Lesson: Application of Supply and Demand

Question 1

Also called primary product or primary good, is a good sold for production or consumption just as it was found in nature.

Answer 1

Commodities

Question 2

If the quantity demanded changes a lot when prices change a little.

This often is the case for products or services for which there are many alternatives.

Answer 2

Elastic

Question 3

When there is a small change in demand when prices change a lot.

This often is the case when there are few good substitutes.

Answer 3

Inelastic

Question 4

important because it describe the fundamental relationship between the price of a good and the demand for that good.

Answer 4

Elasticity

Question 5

plenty of Substitutes

Answer 5

Elastic goods and services

Question 6

fewer Substitutes

Answer 6

Inelastic goods

Question 7

The Overall Effect of Minimum Wage and Employment:

Answer 7

Aggressive minimum wage rate increases have led to reduction in employment.

On the impact on production workers have shown that the most vulnerable
groups- young, less educated and inexperience workers suffer most.

Question 8

having a job working for a company or another person.

Answer 8

Employed

Question 9

is a term that refers to the number of people who want a
job and do not have one.

Answer 9

Unemployment

Question 10

represents people who are working but are not working in a job that matches their skills or abilities/

Answer 10

Underemployment

Question 11

Effect of Peso Depreciation:

Answer 11

Higher prices in peso terms for imported goods and services

A weak peso will negate the impact of falling crude oil prices abroad.

Increase in the pump-prices of gasoline and other petroleum products.

Fuel inflation due to increase in the price of imported goods.

Higher Debt servicing on the part of the government.

Domestic tourists find it expensive to visit places abroad because they will need more pesos to buy dollars.

Question 12

Positive Effect of Depreciation in Peso:

Answer 12

Exporters and Overseas Filipino Workers and their dependents now receive more pesos for every dollar they exchange.

Foreign tourists find it attractive to visit the Philippines with dollars buying more pesos.

Question 13

Factors about housing affordability is
low in the Philippines:

Answer 13

The ratio of unit housing cost to income is rapidly rising.

There are few low-cost alternatives to homeownership in the formal market.

Innovative Housing Finance is limited and the Microfinance schemes available suffer from liquidity problems and
bureaucratic delays.