDP)
1. The process of selling goods and services through sales channel to reach its
consumers.
a. Barter c. Retail
b. Discounts d. Trade
2. This is an agribusiness which involves growing fish in an enclosed area.
a. Goat Raising c. Rice Farming
b. Fish Pens d. Vegetable Farming
3. This involves raising of chickens, ducks, and other domesticated birds for
meat and egg for human consumption.
a. Cattle Raising c. Poultry Raising
b. Goat Raising d. Vegetable Farming
4. Production of products using labor, machines, methods, and tools for use or
sale.
5. Agribusiness is a business that deals with production and distribution of
___________________.
a. Agricultural products c. Retail Products
b. Car making d. Basket Making
6. It deals with raising of pig or swine for livestock and human consumption.
a. Duck Raising c. Goat Raising
b. Cattle Raising d. Hog Raising
7. These are type of retail products that is intended to be consumed in a quick
manner.
a. Arts c. Soft Goods
b. Hard Goods d. Substitutes
8. This business deals with creation or production of goods like tables, chairs,
and cabinets.
a. Hog raising c. Furniture Making
b. Corn farming d. Poultry Farming
9. These are list of business that involves agriculture except _______________.
a. Hog raising c. Furniture Making
b. Corn farming d. Poultry Farming
10. A business that deals with farming, processing and manufacturing,
packaging and distributing agricultural products.
11.Deals with selling of one of the basic consumption of man which is water.
a. Drinking Water Business c. Bakery
b. Soap manufacturing d. Furniture Making
12.This industry is involved in information technology business.
13.Internet provider, janitorial services and health care are part of this
industry.
14.This industry provides a wide range of personal and professional services to
consumers.
15.This industry that take raw materials from earth and sell it for use or
undergo manufacturing process.

Applied Economics

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Applied Economics

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APPLIED ECONOMICS

SUBSTITUTES-Goods/services that can be used in place for another

7. Which does not belong to the group?

1. A group of businesses or manufacturers that produces a particular products or services

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