Republic of the Philippines

DEPARTMENT OF EDUCATION
National Capital Region
SCHOOLS DIVISION OFFICE, QUEZON
CITY
www.depedqc.ph

FIRST SEMESTER FINAL EXAMINATION IN APPLIED ECONOMICS

S.Y. 2022-2023

DIRECTIONS: Choose and write the letter of the best answer on your answer sheet.

1. A business tool that explains business or market issues, and projects failure beyond
businessman control, through creating an objective view based on changes in the Socio-
economic government policies and other factors is _____________.

A. PEST Analysis B. SOAR Analysis C. SWOT Analysis D. VMOST Analysis

2. A business strategy utilized by the top leaders of the company and communicated to the
employees for implementation is ____________.
A. Bottom-up Strategy C. Cost-Efficient Strategy
B. Top-down Strategy D. Do It Right the First Time (DRIFT) Strategy

3. The leading export product of the Philippines comprised 44.8% of total exports, or US$ 28.4
billion, is _____________.
A. Optical, medical apparatus C. Animal/Vegetable fats, oils
B. Copper and metal materials D. Electronics and Electrical Industry

4. Which of the following does NOT describe Opportunity Costs as one of the principles of
Microeconomics?
A. Value that you did not choose.
B. Benefits that could have been gained by taking a different decision.
C. Advantage you gained by making one decision that you think is the best.
D. Loss of potential gain from other alternatives when one alternative is chosen.

5. What benefit would you gain if you decided to purchase sushi in a supermarket instead of making
it yourself?
A. Opportunity Cost C. Comparative Advantage
B. Absolute advantage D. Cost of Living Allowance

6. The purpose of the General Agreement on Tariff and Trade among nations is ________________.
A. To strengthen the foundation for a prosperous and peaceful community.
B. To accelerate the region's economic growth, social progress, and cultural development.
C. To promote international trade by reducing or eliminating trade barriers such as tariffs or
quotas.
D. To engage the foremost political, business, and other leaders of society to shape global,
regional, and industry agendas.

7. It corresponds to a regular payment received regularly, commonly paid in fixed intervals like every
15th or 30th of the month is ________________.
A. Bonus B. Compensation C. Salary D. Wage

8. One of the positive impacts of business is when the company’s Core Values includes social
responsibilities that extend to Persons with Disability (PWD). Which among the corporations believed
in “Employing the deaf is employing the best; thus, hired deaf personnel”?
A. Colgate-Palmolive Company
B. GlaxoSmithKline, maker of Sensodyne
C. Lamoiyan Corporation, maker of Hapee toothpaste.
D. Procter & Gamble company manufacturer of Oral B
9. One of the problems doing business in the Philippines is the relentless corruption of any forms that
hinder economic growth, one of which is the excessive bureaucracy or adherence to rules and
formalities that tempt people to bind money under the table. This situation is referred to as ______.
A. Black Propaganda B. Extortion C. Nepotism D. Red Tape

10. The Republic Act, signed by President Duterte, which aimed to solve the perennial problem of
Red Tape in government agencies, is _____________.
A. Anti-Red Tape Act C. Ease of Doing Business Act
B. Anti-Money Laundering Act D. Anti-Graft and Corrupt Practices Act

11. A theory refers to the use of goods and services to satisfy human wants is ________?
A. Theory B. Consumer Theory C. Consumption Theory D. Product Theory

12. A business tool analyzes the portfolio of the entire firm is __________?
A. Boston Matrix B. Porter’s Forces C. SWOT D. VMOST

13. The combined production of several units of a given set of inputs is __________?
A. Total Product B. Total Utility C. Utility D. Utility Function

14. What statement describes the socioeconomic impact of new products and services on
consumers?
A. It ruins the flow of the business.
B. It motivates the consumer to earn more to afford the new products.
C. It drives the consumer to try a new product or service to know what product is better.
D. It improves existing offerings, giving more options to consumers that can truly satisfy their
needs.

15. The following are characteristics of a typical entrepreneur EXCEPT:

A. A future orientation C. Value of money over achievement.
B. Desire for immediate feedback D. Confidence in their ability to succeed.

16. The primary purpose of a business plan is ______________?

A. To attract lenders and investors.
B. To meet SEC and other legal requirements.
C. To guide a company by plotting a strategy for its success.
D. To enable an entrepreneur to take their company public.

17. Below are the elements of the marketing mix EXCEPT:

A. Place B. Price C. Profit D. Promotion

18. The lifeblood of an economy is _________________.

A. Business B. Consumption C. Industry D. Tax

19. A means of interaction between buyers and sellers for trading or exchange is _____________.
A. Communication B. Language C. Market D. Marketplace

20. A business function that assesses the current business environment is ______________.
A. Analysis B. Consumer feedback C. Industry Analysis D. System Analysis

21. A collection of competitors that produces similar or substitute products or services to a defined
market.
A. Consumer Goods B. Industry C. Entrepreneurs D. Marketing

22. If the prices of basic commodities increase, the consumers will look for ____________.
A. Expensive Products C. Luxury Products
B. Grocery Items D. Substitute Products

23. A strategy that best suits setting one business from competitors?
A. Alliance B. Cost Leadership C. Defensive Strategies D. Differentiation
24. The process of international integration arising from the interchange of world views, products,
ideas, and other aspects of culture is ______________.
A. Globalization B. Industrialization C. Internalization D. Nationalism
25. The process of selling consumer goods or services to customers through multiple channels of
distribution to earn a profit is ______________.
A. Merchandise B. Retail C. Trade D. Wholesale

26. It illustrates converting raw materials, components, or parts into finished goods that meet a
customer’s expectations or specifications.
A. Agribusiness B. International Trade C. Manufacturing D. Retail and services

27. Below are examples of agribusiness EXCEPT:

A. Corn farming B. Furniture making C. Hog raising D. Poultry raising

28. An ability to convince people to see your point of view and get them interested in your idea is ___
A. Appeal B. Guessing C. Persuasiveness D. Risk Taker

29. A small business that originates from the mind of an entrepreneur is ___________.
A. Business Plan B. Market Plan C. Proprietor D. Ventures

30. Select the best marketing technique to beat the competition.

A. Change the pricing of your product.
B. Create utility and usefulness with your product.
C. Emphasize your product’s benefit to the consumer.
D. Deliver the true value of your product to your customer.

31. Which of the following statements describe Product Based Companies?

I. Focuses its efforts on items/commodities as its strength.
II. Provides software products and services to anyone who asks for them for a price.
III. Sells skills as primary products, customers such as a plumber or lawyer.
IV. Manufactures items that are on demand as per customer requirements.

A. Statement I & II B. Statement II & IV C. Statement III & IV D. Statement I & IV

32. The sector of the economy that deals with offering intangible goods like retail, tourism, banking,
entertainment, and IT services is __________.
A. Tertiary/Service Sector C. Education/Technology Sector
B. Primary/Agricultural Sector D. Secondary/Manufacturing Sector

33. The sector of the economy concerned with producing finished or final goods, such as factories
making toys, cars, food, and clothes, is ____________.
A. Tertiary/Service Sector C. Education/Technology Sector
B. Primary/Agricultural Sector D. Secondary/Manufacturing Sector
34. The acronym PEST stands for _____________.
A. Please Excuse Slow Typing C. Political, Economic, Social, and Technology
B. Peer Education Skills Training D. Production Economics Strategies Technology
35. It detects the condition in an industry at a particular time, including the behavior and relations
between competitors, suppliers, and customers.
A. Environment Analysis C. Macro environment
B. Industry Analysis D. Microenvironment

36. The entity organized by people with similar needs that provide themselves with goods and
services or jointly use available resources to improve their income is __________.
A. Cooperative C. Partnership
B. Corporation D. Sole Proprietorship
37. It produces non-monetary values representing your philosophy, guiding principles, outlook, and
aspirations for your business.
A. Firm Analysis C. Environmental Analysis
B. Resource Analysis D. Personal Values Analysis
38. How often should a SWOT analysis be performed?
A. Every 3 to 5 years C. Only when the business starts.
B. At least once a year. D. Only when specific issues need to be addressed.

39. The sector that processes raw materials into final and finished products is __________.
A. Agricultural Sector B. Commercial Sector C. Industrial Sector D. Service Sector

40. A firm that is engaged in the reproduction of products from plants and animals as objects for sale
is ____________.
A. Export B. Extractive Industry C. Industry D. Tourism

41. A legal entity that is separate from its owners is ____________.

A. Business B. Cooperative C. Corporation D. Final Goods

42. Which of the following statements describes the socio-economic impact of tax revenues, poverty
alleviation, and basic services?
A. The government will implement additional taxes for the people.
B. The government will generate better tax collection for public service.
C. The government will be motivated to improve its laws on tax collection.
D. The government will decide to focus its work and will be dedicated to serving the public
interest.

43. Which of the following identifies firms’ differences in goals, strategies, objectives, and cost
structures?
A. Benchmarking B. Competition C. Diversity D. Rivalry

44. This includes agrichemicals, breeding, crop production, farm machinery, and seed supply, as well
as marketing and retail sales.
A. Agribusiness B. Local business C. Manufacturing D. Retail and services

45. The reason why customers stop patronizing a particular store is ____________
A. The prices are not too high. C. The quality of the product is good.
B. It failed to advertise enough. D. An indifferent employee treated them fairly.

46. Which is included in the physiological needs of humans according to Maslow’s Theory?
A. Food, shelter B. Mobile Phone C. Recognition D. To love and be loved

47. They are the business’ source of raw materials, intermediate products, or even finished goods
one intends to resell.
A. Current Trends B. Demand C. Factory D. Suppliers

48. Dodong, a grade 12 student, wants to buy a motorcycle that he can be used in going to school. If
you were Dodong, how could you solve the problem?
A. I would borrow some money.
B. I would ask for money from my “ninang.”
C. I would not consume products and services.
D. I would have a plan on how to save and how much to save.

49. It is dubbed as an excellent strategy evaluation tool, a highly structured yet simple and effective
method to set programs, goals, or plans for team members at every level of the business
organization.
A. PEST Analysis B. SOAR Analysis C. SWOT Analysis D. VMOST Analysis

50. A business strategy where decisions/issues are given to the employees or lower-level managers
with direct experience of customer needs and preferences.
A. Top-Down strategy
B. Bottom-up Strategy.
C. Structural Functional Strategy
D. Do It Right the First Time Strategy