Seatwork 3: Comprehension Checking

1. What is the importance of trade off?

Trade off is important because it is a decision for us to make. It alters how se feel about the
decision we face. It also affects the level of satisfaction we experience from that decision. We all
have to make sacrifices to be able to invest in what is important to us.

2. Differentiate between absolute advantage and comparative advantage.

A country has an absolute advantage in producing a good if it can do it at a lower marginal cost,
with a smaller workforce, in less time, at a cheaper cost without sacrificing the quality. However,
a country’s comparative advantage refers to its ability to manufacture a given good at a lower
marginal cost and opportunity cost.

3. What are the different protection set by the government to help our small and medium
enterprises?
Republic Act 9501: Magna Carta for Micro, Small and Medium Enterprises. An act to promote
entrepreneurship by strengthening development and assistance programs to micro, small and
medium scale enterprises, amending for the purpose republic act no. 6977, as amended,
otherwise known as the “Magna Carta For Small Enterprises” and for other purposes. It states to
promote, support, strengthen and encourage the growth and development of MSMEs in all
productive sectors of the economy particularly rural/agri-based enterprises.