FINAL EXAM - APPLIED ECONOMICS

Which of the following is not an advantage of sole proprietorship?

• easy to raise capital

• easy to form

• not expensive

• no corporate taxation on the firm

Maria and Mae want to start their business and they want to combine their resources to start up a business for the purpose of gaining profit. What kind of business organization should they put up?

• General Partnership           

• Partnership      

•      Limited Partnership     

• Corporation

It is the process of dividing prospective consumers into different groups depending on factors like demographics, behavior, and various characteristics.

• Market Segmentation            

• Demographics

• Sociographic

• Geographic

Juan lives in a remote area; on a sunny day he wants to drink very cold milk tea but there is no store that sells milk tea near their place. What could be the best substitute for milk tea?

• Ice cream                              

• Iced coffee 

• Milk tea

• None of the above

1. The following are the importance of Porter’s Five Forces of Competitive Position Analysis except:

• The possibility of new entrants may cause a drop in our market share.

• The possibility of substitution is a threat to our business.

• The number of competitors.

• The lesser the supplier’s power to drive prices up, the greater the buyer’s power to drive prices up

1. The market with few sellers of differentiated products with strict barriers to entry.

• monopoly

• oligopoly

• pure competition

• monopolistic competition

1. Sheila wants to start a business and have her own products and services to be offered in the market. 

               What is the role of Sheila in the economy?

• economist

• entrepreneur

• customer

• consumer

1. When there is an increase in the prices of grocery items in the market, we can best say that

                ___________.

• there is a price increase

• there is no substitute

• there is an increase in the demand of groceries

• there is an inflation

1. Marvin a fresh graduate and from province want to explore the beauty of city and to work there, what

   basic need: should he first consider living in the city?

• find a job

• find a house to rent

• find someone to marry

• none of the above

1. It is the exchange of capital, goods, and services across international borders or territories because there is a need or want of the goods and services.

• Exchange Rates

• International Trade

• Domestic Trade

• Remittances