SUMMATIVE IN APPLIED ECONOMICS

2ND SUMMATIVE EXAMINATIONS

NAME___________________________Section/GRADE___________Score__________________

Direction: Read the questions carefully .choose the letter of the correct answer on the
space provided before the number.

______1.Every country must develop__________ a system to determine how to use its

limited productive resources .
a. Economic b. dual court c. Civil d. criminal
______2. Inflation is known as :
a. Decrease in the price of goods and services
b. An increase n the price of goods and services
c. Teps in decision making strategy
______3.Government income mainly from taxes .
a. Marginal utility b.government revenues c. national budget d. wage
______4. What is the effect of oil price increases?
a. Demands increases b.increase employment c. price of goods and
service increases
______5. What is the role of PEST analysis in strategic planning ?
a. Goals b. strategies c. key performance indicators d. objectives
______6. Does marketing plan entail in a business?
a. Determine cutomers needs and wants through market research
b. Pinpoint specific target markets the company will serve
c. Analyze the firm competitive advantage and build marketing strategy
d. All of the above .
______7. Which of the following is an example of external growth strategy .
a.licensing b. new product development c. merger d. strategic
alliance
______8. You can always make more money but you cannot make more time . What
does this imply .
a. Time is gold b. grab the opportunity c. time management d. time is
not enough to create money
______9. In saving the most important thing or necessary is______?
a. Money b. profit c. . gains d. income
______10. The primary cause of small businesss faulures is .
a. Lack of capital b. poor location c. management incompetence d.
improper inventory
_______11. An increase in the price of the product will reduce the amount of its
purchase because?
a. Supply curve are up sloping
b. The higher price means that the real income have risen
c. Consumers will substitute other products for the one whose price has
risen
d. Consumers relatively high price for relatively low price products .
_______12. If the price of k declines , the demand curve for the complementary
product j will ?
 a.shift to the left b. decrease c. shift to the right d. remain
unchanged.
______13. A set of buyers n sellers whose interaction determines the prices of goods
and ervices ?
a. Market b.market structures c. perfect competition d.
monopoly
______14. Refers to the different markets characteristics that determine the
relationships between sellers and buyers ?
a. Market demand b. market research c. market strategy d.
market structures.
______15. It is market structure wherein few sellers dominate the market or sell the
homogeneous or heteregeneous products
a. Monopoly b .oligopoly c. market structures d.
perfect competition
_______16. A form of markets structures characterized by a single seller selling
uniqye product .
a. Oligopoly b.monopoly c. perfect competition d.
monoplistic competition
Test II. ESSAY
Discuss the the following terms in applied economics to solve economic issues and
problems facing the economic crisis in the Philippines due to pandemic (5 point
each)minimum of 25 words per term.

1. Labor unrest-

2. Power shortage -

3. Unemployment -

4. Poverty -

5. Food shortage-
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