Republic of the Philippines

REGION I
SCHOOLS DIVISION OF CANDON CITY
STO. TOMAS NATIONAL HIGH SCHOOL
STO.TOMAS, CANDON CITY, ILOCOS SUR

Second Quarter Examination in Guardian’s Signature:

Applied Economics _____________________

Name: ______________________________________ Score: ___________________

Grade & Section: _____________________________ Date: __________________

DIRECTIONS: Read and analyze the questions carefully. Choose the best answer and write the letter of the
correct answer on the space provided.
___ 1. The principles in creating a business are the driving forces that make a business successful. Which of the
following best shows these principles?
I. A business should be an entity whose goal is to be profitable and grow.
II. All businesses should aim to thrive beyond the standards that formerly existed.
III. All businesses must manifest a mission and vision to provide satisfaction to the consumers.
IV. A business must be dynamic--able to thrive through all economic conditions, in all markets,
providing meaningful, highly differentiated results to all its customers.
A. I, II C. I, II, III
B. III, IV D. I, II, III, IV
___ 2. You have a unique product characteristic as compared to the other supplier of the product. As such, which
of the five forces of competitive position analysis of Porter do you have as an advantage?
A. Buyer power C. Threat of new entry
B. Supplier power D. Threat of substitution
___ 3. Jollibee and Chowking offer almost identical products. Customers have the option of where to buy
depending on product attractiveness and prices. Which Porter’s analysis is the best to use to evaluate the
market?
A. Buyer power C. Threat of new entry
B. Supplier power D. Threat of substitution
___ 4. The use of online selling attracts investors to join the market venture. However, the government is trying
to pass a bill on how to impose tax for this kind of market. Which of the Porter’s analyses fall on this
situation?
A. Buyer power C. Threat of new entry
B. Supplier power D. Threat of substitution
___ 5. SWOT, which stands for Strengths, Weaknesses, Opportunities, and Threats is an analytical framework
used to evaluate a certain business or project. Why is SWOT analysis helpful in any activity or business?
I. It helps in identifying the business’s risks and rewards
II. It helps a company meet its challenges and identify new markets.
III. It evaluates how much power the supplier is capable of to drive up prices
IV. It is useful in scanning the business environment which can help in identifying economic
opportunities
A. I, II B. III, IV C. I, II, III D. I, II, IV
___ 6. A business is an undertaking by a person or a group of persons who are partners or of stockholders who
own a juridical entity. Thus, business plan is necessary to have. Why is business plan important in creating a
business?
I. It determines future financial needs.
II. It creates an effective strategy for growth.
III. It reduces the risk of pursuing the wrong opportunity.
IV. It serves as a document proving that there is a business existing.
A. I, II C. I, II, III
B. III, IV D. II, III, IV
Applied Economics Page 1
___ 7. Rice is one of the products where the Philippines imports and exports from other countries. Which type of
industry does this situation imply?
A. Agricultural Business C. International Trade
B. Business Industry D. Manufacturing
___ 8. Car wash and financing services are examples of what industry?
A. Agricultural Business C. International Trade
B. Business Industry D. Manufacturing
___ 9. Manufacturing is described as any industry that produces products from raw materials using human labor
or machinery and that is normally carried out orderly with the division of work. Why is Bakeshop also
considered as an example of manufacturing industry?
A. Because it produces finished product
B. Because it offers services and financing
C. Because it is one of the large businesses in the country
D. Because it contributes to the export products of the country
___ 10. Pandemic season gave a big way for online shops to be profitable. Why is internet/online shopping
website considered as a type of retail industry?
A. It offers intangible services.
B. It sells huge quantities of goods.
C. It sells goods in pieces to the consumers.
D. It sells finished products out of raw materials.
___ 11. Rice shortage has been an issue in the Philippines. Why does our country need to import rice from
Vietnam?
A. To boost the economy
B. To build international trade relationships
C. To encourage farmers to plant more palay
D. To fill insufficient rice shortage in the country
___ .12. Why is there a need for a certain business to evaluate their performance quarterly?
I. Inorder to determine the strengths and the improvement of the business for future purposes.
II. Inorder to determine the changes in your sales volume compared to the changes at your competitors
III. Inorder to create a document proving that there is assessment of what is happening inside the
business.
IV. Inorder to create a way of upgrading the factors that will help and maintain the company’s good
performance
A. I, II, III B. I, II, IV C. I, III, IV D. II, III, IV
___ 13. My friend, Lorna, owns a boutique. She buys her stocks in bulk and sells them by piece. What type of
industry does the situation manifests?
A. Manufacturing B. Retail C. Service D. Trading
___ 14. Pamintukan Enterprise earns a total profit of P12, 453, 800, owns a car worth P8, 750, 000, owns a
building worth P 24, 670, 200, owns a land worth P 13, 000, 000, and a liability worth P19, 500, 000. How
much is the total asset of Pamintukan Enterprise?
A. 39, 374, 000 B. 46, 420, 200 C. 58, 874, 000 D. 78, 374, 000
___ 15. Upon computing the problem in item no, 14, what type of enterprise does Pamintukan enterprise
belongs?
A. Medium Enterprise C. Small Enterprise
B. Micro Enterprise D. Trading Enterprise
___ 16. In 2018, coconut oil from the Philippines dominated the export market with 1.2 million tons ahead of
Indonesia’s 885,000 tons and India’s 390, 000 tons. The major customers for the Philippines’ coconut oil are
the United States and Europe which are projected to increase their demand causing the Southeastern nation to
increase its supply by 2%. Which type of trading the situation implies?
A. Agricultural trade C. Manufacturing
B. International Trade D. Service Trade
___ 17. Ichiro is a retailer of different fruits and vegetables in which she sells these goods in the market per piece
or per pack. What tip can you give to Ichiro in order to maintain good relationships with the suppliers of his
products?
I. Communicate with a supplier before the due date for payment, so that you could foresee a

Applied Economics Page 2

 delay in paying an account
II. Build good relations with the current suppliers' representatives
III. Be fair but firm with industry sales representatives – they can easily take up a lot of your time
IV. Refer damaged or faulty goods to the supplier promptly, with supporting documentation
A. I, II, III B. I, II, IV C. I, III, IV D. I, II, III, IV
___ 18. In every business most especially the manufacturing industries, they always provide themselves their
means of transportation aside from the machineries. Why is transport facility an essential factor in putting up
a business?
A. It is essential because when a manager or owner has chosen a site which he personally like, he/she
can visit anytime.
B. It is essential because technological advances and improved transport have reduced the importance of
other locational factors
C. It is essential because areas including remote areas will be well provided with sufficient products and
will attract more industries for investment rather than those where such facilities are lacking
D. It is essential because it is undesirable to transport either waste or materials which may become
unusable, the former for the reason of cost, the later for reason of efficiency and standards of
production.
___ 19. International Trade is the exchange of services and goods from one country to another. A part of this is
the concept of Import and Export. Why is exporting benefits more the country rather than importing?
I. It provides access to more consumers and businesses
II. It will provide increase in sales and therefore production levels will also increase
III. It gives opportunity to make your production more efficient and create long term savings.
IV. It allows a business to gain exposure to new ideas, management practices, marketing
techniques, and ways of competing which can help to better position every business.
A. I, II, III C. I, III, IV
B. II, III, IV D. I, II, III, IV
___ 20. San Miguel Corporation (SMC) is one of the Philippines’ largest and most diversified conglomerates,
with revenues equivalent to about 4% of the country’s GDP in 2020. Which type of industry does San Miguel
Corporation belongs?
A. Manufacturing B. Retail C. Service D. Trading
___ 21. In 2023, Mang Ron Vincent Motor Parts accumulated a total asset of P15, 732, 540.75. However, at the
end of the month, he must pay an amount of P4, 683,420.10. How much is the total liability of Mang Ron
Vincent?
A. P4, 683, 420.10 C. P15, 732, 540.75
B. P11, 049, 120. 65 D. P20, 415, 960.85
___ 22. Upon computing the problem in item no, 14, what type of enterprise does Mang Vincent motor parts
belongs?
A. Medium Enterprise C. Small Enterprise
B. Micro Enterprise D. Trading Enterprise
___ 23. Which of the following techniques could we use in a successful competition of businesses?
I. Stay silent and let others bring their own
II. Deliver True Value of Your Product to Your Customer
III. Emphasize Your Product’s Key Benefit to the Customer
IV. Bringing your goods and services into the price range of your customers
A. I, II and III C. I III and IV
B. II, III and IV D. I, II and IV
___ 24. Micro, Small, and Medium Enterprises are enterprises whose assets varies from each other but still
considered as life of the industry. How can the Philippine Government provide necessary support to the
micro, small, and medium enterprises?
I. The government should promote the products produce locally through trading them outside the
community.
II. The government can partner with training centers who could provide continuous learning
program to aspiring and beginning entrepreneurs.
III. The government should recognize that microbusinesses keep a lot of communities thriving,
especially in remote and suburban areas, and that a certain protection policy should be made
for them.
IV. The government can create a program where small enterprise or beginning entrepreneurs could
borrow enough start-up capital to begin a small business where interests will not burden the

Applied Economics Page 3

 payee.
A. I, II, III C. I, III, IV
B. II, III, IV D. I, II, III, IV

___ 25. Annually, State Universities and Colleges produces thousands of graduates in different fields. Why is
educational attainment and skills important in landing to a job now a days?
A. Education and skills are basic requirements in any company.
B. Earning a degree can increase confidence in workplaces.
C. Education is always something that supervisors and business executives like to see
D. Pursuing a degree means advancing practical skills and knowledges that can be applied in any
workplace.
___ 26. Business generally is an organized effort of individuals to produce and sell, for a profit, the goods and
services that satisfy society’s needs. Why is business extremely important to the community?
A. Because business serves as an avenue to promote local products
B. Because business allows an entrepreneur to become rich in the community
C. Because business helps the government with its environmental programs and projects
D. Because business provides goods and services, creates jobs, and is a source of tax to the government
___ 27. Which of the following statements does NOT describe a viable business?
A. Business is viable if it is still making money along the way.
B. Business is viable if it can sustain its growth and development.
C. Business is viable when it stores more stock (supply) for the operation.
D. Business is viable when it survived through various socio-economic factors.
___ 28. In establishing a business, what questions are to be asked and considered for a successful one?
I. Who are your competitors?
II. Who are your target customers?
III. When will you start your business?
IV. What is the potential market size or demand?
V. How will you get the raw materials or supplies?
A. I, II, III, and IV C. I, II, IV, and V
B. I, II, III, and V D. II, III, IV, and V
___ 29. Miss Y is a beginner businesswoman in the city. She wanted to put up a business that aims to market or
promote local products of the city. What should Miss Y do to establish her business?
A. She needs to purchase raw materials abroad for her products in the city.
B. She needs to employ workers from another province to work in her business.
C. She needs to promote her business in the radio ad before making the first move.
D. She needs to collect data first about local products in the city before establishing the business.
___ 30. Below are some of the business establishments found in Candon City. Which among the following
business establishments is considered a small industry?
A. CSI Mall B. Manang Esang C. McDonald’s D. PLDT/Smart Corporation
___ 31. What do you call the control in developing rules, guidelines, procedures, limits, or other protocols for
directing the work and processes of employees and departments of the business by the management?
A. Business Impact B. Externalities C. Hoarding D. Organizational Control
___ 32. Which of the following is NOT an impact of the businesses on the local government’s programs?
A. Businesses establishments anchored their program of governments like the war on drugs campaign.
B. Private businesses-initiated tree-planting drives and other community involvement that protect the
environment.
C. Small or big corporations focus only on their sole objectives to provide goods and services to the
community.
D. Small or big corporations increased focus on projects like scholarships, youth formation drives, and
other social services.
___ 33. Which of the following situations applies that businesses provide job opportunities to the community?
A. The MAXWELL Corporation in the country employs workers only from abroad.
B. The newly open garment factory in the province hired one hundred workers within the community.
C. Miss Candy gives the last wage and a separation pay to all her workers because she plans to close her
business.
D. Mr. Chua owns a pineapple plantation in the city. Because of the pandemic, he terminated half of his
laborers on the plantation.
___ 34. If you are an entrepreneur and your objective is to uplift the life of the people and the community. What

Applied Economics Page 4

 are the characteristics that you should consider?
I. Priorities profit before the welfare of the consumers
II. Sensitivity to the needs of the people and the community
III. Innovative and transformative to the latest trends in the business
IV. Focus on the personal agenda not on the objectives to uplift the life of the people
A. I and II C. II and III
B. I and IV D. II and IV
___ 35. The impact of business on the government serves as revenues earned on fees collected from them and on
the tax imposed on the incomes of the business. How can the government projects and programs benefit
the business sectors?
A. The tax collected is used to protect environmental issues and concerns.
B. The tax collected is used for the social and medical services of the community.
C. The tax collected is used for the salary and benefits of all government employees and officials.
D. The tax collected is used for the infrastructure projects and subsidies of small businesses.
___ 36. Rice is one of the most important cultivated plants that can feed more people than any other crop in the
Philippines. Recently, climate change brought massive effects to the rice farmers that led to shortage. Thus,
the Philippine Government created some resolutions and activities to resolve this issue. As a student, how can
you lend a hand to the issue of rice shortage?
A. Learn to be provident in every meal we intake. Stop wasting food.
B. Work with the farmers in the field and give them necessary financial support.
C. Promote awareness on climate change to mitigate its effects to the agricultural products especially the
rice crops.
D. Be a voice for the farmers to the government to raise their agricultural needs and support through
resolutions.
___ 37. What are the reasons behind the continuous existence of inflation in the Philippines?
I. Increase in the prices of raw materials and other components.
II. The loss of jobs and or employment
III. When there is excess demand, producers can raise their prices and achieve bigger profit
margins.
IV. Increased pressure on scarce resources
A. I and II B. II and III C. I, II, and III D. I, III, and IV
___ 38. Businesses have their own way of patronizing their products and services in different platforms. What is
the main advantage of using websites or social media in each business?
A. There is a reduced marketing cost
B. There is an increase of online presences and easy monitoring.
C. There is engagement of customers using facebook/twitter/Instagram/blogs.
D. There is an improved networking opportunities with customers and other businesses including
retailers.
___ 39. Poverty is one of the raging effects of overpopulation in the Philippines. As a student, how can you help
in mitigating rapid population growth in the Philippines?
I. Promote the value of love and Marriage.
II. Spread awareness on birth control and overpopulation to understand the consequences of
having children more than the capacity every parent’s income.
III. Advocate women empowerment so that women will be encouraged to build them
ownselves that they can do more than doing the household chores and giving birth to their
children every now and then.
A. I, II B. II, III C. I, III D. I, II, III
___ 40. Sustainable development is development that meets the needs of the present, without compromising the
ability of future generations to meet their own needs. What is the best possible way you can do or propose to
maintain a sustainable development despite of the growing and developing economy?
A. In present context, the use of natural resources is excessive. So, we must take a step to minimize the
excessive use of natural resources in order to preserve it from get extinct forever.
B. Consider that all the needed factors in production must be well managed and inorder to sustain the
resources for the future generation.
C. Use properly all the factors of production by considering the environment’s status and the need of the
community.
D. Having mutual and cooperative understanding among various people
___ 41. Why does an entrepreneur give importance to the recommendations on managing the impacts of a
Applied Economics Page 5
 business enterprise?
A. Because this serves as a wake-up call to eliminate unproductive employees
B. because this provides a win-win solution for incoming problems to encounter
C. Because this brings to the entrepreneur an opportunity to become rich in the community
D. Because this serves as an evaluation tool of the business to improve internal and external factors
___ 42. Which of the following statements does NOT describe the positive impact of business on society?
A. Sourcing raw materials from renewable resources
B. The impact of the sales of a firm of its outputs to other firms as intermediate inputs and as capital
goods
C. Usage of plastic bags and polystyrene or Styrofoam in wrapping consumer goods can have adverse
effects on the environment
D. Exporting its products to earn foreign exchange but these earnings contribute to the accumulation of
the country’s foreign reserves
___ 43. As a student, what should be considered in maintaining a positive spillover and changing the negative
spillover in the community?
I. Be a sensible and responsible citizen in the community
II. Use technology to malign government projects and programs
III. Use your education to lead a rally for the needs and rights of the youth
IV. Participate in the community that promotes uplifting the life of the people
A. I and II C. II and III
B. I and IV D. II and IV
___ 44. Which of the following statements is a negative spillover effect?
A. It brings traffic in the urbanized cities that people may enjoy and are used to it.
B. It pollutes the environment, natural resources and the health of the people are up stakes.
C. It gives temporary shortage on goods and services offered by the company in the community.
D. It is a sign of industrialization and development of a particular place if traffic may occur, and
pollution is present in the community.
___ 45. Mining is one of the common industries in the Philippines where extraction of mineral deposits is being
done. What could be the effects of extraction of mineral deposits to humans and environment if this
activity will not be controlled?
I. Air and water pollution
II. Threatens ecological balance
III. Abundant supply of natural resources
IV. Soil erosion to the detriment of the neighboring communities
A. I, II, III B. I, II, IV C. I, III, IV D. II, III, IV
___ 46. What do you call the effects of transactions that happened to parties outside the transactions of buyers and
sellers?
A. Business Impact B. Externalities C. Hoarding D. Organizational Control
___ 47. Don Narciso’s garment business in the province is viable and becomes wider. Which of the following
statements provide a positive impact of his business on society?
A. The business gains more profit.
B. The business finishes small business in the province.
C. The business creates labor services in the community.
D. The business violates environmental laws in the community.
___ 48. Which among the following examples is NOT a negative impact of business on society?
A. Exporting its products to earn foreign exchange
B. The technology used in processing the raw materials
C. Usage of plastic bags and polystyrene or Styrofoam
D. The intense advertising campaigns made by fast-food companies
___ 49. Mr. Santos’ business is experiencing losses of sales because of his negative action and decisions towards
the community. To cope with the losses, what are the actions and decisions that Mr. Santos must
consider?
I. He must carry out measures to protect consumers.
II. He must be sensitive to the needs of his employee.
III. He must always prioritize the profit of the business.
IV. He must adhere to the laws in protecting environments.
A. I, II, and III C. I, III, and IV
B. I, II, and IV D. I, II, III, and IV

Applied Economics Page 6

___ 50. Which of the following recommendations on managing the impacts of a business enterprise promotes and
provides welfare of natural resources?
A. Carry out measures to protect consumers
B. There is a need to improve the productivity of firms’ workers
C. People should participate in the production of intermediate goods within the country
D. Use environment-friendly alternatives in the production process and distribution procedures

Applied Economics Page 7