40/40 Flashcards
Enumerate the Maslow’s Hierarchy of Needs
Draw the Circular Flow Model of Economy
Define Resource Market
Define Product Market
A graph that shows all the different combinations of output of two goods that can be produce using resources and technology.
PPF
Illustrates the maximum potential output that an economy, firm, or individual can achieve when allocating its resources efficiently.
PPF
It demonstrates the trade-off between producing different goods and services, given a fixed set of resources and technology.
PPF
A situation in which you must choose between two or more conflicting options or alternatives.
TRADE-OFF
Concept of making choices between two or more alternatives, where selecting one option typically involves giving up some of the benefits or advantages of the other option.
TRADE-OFF
The value of the next best alternative that must be forgone when a choice is made to allocate resources
OC
It represents the cost of forgoing the opportunity to use those resources for an alternative use.
A strategy where individuals, firms, or even entire countries focus their production efforts on a limited range of goods or services in which they have a comparative advantage.
OC
It means that a country or entity can produce a good at a lower opportunity cost relative to another country or entity.
CA
Arises when one individual produce a goods or services at a lower opportunity cost.
CA
Occurs when one country can produce a goods more efficiently than the others.
AA
Explain the relationships between two or more variables.
FUNCTIONS
Visual presentation between two or more economic variables.
GRAPH
A situation where resources are not used to their full potential.
INEFFECIENCY
Formula in computing GDP
GDP=I+C+G+(X-M)
Formula inn computing GNP
GNP=GDP+ Income Factor
Formula in computing Disposable Income
Income-Tax
Formula in computing Discretionary Income
Income-Tax-Expenses
What are the economic variables?
Define GDP
Define GNP
Are products or materials that are used in the production of other goods rather than being consumed or used directly by end consumers.
Intermediate Goods
Products or services that tend to be consumed or used together because they enhance each other’s value or utility.
Complimentary Goods
Difference between Expenditure approach and Income Approach
Differentiate Deductive and Inductive Method
A top-down approach that begins with a general theory or hypothesis and then derives specific predictions or implications from that theory.
DM
Using formal logic to make predictions based on these assumptions. These predictions are then tested against real-world data or observations.
DM
Starts with specific observations or data and then seeks to identify patterns or general principles from those observations.
IM
Collecting empirical data, conducting experiments, or analyzing historical economic events to identify regularities, correlations, or trends.
IM
Represents the satisfaction or happiness an individual derives from consuming a good or service.
U
The total satisfaction or happiness a person derives from consuming a certain quantity of a good or service.
TU
The additional satisfaction or happiness gained from consuming one more unit of a good or service.
MU
This law states that as a person consumes more units of a good, the additional satisfaction (marginal utility) from each additional unit tends to decrease.
Dimineshing Marginal Utility
Economic strategy in which firms attempt to make their products or services appear distinct from those of their competitors.
Product Differntiation
What does Ceteris Paribus mean?
Latin phrase that translates to “all other things being equal” or “holding other things constant” in English.
Consists of observations or measurements of a particular variable or set of variables over a sequence of time intervals. These intervals could be daily, monthly, yearly, or any other time unit.
Observations or measurements of one or more variables at a single point in time.
An approach that aims to describe and explain economic phenomena as they are, without making judgments or value-based assessments.
Concerned with evaluating and prescribing what should be done or what is right or wrong in economic matters.
The quantity of a good or service that consumers are willing and able to purchase at various prices during a given period.
The basic, essential requirements for human survival and well-being.
Desires or preferences for goods, services, or experiences that are not strictly necessary for survival or well-being.
A well-defined segment of the overall market with distinct characteristics, needs, preferences, and behaviors.
A specific group of consumers or organizations that a business or marketer aims to reach and serve with its products, services, or marketing efforts.
These goods are generally unfamiliar to consumers or may not be products that consumers think about on a regular basis.
Type of luxury or status goods for which the demand increases as the price rises.
The cost advantages that a business or organization can achieve as it increases the scale of its production or operations.
In building a business, you need to know first it’s ?
Conduct it_______ to know if there is an _____
What is 5 Porter’s Analysis
Enumerate the 5 Porter’s Analysis
Assesses how easy or difficult it is for new competitors to enter an industry.
Assesses how much influence they have over the prices and terms of supply.
Examines the influence that customers or purchasers have in an industry.
Products or services from different industries that can satisfy the same need or function as the products or services within the industry under analysis.
Assesses the intensity of competition within the industry.
PESTEL ANALYSIS
Relate to the influence of government policies, regulations, and political stability on an organization or industry.
Encompass the economic conditions, trends, and variables that can affect an organization or market.
Refer to demographic, cultural, and societal influences on an organization or industry.
Consider the impact of technological advancements and innovation on a business or market.
Relate to ecological and sustainability issues that can affect an organization’s operations
Impact of laws and regulations on an organization or industry.
What are the market structures?
A market structure characterized by a large number of small firms, all producing identical (homogeneous) products or services.
Market structure with many small firms that produce similar but not identical (heterogeneous) products or services.
Product differentiation and branding are common.
A market structure characterized by a small number of large firms that dominate the market.
A market structure in which a single firm is the sole producer and supplier of a unique product or service with no close substitutes.
Differentiate Price Ceiling and Price Floor
Define Law of Demand
It states that, all else being equal, as the price of a good or service decreases, the quantity demanded for that good or service increases, and conversely, as the price of a good or service increases, the quantity demanded for that good or service decreases.
A tabular representation of the relationship between the price of a good or service and the corresponding quantity demanded at each price point.
It lists different price levels in one column and the corresponding quantity of the good that consumers are willing to purchase at each price level in an adjacent column.
A graphical representation of the information in the demand schedule. It visually shows the relationship between the price of a good on the vertical axis (y-axis) and the quantity demanded on the horizontal axis (x-axis).
Formula for slope
Goods for which the quantity demanded increases as consumer income decreases
Items that people continue to purchase even when their income decreases.
Quantity demanded increases as consumer income rises.
NG
Products or services that people tend to purchase more of as their income rises significantly.
What are the determinants in the Law of Demand?
Enumerate The different Economic System
Describes the relationship between the price of a good or service and the quantity that producers or suppliers are willing and able to offer to the market.
All else being equal, as the price of a good or service increases, the quantity supplied by producers also increases, and conversely, as the price of a good or service decreases, the quantity supplied by producers decreases.
What are the determinants of Law of Supply?
Define Elasticity
The responsiveness or sensitivity of one economic variable to a change in another variable.
It is a measure of how much a change in one factor (such as price, income, or the quantity demanded) affects another factor (such as quantity demanded, quantity supplied, or total revenue).
Enumerate the four degrees of Elasticity
Formula in computing the Elasticity
Greater than 1
Less than 1
Equals to 0
Exactly 1
Difference between slope and elasticity
The steepness or incline of a line on a graph. In economics, it is often used to describe the rate of change between two variables
A measure of responsiveness or sensitivity.
It quantifies how one variable (e.g., quantity demanded or supplied) responds to changes in another variable (e.g., price or income).
The rate at which one variable changes concerning another variable.
Two ways in getting the Price Elasticity
Formula for Arc Elasticity
Formula for Point Elasticity
Formula for Income Elasticity
Positive Income Elasticity
Negative Income Elasticity
Disposable Income
Discretionary Income
Microeconomics
Macroeconomics
Law of Supply
Law pf Demand
Needs
Wants
