ECONOMICS

ACTIVITY 3

Instructions: Read each of the following questions carefully and give your answer
based on the topic. Each question is equivalent to 5 points. Write at least 1 paragraph
and maximum of 4 paragraphs, each paragraph will contain 3-4 sentences.

1. Explain how absolute advantage and comparative advantage differ and

connect it in rice importation/trade between Philippines and Vietnam.

2. Give an example in which one person has an absolute advantage in doing

something but another person has a comparative advantage.

3. Is absolute advantage or comparative advantage more important for trade?

Explain your reasoning, using the example in your answer to Question 2.

4. Will a nation tend to export or import goods for which it has a

comparative advantage? Explain.

5. Why do economists oppose policies that restrict trade among

nations?
6. Make a summary of chapter 3 of what you can use/apply in real
life .

ACTIVITY 4

Instructions: Read each of the following questions carefully and give your answer
based on the topic. Each question is equivalent to 5 points. Write at least 1 paragraph
and maximum of 4 paragraphs, each paragraph will contain 3-4 sentences.

1. What is a competitive market? Briefly describe the types of markets other

than perfectly competitive markets.

2. What determines the quantity of a good that buyers demand?

3. What are the demand schedule and the demand curve, and how are they
related? Why does the demand curve slope downward?

4. Does a change in consumers’ tastes lead to a movement along the demand

curve or a shift in the demand curve? Does a change in price lead to a
movement along the demand curve or a shift in the demand curve?
5. Popeye’s income declines and, as a result, he buys more spinach. Is
spinach an inferior or a normal good? What happens to Popeye’s demand
curve for spinach?

6. What determines the quantity of a good that sellers supply?

7. What are the supply schedule and the supply curve, and how are they
related? Why does the supply curve slope upward?

8. Does a change in producers’ technology lead to a movement

along the supply curve or a shift in the supply curve? Does a
change in price lead to a movement along the supply curve or a
shift in the supply curve?

9. Define the equilibrium of a market. Describe the forces that move a

market toward its equilibrium.

10. Describe the role of prices in market economies.

11. Make a summary of chapter 4 of what you can use/apply in real life.