Applied Economics Overview

The application of economic theories and models.

Scarcity, needs, and wants.

<p>Household, Management.</p> Signup and view all the answers

<p>The study of economics focused on politically relevant questions.</p> Signup and view all the answers

<p>The study of economic activities like consumption, production, etc., that relates to history, sociology, and political science, explaining and predicting observed phenomena and how societies solve fundamental problems of reconciliation.</p> Signup and view all the answers

<p>It uses the scientific method in its explanations.</p> Signup and view all the answers

<p>Scarcity.</p> Signup and view all the answers

<p>Needs are things that you require to function, while wants are things that are desired.</p> Signup and view all the answers

<p>The benefit you give up when choosing one action over another.</p> Signup and view all the answers

<p>Having a lower opportunity cost in producing a good or service compared to another entity.</p> Signup and view all the answers

<p>The ability or capacity to produce more output compared to another entity.</p> Signup and view all the answers

<p>Goods and services that are commonly used in economic discussions.</p> Signup and view all the answers

<p>It relates to how resources are used to produce goods and services, taking into account the availability of resources and the labor force.</p> Signup and view all the answers

<p>This problem concerns the distribution and consumption of goods and services, considering factors like marketability, pricing, and demand.</p> Signup and view all the answers

<p>These are the resources or inputs used in the production of goods and services.</p> Signup and view all the answers

<p>Land includes any cultivated or improved resources used in production, with rent as its factor income.</p> Signup and view all the answers

<p>Capital refers to physical assets used in the production of goods and services, often considered as investment, with interest as its factor income.</p> Signup and view all the answers

<p>Entrepreneurship represents the factor that decides what, how much, and how resources will be used in production, with profit as its factor income.</p> Signup and view all the answers

<p>A model illustrating the flow of factors of production in the economy.</p> Signup and view all the answers

<p>A concept representing the various combinations of goods that can be produced using all available resources with maximum efficiency.</p> Signup and view all the answers

<p>An increase in the quantity or quality of factors of production.</p> Signup and view all the answers

<p>Financial Modeling (D)</p> Signup and view all the answers

<p>The directional relationship between economic variables.</p> Signup and view all the answers

<p>Mathematical and statistical analysis of economic data.</p> Signup and view all the answers

<p>The branch of economics that utilizes statistical and mathematical analysis of data to test economic theories and relationships.</p> Signup and view all the answers

<p>These are elements that change and are crucial in explaining and understanding economic theories.</p> Signup and view all the answers

<p>An element or factor that can change in value or quantity.</p> Signup and view all the answers

<p>A mathematical relationship between two or more economic variables, showing the relationship between dependent and independent variables.</p> Signup and view all the answers

<p>A mathematical expression used to represent and explain economic theories and their relationships.</p> Signup and view all the answers

<p>Graphs provide a visual representation of relationships between two or more economic variables, simplifying abstract concepts into diagrams.</p> Signup and view all the answers

<p>To simplify economic phenomena by providing explanations for the relationships between variables based on socio-economic environments.</p> Signup and view all the answers

<p>They are representations of economic and social phenomena, simplifying the study of economics by acting as guides or frameworks.</p> Signup and view all the answers

<p>It assumes all other factors remain constant while analyzing the relationship between two variables.</p> Signup and view all the answers

<p>All else being the same.</p> Signup and view all the answers

<p>Data collected for specific elements over several time periods.</p> Signup and view all the answers

<p>Data that includes various variables for a specific point in time.</p> Signup and view all the answers

<p>It involves evaluating economic decisions, policies, or outcomes as good or bad based on opinions and subjective judgments.</p> Signup and view all the answers

<p>Positive economics focuses on objective and factual analysis of economic scenarios and policies using quantitative and qualitative methods.</p> Signup and view all the answers

<p>Unemployment Rate (A), Interest Rates (B)</p> Signup and view all the answers

<p>It refers to the value or satisfaction a consumer derives from consuming goods.</p> Signup and view all the answers

<p>The additional satisfaction gained from consuming one more unit of a good or service.</p> Signup and view all the answers

<p>As a consumer consumes more of a good, the additional satisfaction or utility from each additional unit decreases.</p> Signup and view all the answers

<p>It shows a positive relationship between total utility and quantity consumed, meaning utility increases as more units are consumed.</p> Signup and view all the answers

<p>A collection of indifference curves, each showing different combinations of two goods that provide the same level of satisfaction to the consumer.</p> Signup and view all the answers

<p>They represent the consumer's income constraint, showing all combinations of goods that the consumer can afford to buy given their income and prices.</p> Signup and view all the answers

<p>The points on the budget line where the consumer attains the highest possible level of satisfaction given the budget constraint, represented by the tangency point of the budget line with the highest indifference curve.</p> Signup and view all the answers

<p>The income remaining after income tax has been deducted from gross income.</p> Signup and view all the answers

<p>The income remaining after all necessary expenses (besides taxes) have been deducted from disposable income.</p> Signup and view all the answers

<p>The total value of final goods and services produced and consumed within a country during a given period.</p> Signup and view all the answers

<p>It represents the rate of increase in the value of GDP, indicating the rate of economic expansion.</p> Signup and view all the answers

<p>GNI = GDP + Net Primary Income</p> Signup and view all the answers

<p>It considers the values of all final goods and services produced within the country's economy.</p> Signup and view all the answers

<p>It focuses on the total spending on goods and services within the country.</p> Signup and view all the answers

<p>They are goods and services consumed by end users, and only products produced within the country are included in GDP.</p> Signup and view all the answers

<p>They are goods and services used as inputs in further processing or production and excluded from GDP.</p> Signup and view all the answers

<p>Transactions that do not involve the production of new goods and services and are excluded from GDP.</p> Signup and view all the answers

<p>The difference between a country's exports and imports, reflecting its foreign trade balance.</p> Signup and view all the answers

<p>It is the total value of final goods and services calculated using current prices.</p> Signup and view all the answers

<p>It measures inflation as a ratio of nominal GDP to real GDP, reflecting the percentage change in prices.</p> Signup and view all the answers

<p>The cost of borrowing or the return on capital, representing the factor income for capital.</p> Signup and view all the answers

<p>The stated rate on bonds or loans, often quoted by banks and financial institutions, without adjusting for inflation.</p> Signup and view all the answers

<p>A persistent increase in the general price levels of goods and services within the economy.</p> Signup and view all the answers

<p>It measures the average change in prices paid by urban consumers for a basket of consumer goods and services.</p> Signup and view all the answers

<p>CPI = (Value of Current Market Basket / Value of Basket in the base year) x 100</p> Signup and view all the answers

<p>The rate at which the value of a currency is decreasing, often expressed as a percentage change in the CPI or other price index.</p> Signup and view all the answers

<p>A situation characterized by extremely high and accelerating inflation rates.</p> Signup and view all the answers

<p>It measures the average change in selling prices received by domestic producers for their output.</p> Signup and view all the answers

<p>It tracks the change in prices that businesses pay for goods at the wholesale level before reaching consumers.</p> Signup and view all the answers

<p>They represent different ways of managing a nation's available resources, outlining the rules and principles that guide economic agents.</p> Signup and view all the answers

<p>A system characterized by competition, private ownership, and limited government intervention, with prices determined by supply and demand.</p> Signup and view all the answers

<p>An economic system that advocates for minimal government intervention in the economy, reflecting the principle of &quot;leave alone.&quot;</p> Signup and view all the answers

<p>An economic system where the government plays a dominant role in planning, directing, and controlling economic activity.</p> Signup and view all the answers

<p>A combination of free market elements with centralized economic planning, balancing private and government intervention.</p> Signup and view all the answers

<p>An economic system based on customs, traditions, and habits, typically relying on subsistence agriculture and bartering.</p> Signup and view all the answers

<p>A system of exchange where goods and services are traded directly for other goods and services without using a medium of exchange like money.</p> Signup and view all the answers

<p>It aims to increase the national output to meet the growing demand for goods and services.</p> Signup and view all the answers

<p>It represents the cyclical fluctuations in GDP, including periods of expansion (growth) and contraction (decline).</p> Signup and view all the answers

<p>A significant economic downturn characterized by high unemployment and reduced economic activity.</p> Signup and view all the answers

<p>A period of economic growth characterized by increased production, employment, and consumer spending.</p> Signup and view all the answers

<p>It aims to ensure that all available labor resources are utilized efficiently, minimizing unemployment and maximizing economic output.</p> Signup and view all the answers

<p>Unemployment that results from changes in technology or industry structure, making some skills obsolete.</p> Signup and view all the answers

<p>Unemployment arising from government policies or institutional factors that affect labor markets, such as inflexible labor laws or minimum wage regulations.</p> Signup and view all the answers

<p>Unemployment that occurs when workers are voluntarily changing jobs or searching for new jobs, reflecting temporary or voluntary transitions.</p> Signup and view all the answers

<p>Unemployment that fluctuates with the business cycle, rising during recessions and declining during expansions.</p> Signup and view all the answers

<p>It aims to maintain stable prices, avoiding prolonged periods of inflation or deflation.</p> Signup and view all the answers

<p>It aims to ensure that a country's earnings from foreign trade are sufficient to finance its imports and maintain a sustainable current account balance.</p> Signup and view all the answers

<p>The Philippines has experienced economic growth since 1999, with a quarterly growth rate of 6% in 2018.</p> Signup and view all the answers

<p>Household consumption represents the largest component of GDP, indicating strong consumer spending.</p> Signup and view all the answers

<p>Capital formation, or investments in new machinery and infrastructure, has shown the most significant increase.</p> Signup and view all the answers

<p>The positive performance of the Philippine economy is reflected in the strong labor market, which is characterized by low unemployment rates.</p> Signup and view all the answers

<p>It measures the value of a country's currency relative to other international currencies.</p> Signup and view all the answers