Social GA 2.2 Flashcards
A group that stops unfair, deceptive and fraudulent business practices by collecting reports from customers and conducting investigations
CPG (Consumer Protection Group)
Was the governing body of the different sectors of the advertising industry
Advertising Board of the Philippines or AdBoard
When individuals work together to influence the market for their own advantage
Collusion
An agreement among competitors to raise, lower, maintain, or stabilize prices
Price Fixing
When rival firms have a formal agreement to adhere to high pricing
Formal Collusions
Demand stays the same while the price changes
Inelastic Demand
Demand changes when the price increases or decreases
Elastic Demand
Refers to an organized group formed to influence the price of a good
Cartel
An organization that is treated as a cartel. Countries that agreed to coordinate with petroleum firms (both state-owned and private) in order to manipulate the worldwide oil supply and therefore the price of oil
OPEC (Organization of the Petroleum Exporting Countries)
Means the price fixing is done without the need to hide it
Overt Collusion
IN which firms try to evade detection or hide any evidence of price fixing
Covert Collusion
When competitors do not explicitly exchange information and achieving an agreement about coordination of conduct
Tacit Collusion
An example of tacit collusion in which firms follow the pricing of a firm with the largest market share
Price Leadership
Is a situation in which a firm tries to gain market share by cutting back prices and rival firms retaliate by reducing prices even more
Price War
Refers to a price situation in which there are two competing firms, each would stand to gain market share by cutting prices
Bertrand Competition
Is the maximum price for a good or service that sellers are compelled to adopt
Price Ceiling
A situation in which pricing is influenced by the type of consumer
Price Discrimination
Refers to splitting one product into two or more separate components
Product Unbundling
Means taking over a private institution and publicly operating it
Nationalization
An example of a state-owned monopoly in long-distance rail travel in Luzon
PNR (The Philippine National Railway)
Republic act that aims to protect consumers by upholding market competition, promoting free trade, and supporting fair competition
RA 10667
An economic model which illustrates the flow of goods and finances among economic agents
Circular Flow Diagram
A market participant or institution that influences the flow of resources in the economy
Economic Agent
In which the market is solely a result of the free interaction between households and firms
Simple Economy
Are mandatory contributions by individuals and companies to the government
Taxes
Refer to government benefits and welfare payments such as pensions and welfare aids
Transfer Payments
Presumed to be self-sufficient and does not trade with other economies
Closed Economy
A type of economy wherein they engage in trade with other countries
Open Economy
Refers to the GDP that has been adjusted for inflation
REAL GDP
A kind of GDP that has not taken into consideration the level of inflation
Nominal GDP
Events or actions that make the cost of manufacturing expensive will shift the AS curve to the left
Cost of Production
The change in cost of other production inputs, such as labor and capital
Cost of Other Inputs
Move from manual labor to technology-driven production to improve efficiency
Use of Technology
Rise in income enables and encourages consumers to buy more goods
Changes in Income
Refers to the upward and downward trend of the economy
Business Cycle
There is a long-term downward trend of the economy
Depression
Triggered the Great Depression. Close to 13 million stocks were sold in a day
Black Thursday
An economic indicator that follows the same direction as the economy
Procyclical
An economic indicator that moves in opposite direction as the economy
Countercyclical
A term that is used to describe an indicator or event that has no impact or is unaffected by the movements in the economy
Acyclical
All relevant economic indicators are made available on the website of Philippines Statistics Authority
Data Frequency
Are indicators that change before the economy does
Leading Indicators
Indicators that have delayed reactions to change in the economy
Lagging Indicators
Change almost simultaneously with the economy
Coincident Indicators
Entails adding up the earnings of the households, firms, and government
Income Approach
Entails summing up the expenses spends by the same groups
Expenditure Approach
An economic concept which explains the changes in the aggregate expenditure is caused by the leakages and injections into the circular flow
Bathtub Theoreom
Pertain to money that goes out of the circular flow
Leakages
Pertain to government expenditures, business investments, and exports that allows money to go back to the circular flow
Injections
Happens when the value of goods and services are taken into account twice
Double Counting
An alternative measure of the size of the economy
GNI (Gross National Income)
Losing of value over the years
Depreciation
Defined as the continuous rise in the general, price level of goods and services
Inflation
Measure of the average change over time in the prices paid by urban consumers for a market basket of goods and services
CPI (Consumer Price Index)
Is the equivalent of the CPI on the supplier side
PPI (Producer Price Index)
Refers to the increase in general price level of goods primarily driven by the high demand for them
Demand-Pull Inflation
A situation in which persistent increase in prices is a result of the rise in the cost of production
Cost-Push Inflation
Is a situation of very high and ever-increasing inflation rates
Hyperinflation
Responsibility to keep inflation in check
Central Bank
The cost of borrowing money or the rewards of saving
Interest Rates
What is not included in the counting of GDP
Exclusions
