Republic of the Philippines

CAVITE STATE UNIVERSITY

Bacoor Campus

Phase II, Soldiers Hills IV, Molino VI

Bacoor City, Cavite

Name: Erica Kleine C. Tallorin Date: November 28, 2019

Student I.D No.: 19-01-0955
Course/Year & Section: BM 1-7

MICROECONOMICS

Assignment:

Define the following words in economic term

1. Economics - is the social science that studies the production, distribution, and
consumption of goods and services.

2. Supply - amount of resource that firms,producers,labourers, etc. are willing and able
to provide to the market place.

3. Demand - referring to consumer's desire to purchase goods and services and

willingness to pay a price for a specific good or service.

4. Law of Supply - The higher the supply the lower the price.
5. Law of Demand - The lower the demand the higher the price.
6. Economic Resources - goods or services available to individuals and business used to
produce valuable consumer product.

7. Entrepreneur - individual who creates new business. Also known as an innovator or

source of new ideas.

8. Labor - amount of physical, mental and social effort used to produce goods and
services.

9. Land – all naturally accuring resources as well as Geographic land,

10. Microeconomics - is the science of how people make decision.
11. Variable - thing that is not consistent. Any measurement that helps to determine how
an economy functions.
12. Wants - desires that can be satisfied by consuming a good, service or leisure activity.
13. Normative economics - part of economics that expresses value or normative
judgements about economic fairness.

14. Positive economics - objective statements dealing with matters of fact or they question
about how things actually are.

15. Macroeconomics - dealing with the performance of an economy as a whole.

16. Basic needs - refers to things that are necessary to sustain life.
17. Capital - is a term for financial assets, such as funds held in deposit accounts.
18. Market - any structures that allows buyers and sellers to exchange goods and services
with money.

19. Profit – a financial gain.

20. Interest- payment from borrowers or a deposit-taking financial institution to a lender or

depositor of an amount above payment.

21. Salary/Wages - a fixed regular payment

22. Household - basic unit of analysis in many social, microeconomics and government
model.

23. Equilibrium point - optimum position of a market price that generates an equal amount
of demand and supply for a product or services.

24. Income - money received, especially on regular basis.

25. Price - the amount of money expected, required or given in payment for something.
26. Surplus - amount of left over/excess.

27. Substitute goods - a good that can be used in place of another.

28. Total Revenue - total receipts a seller can obtain from selling goods or services to
buyers.

29. Total Utility - total satisfaction received from consuming a given total quantity of a
good or service.

30. Utility - is the satisfaction gained from consuming an additional quantity of a particular
good or service.

31. Consumption - using up of a resource.

32. Budget - estimate of income and expenditure for a set period of time
33. Cost - estimate price.

34. Assets - property owned by a person or company, regarded as having value and
available to meet debts, commitments or legacies.

35. Imputed cost - is a cost that incurred by virtue of using an asset instead of investing it
or undertaking an alternative course of action.
36. Opportunity cost - the loss of potential gain.
37. Pure competition - a market that has a broad range of competitors who are selling the
same products.

38. Firm - is a for profit business organization such as corporation, limited liability company
or partnership.

39. Monopoly - exclusive possession or control of the supply of a trade in a commodity or

service.

40. Pure monopoly - market structure where one company is the single source for a
product and the are no close substitutes for the product available.