MICRO-ECON

Question 1

is a social science that deals with the study of human decisions and activities in the face of scarce resources. Since it is a science, it involves systematic structure and knowledge based on pieces of evidence verified by observation and in-depth studies

Answer 1

Economics

Question 2

It is the gap between the limitless wants of people and the limited (scarce) resources. When human wants have exceeded the available resources, there is ______

Answer 2

Scarcity

Question 3

These include land, labor, capital, natural resources, and entrepreneurial skills. These are all necessary to produce goods and services needed for daily living

Answer 3

Resources

Question 4

It takes economic principles, theories, concepts, and tools in an application specific to farming. The role of agricultural economics involves maximizing crop production and rearing livestock for trading for economic development.

Answer 4

Agricultural economics

Question 5

This economic principle states that consumers are forced to make choices because of scarcity. Society needs to determine who would get the limited resources; this is decided by having the producers charge prices for the goods and services. Whoever deems to find the goods and services valuable wil purchase them.

Answer 5

People are required to make choices

Question 6

This economic principle states that consumers are forced to make choices because of scarcity. Society needs to determine who would get the limited resources; this is decided by having the producers charge prices for the goods and services. Whoever deems to find the goods and services valuable wil purchase them.

Answer 6

People are required to make choices

Question 7

This economic principle states that consumers want to get the most out of goods or services they have paid for. This is called economizing behavior.

Answer 7

People choose rationally

Question 8

This economic principle states that the decisions made by the consumers and producers always entail costs. These costs may be monetary Or non-monetary. Non-monetary costs include time, effort, and convenience.

Answer 8

All choices would incur costs

Question 9

This economic principle refers to scientific thinking wherein theories are made from assumptions that are tested by their consistency with real-life events.

Answer 9

An economic theory is tested through its predictability

Question 10

This economic principle refers to a condition when a consumer would consider the additional value of adding another unit in comparison to the increment of the cost of obtaining it

Answer 10

Optimal decisions are made

Question 11

This economic principle states that providing incentives or increasing personal costs positively and negatively affect decision-making, respectively

Answer 11

Incentives are essential

Question 12

This economic principle states that consumers don’t value goods or services at the same level; thus, the value of a product is subjective.

Answer 12

The value of products depends on consumers preference

Question 13

This economic principle states that consumers come up with their decisions based on the limited available information.

Answer 13

Choices are made through the available and limited information.

Question 14

This economic principle states that any economic decision has both a primary and a secondary effect. Though not instantly observable and can be identified as time passes, these secondary effects can still be predicted and analyzed before choosing

Answer 14

Economic actions create a domino effect.

Question 15

This economic reasoning explains that not everyone will always act the way the economic approach presumes. For instance, increasing the electricity rate may prompt consumers to reduce electricity use.

Answer 15

Consumers, producers, and society don’t necessarily respond to what the economic reasoning says

Question 16

This economic reasoning depicts self-interested people who are always concerned about “What’s in it for me?” The critics of this approach argue that it shows people’s self-focused behaviors, which can be considered inappropriate by moral standards.

Answer 16

Consumers, producers, and society should not respond to what the economic reasoning says.

Question 17

Give 3 meanings of positive economics

Answer 17

It studies the behavior of the economy and its components as they exist.

It provides real information based on the “what is” of the interaction among economic components

It is objective, factual, and verifiable

Question 18

Give 3 meanings for normative economics

Answer 18

It studies the economy based on the value of judgment.

It provides recommendations in consideration of “what ought to be done.

It is subjective, opinion-based, and unverifiable.