#1.3 : Solving Socioeconomic Problems with Applied Economics

Question 1

Difference of growth and development

Answer 1

Growth is quantitative (ex. GDP), while, development is qualitative (ex. quality of life).

Question 2

It discusses the nature of development and describes tools and strategies that lead to development.

Answer 2

Theories of Economic Development

Question 3

A factor that is measured by the GDP/GNP, and focuses on the material wealth.

Answer 3

Level of Production

Question 4

A factor that considers the significant change in the citizens.

Answer 4

Quality of Life

Question 5

A factor that considers the impact of human activities in the environment.

Answer 5

Sustainable Development

Question 6

Underdevelopment is a combination of:

Answer 6

low production + low quality of life

Question 7

Development is based on historical stages. (theory)

Answer 7

Linear Stages of Growth

Question 8

Manufacturing sector is born to allocate resources. (theory)

Answer 8

Structural Change Model

Question 9

Small countries being dependent to developed countries = underdevelopment. (theory)

Answer 9

International Dependence

Question 10

Follows the idea of capitalism, and more freedom to business. (theory)

Answer 10

Neoclassical Theory

Question 11

Improvement of technology = development. (theory)

Answer 11

New Growth Theory

Question 12

One sector can affect the other sectors = underdevelopment.

Answer 12

Theory of Coordination Failure

Question 13

Investment of human capital (skilled w/ high wages) = development. (theory)

Answer 13

O-Ring Theory

Question 14

Refers to population is only able to meet its basic subsistence needs (food, clothing, and shelter)

Answer 14

Poverty

Question 15

Refers to unequal access to wealth and income

Answer 15

Inequality

Question 16

Refers to the severe deprivation of basic human needs.

Answer 16

Absolute Poverty

Question 17

Refers to the portion of the labor force who is willing to engage in productive activities yet fails to do so.

Answer 17

Unemployment

Question 18

4 types of unemployment

Answer 18

frictional, cyclical, seasonal, and structural

Question 19

State of an individual being employed but his/her talents and expertise are underutilized or are not matched to the job.

Answer 19

Underemployment

Question 20

2 types of underemployment

Answer 20

visible and invisible

Question 21

Sustained and continual increase in the prices of goods and services.

Answer 21

Inflation

Question 22

2 types of inflation

Answer 22

hyperinflation and stagflation

Question 23

labor force who are willing and able to work, and are awaiting deployment

Answer 23

Labor Supply

Question 24

total available job vacancies from previous cycle or year up to the present

Answer 24

Labor Demand

Question 25

Refers to the payments made in exchange for the time and effort exerted or given by an individual who was able to produce a good or service

Answer 25

Wages

Question 26

supply increase + demand constant = wage _____

Answer 26

decrease

Question 27

supply decrease + demand constant = wage _____

Answer 27

increase

Question 28

supply constant + demand increase = wage _____

Answer 28

increase

Question 29

supply constant + demand decrease = wage _____

Answer 29

decrease

Question 30

unemployment and minimum wage = wage _____

Answer 30

increase

Question 31

It is the conversion of a urrency into an international currency (i.e. Philippine peso to U.S. dollar).

Answer 31

Foreign exchange

Question 32

Labor migration in a way helped our problems of ___________, as opportunities to work abroad provided jobs for Filipinos and also boosted our economy through their remittances.

Answer 32

unemployment

Question 33

OFWs help in the economy using _______.

Answer 33

remittances