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Questions and Answers
Microeconomics is the study of individuals and business ______.
Microeconomics is the study of individuals and business ______.
decisions
Macroeconomics looks at the decisions of countries and ______.
Macroeconomics looks at the decisions of countries and ______.
governments
Price Theory states that the price for goods and services is determined by supply and ______.
Price Theory states that the price for goods and services is determined by supply and ______.
demand
Positive Economics considers economic conditions 'as they ______'.
Positive Economics considers economic conditions 'as they ______'.
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An economic theory is a set of ideas and principles that outline how different ______ function.
An economic theory is a set of ideas and principles that outline how different ______ function.
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Normative Economics deals with the way economic relationships ______ to be.
Normative Economics deals with the way economic relationships ______ to be.
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Value judgments play an integral part in ranking possible objectives in ______ economics.
Value judgments play an integral part in ranking possible objectives in ______ economics.
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Microeconomics examines the economic behaviors of individuals, households, and ______.
Microeconomics examines the economic behaviors of individuals, households, and ______.
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Economics takes a wider view and looks at the economies on a much larger scale—regional, national, continental, or even ______.
Economics takes a wider view and looks at the economies on a much larger scale—regional, national, continental, or even ______.
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Adam Smith is known as the 'FATHER OF ______.'
Adam Smith is known as the 'FATHER OF ______.'
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Economic activities are related to production, distribution, exchange, and consumption of goods and ______.
Economic activities are related to production, distribution, exchange, and consumption of goods and ______.
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The primary aim of the economic activity is the production of goods and services with a view to make them available to ______.
The primary aim of the economic activity is the production of goods and services with a view to make them available to ______.
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Economic activities are those efforts which are undertaken by man to earn income, money, wealth for his life, and to secure maximum satisfaction of ______.
Economic activities are those efforts which are undertaken by man to earn income, money, wealth for his life, and to secure maximum satisfaction of ______.
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The word ECONOMICS comes from the Greek word 'oikonomia' which means management of ______.
The word ECONOMICS comes from the Greek word 'oikonomia' which means management of ______.
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The main economic problem is ______.
The main economic problem is ______.
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The primary sector refers to that sector of the economy that uses natural resources to produce ______.
The primary sector refers to that sector of the economy that uses natural resources to produce ______.
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Every economy must somehow solve three basic economic problems: what should be produced, how goods and services should be produced, and for whom are the goods and services ______.
Every economy must somehow solve three basic economic problems: what should be produced, how goods and services should be produced, and for whom are the goods and services ______.
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The direction in which the demand will change in response to a change in income depends on the type of ______.
The direction in which the demand will change in response to a change in income depends on the type of ______.
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Normal Goods refer to a good for which demand at every price ______ when income rises.
Normal Goods refer to a good for which demand at every price ______ when income rises.
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Inferior Goods refer to a good for which demand falls when income ______.
Inferior Goods refer to a good for which demand falls when income ______.
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Public transportation is a good example of ______ goods.
Public transportation is a good example of ______ goods.
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The law of supply and demand explains the interaction between the sellers of a resource and the buyers for that ______.
The law of supply and demand explains the interaction between the sellers of a resource and the buyers for that ______.
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The quantity of good demanded within the period depends not only on price in that period but also on prices expected in ______ periods.
The quantity of good demanded within the period depends not only on price in that period but also on prices expected in ______ periods.
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Consumers/buyers are willing and ______ to purchase a certain number or amount of goods and services at various prices.
Consumers/buyers are willing and ______ to purchase a certain number or amount of goods and services at various prices.
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A ______ curve shows the relationship between the quantity of good supplied and its corresponding price.
A ______ curve shows the relationship between the quantity of good supplied and its corresponding price.
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The government imposes a ______ price to protect consumers when there is excessive demand.
The government imposes a ______ price to protect consumers when there is excessive demand.
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A minimum price imposed by the government is referred to as a price ______.
A minimum price imposed by the government is referred to as a price ______.
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Price elasticity of demand measures the responsiveness of quantity demanded to a change in ______.
Price elasticity of demand measures the responsiveness of quantity demanded to a change in ______.
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The formula for elasticity is the percentage change in quantity demanded divided by the percentage change in ______.
The formula for elasticity is the percentage change in quantity demanded divided by the percentage change in ______.
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The Greek letter ______ is used as a symbol for elasticity.
The Greek letter ______ is used as a symbol for elasticity.
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The concept of elasticity includes price elasticity of demand, income elasticity of demand, and cross-price elasticity of ______.
The concept of elasticity includes price elasticity of demand, income elasticity of demand, and cross-price elasticity of ______.
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The expected price elasticity of demand is ______ because the relationship between price and quantity demanded is inversely related.
The expected price elasticity of demand is ______ because the relationship between price and quantity demanded is inversely related.
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The amount of goods and services that the producers are willing and able to sell is known as the ______.
The amount of goods and services that the producers are willing and able to sell is known as the ______.
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The relationship between demand and its determinants can be represented by a ______ function.
The relationship between demand and its determinants can be represented by a ______ function.
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According to the Law of ______, as the price increases, quantity supplied also increases.
According to the Law of ______, as the price increases, quantity supplied also increases.
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Ceteris Paribus is a Latin phrase meaning 'all else being ______.'
Ceteris Paribus is a Latin phrase meaning 'all else being ______.'
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An increase in the price of an input in the cost of production decreases the quantity ______.
An increase in the price of an input in the cost of production decreases the quantity ______.
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State-of-the-art technology increases the quantity of goods and services, causing a reduction in production ______.
State-of-the-art technology increases the quantity of goods and services, causing a reduction in production ______.
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Expectations about future prices are referred to as price ______.
Expectations about future prices are referred to as price ______.
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The Law of Demand states that price and quantity demanded are ______ proportional.
The Law of Demand states that price and quantity demanded are ______ proportional.
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The amount producers are willing and able to offer is known as ______.
The amount producers are willing and able to offer is known as ______.
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An increase in the number of firms in the market leads to an increase in ______.
An increase in the number of firms in the market leads to an increase in ______.
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A condition when the quantity demanded exceeds quantity supplied is known as a ______.
A condition when the quantity demanded exceeds quantity supplied is known as a ______.
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When the quantity supplied is greater than quantity demanded, it results in a ______.
When the quantity supplied is greater than quantity demanded, it results in a ______.
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The amount of a good bought and sold in the market at a prevailing equilibrium price is referred to as ______ quantity.
The amount of a good bought and sold in the market at a prevailing equilibrium price is referred to as ______ quantity.
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The more available the input or raw material used in production, the ______ the supply of that good.
The more available the input or raw material used in production, the ______ the supply of that good.
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Price controls by the government are designed to prevent market fluctuations; these include price ______ and price floors.
Price controls by the government are designed to prevent market fluctuations; these include price ______ and price floors.
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The mathematical expression for supply is Qs = c + dP, where Qs stands for quantity supplied and P represents ______.
The mathematical expression for supply is Qs = c + dP, where Qs stands for quantity supplied and P represents ______.
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Study Notes
Introduction to Economics
- Economics is the study of how societies use scarce resources to satisfy unlimited wants.
- Adam Smith is considered the "Father of Economics", defining it as an inquiry into the nature and causes of the wealth of nations.
- Economics studies rational human behavior in fulfilling needs and wants.
- It's a social science, examining how individuals, businesses, governments, and societies allocate resources through production, consumption, and distribution.
- The fundamental economic problem is scarcity, where limited resources meet unlimited wants.
- Choices are necessary because resources are limited (trade-offs).
- Needs are essential for survival (food, clothing, shelter).
- Wants are desires beyond survival (luxury goods).
Economic Activities
- Economic activity involves production, distribution, exchange, and consumption of goods and services.
- Human activities aim to earn income to satisfy their needs.
- Economists classify economic activities into sectors:
- Primary Sector: Uses natural resources (agriculture, mining, fishing).
- Secondary Sector: Manufacturing raw materials into goods for sale.
- Tertiary Sector: Provides services (distribution, transportation, entertainment).
- Quaternary Sector: Knowledge-based services (research, information technology).
- Quinary Sector: High-level decision-making in government, science, etc.
Importance of Economics
- Economics is critical in daily life decisions on resource allocation.
Price Theory and Economic Theory
- Price theory explains how prices are determined by supply and demand.
- Economic theory provides frameworks for understanding how economies function.
- Basic economic problems include: what to produce, how to produce, how much to produce, and for whom.
- Economic systems include traditional, command, market, and mixed economies.
Demand, Supply, and Market Equilibrium
- Demand is the quantity of a good that consumers are willing and able to buy at various prices.
- The law of demand states inverse relationship between price and quantity demanded (ceteris paribus).
- Supply is the quantity of a good that sellers are willing and able to offer at various prices.
- The law of supply states direct relationship between price and quantity supplied (ceteris paribus).
- Market equilibrium occurs when quantity demanded equals quantity supplied.
Concept of Elasticity
- Elasticity measures the responsiveness of one variable to a change in another.
- Price elasticity of demand measures how sensitive the quantity demanded is to a change in price.
- Income elasticity of demand measures how sensitive the quantity demanded is to a change in income.
- Cross-price elasticity of demand measures the responsiveness of the quantity demanded of one good to a change in the price of another good.
- Supply elasticity measures how responsive the quantity supplied is to a change in price.
Other Topics
- Determinants of demand and supply (factors influencing supply and demand such as government regulations, taxes, subsidies, prices of related goods, consumer preferences, and number of buyers and sellers).
- Different types of goods (normal, inferior, luxury, necessity, complementary, and substitute goods) and their impact on demand.
- Types of economic systems (traditional, command, market, and mixed) and their characteristics.
- Factors of production (land, labor, capital, entrepreneurship).
- Circular flow of economic activity model.
Additional Note (Filipino Culture)
- Includes the study of Philippine history and culture in relation to economics.
- Discusses historical economic systems, customary practices, and resource allocation in a Filipino context.
- Explains primary and secondary sources of information used to learn about the past.
- Identifies important figures (e.g., Juan de Plasencia, historical figures) and influential texts in Philippine history.
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Description
This quiz covers the fundamental concepts of economics, including the definition of economics, economic activities, scarcity, and the roles of needs and wants. Learn about the rational behavior of individuals and societies in resource allocation. Test your understanding of economic principles that underlie production, consumption, and distribution.
