APZNZA~3.PDF

I. Directions: Write TRUE if the statement is true. If false, change the word/s to make the statement true. 1. Applied Economics is a social science that involves the use of scarce resources to satisfy unlimited wants. 2. Social Science is the application of economic theory and econometrics in spe...

I. Directions: Write TRUE if the statement is true. If false, change the word/s to make the statement true. 1. Applied Economics is a social science that involves the use of scarce resources to satisfy unlimited wants. 2. Social Science is the application of economic theory and econometrics in specific settings to analyze potential outcomes. 3. Scarcity refers to the value of the best foregone alternative. 4. Absolute scarcity is a condition where there are insufficient resources to satisfy all the needs and wants of a population. 5. Labor is a man-made resource used to produce goods and services, which includes machinery and equipment. 6. Microeconomics is concerned with the behavior of individual entities such as the consumer, producers, and resource owner. 7. Traditional economy is a type of economy where decisions are made on what goods to produce based on people’s preferences. 8. GNP is the market value of all goods and services produced within the country without distinction between foreign or domestic ownership made during specific period of time. 9. Five hundred pesos (P 500) is the daily minimum wage of all belonging to agriculture sector in Metro Manila. 10. Unemployment refers to the portion of the population, 15 years old and over who are willing and able to work, including those who are actively seeking work but have not found work and those who are employed. 11. Imperfect competition implies an ideal situation for the buyers and sellers. 12. Savings is said to be the life-blood of the government. 13. Monopoly is a type of competition wherein products are differentiated and entry and exit are easy. 14. Agriculture products are examples of businesses in belonging in monopolistic competition. II A. Compute for the Gross National Income (GNI). Agriculture- P 700,000 Services- P 2,900,000 Industry- P 1,500,000 Income earned by foreigners in the country- P 900,000 Income earned by the nationals in the rest of the world- P 3,000 II B. Compute for the Gross Domestic Product (GDP). Consumption-P 7,000,000 Investment- P 600,000 Exports- P 900,000 Imports- P 600,000 Government- P 300,000 II C. Complete the Demand and Supply Schedule. Qs=-200+50P Qd=1000-25P Qs P Qd 250 775 400 700 16 700 18 II D. Compute for the equilibrium price and equilibrium quantity. End J God bless you all in your exam! ANSWERS: 1. Applied Economics is a social science that involves the use of scarce resources to satisfy unlimited wants. Economics 2. Social Science is the application of economic theory and econometrics in specific settings to analyze potential outcomes. Applied Economics 3. Scarcity refers to the value of the best foregone alternative. Opportunity cost 4. Absolute scarcity is a condition where there are insufficient resources to satisfy all the needs and wants of a population. Scarcity 5. Labor is a man-made resource used to produce goods and services, which includes machinery and equipment. Capital 6. Microeconomics is concerned with the behavior of individual entities such as the consumer, producers, and resource owner. True 7. Traditional economy is a type of economy where decisions are made on what goods to produce based on people’s preferences. Market economy 8. GNP is the market value of all goods and services produced within the country without distinction between foreign or domestic ownership made during specific period of time. GDP 9. Five hundred pesos (P 500) is the daily minimum wage of all belonging to agriculture sector in Metro Manila. True 10. Unemployment refers to the portion of the population, 15 years old and over who are willing and able to work, including those who are actively seeking work but have not found work and those who are employed. Labor Supply/Labor Force 11. Imperfect competition implies an ideal situation for the buyers and sellers. Perfect competition 12. Savings is said to be the life-blood of the government. Tax 13. Monopoly is a type of competition wherein products are differentiated and entry and exit are easy. Monopolistic competition 14. Agriculture products are examples of businesses belonging in monopolistic competition. Pure competition/Perfect competition II A. GNI Agriculture- P 700,000 Services- P 2,900,000 Industry- P 1,500,000 Income earned by foreigners in the country- P 900,000 Less: Income earned by the nationals in the rest of the world- P 3,000 TOTAL P 5,997,000 II B. GDP Consumption- P 7,000,000 Investment- P 600,000 Exports- P 900,000 Less: Imports- P 600,000 Government- P 300,000 TOTAL P 8,800,000 II C. Complete the Demand and Supply Schedule. Qs=-200+50P Qd=1000-25P Qs P Qd 250 9 775 400 12 700 600 16 600 700 18 550 II D. Compute for the equilibrium price and equilibrium quantity. II C. Complete the Demand and Supply Schedule. Qs=-200+50P Qd=1000-25P Qs+200=50P 1000-Qd=-25P Qs+200=50P 1000-Qd=-25P 50 50 25 25 250+200=50P 1000-775=-25P 50 50 25 25 9=P 9=P II D. Equilibrium -200+50P=1000-25P Qs=-200+50P =-200+50(16) -200+50P=1000-25P =-200+800 200+25P= 200+25P =600 75P=1200 Qd=1000-25P 75 75 =1000-25(16) P=16 =1000-400 =600