Applied Economics

Question 1

is a social science which deals with the proper allocation of scarce resources to satisfy the unlimited human wants.

Answer 1

ECONOMICS

Question 2

is a condition where there are insufficient resources to satisfy all the needs and wants of a population.

Answer 2

SCARCITY

Question 3

are also known as factors of production or inputs.

Answer 3

Economic Resources

Question 4

What are the five major factors of production?

Answer 4

1. Land
   2.Labor
2. Capital
3. Entrepreneur
4. Foreign exchange

Question 5

consist of free gifts of nature which includes all natural resources above, on, and below the ground such as soil, rivers, lakes, oceans, forests, mountains, mineral resources and climate.

Answer 5

land

Question 6

refers to all human efforts, be it mental or physical, that help to produce want satisfying goods and services.

Answer 6

Labor

Question 7

a finished product, which is used to produce goods.

Answer 7

Capital

Question 8

is the organizer and coordinator of the other factors of production: land, labor, and capital.

Answer 8

Entrepreneur

Question 9

mostly affecting the national economy in terms of import and export transactions

Answer 9

Foreign exchange

Question 10

deals with the economic behavior of individual units such as the consumers, firms, and the owners of the factors of production.

Answer 10

Microeconomics

Question 11

deals with the economic behavior of the whole economy or its aggregates such as government, business and households. also known as

Answer 11

Macroeconomics

Question 12

the organization of economic society with reference to the production, exchange, distribution and consumption of wealth.

Answer 12

Economic System

Question 13

It is also known as the subsistence economy. In this type of economy, people produce goods and services for their own consumption.

Answer 13

Traditional Economy

Question 14

Under this system, the government takes hold of the economy of the State. The government does policy formulation, economic planning and decision-making. It dictates on what to produce, how to produce and for whom to produce.

Answer 14

Command Economy

Question 15

• In a capitalistic system, business enterprises are owned and controlled by private individuals, with “free enterprise” meaning any individual can engage in any enterprise to make a profit. In a market economy, individualism or “laissez-faire” means freedom from government control. Private firms make major decisions about production and consumption.

Answer 15

Market System

Question 16

This is a system which is a mixture of the different types of economy. The government sets laws and rules that regulate economic life, produces educational and police services, and regulates pollution and business.

Answer 16

Mixed Economy

Question 17

is the application of economic theory and econometrics in specific settings with the goal of analyzing potential outcomes.

Answer 17

Applied economics

Question 18

He is attributed to be the first to use the phrase “applied economics.

Answer 18

John Neville Keynes

Question 19

is the use of statistical techniques to understand economic issues and test theories.

Answer 19

Econometrics

Question 20

the propositions or condition that are taken as given and do not need further investigation, as the basic starting point of investigation.

Answer 20

State

Question 21

facts in connection with the activity that you want to theorize.

Answer 21

Observe

Question 22

the rules of logic to the observed facts to determine causal relationships between observed factors and to eliminate facts that are unnecessary and irrelevant.

Answer 22

Apply

Question 23

a set of principles such that formulated hypotheses may be tested as to whether they are valid or not.

Answer 23

Establish

Question 24

deals with “what is” - things that are happening such as the current inflation rate, the number of employed laborers, and the level of the Gross National Product (GNP).

Answer 24

positive economics

Question 25

refers to “what should be” – that which embodies the ideal rate of population growth or the most effective tax system. It focuses on policy formulation that will help to attain the ideal situation.

Answer 25

Normative economics

Question 26

is the total monetary or market value of all the finished products produced with a country’s borders within a period.

Answer 26

Gross domestic product

Question 27

is an estimate of total value of all the final products and services turned out in each period by means of production owned by a country’s residents.

Answer 27

Gross National Product

Question 28

is still a main problem of the Philippine economy despite improvements reported by the National Statistic office.

Answer 28

Unemployment

Question 29

is an interaction between buyers and sellers of trading or exchange. It is where the consumer buys and the seller sell.

Answer 29

Market

Question 30

What are the 3 types of market?

Answer 30

1. Good market 2. Labor market 3. Financial Market

Question 31

where workers offer services and look for jobs, and where employers look for workers to hire.

Answer 31

Labor market

Question 32

includes the stock market where securities of corporations are traded.

Answer 32

Financial market

Question 33

it is where we buy goods.

Answer 33

Good market

Question 34

- is the willingness of a consumer to buy a commodity at a given price. A demand schedule shows the various quantities the consumer is willing to buy at various prices.

Answer 34

Demand

Question 35

refers to the quantity of goods that a seller is willing to offer for sale.

Answer 35

Supply

Question 36

refers to the expenses incurred to produce the good.

Answer 36

Cost of production

Question 37

defined as building up the capital stock for more future production and consumption.

Answer 37

Investment

Question 38

the lowest wage permitted by law or by a special agreement (such as one with a labor union).

Answer 38

Minimum wage

Question 39

a compulsory contribution to state revenue, levied by the government on workers' income and business profits, or added to the cost of some goods, services, and transactions.

Answer 39

Taxes

Question 40

a compulsory contribution to state revenue, levied by the government on workers' income and business profits, or added to the cost of some goods, services, and transactions.

Answer 40

Taxes

Question 41

a percentage of individual earnings filed to the federal government.

Answer 41

Income tax

Question 42

a percentage of corporate profits taken as tax by the government to fund federal programs.

Answer 42

Corporate tax

Question 43

 taxes levied on certain goods and services

Answer 43

Sales tax

Question 44

 taxes levied on certain goods and services

Answer 44

Sales tax

Question 45

 is the rivalry between companies selling similar products and services with the goal of achieving revenue, profit, and market share growth.

Answer 45

Competition

Question 46

Situation prevailing in a market in which buyers and sellers are so numerous and well informed that all elements of monopoly are absent and the market price of a commodity is beyond the control of individual buyers and sellers. Agricultural markets are examples of nearly perfect competition 

Answer 46

Perfect competition

Question 47

a competitive market situation where there are many sellers, but they are selling heterogeneous (dissimilar) goods as opposed to the perfect competitive market scenario.

Answer 47

Imperfect competition

Question 48

is a type of imperfect competition such that many producers sell products that are differentiated from one another and hence are not perfect substitutes.

Answer 48

Monopolistic competition

Question 49

is a market that is dominated by only a few large firms. These firms prefer not to compete via price wars and therefore compete in various other ways, such as advertising, product differentiation and barriers.

Answer 49

Oligopoly

Question 50

market structure characterized by a single seller, selling a unique product in the market. In a monopoly market, the seller faces no competition, as he is the sole seller of goods with no close substitute.

Answer 50

Monopoly

Question 51

individual or business that purchases another company's goods or services.

Answer 51

Customers

Question 52

an entity that supplies goods and services to another organization. .

Answer 52

Supplier

Question 53

- Any person or entity which is a rival against another. In business, a company in the same industry or a similar industry which offers a similar product or service.

Answer 53

Competitors

Question 54

 goods are goods which, as a result of changed conditions, may replace each other in use (or consumption).

Answer 54

Substitute