Introduction to Applied Economics

Question 1

The word _________ came from oikanomia or oikonomus, a Greek word meaning household management

Answer 1

economics

Question 2

The word economics came from ___________ or ________, a Greek word meaning household management

Answer 2

oikanomia or oikonomus

Question 3

The word economic came from oikanomia or oikonomus, a Greek word meaning _______________

Answer 3

household management

Question 4

It is the study of what constitutes rational human behavior in the endeavor to fulfill needs and wants or the study that attempts to explain how an economy operates and how the consumer attempts to maximize his/her wants within limited needs

Answer 4

economics

Question 5

It studies how people use scarce resources to satisfy their unlimited wants

Answer 5

economics

Question 6

It is the efficient allocation of scarce means of production toward satisfying human needs and wants and the science that deals with managing scarce resources

Answer 6

economics

Question 7

What is economics?

Question 8

What are the Three (3) E’s of economics? Explain.

Answer 8

1. Efficiency - It is the productivity and proper allocation of economic resources and the relationship between scarce factor input and output of goods and services.
2. Effectiveness - It is the attainment of goals and objectives.
3. Equity - It refers to justice and fairness.

Question 9

Explain economics as a Social Science

Answer 9

Economics is a social science because it studies human behavior and how people make decisions to satisfy their unlimited wants by allocating limited resources.

Question 10

____________ is the study or discipline that aims to explain human behavior.

Answer 10

Social Science

Question 11

Economics is a _________ because it studies human behavior and how people make decisions to satisfy their unlimited wants by allocating limited resources.

Answer 11

social science

Question 12

What are the two (2) branches of economics? Explain each.

Answer 12

1. Macroeconomics

• It is the study of the economic behavior of the economy as a whole, especially the national economy.
• It focuses on the aggregate flow of goods and resources.
• It examines the causes of change in the overall flow of money, the overall movement of goods and services, and the general use of resources.
• It is known as the analysis of employment and income.

2. Microeconomics

• It is the study of economic behavior in particular markets, such as the market for computers or unskilled labor.
• It focuses on the economic behavior of people and businesses, deciding what to buy and sell, how much to work and play, and how much to borrow and save.
• It also studies factors influencing individual economic choices and how markets coordinate decision-makers’ choices.
• It focuses on the behavior of individual entities – the consumer, the producer, and the resource owner.
• It is also more focused on how products move from the business to the customer and how resources flow from the resource owner to the business.
• It is known as the Price Theory – concerned with the process of setting prices of goods.

Question 13

What are the topics being discussed in two (2) branches of economics?

Answer 13

Topics discussed in macroeconomics:

Gross national product
Employment level
National income
Gross domestic product
General price level
Economic growth and development

Topics discussed in microeconomics:

Principles and elasticity of demand and supply
Individual decision-making
Firm’s costs and outputs

Question 14

It is the attainment of goals and objectives.

Answer 14

Effectiveness

Question 15

It refers to justice and fairness.

Answer 15

Equity

Question 16

It is the productivity and proper allocation of economic resources and the relationship between scarce factor input and output of goods and services.

Answer 16

Efficiency

Question 17

It is the study of the economic behavior of the economy as a whole, especially the national economy.

Answer 17

Macroeconomics

Question 18

It is the study of economic behavior in particular markets, such as the market for computers or unskilled labor.

Answer 18

Microeconomics

Question 19

BASIC DECISION PROBLEMS and Explain

Answer 19

1. Consumption
   - Having their individual wants, people decide the types of products and services they want to use or consume and the corresponding amount that they should use and buy. Their choices, for instance, are food, clothing, technological gadgets, and whether supplied by the government or privately produced goods.
2. Production
   - They determine the consumers’ needs, wants, and demands and also decide how to distribute their resources to meet customer demands
3. Distribution
   - The government primarily addresses it. There must be an appropriate allocation of all resources benefiting all members of society.
4. Growth over Time
   - As societies grow in number, they continue to live on. The problems of choice, consumption, production, and distribution must be perceived in the context of how they will affect future events.

Question 20

It is a problem that people have to deal with in their day-to-day activities. Having their individual wants, people decide the types of products and services they want to use or consume and the corresponding amount that they should use and buy. Their choices, for instance, are food, clothing, technological gadgets, and whether supplied by the government (such as health and education) or privately produced goods.

Answer 20

Consumption

Question 21

They determine the consumers’ needs, wants, and demands and also decide how to distribute their resources to meet customer demands.

Answer 21

Production

Question 22

The government primarily addresses it. There must be an appropriate allocation of all resources benefiting all members of society.

Answer 22

Distribution

Question 23

As societies grow in number, they continue to live on. The problems of choice, consumption, production, and distribution must be perceived in the context of how they will affect future events.

Answer 23

Growth over Time

Question 24

What are the tools of economics? Explain each.

Answer 24

1. Logic - a science that deals with sound thinking and reasoning. Facts and evidence should be provided; otherwise, uncertainty will cloud the logic. One could come up with a conclusion with a wise application of logic.
2. Mathematics - a science that deals with numbers and operations. It helps economists answer concrete problems involving numbers. To arrive at a conclusion, mathematical equations and operations are used. Among the social sciences, the most quantifiable discipline is economics.
3. Statistics - a branch of mathematics that engages with the analysis and interpretation of numerical data. The method of gathering, tabulating, and analyzing data leads to the validity of specific hypotheses. Someone may be able to accept or dismiss (reject) an assumption made on a particular phenomenon.

Question 25

It is a science that deals with sound thinking and reasoning. Facts and evidence should be provided; otherwise, uncertainty will cloud the _____ . One could come up with a conclusion with a wise application of ______.

Answer 25

Logic

Question 26

It is a science that deals with numbers and operations. It helps economists answer concrete problems involving numbers. To arrive at a conclusion, __________ equations and operations are used. Among the social sciences, the most quantifiable discipline is economics.

Answer 26

Mathematics

Question 27

It is a branch of mathematics that engages with the analysis and interpretation of numerical data. The method of gathering, tabulating, and analyzing data leads to the validity of specific hypotheses. Someone may be able to accept or dismiss (reject) an assumption made on a particular phenomenon.

Answer 27

Statistics

Question 28

are the resources or inputs used to produce the goods and services that people want.

Answer 28

Economic or Production Resources

Question 29

What are the different Production Resources?

Answer 29

Land
Labor
Capital
Entrepreneurship
Foreign Exchange

Question 30

_________ is categorized as fixed resources – finite, exhaustible, and depletable. It is all that nature freely provides. Rent serves as payment to landowners.

Answer 30

Land

Question 31

___________ is the exerted effort of individuals when producing goods and services. It covers a wide variety of abilities, characteristics, and skills.

Salary or wage is given to an individual in exchange for this.

Answer 31

Labor

Question 32

labor is also known as _________________. It reflects the human capital to turn raw or national resources into consumer products.

Answer 32

human resources

Question 33

It comprises all able-bodied people capable of working in the nation’s economy and offering other individuals or businesses different services.

Answer 33

Human capital

Question 34

It is the man-made goods (resources) used when producing other goods and services.

It is a form of an asset used mainly as a medium of exchange. Interest is the income that the owner of the capital is earning.

it signifies the monetary resources businesses use to buy natural resources, land, and other capital goods.

Answer 34

Capital

Question 35

_____________ move a nation’s economy as people purchase and sell resources to people and businesses.

Answer 35

Monetary resources

Question 36

It is part of the person or economy’s income, not spent on consumption.

Answer 36

Savings

Question 36

Is an economic activity that might earn the entrepreneur a profit or incur a loss.

Having skills in management is necessary to develop, run, and expand the business.

Answer 36

Entrepreneurship

Question 37

An ____________ is an individual that organizes, manages, and assumes business risks, develops a new product or idea, and turns it into a successful business.

Answer 37

Entrepreneurship

Question 38

is the dollar and the dollar reserves that the economy has. We use foreign currency, mainly dollars, for international trade and the procurement of raw materials from other nations.

Answer 38

Foreign Exchange

Question 39

What is Scarcity?

Answer 39

Scarcity is a condition facing all societies because insufficient productive resources satisfy people’s unlimited wants

It is a condition where there are insufficient resources to satisfy a population’s needs and wants.

Question 40

is the value of the best-foregone alternative or what is given up when one chooses

Answer 40

Opportunity cost

Question 41

What does NO FREE LUNCH means?

Answer 41

In economics, decision-making involves trade-offs and suggests that there are no real free offers in society.

For instance, the person giving the gift pays for goods and services presented as a gift (free) to individuals. Even if there is no one to shoulder the direct costs, society, as in the case of adverse environmental impacts such as pollution, assumes the responsibility.

Question 42

Differentiate Positive Economics and Normative Economics.

Answer 42

Positive Economics is an economic analysis that considers economic conditions ‘as they are’ or considers economics ‘as it is’

Normative Economics is an economic analysis that judges economic conditions ‘as these should be’. It also focuses on policymaking to achieve the ideal situation

Question 43

is an assumption used in analyzing the relationship between two variables as the other factors are unchanged.

Answer 43

Ceteris Paribus Assumption

Question 44

It’s Greek term meaning all other things held constant or all else equal

Answer 44

Ceteris Paribus

Question 45

Ceteris Paribus, a Greek term meaning ________________________________

Answer 45

all other things held constant or all else equal

Question 46

Explain Economics as an Applied Science

Answer 46

Applied Economics is the study of economics relative to real-life situations by observing how theories work in practice. It typically deals with numbers that are focused and backed by potential results being reviewed

Question 47

What is Applied Economics?

Answer 47

Applied Science deals with applying scientific knowledge to problems to develop practical solutions.

It is the application of economic theory and econometrics in specific settings to analyze potential outcomes..

Question 48

It deals with applying scientific knowledge to problems to develop practical solutions

Answer 48

Applied Science

Question 49

It is the study of economics relative to real-life situations by observing how theories work in practice. It typically deals with numbers that are focused and backed by potential results being reviewed

Answer 49

Applied Economics

Question 50

It is the application of economic theory and econometrics in specific settings to analyze potential outcomes.

Answer 50

Applied Economics

Question 51

It simplifies economic reality used to make predictions about the real world

Answer 51

Economic Theory

Question 52

It is the application of statistical and mathematical theories to economics for testing hypotheses and future forecasting trends

Answer 52

Econometrics

Question 53

WHAT ARE THE APPLICATION OF APPLIED ECONOMICS?

Answer 53

1.It is a tool that allows the full picture of the current position to determine what to do and where to go.

2.It serves as a mechanism to decide what steps to enhance the economic situation could logically be pursued.

3.It can also prevent a negative situation from repeating, or at least mitigating the impact.

Question 54

What is Economic System?

Answer 54

is the set of mechanisms and institutions that resolve questions of what, how, and for whom. It is how society responds to basic economic questions.

Question 55

It is the set of mechanisms and institutions that resolve questions of what, how, and for whom. It is how society responds to basic economic questions.

Answer 55

Economic System

Question 56

The standards used in differentiating between economic systems:

Answer 56

a.The owner/s of the resources

b.The process used in decision-making in the allocation of goods and resources

c.The types of incentives directing the economic decision-makers

Question 57

What are the different economic systems? Explain each.

Answer 57

1. Pure Market Economy - is an economic system in which private firms account for all production.
2. Pure Command Economy - is an economic system in which all resources are government-owned, and the central plans of the government direct all production.
3. Mixed Economy - is an economic system that mixes central planning with competitive markets. It is a mix of a rather free economy, such as a market combined with a planned economy, and avoiding the issues with capitalism and socialist economies.
4. Transitional Economy - is an economic system in the process of shifting from central planning to competitive markets.
5. Traditional Economy - is an economic system shaped largely by custom or religion. Decisions are based on traditions and practices that have been preserved and transferred from generation to generation over the years.

Question 58

what is Market Economy?

Answer 58

Market Economy describes an economic system where markets play a relatively significant role.
It Is also known as the free market economy.
It is the most democratic form of an economic system.

Question 59

It describes an economic system where markets play a relatively significant role. It Is also known as the free market economy. It is the most democratic form of an economic system.

Answer 59

Market Economy

Question 60

What are the two (2) types of Pure Command Economy? Explain each.

Answer 60

Command Economy - is the authoritative system wherein decision-making is centralized in the government or a planning committee.

Planned Economy - is primarily government-controlled, with the government deciding what is produced, its quantity, and its price.

Question 61

What are the basic economic questions to solve the issue of scarcity?

Answer 61

1.What to produce and How Much?

2.How to Produce?

3.For Whom to Produce?

4.Are the country’s resources being utilized, or are some lying idle and unemployed?

5.Is the capacity of the economy to produce goods growing or just remaining the same over time?

Question 62

Philippine’s Economic Problems:

Answer 62

1. Poverty Level
2. Employment, Unemployment, and Underemployment
3. Population Growth

Question 63

How do we use economics as applied science to deal with some of a country’s economic issues or problems?

Answer 63

Given the extensive viewpoints on applying economic theories to the real world, there are several ways to address such a question. For example, when it comes to decision-making that will assist policymakers in stepping in the precise path, sound data analyses and economic problem assessment must first be carried out. Economists are more confident in their evaluations of the economic effects of policy decisions when they can analyze specific data and apply economic theories. These assessments turn out to be a form of applied activities or answers to a circumstance, creating solutions for the problems.