SAN AGUSTIN INSITUTE OF TECHNOLOGY

CITY OF VALENCIA
BASIC ECON 1

A. Economics M. Land
B. Mixed Economic System N. Labor
C. Market Economic System O. Capital
D. Command Economic System P. Models
E. Opportunity Cost Q. Fallacies in making models and
F. Resources theories
G. Theories R. Trade-off
H. Production Possibility Frontier S. Normative Economic Analysis
I. Macroeconomics T. Positive economic Analysis
J. Microeconomics U. Entrepreneurship
K. Theories V. Resources
L. Scarcity W. Economic System

1. _____ Is a social science essential for dealing with two extreme-scarce resources and unlimited
human demand.
2. _____ are factors of production.
3. _____ Are factors of production covers all-natural resources that exist without man’s
intervention.
4. _____ Are factors of production refer to human inputs such as manpower and skills that are in
transforming resources into different products.
5. ___. Are factors of production where man made factor of production to use to create another
product.
6. ____. Are factors of production where integrates land, labor and capital to create a product.
7. ____. Are the non-essential thing that can live without.
8. ____. Are the things we cannot live without.
9. ____. Focuses on the behavior of a particular unit of the economy such as the consumer,
producers, c and specific markets. “Consumer behavior, production theory cost and profit, and
market structures.
10. ____. initial discussion begin with how growth and output are measured and how multipliers
work. Labor, employment, and inflation are included for long-term effects, as well as monetary,
fiscal and trade policy.
11. ____. Simply describes what exists and how things work
12. ____. Which looks at the outcome of economic behavior through judgments and prescription
for course of action.
13. ____. are proposition about certain related variables that scientifically explain a certain
phenomenon.
14. ____. are used to illustrate, demonstrate, and present a theory or parts of it or simplify an
explanation or description of a certain economic phenomenon, often employing graphs,
diagrams, or mathematical formulae.
 15. ____. Several misleading notions that certain economist believe when designing economics
models and theories.
16. ____. It refers the cost of giving up an alternative by selecting the next best choice.
17. ____. It is when we have to give up in order to get another.
18. ____. It is a graph shows the greatest sum of output given the accessible inputs, or factors of
production, in an economy.
19. ____. where these three questions are respectively answered by: 1. Producing at constant
returns to scale with minimum costs 2. Distributing the goods to those who can afford to buy
them.
20. ____. Where all three questions are answered by both the government and private entities in
consideration of their mutual benefits.

II. True or False. Write letter “T” if the statement is True and Letter “F” if the statement is false.

1. ____. The post hoc ergo propter hoc fallacy is fallacy related two events as if the first
event causes the second one to happened. It is commonly constructed in form as A
occurred immediately before B. therefore A cause be.
2. ____. Failure to hold other things constant under the ceteris paribus assumption is when
the price of a particular brand of soda drink goes down, we can assume that more
consumers will buy the said commodity. But the problem is that how about those new
and cheaper brands of soda drink is sold in the market? What if the reduce price still
beyond the purchasing power of the consumer.
3. ____. The fallacy of composition is when “What is that what is true for a component is
also true for the entire thing”.
4. ____. In basic economic question “What to produce?” it simplifies that “A society
determines the kind and quantity of products it will produce depending on what the
consumers want to buy or willing to buy.”
5. ____. In basic economic question “How to Produce?” it simplifies that “a society who
decide who will produce goods and what process of production will be use.
6. ____. In basic economic question “For whom to produce?” it simplifies that “revolves
around the issues of who will benefit from the goods and service produce”.
7. ____. Economic System is characterized by the type of institutions responsible for the
management and allocation of resources used in the production of goods and services.
8. ____. Market Economic system where these three questions are respectively answered
by: 1. Producing at constant returns to scale with minimum costs 2. Distributing the goods
to those who can afford to buy them.
9. ____. Command Economic System is where all resources are owned by the government.
10. ____. Mixed economic system is where all three questions are answered by both the
government and private entities in consideration of their mutual benefits.

III. Essay

1. Some people says that: ELECTRICITY IS ESSENTIAL” however, we can live without electricity,
therefore it is Needs or Wants? and Why? Defend your answer by sighting some real examples
of experience or experience of others, ideas and concepts. At least 200 words (50 pts.).