APPLIED ECONOMICS

PRELIMINARY EXAMINATION
 St. Matthew Academy of Cavite

“A Christ Centered School”

PRELIMS- APPLIED ECONOMICS

NAME: Jularbal, Alissa May M. GR.& and; SEC: ABM 12 -A SCORE:

IDENTIFICATION:

1. The word economics is from the ancient Greek oikos, “family, household, estate”, and nomos,
“custom, law” and hence men’s “household management” or “management of the state”

2. It studies the economic system as a whole rather than the individual economic units that
make up the economy. Macroeconomics

3. All societies are based with basic questions in the economy, these are what to produce and
how much,

4.How to produce, and

5. For whom to produce.

6. Gross National Product is the market value of final products, both sold and unsold, produced
by the resources of the economy in a given period.

7. The most democratic form of economic system. Market Economy

8. A type of economic system wherein decision making is centralized in the government

Command Economy

9. Microeconomics is concerned with the behavior of individual entities such as the consumer,
the producer, and the resource owner.

10. Refers to the value of the best forgone alternative Opportunity Cost

11. Scarcity is a condition where there are insufficient resources to satisfy all the needs and
wants of a population.

12. When supply is limited there is Absolute Scarcity

13. Economic resources also known as Factors of Production, are the resources used to produce
goods and services, these resources are by nature limited.
14. Man-made resources used in the production of goods and services. Capital

15. Traditional Economy decisions are based on traditions and practices passed from one

generation to another.

16. Alfred Marshall Is a well-known economist described economics as a study of mankind in the
ordinary business of life

17. Economics is a social science because it studies human behavior just like psychology and
sociology.

18. Positive Economics deals with what is – things that are actually happening such as the
current inflation rate, the number of employed labors, and the level of GNP.

19. Soil and natural resources that are found in nature and are not manmade owners. Land

20. Normative Economics refers to what should be – that which embodies the deal such as the
ideal rate of population growth or the most effective tax system.

21. Applied Economics acts as mechanism to determine what step can reasonably be taken to
improve current economic situations.

22. Alfred Marshall is an economic icon and an example of how a leader of a previously
underdeveloped country can lead to overcome its country’s basic economic problems.

23. The term applied economics is believed to have started 200 years ago with the writings of
two economist Jean-Baptiste Say

24. And John Stuart Mill

25. Is the application of statistical theories to economics for the purposes of testing
hypothesis and forecasting future trends. Econometrics

26. The Philippines basic economic problems are Unemployment

27. Poverty

28. Lack of Education and

29. Corruption

30. A non-price factors of demand where consumers tend to anticipate changes in the price of

goods. Expectations

31. As the price increases, the quantity of that product also increases Law of Supply

32. As the price increases, the quantity demanded for that product decreases. Law of Demand

33. Market is an interaction between the buyer and sellers of trading or exchange.
34. Refers to the quantity of goods that a seller is willing to offer for sale. Supply

35. Equilibrium is attained when the quantity demanded is equal to the quantity supplied.

36. Demand Schedule shows the various quantities the customer is willing to buy at various
prices.

37. The Supply Schedule supply schedule shows the different quantities that the seller is
willing to sell at a various price.

38. Demand Curve is a graphical illustration of the demand schedule. This slope downward to
indicate the negative relationship between 2 variables which are price and quantity demanded.

39. Is the volume of goods and services one can buy with his/her income. Purchasing Power

40. Cost of Production refers to the expenses incurred to produce the good

41. Technology is another non price determinant of demand. The use of this in the production of
a good will result in the increased supply of that good.

42. It is felt when a change in the price of a good changes demand to alternative consumption
of substitute goods. Substitution Effects

43. Another possible non-price determinant of supply that can cause an upward shift of the
curve is through improved availability of Raw Materials and resources, since more resources is
needed to produce a bigger output of the good then supply increases.

44. The most common type of market, because it is where we buy consumer goods. Good Market

45. Labor Market is where workers offer services and look for jobs, and where employers look
for workers to hire

46. The non-price determinants of demands can cause an upward or downward change in the
entire demand for the product and this change is referred to as a Shift of the Demand Curve

47. If consumers Income decreases, the capacity to buy decreases, and the demand will also
decrease even when price does remain the same.

48. Improved taste for a product will cause a consumer to buy more of that good even if its
price does not change.

49. Is the willingness of a consumer to buy a commodity at a given price. Demand

50. Demand function equation Qd=f(P)