2nd Semester (4th Quarter)

SUMMATIVE EXAM IN APPLIED ECONOMICS

Name: _____________________________________________ Score: __________________________

I. IDENTIFICATION
Identify which of these factors under the PESTLE analysis is described in each item. Choose your
answer from the box below.
Technological Factors Environmental Factors
Legal Factors Political Factors
Sociocultural Factors Economic Factors

_______________1. These are variables that pertain to both local and global politics which has given
impact to business.
_______________ 2. These are the ones which relate to the general state of the economy.
_______________ 3. These are factors connected with the public and their behavior.
_______________ 4. These are the ones which relate to the existence, availability, and development
of technology.
_______________ 5. These are external factors which focus on the influence that the law may have
on business operation and customer behavior.

II.MULTIPLE CHOICE
Read the following questions carefully. Choose the letter of the best answer and write it on the
line before the number.
_____ 6. This is a specialized branch of economics that concerns itself with studying the intimate
relationship between economics and social behavior.
A. socioeconomic B. economics C. social science D. social behavior
_____ 7. It relates to the amount of money coming into your bank account.
A. employment B. education C. income D. none of these
_____ 8. Which of the following is also good information for a company that relies on debt capital to
finance ambitious projects?
A. interest rates B. exchange rates C. growth rate D. Recession
_____ 9. These are important factors to consider for any business involved in importation and
exportation of various goods and services.
A. interest rates B. exchange rates C. growth rate D. Recession
_____ 10. This is a special term that refers to the process of looking at the external issues in a
business.
A. ecological analysis C. ABC analysis
_____ 11. Once a firm decides to enter an industry and chooses a market in which to compete, it must gain an
understanding of its competitive environment. This challenge can be undertaken by completing a(n)
________ analysis.
A. Business B. Competitor C. Market D. Industry
_____ 12. Each quarter, Juan Dela Cruz, who owns a chain of auto repair shops, does a detailed analysis of
his firm's competitors. This analysis is called ________ analysis.
A. Business B. Competitor C. Market D. Industry
_____ 13. Which of Porter's five forces is most closely associated with the concept "barrier to entry"?
A. Threat of New Entrants C. Rivalry Among Existing Firms
B. Threat of Substitutes D. Bargaining Power of Buyers
_____ 14. In a PESTLE analysis, “Internet and webcams to access weather info” would be classed as:
A. Political factor C. Social factor
B. Economic factor D. Technological factor
_____ 15. In a PESTLE analysis, “Low inflation rates” would be classed as:
A. Political factor C. Social factor
B. Economic factor D. Technological factor
_____ 16. Strengths and weaknesses in a business as referred to by SWOT analysis.
A. External Factors C. Poor Planning
B. Internal Factors D. Good Management
_____ 17. Great communication skills and analytical abilities in an example of a type of
A. Strength C. Weakness
B. Opportunity D. Threat
_____ 18. This is a key component of external analysis.
A. PEST analysis C. Porter’s 5 forces
B. SWOT Analysis D. None of the above
_____ 19. These factors make impacts on an industry include specific policies and regulations related to
things like taxes, environmental regulation, tariffs, trade policies, labor laws, ease of doing business,
and overall political stability.
A. Political factor C. Social factor
B. Economic factor D. Technological factor
_____ 20. It refers to trends among people and includes things such as population growth, demographics (age,
gender, etc.), and trends in behavior such as health, fashion, and social movements.
A. Political factor C. Social factor
B. Economic factor D. Technological factor

III. TRUE OR FALSE

________21. Every business is classified into different industries based on the products they make.
________22. Business industries cannot be classified by its goods alone.
________23. There are companies which belong to only one industry and provide industry-specific
goods or services, there are also conglomerates which cater to multiple industries at a
time.
________24. Transport is one of the largest types of business industries in the Philippines.
________25. Business principles cannot be applied to the agriculture industry.
________26. Pharmaceutical companies are also using techniques that are widely used in the
business.
________27. Food industries were at stake during the time of pandemic.
________28. The types of industries cannot be anchored to the form of business organization.
________29. The closure of the various business industries during the pandemic gives a great impact
to the economy.
________30. Tourism industries tend to cover up its losses during the pandemic.