Applied Economics

Assessment Choose the letter of the best answer. Write your answer on a separate sheet of paper. inversely affect 1. Spending and saving are mutually exclusive which means that if income is fixed, any change in household's savings will a. Inventing b. Spending c. Producing d. Buying 2. Changes in tax rates can clearly affect net income thus affect household a. Investing b. Producing c. Borrowing d. Spending 3. Businesses need the support of this industry to provide the tools needed to produce goods/services. a. Consumer c. Supplier b. Entrepreneur d. Income 4. A successful business influences the behavior of a. Capital c. Consumers b. Supplier d. Entrepreneur 5. A rise in interest rates stimulate less spending, more a. Spending c. Exploring Business b. Business Transaction d. Savings 6. Distributor of goods and services needed in the operation of the business. a. Entrepreneur c. Consumer b. Supplier d. None of the above 1 7. The unemployed spend less because of a. Lower personal income c.High income b.No income d. None of the above 8.Example of web - based business is an a.e - Commerce c.Exporting b.Hotel and Restaurant d.Importing 9.A increase in spending means a. More income c.Personal wealth b. Economic growth d.All of the above 10.When consumers are likely to respond to promotional advertisements that connect totheir feeling to influence them, then the business a. Encourage customers to look for value b. Influence consumers emotionally c. Offer social responsibility d.Change behavior with customer service 11.When consumers are likely to be influence to switch on your product when it meetstheir expectations and get higher value. a. Encourage customers to look for value b. Influence consumers emotionally c. Offer social responsibility d.Change behavior with customer service 12.When consumers are likely to patronize your products and services when businesscontribute to the community by being socially active such as scholarship and treeplanting. a.Encourage customers to look for value b.Influence consumers emotionally c.Offer social responsibility d.Change behavior with customer service 13.When business let customers feel that they are important and give an excellent servicethen the business can a. Encourage customers to look for value b. Influence consumers emotionally c. Offer social responsibility d.Change behavior with customer service 14.Below are list that company take into account in choosing the right supplier. Which ofthe following does not belong to the group? a. Quality of products/services provided c. Reliability of Service b.Customer preference d. Supplier's Reputation 15.Which of the following is not a determinant of spending? a. Expectations c.Interest Rates b. Rates of Income Tax d. The Level of Production16. When business put an emphasis on the crucial role of emotions on consumers' behavior expect to respond positively, then the business a. Change behavior with customer service b. Encourage customers to look for value c. Influence consumers emotionally d. Offer social responsibility 17. When business make sure that the products or services their customers are using solve their problems better than their rivals then the business a. Change behavior with customer service b. Encourage customers to look for value c. Influence consumers emotionally d. Offer social responsibility 18. When consumers are likely to buy products and services when business safeguard the environment in the community. a. Encourage customers to look for value b. Influence consumers emotionally c. Offer social responsibility d. Change behavior with customer service 19. When business treats their customers as VIP's and gives excellent service then customers can a. Encourage customers to look for value b. Influence consumers emotionally c. Offer social responsibility d. Change behavior with customer service 20. After agreeing into a contract with a supplier, this action is important to ensure that they provide service that was agreed upon. a. Monitor the supplier's performance b. Follow up order c. Check price list d. Request for discounts and allowances