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Questions and Answers
What does elasticity refer to in the context of demand and supply?
What does elasticity refer to in the context of demand and supply?
Which of the following statements about market structures is true?
Which of the following statements about market structures is true?
What is the definition of a price ceiling?
What is the definition of a price ceiling?
What defines elastic demand or supply?
What defines elastic demand or supply?
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How is minimum wage defined?
How is minimum wage defined?
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In the context of labor force, who is included?
In the context of labor force, who is included?
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Which characteristic accurately describes monopolistic competition?
Which characteristic accurately describes monopolistic competition?
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What is true about rent in an economic context?
What is true about rent in an economic context?
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Study Notes
Key Economic Concepts
- Technology is the application of scientific knowledge to production methods.
- Market equilibrium occurs when quantity demanded equals quantity supplied at a specific price.
- Rent refers to payment for land use, paid to the landowner.
- A price ceiling is the maximum price a seller can charge for goods, typically enforced by the government.
Elasticity
- Elasticity measures how demand and supply respond to changes in price or non-price factors.
- Elastic demand/supply shows a greater proportional change in response to determinants (elasticity coefficient > 1).
- Inelastic demand/supply exhibits a lesser proportional change (elasticity coefficient < 1).
- Unitary elastic demand/supply indicates equal proportional change (elasticity coefficient = 1).
Market Structures
- Market structure defines the competitive environment for buyers and sellers.
- Perfect competition features numerous small buyers and sellers offering homogeneous goods, with no individual price impact.
- Imperfect competition exists when at least one condition of perfect competition is absent.
- A monopoly consists of a single producer with no close substitutes available.
- Monopolistic competition includes many sellers with differentiated but highly substitutable products (e.g., automotive brands, fast food chains).
- Oligopoly involves a few sellers controlling most of the production, with products that may be similar or differentiated, and significant entry barriers.
Labor Market and Population
- The labor force comprises individuals aged 15 and over who are able and willing to work, including both employed individuals and those actively seeking work.
- Population refers to all residents of a specific area, such as a town or country.
Wage Factors
- Wages represent regular compensation paid to employees, typically on a daily or weekly basis.
- Minimum wage is the lowest legally permitted wage, with penalties for employers who pay below this threshold.
Foreign Exchange and Savings
- The foreign exchange rate is the conversion rate of the Philippine peso against other currencies, like the US dollar.
- Savings is the portion of earnings not spent on consumption or tax obligations.
- Investment signifies the accumulation of capital stock to boost future production while sacrificing immediate consumption.
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Description
Test your understanding of key economics concepts such as market equilibrium, elasticity, and price controls. This quiz covers fundamental principles related to production methods and land use payments. Challenge yourself to see how well you know these essential economic terms!
