Chapter 1: Economics SW

Question 1

What is the meaning of scarcity?

Answer 1

The reality that Human Resources are not unlimited, but are limited to a certain amount.

Question 2

What is the effect of scarcity?

Answer 2

Scarcity can affect all nations, regardless of their size, population and economic development.

Question 3

What is the meaning of Relative Scarcity?

Answer 3

A concept where some countries have less particular resources compared to other countries.

Question 4

How is Scarcity caused?

Answer 4

Scarcity can be caused when a specific item goes high in demand but the stock of the item remains the same. (demand-induced). It can also be caused when the demand of a certain item decreases (supply induced)

Question 5

What is economics?

Answer 5

Economics is a social science that studies the behaviors of humans.

Question 6

What is opportunity cost or trade off?

Answer 6

Choosing how to use a resource, giving up a certain item to receive a different item in return.

Question 7

Explain the basic economic question: “How Much to Produce”

Answer 7

Producers must figure out how much of a certain product they should produce to avoid wasting their resources.

Question 8

Explain the basic economic question: “For Whom to Produce”

Answer 8

Producers need to have a market for their products. They need to be able to produce things that consumers will need to buy.

Question 9

Explain the basic economic question: “What to Produce”

Answer 9

Producers need to know what the market needs (what is currently high on demand). This will determine what resources to use in order to maximize them.

Question 10

Explain the basic economic question: “How to Produce”

Answer 10

Producers must determine what type of production should be used.

Question 11

Explain what the Production Possibilities Curve is.

Answer 11

It is a graph that is used by economists to show the concept of scarcity and opportunity cost.

Question 12

Give me the two divisions of economics.

Answer 12

The two divisions of economics are: Microeconomics, and Macroeconomics.

Question 13

What is Microeconomics?

Answer 13

Microeconomics deals with the behavior of small units of economy.

Question 14

What is Macroeconomics?

Answer 14

Macroeconomics studies the economy as a whole. Looks at the activities and decisions made by large economic units such as the government.

Question 15

What is the importance of studying economics?

Answer 15

It broadens the people’s perspective of society. It shows us the reality that people across the
world are economically interdependent and that our
activities affect each other’s ability to satisfy our needs.

Question 16

Give me the four basic economic questions.

Answer 16

The four basic economic questions are: How Much to Produce, For Whom to Produce, What to Produce, and How to Produce

Question 17

Define what “needs” are.

Answer 17

Needs can be defined as the basic requirements for survival.

Question 18

What are all the human needs that fall in the five categories.

Answer 18

Psychological Needs, Safety and Security Needs, Love/Belonging Needs, Esteem Needs, Self Actualization.

Question 18

Explain the ERG Theory.

Answer 18

Written by Clayton Paul Alderfer, it follows the Maslow Theory. States that people are capable of satisfying their
needs simultaneously, without necessarily following an order or hierarchy.

Question 19

What are “Wants”?

Answer 19

Wants are things that we consume to satisfy our desires.

Question 20

Is there a difference between wants and needs?

Answer 20

For economists, they say that there is no different between wants and needs as they are both essential to human existence.

Question 21

What are wants and needs classified into?

Answer 21

They are classified into economic and non-economic wants.

Question 22

What is an economic want?

Answer 22

An economic want is satisfied through consumption of tangible goods and product services.

Question 23

What is a non-economic want?

Answer 23

A non-economic want can be satisfied without spending any money. An example would be love, friendship, and etc.

Question 24

What are free goods?

Answer 24

Free goods are items that are acquired without a cost.

Question 25

Explain what economic goods are.

Answer 25

Economic goods are intermediate goods that are processed to form a different good. The consumer is usually the end user.

Question 26

What are basic wants?

Answer 26

Basic wants are people’s necessities and people cannot live without them.

Question 27

What are universal basic wants?

Answer 27

Universal basic wants are wants that people cannot live without.

Question 28

Define what are relative basic wants.

Answer 28

Relative basic wants are wants that are needed because they are in a certain area. Some other areas might not need the things that they need.

Question 29

Define a public want.

Answer 29

A public want is something that a population needs and are for the common good. It is usually the government that provides the public wants.

Question 30

Define what is a private want.

Answer 30

A private want is a want that only you have. Other people might not have the same want that you might have.

Question 31

What are the factors that may cause a person’s change on their economic want.

Answer 31

Some factors include the income of a person, the population, advertisements, physical location, urbanization, and tastes and preference.

Question 32

What are the rights of the filipino consumer?

Answer 32

1. The right to basic needs
2. The right to safety
3. The right to information
4. The right to choose
5. The right to representation
6. The right to redress
7. The right to consumer education
8. The right to a healthy environment

Question 33

OMG

Answer 33

FREE

Question 34

Give me atleast one of the laws protecting the Filipino Consumers.

Answer 34

Consumer Act of the Philippines, which protects against trade malpractices and hazardous products. E-commerece Law, legal recognition of electronic date and commerce. Price Act: ensures prime commodities are available to
consumers at all times, and protects them against
hoarding and cartels.

Question 35

Why can all the wants not be addressed?

Answer 35

They cannot be addressed due to scarcity.