Lourdes School of Pampanga

San Roque Dau 2nd Lubao, Pampanga

Second Quarterly Examination in Applied Economics

Name:_______________________ Date:________
Teacher: Mrs. Anabel T. Matammu Total Items: 70

I. Direction: Circle the letter corresponding to the best answer to the question.

1. Economics is the study of

a. Production technology
b. Consumption decisions
c. how society decides what, how, and for whom to produce
d. the best way to run society
2. The opportunity cost of a good is
a. the time lost finding it
b. the quantity of other goods sacrificed to get another unit of that good
c. the expenditure on the good
d. the loss of interest in using savings
3. A market can accurately be described as:
a. a place to buy things
b. a place to sell things
c. the process by which prices adjust to reconcile the allocation of resources
d. a place where buyers and sellers meet
4. A person who own the business, responsible for the success or future of their business, enjoy
all the business profit and a problem solver.
a. Entrepreneur c. Employer
b. Proprietor d. Employee
5. A business that composing less than 100 employees and have turnover of less than 150 million
per annum.
a. Corporation c. partnership
b. Small business d. incorporation
6. A person who are not responsible for the turnout of the business venture, expecting that
management will solve the existing problem of the business.
a. Employee c. Employer
b. Entrepreneur d. Manager
7. Is the buying of a product at wholesaler price and then selling it double of the wholesale price.
a. Key stoning c. market
b. Venture d. Profit
8. A problem of the business in which they are losing money
a. Insolvency c. holiday
b. Bankruptcy d. lump sum
9. A small business that originates as an idea in the mind of an entrepreneur.
a. Proprietor c. Ventures*
b. Market plan d. business plan
10.The money that you make is more than what you use to pay the bills.
a. Profit c. Income
b. Asset d. liabilities
11.Someone who earns a living by working in a particular business.
a. Employee c. manager
b. Profession d. Supervisor
12.The ability to convince people to see your point of view and get them interested in your ideas.
a. Persuasiveness c. Risk taker
b. Appeal d. Guessing
13.Refers to the amount of money to which an investment will grow over a finite period of time at
a given interest rate.
a. Future value c. Money value
b. Time value d. investment value
14.The branch of economics that deals with the exchange of goods and services with foreign
countries
a. International barrier c. Applied economics
b. International trade d. Asean
15.Is the portion of current income not spent in consumption?
a. Savings c. Money
b. Investment d. budget
16.Purchasing of assets with the goal of increasing future income.
a. Stock exchange c. Investor
b. Investment d. Credits
17.The ability of an investment to be converted into cash quickly without losing its value
a. Owning c. Selling
b. Liquidity d. Return
18.The courage to expose oneself to possible loss
a. Risk taking c. braveness
b. Risk d. accepting
19.The ability to see the end results of your goal while working to achieve them.
a. Mission c. Goal
b. Vision d. planning
20.A belief that you can do what you set out to do.
a. Coincidence c. Optimistic
b. Confidence d. Discipline
21.Tax on goods that is being shipped internationally
a. Poll tax c. Import tax
b. Tariff d. Export tax
22.The profit or yield from an investment.
a. Return c. Interest
b. Change d. Compound interest
23.The desire to work in hand to accomplish ones goal.
a. Wants c. Accomplishment
b. Desire d. Seriousness
24.The ability to cope with changing situation in the business
a. Adaptability c. Acceptance
b. Honesty d. Ideal
25.The willingness to compete and test oneself against others
a. Self- competiveness c. Rivalry
b. Competiveness d. Feud
26.Global international organization dealing with the rules of trade between nations.
a. WTO b. OTW c. BTS d. CBN
 27.What is the relationship between risk and return?
a. High risk will result to high return
b. Low risk will result to high return
c. No return will result to high risk
d. More return less risk
28.The following are key for the business to succeed except;
a. By low c. Keep good records
b. Sell high d. Train more people
29. In economics, Money is defined as anything that is generally accepted in exchange for goods
and services. Some of the most important problems that confront a private enterprise
economy arise from the use of money.
a. Both statements are true c. Only the first statement is true.
b. Both statements are false d. Only the first statement is false.
30.The primary cause of small business failures is, 
a. lack of capital c. poor location
b. management incompetence d. improper inventory control
31.The primary purpose of a business plan is to
a. attract lenders and investors.
b. enable an entrepreneur to take his or her company public. 
c. guide a company by plotting a strategy for its success. 
d. meet SEC and other legal requirements designed to protect lenders and investors. 
32.Define a company's overall direction and answer the fundamental question, "Why am I in
business"?
a. Goals c. objectives
b. Strategies d. Key performance factors
33.Product planning tells you:
a. Where you will produce your product. c. Your Net profit
b. Cost to produce your product. d. Total revenues
34.What things could you change to adjust your profit?
a. Price. c. Less expensive supply sources.
b. Number d. All of the above.
35.If a country were to join a free trade area, its business sector would gain because:
a. It could get tariff-free raw materials from countries inside the free trade area.
b. There would be exchange rate stability between the member countries.
c. Prices of competitors from countries not in the free trade area would rise.
d. There would be fewer barriers to establishing subsidiaries in other countries in the free
trade area.

II. Direction: Identify the term being referred to in each of the following statements
Business Labor market Industry Competition Target Market
Suppliers Distributors Exports Imports Sole Proprietorship
Partnership Corporation Cooperative SWOT Analysis Michael E. Porter

________1. He was identifies the five forces of competitiveness and attractiveness of a market
position analysis.
________2. It is owned by a single individual who is singly responsible for running the business.
________3. It is a form of business organization in which two or more persons combine their
resources in a business with a view to making profit.
________4. It is a legal entity that is separate from its owners, the shareholders.
________5. It is entity organized by people with similar needs to provide themselves with goods or
services or to jointly use available resources to improve their income.
________6. It is an undertaking by a person or a group of persons who are partners, or stockholders
who own juridical entity known as a corporation.
________7. It is an aggregation of the different businesses engaged in the same kind of undertaking.
________8. It is an act or process of trying to get or win something over one’s rivals.
________9. It refers to the group of customers the business aims to cater to.
________10. It is where the workers offer their services and look for jobs, and where employers look
for workers to hire.
________11. These are business’ source of raw materials, intermediate goods or final products and
services.
________12. These are wholesalers or brokers who buy in big quantities from manufacturers, add a
mark-up to their purchase price and sell to retailers.
________13. These are domestically produced goods sold to foreign countries.
________14. It is refer to goods purchased from a foreign country.
________15. A tool that lists the strengths, weaknesses, opportunities, and threats that face the
business.

II. Direction: Enumerate the following.

A. Four ways to form a Business Organization (4)
B. Porter’s Five forces of Competitive position analysis that need to be evaluated (5)
c. The economy producing sectors (3)
D. Give (3) person’s business gurus by using SWOT Analysis in 1960’s.

III. Explain the following.

a. Distinguish between a business and an industry.
b. Explain the SWOT Analysis.