APPECO LESSON 1

Question 1

 A SOCIAL SCIENCE concerned with the explanation & prediction of
observed phenomena in the society.

Answer 1

Economics

Question 2

It studies the way in the societies solve the fundamental problems of
reconciling the unlimited desires of individuals with scarcity resources,
susceptible to numerous alternative uses.

Answer 2

Economics

Question 3

is also an APPLIED SCIENCE because it uses the scientific
method in its explanations, which consists of observing reality & presenting
questions & problems to arrive at the formulation of theories & models

Answer 3

Economics

Question 4

As an applied science, it follows a systematic procedure to solve issues &
problems of the society.

Answer 4

Economics

Question 5

The Fields of Economics (2)

Answer 5

A. Microeconomics
B. Macroeconomics

Question 6

Studies of markets of good & services.

Answer 6

Microeconomics

Question 7

– Focuses of the behavior of individual in the market.

Answer 7

Microeconomics

Question 8

– Explains how & why these units make economic.

Answer 8

Microeconomics

Question 9

Studies the economy as a whole.

Answer 9

B. Macroeconomics –

Question 10

Focuses on aggregate indicators (such as production,
employment, etc.)

Answer 10

B. Macroeconomics –

Question 11

The Economics Agents/Stakeholders:
(3)

Answer 11

1. Consumers:
   2.Producers:
   3.The Public Sectors:

Question 12

: Consume goods & services/offer production factors; Maximize
utility.

Answer 12

Consumers

Question 13

Produce goods/demand productive factors; Maximize profit.

Answer 13

2. Producers:

Question 14

: Attempt to maximize the well-being of society.

Answer 14

3. The Public Sectors

Question 15

: Material goods or commodities.

Answer 15

 Tangible Goods

Question 16

: When they are in the form of services. Those rendered by
doctors, engineers, & other professionals.

Answer 16

Intangible Goods

Question 17

: Goods for the ultimate consumption of the consumers.
(e.g., toothpaste, bath soap, etc.)

Answer 17

Consumer Goods

Question 18

: Used in the production of other goods &
services. (e.g., buildings, machinery,
equipment.)

Answer 18

 Capital Goods/Industrial Goods

Question 19

: used to satisfy the basic needs of man. (e.g., food &
medicine)

Answer 19

Essential Goods

Question 20

: Goods man may do without, butt may give comfort &
satisfaction. (e.g., perfume, cakes, chocolates, expensive
cars)

Answer 20

Luxury Goods

Question 21

: Goods which are useful & scarce; with value attached to
them & a price has to be paid for their use. If a good is so
abundant & it can satisfy everyone’s needs without
anybody paying for it, then, that goods if free. The air is
free, but the air from an aircon is an economic goods.

Answer 21

Economic Goods

Question 22

Factors of Production (4)

Answer 22

1. land
2. labour
3. capital
4. entrepreneurship

Question 23

 Land is the natural resources available to create supply such as raw materials
that comes from the ground. It can be a non-renewable resource; commodities
such as oil & gold; & renewable resource, such as timber. Oil is a natural
resource, but petroleum gas is a capital good. Farmland is a natural resource,
but a shopping center is a capital good.

Answer 23

I. Land as a Factor of Production

Question 24

 Labor is the work done by people: education, skills, & motivation & productivity.
Productivity measures how much each hour of worker time produces in output.
Workforce receives wage for his labor.

Answer 24

II. Labor as a Factor of Production

Question 25

 Capital or capital goods are capital – the money that companies used to buy resources; man-made objects like machinery, equipment, & chemicals that are used in production. For example, capital goods include industrial & commercial buildings. A commercial aircraft is an example of a capital good.

Answer 25

III. Capital as a Factor of Production

Question 26

 Entrepreneurship develops an idea into a business. An entrepreneur combines the other three factors of production to add to supply. The most successful entrepreneurs are innovative & risk-takers. The income entrepreneurs earn its profits

Answer 26

IV. Entrepreneurship as a Factor Production

Question 27

Characteristics of Resources (3)

Answer 27

1. scarcity 2. multiple use 3. partially replaceable

Question 28

o Insufficient resources to supply all the desires & needs of individuals. In the production of goods & services;

Answer 28

1. Scarcity

Question 29

there are issues that economics may encounter, these include: **for Land** – inadequate land & natural resources; polluted areas; overcrowded spaces; **for Labor** – unskilled workforce; mismatch of jobs; **for capital** – low quality of equipment/machines; insufficient fund/capital; & **for entrepreneurship** – inadequate training of entrepreneurs; limited opportunity; scarcity of great ideas but many competitors in the market.

Answer 29

1. Scarcity

Question 30

o Resources can have more than one possible use. For example, a plot of land can be used to plant coffee or to build a factory.

Answer 30

2. Multiple Use

Question 31

o One resource scan replace another in the production of a good or service (e.g., replace manual labor with technology).

Answer 31

3. Partially Replaceable