Unit 1

Question 1

the first modern economist

Answer 1

ADAM SMITH

Question 2

Adam Smith defined Economics as?

Answer 2

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

Question 3

Oikos means

Answer 3

household

Question 4

Nomos means

Answer 4

management

Question 5

Eventually, it was called _____ which means household management

Answer 5

oikonomos

Question 6

Economics is a social science concerned with the ______, ______, and _______ of goods and services.

Answer 6

production, distribution, and consumption

Question 7

It studies how individuals, businesses, governments, and nations make choices about how to allocate resources.

Answer 7

Economics

Question 8

He defines economics the study of how men and society choose with or without the use of money, to employ the scarce productive resources which have alternative uses, to produce various commodities over time and distribute them for consumption now and in future among various people and groups of society.

Answer 8

PROF. PAUL A. SAMUELSON

Question 9

According to him, economics, is a science that deals with the management of scarce resources to achieve the maximum satisfaction of human wants.

Answer 9

BAUTISTA (2010)

Question 10

IMPORTANCES OF ECONOMICS

Answer 10

The Society
Informed Individual
Global Affairs

Question 11

To understand the society economics seeks to analyze transactions made by the society and its members, particularly concerning on their behavior and decision making.

Answer 11

• The Society

Question 12

Understanding of economics develops individuals to be wise voters. With this in mind, voters have an informed choice in selecting leaders based on their economic, social, and political platform and not just based on their appearances or popularity.

Answer 12

• Informed Individual

Question 13

Economics seeks to explain the internal operation and trade policies of different countries.

Answer 13

• Global Affairs

Question 14

• Focuses on how individual consumers and firms make decisions; these individual decision-making units can be a single person, a household, a business/organization, or a government agency.

Answer 14

 Microeconomics`

Question 15

• Microeconomics tries to explain ___ and ___ different goods are valued differently, how individuals make financial decisions, and how individuals best trade, coordinate, and cooperate with one another.

Answer 15

how and why

Question 16

• Studies an overall economy on both a national and international level, using highly aggregated economic data and variables to model the economy

Answer 16

 Macroeconomics

Question 17

Macroeconomics focuses include a distinct geographical region, a country, a continent, or even the whole world. Its primary areas of study are _______ and ______ and ____

Answer 17

recurrent economic cycles and broad economic growth and development.

Question 18

METHODOLOGY OF ECONOMICS

Answer 18

 Positive Economics
 Normative Economics

Question 19

• An economic analysis that considers economic conditions “as they are” or considers economics “as it is.”

Answer 19

 Positive Economics

Question 20

It uses objective or scientific explanations in analyzing the different transactions in the economy.

Answer 20

 Positive Economics

Question 21

• An economic analysis that judges’ economic conditions “as it should be”.

Answer 21

 Normative Economics

Question 22

It deals with the formulation of policies to regulate economic activities and ethics and personal value that is concerned with human welfare.

Answer 22

 Normative Economics

Question 23

THE SCIENTIFIC METHODS OF ECONOMICS

Answer 23

Data Gathering
Economic Analysis
Economic Conclusion

Question 24

Economic knowledge is mostly obtained from observation of economic events.

Answer 24

• Data Gathering

Question 25

_________ is obtained through historical records and events interviews of past performances which are organized in a way that can be easily.

Answer 25

Data

Question 26

Data gathered is useless if not analyzed.

Answer 26

* Economic Analysis

Question 27

After laying down all assumption, one proceeds to reasoning in order to generate conclusion. Reasoning can either be verbal or with the statistics.

Answer 27

* Economic Conclusion

Question 28

THREE BASIC ECONOMIC PROBLEMS

Answer 28

1. What to Produce? 2. How to Produce? 3. For whom to produce?

Question 29

- The question is answerable by knowing the trend of the demand for goods and services of the people.

Answer 29

1. What to Produce?

Question 30

- The people of the society must determine who will do the production, with what amount of goods and services, and what production techniques they will use.

Answer 30

2. How to Produce?

Question 31

- The answer to this question is simple; we produce for the people or the target market.

Answer 31

3. For whom to produce?

Question 32

o Capital Intensive o Labor Intensive

Answer 32

How to Produce? explain

Question 33

FACTORS OF PRODUCTION

Answer 33

1. Land 2. Labor 3. Capital 4. Entrepreneur

Question 34

a. This broadly refers to all natural resources given by nature. These are all the things and powers that are given free to humankind by nature.

Answer 34

1. Land

Question 35

in Economics, compensation for the use of land is called

Answer 35

Rent.

Question 36

a. Any form of human effort exerted in the production of goods and services. This includes the skills, abilities, and characteristics of laborers.

Answer 36

2. Labor

Question 37

b. Profession payment for labor is called

Answer 37

Wage/Salary.

Question 38

a. Refers to the human-made goods used in the production of other goods and services.

Answer 38

3. Capital

Question 39

b. The payment for the use of capital (money) is called

Answer 39

Investment or Interest.

Question 40

a. The person who organizes, manages, and plans. The entrepreneur possesses managerial skills needed in building, operating, and expanding a business.

Answer 40

4. Entrepreneur

Question 41

b. The compensation or reward the entrepreneur received is called

Answer 41

Profit.

Question 42

refers to the alternating phases of economic growth and decline. Since the phases are recurring, they often occur in an identifiable pattern where one phase usually follows the other

Answer 42

BUSINESS CYCLE

Question 43

Business cycles are also called

Answer 43

Trade Cycles or Economic Cycles.