M2

Question 1

what problem cause by unlimited and unsatisfied needs and wants of people

Answer 1

limited resource

Question 2

this has something to do with land

Answer 2

limited in physical quantity

Question 3

resources are limited in 2 essential way

Answer 3

limited in physical quantity
limited in use

Question 4

this limitation pertains to labor, machinery, which can be used for he purpose at any one time

Answer 4

limited in use

Question 5

2 fundamental concepts in economics

Answer 5

choice and opportunity cost

Question 6

pertains to sacrifice only the best among the opportunities you could have taken instead

Answer 6

opportunity cost

Question 7

any choice you make is the value we place on the best opportunity that will have to be given up if that action is take

Answer 7

opportunity costs

Question 8

opportunity cost is ________ because it depends on the perspective of the taking the action

Answer 8

subjective

Question 9

means the highest-valued alternative derived

Answer 9

opportunity cost

Question 10

the decision made after considering trade offs. It’s the selection of one option from a set of alternatives

Answer 10

choice

Question 11

a problem which everyone is affected, decisions can have external effects on other people not involved in the transaction

Answer 11

externalities

Question 12

where does externality may arise

Answer 12

between producers, between consumers

between consumer and producers

Question 13

a cost or benefit of an economic activity experienced by an unrelated third party

Answer 13

externalities

Question 14

externalities can be ____ when the action imposes costs on another

Answer 14

negative

Question 15

externalities can be ______ when the action of one party benefits on another

Answer 15

positive

Question 16

2 types of externalities

Answer 16

negative
positive

Question 17

what part of negative where air pollution, water pollution, and noise pollution arises

Answer 17

negative production

Question 18

what part of negative where passive smoking and traffic congestion arises

Answer 18

negative consumption

Question 19

what part of positive where infrastructure and research are develop

Answer 19

positive production

Question 20

what part of positive where individual education and vaccination are part

Answer 20

positive consumption

Question 21

externalities usually need some kind of government __________

Answer 21

intervention

Question 22

question of economic problems in microeconomics

Answer 22

• how to deal w/ externalities?
• who should own national utilities
• how to put value on environment
• how to reduce inequality
• how to deal with monopoly power

Question 23

what adam smith’s book was concerned with monopoly

Answer 23

“an inquiry into the nature and causes of the wealth of nations”

Question 24

other sellers are unable to enter the market

Answer 24

monopoly

Question 25

a _______ can change the price and quality of the market

Answer 25

monopoly

Question 26

a problem because of normative opinions such as unfair distribution of resources

Answer 26

inequality/poverty

Question 27

____________ can cause swings in economic frontiers

Answer 27

volatile market

Question 27

what problem cause by diminishing marginal utility of wealth

Answer 27

inequality/poverty

Question 28

paiba ibang prices

Answer 28

volatile prices

Question 29

any form of debt for which payments has not been made on time

Answer 29

delinquent loan/ irrational behavior

Question 30

what are the microeconomic problems

Answer 30

-monopoly -inequality/poverty -volatile prices -irrational behavior/ delinquency of loans

Question 31

a problem cause by business cycle swings

Answer 31

mass unemployment

Question 32

a decrease in the demand for products or goods during recession may lead to __________

Answer 32

lay off workers

Question 33

________ can also be caused by rapid changes in labor markets

Answer 33

unemployment

Question 34

a period of negative economic growth - a decline in the size of economy

Answer 34

recession

Question 35

rapidly rising prices

Answer 35

inflation

Question 36

________ can cause not just economic turmoil but political turmoil as people lose confidence in the economic situation

Answer 36

hyperinflation

Question 37

an economy importing more goods and services than it is exporting

Answer 37

balance of payment/ current account deficit

Question 38

large deficit has to be financed by borrowing, and this situation usually lead to a _________

Answer 38

rapid devaluation

Question 39

this increases the price of imports, reduces living standards and causes inflation

Answer 39

devaluation

Question 40

the risk. associated with unexpected movements in the exchange rate.

Answer 40

exchange rate votality

Question 41

a rapid increase to the price of imports

Answer 41

exchange rate volatility