Applied Economics

11-30

Multiple Choice: Encircle the letter of the correct answer. 21. It refers to the lowest wage permitted by law below which if paid by employer will subject him to penalty from the government. A. minimum wage C. maximum wage B. maximum salary D. minimum salary 22. Payment for public goods and services by citizens. A. savings B. debt C. tax D. capital 23. As a Filipino entrepreneur, why is it important to consider the tax rate of the country? A. Because every single centavo given to tax means additional burden on the part of the entrepreneur. B. Because it is an obligation of the entrepreneur to pay tax. C. Because the tax rate in the Philippines is low compared to other countries. D. Because the products in the Philippines is tax-free. 24. What will happen if there are influxes of investment in the country? A. It will create jobs. B. It will result to colonial mentality. C. More foreigners in the country. D. Foreigners will invade the country. 25. It is the rate of conversion of the Philippine peso to a foreign currency such as the US dollar. A. foreign dollar exchange rate C. domestic peso exchange rate B. foreign exchange rate D. domestic exchange rate 26. Industry rivalry among companies of the same or related industry is called A. Competition C. Alliance B. Distribution D. Threats 27. Competitive advantages that can also be gained by business that seek cooperation within or related industries is termed as_ A. Alliance C. Defensive strategy B. Cost leadership D. Differentiation 28. A strategy that businesses often use marketing and some ads are against the competitors. A. Advertising C. Alliance B. Cost Leadership D. Defensive Strategy 29. An advantage that occurs when a business is able to offer the same quality product as its competitors, but at a lower price. A. Differentiation C. Defensive Strategy B. Alliance D. Cost Leadership 30. Products use as replacements to other products that gives the same purpose. A. clone C. original B. substitutes D. brandMultiple Choice: Encircle the letter of the correct answer. 11. Which of the following is the best solution for shortage? A. Decrease in Price C. Increase in Price B. Import D. Change business 12. Given the price of 7 with demand of 9 and supply of 21. How many is the surplus? A. 9 B. 10 C. 11 D. 12 13. An effective price floor set above the equilibrium price will result into? A. Shortage B. limited choices C. surplus D. none of the above 14. What is surplus? A. A consumer's willingness to pay given a price for a particular good or service. B. More items available for sale than people want to purchase C. The amount of product that producers are willing to sell given a particular price D. More people want an item than is available for purchase 15. Ella an airline owner is affected by the pandemic for only few people are traveling. What possible solution can she apply for her business to survive? A. Increase Price C. Shut the business B. Put on sale D. Do nothing 16. Which of the following is not an example of a market structure? A. Perfect competition C. Oligopoly B. Monopolistic competition D. Oligarchy 17. Which of the following is not a feature of monopolistic competition? A. Numerous sellers C. Numerous buyers B. Product differentiation D. Homogenous products 18. A tight oligopoly is a market where A. there is only one supplier of the product B. there are many sellers of differentiated products C. there are few sellers with comparable market shares D. there are many sellers of homogenous product 19. Which of the following would not be a monopolistic competitor? A. Joe's barbershop C. A fish dealer in the Market B. A grocery store in a big city D.. Microsoft 20. When an industry is classified as oligopolistic, it consists of A. Only one seller B. Many sellers with similar product C. Only few sellers with either standardized or differentiated products D. Only a few buyers