Economics: Scarcity and Choice
40 Questions
0 Views

Economics: Scarcity and Choice

Created by
@RenewedMossAgate5477

Podcast Beta

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the main purpose of the National Disasters Risk Reduction and Management Council (NDRRMC)?

  • To manage natural disaster risks (correct)
  • To address social protection needs
  • To create job opportunities for citizens
  • To increase agricultural productivity

    • Which program is associated with providing social protection to senior citizens?

  • Social Protection Floor (4Ps) (correct)
  • National Calamity Fund
  • Comprehensive Agrarian Reform Program (CARP)
  • Poverty Reduction Assistance Program

    • What economic concept requires decision-making due to the limitations of resources?

  • Market equilibrium
  • Supply and demand
  • Scarcity (correct)
  • Production possibility frontier

    • What is the first step in conducting an economic analysis according to the provided content?

    <p>Identify the problem</p> Signup and view all the answers

    Which of the following is NOT mentioned as a government response to unemployment?

    <p>Government welfare programs</p> Signup and view all the answers

    What key issue is highlighted as an existing problem affecting the economy?

    <p>Rising national debt</p> Signup and view all the answers

    What does the Production Possibility Frontier (PPF) illustrate?

    <p>The trade-off between two goods</p> Signup and view all the answers

    Which issue is associated with economic inflation?

    <p>Higher market prices</p> Signup and view all the answers

    What factor limits farmers' ability to significantly increase supply, even if prices become more favorable?

    <p>The amount of available farmland</p> Signup and view all the answers

    How does a monopolist differ from other market structures in terms of supply and demand?

    <p>Market forces play a diminished role</p> Signup and view all the answers

    Which government action could potentially discourage companies from providing certain goods to the market?

    <p>Reducing subsidies for production</p> Signup and view all the answers

    What characteristics define perishable goods?

    <p>They have a limited shelf life</p> Signup and view all the answers

    What effect do natural factors, such as weather, have on agricultural supply?

    <p>Good weather guarantees a higher supply</p> Signup and view all the answers

    What is a possible outcome of a market characterized by rare or collectible items?

    <p>A price increase is common with limited supply</p> Signup and view all the answers

    Why might companies be incentivized to increase production according to government policy?

    <p>Via tax benefits or subsidies</p> Signup and view all the answers

    What is one way the law of supply might apply differently for certain industries?

    <p>Government policies could influence production outcomes</p> Signup and view all the answers

    What is typically shown on the horizontal axis of a supply curve graph?

    <p>Quantity delivered</p> Signup and view all the answers

    Which factor primarily leads to an increase in the quantity supplied according to the law of supply?

    <p>Rise in product price</p> Signup and view all the answers

    How does the perishable nature of a product affect its supply?

    <p>It restricts supply within a certain usability period.</p> Signup and view all the answers

    What does an upward-sloping supply curve indicate?

    <p>An increase in quantity supplied as price rises.</p> Signup and view all the answers

    What impact do government subsidies have on production?

    <p>They make production easier and cheaper.</p> Signup and view all the answers

    What can the slope of the supply curve reveal?

    <p>The price elasticity of supply.</p> Signup and view all the answers

    Which of the following correctly states a factor that influences supply?

    <p>Taxes impact production by making it more difficult and expensive.</p> Signup and view all the answers

    Which condition is essential for the law of supply to hold true?

    <p>All other things must be equal (ceteris paribus).</p> Signup and view all the answers

    What is the main focus of behavioral economics?

    <p>Psychological factors impacting decision-making.</p> Signup and view all the answers

    Which of the following describes a nonrenewable resource?

    <p>Natural Gas</p> Signup and view all the answers

    What is a consequence of a world without economics according to the content?

    <p>Instability in resource management.</p> Signup and view all the answers

    How is opportunity cost calculated?

    <p>Opportunity Cost = FO - CO</p> Signup and view all the answers

    What type of resources are considered renewable?

    <p>Resources that can be used repeatedly and are available in infinite quantity.</p> Signup and view all the answers

    What do natural resources refer to?

    <p>Materials and energy occurring naturally and used in economic activities.</p> Signup and view all the answers

    What is the relationship between planning and resources in the absence of economics?

    <p>Planning becomes irrelevant and leads to mismanagement.</p> Signup and view all the answers

    Which aspect does economic as a social science focus on?

    <p>The structured interactions among individuals related to scarcity and exchange.</p> Signup and view all the answers

    What does an elastic supply curve indicate about producers' response to price changes?

    <p>Producers can easily adjust output in response to price changes.</p> Signup and view all the answers

    What is a key characteristic of an inelastic supply curve?

    <p>The quantity supplied is not very responsive to price changes.</p> Signup and view all the answers

    Which scenario represents a decrease in supply?

    <p>Fewer items offered at the same price due to rising taxes.</p> Signup and view all the answers

    What does a perfectly elastic supply curve depict?

    <p>Producers will sell any quantity at a given price.</p> Signup and view all the answers

    What does an unfavorable shift in supply-related factors typically lead to?

    <p>A decrease in the quantity supplied.</p> Signup and view all the answers

    What represents the equilibrium state in a market?

    <p>The quantities supplied and demanded are equal.</p> Signup and view all the answers

    What results from a supply curve shifting to the left?

    <p>Fewer items available for sale at the same price.</p> Signup and view all the answers

    What does supply elasticity refer to?

    <p>The sensitivity of quantity supplied to price changes.</p> Signup and view all the answers

    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.
    • 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.

    Studying That Suits You

    Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

    Quiz Team

    Related Documents

    ECON 011: Principles of Economics Lesson 1-3 PDF

    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.

    More Like This

    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser