APPLIED ECONOMICS

FINAL EXAM

Name:______________________________________________________ Grade & Section __________________

I - Write the letter of the correct answer on the space provided before each number. Use the table below for
your answer.

A. Retail Industry I. International Trade

B. Corporation J. Tax
C. Tax Evasion K. Weaknesses
D. Cooperative L. Partnership
E. Primary Research M. Environmental Analysis
F. Taxation N. Strength
G. Manufacturing Industry O. Industry
H. Service Industry

_______ 1. creates service rather than tangible objects

_______ 2. goods and services exchanged across national boundaries

_______ 3. process of buying and selling consumer goods and services through multiple channels of
distribution
_______ 4. concerned with processing of raw materials and manufacture of goods in factories

_______ 5. owned by and operated for the benefit of those using its services

_______ 6. owned by two or more persons

_______ 7. created under government charter

_______ 8. revenue obtained from taxes

_______ 9. the lifeblood of the government

_______ 10. things that the company is doing well

_______ 11. things that a business is a disadvantage to others

_______ 12. involves collecting data through interviews, observations, surveys and analysis

_______ 13. uses machine, tools, and labor to convert raw materials into finished goods

_______ 14. process to identify all the external and internal elements which can affect the organizations
performance
_______ 15. illegal means to defeat or lessen the payment of tax

II - ENUMERATION:

1-5 Classification of Taxes

6 - 10 Sources of Tax laws

11 - 12 Key Elements of SWOT Analysis

13 - 16 Types of Business Industries

17 - 26 Kinds of Business opportunities in the Philippines

27 - 31 Top most imports in the Philippines

32 - 35 Philippine Exports

GOODLUCK!
 SALVACION NATIONAL HIGH SCHOOL
APPLIED ECONOMICS
FINAL EXAMINATION

I – MULTIPLE CHOICE: Choose the letter of the correct answer.

1. What is the difference between perfect competition and monopolistic competition?
a. Perfect competition has a large number of small firms while monopolistic competition does not.
b. In perfect competition, firms produce identical products, while in monopolistic competitions does
not.
c. Perfect competitions has no barriers to entry, while monopolistic competitions does.
d. Perfect competition has barriers to entry while monopolistic competition does not.
2. Which of the following market types has all firm selling products so identical that buyers do not care from which
firm they buy?
a. Perfect competition b. Oligopoly c. Monopolistic Competition d. Monopoly
3. Perfect competition is characterized by all of the following except
a. Well-informed buyers and sellers with respect to prices
b. A large number of buyers and sellers
c. No restrictions on entry into exit from the industry
d. Considerable advertising by individual firms
4. Which of the following is the best example of a perfectly competitive market?
a. Diamonds b. Athletic shoes c. Soft drinks d. Farming

OPTIONS FOR NUMBER 5 - 7

a. Perfect competition b. Monopoly c. Monopolistic Competition d. Oligopoly

5. Which of the following market types has the fewest number of firms?

6. Which of the following market types has a large number of firms that sell similar but slightly different products?

7. Which of the following market type has only a few competing firms?

8. A price-taking firm
a. Cannot influence the price of the product it sells
b. Talks to rival firms to determine the best price for all of them to charge
c. Sets the product’s price to whatever level the owner decides upon
d. Asks the government to set the price of its product
9. Perfectly competitive firms are price takers because
a. Each firm is very large c. There are no good substitutes for their products
b. Many other firms produce identical products d. Their demand curves are downward sloping
10. One of the requirements for a monopoly is that
a. The product cannot be produced by small firms
b. These are seven close substitutes for the product
c. There is a unique product with no close substitutes
d. Products are high priced
11. A monopoly is a market with
a. No barriers to entry c. Many suppliers
b. Many substitutes d. One supplier
12. Firms face competitions when the good they produce
a. Is in a market with natural barriers to entry c. Is in a market with legal barriers to entry
b. Is unique d. Has a close substitute
13. An industry with a large number of firms, differentiated products, and free entry and exit is called:
a. Oligopoly b. Monopoly c. Monopolistic Competition d. Perfect Competition
14. In monopolistic competition, each firm supplies a small part of the market. This occurs because
a. There are barriers to entry c. Firms produce differentiated products
b. There are no barriers to entry d. There are a large number of firms
15. In monopolistic competition, the products of different sellers are assumed to be
a. Similar but slightly different c. Either identical or differentiated
b. Identical perfect substitutes d. Unique without any close or perfect substitutes
16. Which of the following is an example of a monopolistically competitive industry?
a. Rice farming c. The local electricity producer
b. Colleges and universities d. The domestic automobile producing industry
17. A differentiated product has
a. Many perfect substitutes c. No close substitutes
b. Close but no perfect substitutes d. No substitutes of any kind
18. Marketing consists of what?
a. Selling a lower price that rivals sell for
b. Producing more output to lower average costs
c. Advertising and packaging
d. None of these
19. Firms use marketing to
a. Influence a consumer’s buying decision
b. Convince customers that their product is worth its price
c. Persuade buyers that their product is superior to others
d. All of these
20. If a monopolistically competitive seller can convince buyers that its product is of better quality and value than
products sold rival firms,
a. Demand increases c. Demand becomes more inelastic
b. The firm gains more control over its price d. All of these
II – MATCHING TYPE: Match each term in Column A with its definition in column B. Write your answers on the
space provided before each number.
COLUMN A COLUMN B

_______ 1. Board of Directors a. The share or profits distributed to stockholders

_______2. Dividends b. Standard of conduct for the business community

_______ 3. Proxy c. Authorization to vote on behalf of a stockholder

_______ 4. Business Ethics d. Elected representatives of a corporation’s

shareholders.

_______ 5. Stockholders e. The most numerous kid of business organization

_______ 6. Profit f. Owners of a corporation

_______ 7. Partnership g. A business owned by two or more persons.

_______ 8. Sole proprietorship h. An advantage of the corporation.

_______ 9. Unlimited life i. An entrepreneur’s main motivation.

_______ 10. Profit j. One who creates a business to make a profit.

III – ENUMERATION:

1–4 Market Structures

5–8 Types of Business Structures

9 – 12 Economic Issues facing the Filipino entrepreneur

13 – 19 Factors of Micro Environment