Introduction to Economics
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Questions and Answers

What was the primary goal of the communities organized by the Spaniards during colonization?

  • To establish a centralized government for local governance.
  • To promote cultural exchange between different ethnic groups.
  • To contain natives while ensuring food production for colonizers. (correct)
  • To create a system of free trade among local farmers.

Which of the following was NOT typically granted exemptions from the tribute system?

  • Soldiers.
  • Wealthy landowners. (correct)
  • Those with failed crops.
  • Individuals aged 60 and over.

What type of agricultural tool was introduced during the Spanish colonization?

  • Seed drills for efficient planting.
  • Farming carts for transporting goods.
  • Fukienese plows. (correct)
  • Advanced irrigation systems.

What was a primary commodity within the tribute system during the Spanish colonization?

<p>Foodstuffs such as rice and meat. (C)</p> Signup and view all the answers

What were 'inquilinos' referred to in the context of the hacienda system?

<p>Renters or tenants working on estates. (A)</p> Signup and view all the answers

What does microeconomics primarily focus on?

<p>Individual firms and households (D)</p> Signup and view all the answers

Which of the following is a feature of microeconomics?

<p>It analyzes isolated variables (B)</p> Signup and view all the answers

Who coined the terms microeconomics and macroeconomics?

<p>Ragnar Frisch (B)</p> Signup and view all the answers

What is central to the study of microeconomics?

<p>Price theory (B)</p> Signup and view all the answers

Which of the following best describes the nature of microeconomics?

<p>Static and time-independent (B)</p> Signup and view all the answers

What does the term 'ceteris paribus' imply in microeconomics?

<p>Only the main variables are analyzed while others remain constant (B)</p> Signup and view all the answers

What perspective does microeconomics provide on economic activities?

<p>A worm's-eye view (C)</p> Signup and view all the answers

What does microeconomics primarily analyze regarding price?

<p>Price determination and resource allocation (D)</p> Signup and view all the answers

What is the main characteristic of a product market?

<p>It facilitates the exchange of goods and services (C)</p> Signup and view all the answers

In the theory of factor pricing, which of the following is NOT included?

<p>Market share (A)</p> Signup and view all the answers

How is individual welfare maximized in microeconomics?

<p>Through resource allocation without harming others (D)</p> Signup and view all the answers

Which of the following is a fundamental problem microeconomics seeks to solve?

<p>How efficiently goods and services are distributed (D)</p> Signup and view all the answers

What characterizes market equilibrium in a product market?

<p>Quantity supplied equals quantity demanded (B)</p> Signup and view all the answers

What is one of the three stages of microeconomic analysis regarding price determination?

<p>Equilibrium of individual consumers and producers (D)</p> Signup and view all the answers

What do the theories of consumption and demand relate to in microeconomics?

<p>Theory of Product Pricing (A)</p> Signup and view all the answers

What primarily defines the relationship between product and factor markets?

<p>Product markets sell final goods, while factor markets sell inputs (C)</p> Signup and view all the answers

What is the primary focus of microeconomics?

<p>Study of individual units (A)</p> Signup and view all the answers

Which of the following is NOT considered a limitation of microeconomics?

<p>It covers the entire economic system (B)</p> Signup and view all the answers

Which aspect does microeconomics analyze?

<p>Pricing and distribution problems (A)</p> Signup and view all the answers

What technique does microeconomics primarily use?

<p>Partial equilibrium technique (D)</p> Signup and view all the answers

What was the population estimate of the Philippines in 1565?

<p>Over half a million (D)</p> Signup and view all the answers

In the functional relationship example, which variable is considered dependent?

<p>Demand (A)</p> Signup and view all the answers

Which factor complicated the counting of the population in the Philippines during the pre-colonial period?

<p>The archipelago's geography and habits of tribute-paying (D)</p> Signup and view all the answers

Which of the following correctly describes constants in economics?

<p>They remain the same throughout analysis (C)</p> Signup and view all the answers

What was a common characteristic of barangay governance?

<p>Governance based on kinship (C)</p> Signup and view all the answers

Which of these is a use of microeconomics?

<p>Examining welfare conditions (A)</p> Signup and view all the answers

Which resource was closely linked to the barangay economy?

<p>Water resources (A)</p> Signup and view all the answers

What type of view does microeconomics provide?

<p>Worm's-eye view (A)</p> Signup and view all the answers

What type of trade was primarily practiced in the barangays?

<p>Barter trade (C)</p> Signup and view all the answers

Which of the following best defines social welfare in microeconomics?

<p>Overall efficient reallocation of resources (A)</p> Signup and view all the answers

Which relationship does microeconomics primarily concern?

<p>Cause-and-effect relationships among variables (B)</p> Signup and view all the answers

Which group oversaw governance in the barangay system?

<p>The datu (B)</p> Signup and view all the answers

What was one technology not utilized by the barangays?

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

What was a significant external influence on Southeast Asia, including the Philippines?

<p>Trade with China, India, and Arabia (D)</p> Signup and view all the answers

Which religion spread towards the outskirts of the Visayas and other areas?

<p>Islam (C)</p> Signup and view all the answers

What absence in the barangay system limited their participation in Southeast Asian trade?

<p>Coinage (C)</p> Signup and view all the answers

Flashcards

What is Economics?

The study of how individuals utilize their limited resources to satisfy their unlimited wants.

What are the traditional branches of Economics?

Economics is divided into areas like consumption, production, exchange, distribution, public finance, and economic planning.

What is Microeconomics?

Microeconomics focuses on individual economic decisions, like those made by households, firms, and consumers.

What is Partial Equilibrium in Microeconomics?

Microeconomics studies a part of the economy at a time, like a single firm or a single consumer.

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How does price affect consumption and production in Microeconomics?

Microeconomics uses price as a key factor to influence consumption and production decisions.

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What are unrealistic assumptions in Microeconomics?

Microeconomics makes simplifying assumptions to focus on specific factors, like assuming all other variables remain constant.

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What is a worm's eye view in Microeconomics?

Microeconomics provides specific and detailed insights into economic activities, like how individual firms function.

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Microeconomics

The study of how individuals and firms make decisions in the face of scarcity.

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Macroeconomics

The study of the economy as a whole, including factors like inflation, unemployment, and economic growth.

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Functional Relationship

A relationship between two or more variables where a change in one variable causes a change in the other.

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Constant

A quantity that remains constant throughout the analysis, even if other variables change.

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Variable

A quantity that can take on different values.

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Full Employment

A situation where the economy is operating at its full potential, with all resources being used efficiently.

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Laissez-Faire

The idea that the government should not intervene in the economy and let market forces guide economic activity.

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Partial Equilibrium

An economic model that assumes individual units operate independently and their interactions do not significantly affect the overall market.

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General Equilibrium

An economic model that considers the interactions of all economic units within a system.

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Welfare Economics

The study of the distribution of resources and the overall well-being of society.

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Theory of Product Pricing

It examines how prices are determined for goods and services in a market. This involves understanding the forces of supply and demand that interact to create an equilibrium price.

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Theory of Factor Pricing

It focuses on the income earned by factors of production (land, labor, capital, and entrepreneurship). It analyzes how wages, rent, interest, and profit are determined.

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Consumer Equilibrium

Describes a situation where an individual consumer is maximizing their satisfaction from their consumption choices, given their budget and the prices of goods.

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Producer Equilibrium

Describes a situation where a producer is maximizing profit by producing the optimal quantity of a good. This involves balancing costs and revenue to get the highest possible profit.

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Market Equilibrium

The point where the quantity of a good or service supplied by sellers equals the quantity demanded by buyers. Occuring at the intersection of the supply and demand curves.

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Market

A place where buyers and sellers interact to exchange goods or services for money. There are two main types: product and factor.

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Product Market

These markets deal with the exchange of goods or services that consumers directly purchase, such as food, clothing, electronics, and entertainment.

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Encomienda

This system mandated compulsory labor services from native Filipinos, typically involving domestic tasks for the encomendero.

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Tribute System

This constituted a set of regulations that governed the collection of tributes from native Filipinos in the Spanish colonies.

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Pueblo

These were planned settlements established by the Spaniards in the Philippines, designed to control and exploit native populations. They were larger than traditional barangays and featured a central square with key buildings.

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Manila Galleon Trade

This referred to the trade route connecting Manila with Acapulco, Mexico, facilitated by two galleons per year, each with a cargo limit of 250,000 pesos.

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Haciendas

These were large estates that originated from land grants awarded by the Spanish crown to individuals and institutions. These estates were often worked by natives and mestizos, transforming into pueblos over time.

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Pre-colonial Native Society (Philippines)

The pre-colonial Filipino society before the arrival of the Spanish in 1565. It was characterized by a diverse population, unique cultural practices, and indigenous governance systems.

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Barangay

A term referring to the indigenous Filipino settlements and communities. The name originated from the boat that carried the founding group to the island.

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Barangay Culture

The indigenous governance system in pre-colonial Philippines, organized by kinship and led by a datu. It reflected the social and political structures of the communities.

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Barangay Economy

The economic system of the barangay relied on water resources, agriculture, and barter. Trade was limited, with a focus on subsistence farming.

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Datu

The head of the barangay, serving as a leader and administrator. The datu played a crucial role in the community's social, political, and economic life.

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Barter

The practice of exchanging goods and services without using money. It was a common mode of exchange in pre-colonial Philippines.

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Limited Southeast Asian Trade

Pre-colonial Filipino societies were isolated and generally self-sufficient, with limited trading connections to larger Southeast Asian networks.

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Pearls and Slaves (Pre-colonial trade)

They were the main products traded by the Philippines with Southeast Asia, reflecting the archipelago's natural resources.

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Spanish Colonization (Philippines)

The period of Spanish colonization in the Philippines, lasting from 1570 until the late 1800s. It brought significant changes to the economy, social structure, and culture.

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War Economy (Philippine Revolution)

The economic system that emerged during the Philippine Revolution against Spain (1896-1903). It was a period of disruption and instability, with economic activity significantly affected by the war.

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Study Notes

Introduction to Economics

  • Economics studies how individuals use limited resources to meet unlimited wants.
  • Traditionally, economics is divided into consumption, production, exchange, distribution, public finance, and economic planning.

Consumption

  • Consumption is satisfying human wants through using goods and services.

Production

  • Production is the creation of goods and services using factors of production.

Exchange

  • Exchange is the transfer of goods and services in return for something else.

Distribution

  • Distribution studies how national income is shared among factors of production, such as rent, wages, interest, and profit.

Public Finance

  • Public finance covers government and local body financial activities.

Economic Planning

  • Economic planning is coordinating economic activity, commonly through a central authority.

Modern Economics

  • Modern economics distinguishes between microeconomics and macroeconomics.
  • Microeconomics focuses on individual units (like firms and consumers).
  • Macroeconomics analyzes the entire economy as a whole.

Microeconomics

  • Microeconomics originates from the Greek word "mikros," meaning small.
  • It examines individual economic behaviors of consumers, firms, and product prices.
  • It uses partial equilibrium analysis to study such behavior.
  • Microeconomics assumes static conditions, meaning they don't consider time.
  • It studies individual elements of the economy, like price theory and factor pricing.

Scope of Microeconomics

  • Microeconomics covers resource allocation, distribution of goods/services, and economic efficiency.
  • Analyzing these factors involves resource allocation, price determination, and equilibrium analysis.
  • It considers the equilibrium of consumers, producers, and entire markets.

Theory of Product Pricing

  • This theory encompasses concepts of consumption, demand, production costs, and market equilibrium.

Theory of Factor Pricing

  • This theory investigates rewards to factors of production, including wages, interest, rent, and profit.
  • It explores interactions between product and factor markets, and how factors are involved in pricing.

Welfare Economics

  • This looks at efficient resource allocation to maximize societal benefit with an examination of both individual and social welfare.
  • Individual welfare is maximized by reallocating resources to make a consumer better off without making someone else worse off.
  • Producer and social welfare follow the same principles.

Uses of Microeconomics

  • Microeconomics is helpful in comprehending the economy's functioning.
  • It facilitates understanding price determination and assists in resource allocation, policy formulation, and business decision-making.

Limitations of Microeconomics

  • It offers a partial view of the entire economic system.
  • It sometimes relies on assumptions of full employment which may not reflect reality.
  • It sometimes overlooks the complexities of real-world market forces.

Functional Relationships

  • Microeconomics studies how different variables relate to each other, with some things considered constant and others variable. In this context, one variable may influence (depend on) another variable (independent).

An Economic History of the Philippines

  • The period before colonialism, Spanish colonization, the American era, and other historical contexts are covered. This includes changes in population, trade, and land tenure systems.

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Description

This quiz covers the foundational concepts of economics, including the study of consumption, production, exchange, distribution, public finance, and economic planning. Additionally, it introduces modern economics, distinguishing between microeconomics and macroeconomics. Test your understanding of these essential economic principles.

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