Republic of the Philippines

Department of education
Region V
Solis institute of technology
Managa-naga, Bulan, Sorsogon

Pre-test in Economics

General Instructions: choose the letter of the best answer

1. It is the study of how human beings coordinate their wants and desires.
a. Economy b. Ecosystem c. Economics d. Ecology
2. Scarcity means ________.
a. Lack of knowledge b. Lack of supply c. Lack of support d. Lack of capital
3. It is an analysis in a way how economists think, also known as a principle of give and
take factor
a. Economic standard b. Economic growth c. Economic development d. Economic
reasoning
4. The additional cost over and above the cost that was already met
a. Principal cost b. General cost c. Marginal cost d. Paternal cost
5. This is the additional benefit above what was already gained.
a. Marginal benefit b. Marginal space c. Marginal growth d. Marginal standard
6. This kind of reasonableness is frequently criticized for being “cold hearted”.
a. Economic and decreasing force
b. Economic and increasing force
c. Economic and competing force
d. Economic and compelling force
7. It is the benefit forgone by venturing an activity, in order to this, entrepreneur must
forgo something.
a. Opportunity benefit
b. Opportunity cost
c. Opportunity growth
d. Opportunity rules
8. An indispensable reaction to scarcity that leads to rationing mechanism
a. Market force b. Economic force c. Labor force d. Invisible force
9. An economic force that is given relatively free rein by society to work through the
market.
a. Economic force b. Market force c. Labor force d. Invisible force
10. It is the study of individuals choice and how that choice is swayed by economic
forces.
a. Microeconomics b. Macroeconomics c. Extra-economic d. Homoeconomics
11. A person who own the business , responsible for the success or future of their
business, enjoy all the business profit and a problem solver.
a. Entrepreneur* c. Employer
b. Proprietor d. Employee
12. A business that composing less than 100 employees and have turnover of less than
150 million per annum.
a. Corporation c. partnership
b. Small business* d. incorporation
13. A person who are not responsible for the turnout of the business venture, expecting
that management will solve the existing problem of the business.
a. Employee* c. Employer
b. Entrepreneur d. Manager
14. Is the buying of a product at wholesaler price and then selling it double of the
wholesale price.
 a. Keystoning* c. market
b. Venture d. Profit
15. A problem of the business in which they are losing money
a. Insolvency c. holiday

b. Bankruptcy d. lumpsum
16. A small business that originates as an idea in the mind of an entrepreneur.
a. Proprietor c. Ventures*
b. Market plan d. business plan
17. The money that you make is more than what you use to pay the bills.
a. Profit* c. Income

b. Asset d. liabilities
18. Someone who earns a living by working in a particular business.
a. Employee* c. manager
b. Profession d. Supervisor
19. The ability to convince people to see your point of view and get them interested in
your ideas.
a. Persuasiveness* c. Risk taker
b. Appeal d. Guessing
20. Refers to the amount of money to which an investment will grow over a finite period
of time at a
A given interest rate.
a. Future value* c. Money value
b. Time value d. investment value
21. The branch of economics that deals with the exchange of goods and services with
foreign countries
a. International barrier c. Applied economics
b. International trade* d. Asean
22. Is the portion of current income not spent in consumption?
a. Savings* c. Money
b. Investment d. budget
23. Purchasing of assets with the goal of increasing future income.
a. Stock exchange c. Investor
b. Investment* d. Credits
24. The ability of an investment to be converted into cash quickly without losing its value
a. Owning c. Selling
b. Liquidity* d. Return
25. The courage to expose oneself to possible loss
a. Risk taking* c. braveness
b. Risk d. accepting

26. The ability to see the end results of your goal while working to achieve them.
a. Mission c. Goal
b. Vission* d. planning
27. It is the refusal to quit, willingness to keep goals in sight and work towards them
despite obstacles
a. Persuasiveness c. Organization
b. Perseverance d. bidden
28. A belief that you can do what you set out to do.
a. Coincidence c. Optimistic
b. Confidence* d. Discipline
29. Tax on goods that is being shipped internationally
a. Poll tax c. Import tax
 b. Tariff* d. Export tax
30. The profit or yield from an investment.
a. Return* c. Interest
b. Change d. Compound
interest
31. The desire to work in hand to accomplish ones goal.
a. Wants c. Accomplishment
b. Desire* d. Seriousness
32. The ability to cope with changing situation in the business
a. Adaptability* c. Acceptance
b. Honesty d. Ideal
33. The willingness to compete and test oneself against others
a. Self- competiveness c. Rivalry
b. Competiveness d. Feud
34. Global international organization dealing with the rules of trade between nations.
a. WTO* c. BTS
b. OTW d. CBN
35. Philippine permanent representative to the world trade organization that appointed
by President Aquino.
a. Thomas Tuazon c. Ricardo Dalisay jr
b. Berna Tuazon d. Esteban B. Conejos jr.
36. What is the relationship between risk and return?
a. High risk will result to high return*
b. Low risk will result to high return
c. No return will result to high risk
d. More return less risk
37. The following are key for the business to succeed except;
a. By low c. Keep good records
b. Sell high d. Train more people
38. The primary cause of small business failures is,
a. lack of capital
b. management incompetence*
c. poor location
d. improper inventory control
39. The primary purpose of a business plan is to
a. attract lenders and investors.
b. enable an entrepreneur to take his or her company public.
c. guide a company by plotting a strategy for its success. *
d. meet SEC and other legal requirements designed to protect lenders and investors.
40. Define a company's overall direction and answer the fundamental question, "Why am
I in business"?
a. Goals
b. Strategies*
c. Objectives
d. Key performance factors

41. A marketing plan should,

a. determine customer needs and wants through market research.
b. pinpoint specific target markets the company will serve.
c. analyze the firm's competitive advantages and build a marketing Strategy around
them.
d.. all of the above
42. The majority of customers who stop patronizing a particular store do so because
a. its prices are too high
b. its quality is too low
 c. an indifferent employee treated them poorly
d. it failed to advertise enough
43. What can a company do to achieve stellar customer service and satisfaction?
a. Listen to customers with the help of suggestion boxes, focus groups, surveys, and
other tools.
b. Define what "superior service" means so that customers and employees know
exactly what to expect and what to provide.
c. Hire friendly, courteous sales and service representatives.
d. All of the above
44. Product planning tells you:
a. Where you will produce your product.
b. Cost to produce your product.*
c. Your Net profit
d. Total revenues
45. What things could you change to adjust your profit?
a. Price.
b. Number
c. Less expensive supply sources.
d. All of the above.
46. When counting change back to a customer, you should always give the ____________
amount of coins possible.
a. best c. most
b. least d. correct
47. Which of the following is an example of an internal growth strategy?
a. Licensing
b. merger
c. new product development
d. strategic alliance
48. Which of the following is an example of an external growth strategy?
a. strategic alliances and joint ventures
b. improving an existing product or service
c. increasing the market penetration of an existing product or service
d. extending product lines
49. You can always make more money but you cannot make more time. What does it
implies?
a. Time is gold
b. Grab the opportunity
c. Time is not enough to create money
d. Time management
50. How can a tariff considered a barrier?
a. It increases the prices of the product
b. It decreases the customer
c. It creates defects to the product
d. It lessen the price of the product
51. Is there any advantage in a country if they have delegates or representative in the
World trade Organization?
a. Yes, it can promotes a good relationship to other country
b. Yes, country will be updated in all means
c. No, it’s just a waste of time
d. No, it creates a disadvantage on their part
52. In savings the most important thing or necessary is
a. Income
b. Profit
c. Gains
d. Money
53. International trade is important for what reason?
a. It can give us different technologies and strategy to form business
b. It can give tourist and money to the country
c. It gives opportunities to less develop country
d. None of the above
54. Mr. Hong Hang a billionaire, plan to open his franchise business of Jollibee and 7
eleven in Bocol, Sipocot, Camarines Sur because he knows that there is no
establishment that build in that place.
In your understanding with the situation, would you think there is a possibility of
high income that Mr. Hong Hang will be gain?
a. There is a greater percentage that he will not gain more profit because of
accessibility of the place.
b. There will be a massive income because of none presence of competitive
c. There will be a greater percentage of losing money because of lack of
customer
d. None of the above
55. President of the Philippines is known with his arrogant statement to our allies
especially America. Does it affects the relation of the Philippines to international
trade over other country?
a. Yes, because the might get angry and stop us to trade in their country
b. No, Philippines is a strong country we can live without the help of others
c. It will not affects the trading because we have same law to follow
d. It will not affects they are merciful they will understand us
56. Mr. Dodong a grade-11 student want to increase his savings for the reason of, he
wanted to buy a motorcycle that can be used to his every day journey in going to
school. If you are Dodong how can you solve the problem?
a. Decrease my expenses and try to put first my money to my savings account
b. I will not consume products and services
c. Have a plan on how to save and how much to save
d. Borrow money

57. Investors in the Philippines is declining, the following are the reason except:
a. Security of investors
b. High performance of workers
c. Adaptation
d. Poverty
58. Based on the survey people who are interested in investment are the businessman
and rich people.
Why is it that in the lower class they are not considering this kind of opportunities?
a. Lack of capital
b. Lack of knowledge
c. Lack of power
d. All of the above
59. Mr. LO LUNG is experiencing an increase of loss in his business because of the law,
that mandating all the business establishment to lessen their contractual workers or
stop contractualization.If you are in his place what action will you make to solve the
said problem?
a. Layoff some of your workers
b. Stop the business
c. Hire another workers
d. Temporarily close your business
60. If a country were to join a free trade area, its business sector would gain because:
a. It could get tariff-free raw materials from countries inside the free trade
area.*
 b. There would be exchange rate stability between the member countries.
c. Prices of competitors from countries not in the free trade area would rise.
d. There would be fewer barriers to establishing subsidiaries in other countries
in the free trade area.

Prepared by:

Mr. Norven B.Grantos

Economics teacher