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Questions and Answers
What is the main purpose of the National Disasters Risk Reduction and Management Council (NDRRMC)?
What is the main purpose of the National Disasters Risk Reduction and Management Council (NDRRMC)?
Which program is associated with providing social protection to senior citizens?
Which program is associated with providing social protection to senior citizens?
What economic concept requires decision-making due to the limitations of resources?
What economic concept requires decision-making due to the limitations of resources?
What is the first step in conducting an economic analysis according to the provided content?
What is the first step in conducting an economic analysis according to the provided content?
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Which of the following is NOT mentioned as a government response to unemployment?
Which of the following is NOT mentioned as a government response to unemployment?
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What key issue is highlighted as an existing problem affecting the economy?
What key issue is highlighted as an existing problem affecting the economy?
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What does the Production Possibility Frontier (PPF) illustrate?
What does the Production Possibility Frontier (PPF) illustrate?
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Which issue is associated with economic inflation?
Which issue is associated with economic inflation?
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What factor limits farmers' ability to significantly increase supply, even if prices become more favorable?
What factor limits farmers' ability to significantly increase supply, even if prices become more favorable?
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How does a monopolist differ from other market structures in terms of supply and demand?
How does a monopolist differ from other market structures in terms of supply and demand?
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Which government action could potentially discourage companies from providing certain goods to the market?
Which government action could potentially discourage companies from providing certain goods to the market?
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What characteristics define perishable goods?
What characteristics define perishable goods?
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What effect do natural factors, such as weather, have on agricultural supply?
What effect do natural factors, such as weather, have on agricultural supply?
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What is a possible outcome of a market characterized by rare or collectible items?
What is a possible outcome of a market characterized by rare or collectible items?
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Why might companies be incentivized to increase production according to government policy?
Why might companies be incentivized to increase production according to government policy?
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What is one way the law of supply might apply differently for certain industries?
What is one way the law of supply might apply differently for certain industries?
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What is typically shown on the horizontal axis of a supply curve graph?
What is typically shown on the horizontal axis of a supply curve graph?
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Which factor primarily leads to an increase in the quantity supplied according to the law of supply?
Which factor primarily leads to an increase in the quantity supplied according to the law of supply?
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How does the perishable nature of a product affect its supply?
How does the perishable nature of a product affect its supply?
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What does an upward-sloping supply curve indicate?
What does an upward-sloping supply curve indicate?
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What impact do government subsidies have on production?
What impact do government subsidies have on production?
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What can the slope of the supply curve reveal?
What can the slope of the supply curve reveal?
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Which of the following correctly states a factor that influences supply?
Which of the following correctly states a factor that influences supply?
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Which condition is essential for the law of supply to hold true?
Which condition is essential for the law of supply to hold true?
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What is the main focus of behavioral economics?
What is the main focus of behavioral economics?
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Which of the following describes a nonrenewable resource?
Which of the following describes a nonrenewable resource?
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What is a consequence of a world without economics according to the content?
What is a consequence of a world without economics according to the content?
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How is opportunity cost calculated?
How is opportunity cost calculated?
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What type of resources are considered renewable?
What type of resources are considered renewable?
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What do natural resources refer to?
What do natural resources refer to?
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What is the relationship between planning and resources in the absence of economics?
What is the relationship between planning and resources in the absence of economics?
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Which aspect does economic as a social science focus on?
Which aspect does economic as a social science focus on?
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What does an elastic supply curve indicate about producers' response to price changes?
What does an elastic supply curve indicate about producers' response to price changes?
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What is a key characteristic of an inelastic supply curve?
What is a key characteristic of an inelastic supply curve?
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Which scenario represents a decrease in supply?
Which scenario represents a decrease in supply?
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What does a perfectly elastic supply curve depict?
What does a perfectly elastic supply curve depict?
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What does an unfavorable shift in supply-related factors typically lead to?
What does an unfavorable shift in supply-related factors typically lead to?
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What represents the equilibrium state in a market?
What represents the equilibrium state in a market?
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What results from a supply curve shifting to the left?
What results from a supply curve shifting to the left?
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What does supply elasticity refer to?
What does supply elasticity refer to?
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Study Notes
Economics: Scarcity and Choice
- Economics is the study of human behavior within a structured group, especially when it comes to scarcity, choice, and exchange.
- Scarcity occurs when available resources are inadequate to meet diverse human needs. It leads to decision-making processes to distribute limited resources effectively.
- Opportunity cost is the value of the best forgone option. It helps evaluate trade-offs when making decisions.
- Production Possibility Frontier (PPF) shows the maximum combinations of two goods that can be produced with available resources.
Factors Affecting Supply
- Supply is the amount of a good or service that producers are willing to sell at a given price.
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Determinants of supply include:
- Perishable nature of products: Products with limited shelf life affect supply quantities.
- Government subsidies and taxes: Subsidies encourage production, while taxes discourage it.
- Input costs: Changes in the costs of raw materials, labor, and energy affect supply.
- Technology: Technological advancements can increase efficiency and production capacity.
- Natural factors: Weather conditions can significantly impact agricultural production.
Elasticity of Supply
- Elasticity of supply measures the responsiveness of quantity supplied to changes in price.
- Elastic supply: Small price changes lead to significant changes in quantity supplied. Supply curves are flatter.
- Inelastic supply: Small price changes lead to minor changes in quantity supplied. Supply curves are steeper.
- Perfectly elastic supply: Producers will supply any quantity at a specific price but none at any other price. Supply curve is vertical.
Market Equilibrium
- Market equilibrium occurs when the quantity supplied by sellers equals the quantity demanded by buyers.
- Disequilibrium exists when supply and demand are not in balance, resulting in either a surplus or a shortage.
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Description
This quiz explores key concepts in economics, focusing on scarcity, choice, and the production possibility frontier. Participants will learn about opportunity costs and the factors that affect supply in the market. Test your understanding of these fundamental economics principles.
