EC2 Applied Economics Flashcards
Three elements involve in Satisfying Needs and Wants of man
- Human Wants
- Use of Economic Resources
- Techniques of Production
This are the culturally defined objects which satisfy our needs and these are always unlimited. ________ change depending on the needs of man which are the basic needs.
Human Wants
The factors of production basically consists of land, labor, capital and entrepreneur. These economic resources are available but in limited amount, therefore, man has to allocate these resources properly to maximize their wants
Use of Economic Resources
This shows how the resources are combined to produce goods and services.
Techniques of Production
The production can either be __________ or _________ depending on what factors are principally used.
Capital intensive or labor intensive
If a firm uses more of machines and equipment in the production process and less of manpower
Capital intensive
If more workers are used instead of machines and equipment
Labor Intensive
SOME ECONOMIC PROBLEMS
- Unemployment
- Economic Instability
- Low Levels of Growth & Development
- Inequality in Income Distribution
- Type of Economic System to adopt
This is a situation where individuals who are employable are seeking for jobs but cannot find a job.
Unemployment
The people who are unemployed belonging to the labor force will contribute to the ______
Unemployment rate.
It is dividing the total number of unemployed by the total number of those in the workforce or labor force.
Unemployment rate
Unemployment is an economic problem since it leads to existence of ______ which means that the income is foregone on resources which would generate income to the owner when used.
Idle resources
This is an economic problem which involve tremor on the people’s economic life
Economic Instability
This ______ results to increased unemployment, economic recession and worst is the breakdown of a society.
Instability
This problem exists when many people belong to the low income group of the country which cause a pyramid structure in the economy.
Inequality in Income Distribution
An economic problem usually experienced by poor countries because their level of growth and development is minimal.
Low Levels of Growth & Development
The majority part of the pyramid are occupied by the ______ group who can only satisfy their basic needs to survive.
Low income
It is important to any country since it determines the quantity of goods the country has to produce, the manner in which production will take place and the distribution process of these goods and services.
Type of Economic System to adopt
It is the one which produces the product such as goods and services after utilizing the factors of production
Firm
Goods and services will be consumed or rendered by the _______
Household
Household will pay the goods and services in terms of ____ and ____
Sales and fees.
It is the type of product which are tangible and can be consumed.
Goods
This refer to the intangible product that we consume in terms of experience.
Services
The household will pay ______ in terms of sales
Goods
Services will be paid in terms of ________
Fees
Branches of Economics
- Macroeconomics
- Microeconomics
It deals with individual behavior of firms and household. It deals with specific area in the circular flow diagram. It usually includes the price theory.
Microeconomics
It studies the overall or aggregate behavior of the economy. It studies the economy as a whole. This deals with the behavior of firm and household together and treat them as one.
Macroeconomics
It refers to the statement of what is happening in current situation
Positive economics
It refers to the statement of opinion and stating what should happen. This cannot be proved and disprove by anyone since this is an opinion
Normative economics
