ACTIVITY 1

NAME : Molao, Patrick M.

Make a concrete example of how to go about the three Basic Economic Problems.
Test I.

Match Column A with Column B.

A B.
1. The essential characteristics of economics. a. Microeconomics
H 2. The cost of choosing to use resources for b. Normative Analysis,
one purpose is to sacrifice the next best
alternative for the use of those resources.
A. 3. It deals with the close-up view of the c. Economics
economy by concentrating on the choices
made by the individual participants in the
economy like the consumers, workers, and
investors.
F 4. It looks at the economy from a broader d. How to produce
perspective by considering its over-all
performance and the way various sectors of
the economy relate to one another.
5. It is a way of forecasting the impact of e. Positive Analysis
changes in economic policies or conditions on
observable items like production sales prices
and personal incomes.
6. It is a way of evaluating the desirability of f. Macroeconomics
alternative outcome according to underlying
value judgments.
G 7. It is the study of human beings make g. Scarcity
choices to use scarce resources as they seek to
satisfy their seemingly unlimited wants.
8. This basic problem has something to od h. What will be produced
with the kind of technology to be used in the
production process.
9. This basic problem deals with the proper i. To whom will goods and services be
use of productive potential of the economy. distributed
10. It deals with how goods and services will j. Opportunity cost
be distributed.
TEST II.

I. Answer the following questions briefly.

1. What attracts workers who are seeking the reward of a high salary?

2. What motivates firms to discover to discover more efficient combination of resources?

TEST III.

Identify the following.

1. It is the talent to develop products and processes and to organize

production to make goods and services available.

2. It is the process of using the resources to make goods and services

available.

3. It shows the maximum possible output of one good that can be produced
with available resources given the output of the alternative goods over a period of time.

4. It is the breakdown of a larger process into particular task performed by

workers who specialized in those tasks.

5. It states that a nation can gain consumption possibilities by specializing in

goods that it can produce domestically at lower opportunity cost than that of its trading partner.
ACTIVITY 2

NAME: Molao, Patrick M.

Prepare the Demand and Supply Schedule of a product of your choice. Plot these schedules in a graph
by showing the market equilibrium, surplus, and shortage.
TEST I.

Identify the following.

1. It explains how prices are determined in market through competition among

buyers and sellers and how these prices affect quantities traded.

2. It is a relationship between the price of an item and the quantity demanded.

3. Goods whose demand declines as income increases.

4. Goods whose demand increases when income goes up.

5. They are items that serve a purpose similar to that of a given item.

6. This law implies that buyers will purchase less of a good over any given period
if its price increases while nothing else changes.

7. It states that in general, other things being equal the higher the price of a good,
the greater the quantity of that good sellers are willing and able to make available over a given period.

8. It is the payment a seller receives for each unit of goods sold.

9. It prevails when economic forces balance so that economic variables neither

increase nor decrease.

10. It results in downward pressure on price.

TEST II.

TRUE OR FALSE: Write TRUE if the statement is TRUE, if FALSE, underline the word or phrase which
makes it false.

1. The price of a new product does not influence the quantity demanded.

2. The higher the wage, the greater the quantity of labor services demanded by
the employers.

3. There is no price for the use of credit.

4. The demand for loanable funds depends upon the ability and willingness of
consumers, business firm and government to borrow funds.

5. Non-price rationing devices distribute available goods and services on a basis

other than willingness to pay.

6. There is nowhere for sellers to sell goods to buyers for more than legal price.

7. Governments do not enforce minimum wage laws to penalize employers to pay

less than the stipulated wage.
8. Non-scarce of free goods are always available even at zero prize.

9. Wages have nothing to do with the amount of labor demanded and supplied
over a given a period.

10. Employers substitute other inputs like machines for labor services as wages go
up, while they substitute labor services for other inputs when wages are low.

ACTIVITY 3

NAME: Molao, Patrick M.

Show the difference between a Market Economy and a Mixed Economy when it comes to the Circular
flow of income and expenditures.
TEST II.

1. Discuss how price influences the production process.

2. Differentiate real flow from money flow.

3. What are the two vital parts of an economy? Enumerate and explain the color in the buying center.

4. What can competition do to improve the economy?

5. Discuss the features of mixed economy.

6. What are the advantages of mixed economy?

TEST III.

Identify the following.

1. Governments as well as business firms that provide goods and services.

2. It is a situation in which large numbers of buyers are competing for available

supplies of goods and services for sale in markets.

3. It is an inconvenient means of exchange because it requires “double incidence

of wants.”

4. They are buyers of resources offered for sale in input markets.

5. It is the determinant of what gets produced in a market economy.

6. It is the desire that can be backed up with the willingness and ability to pay.

7. They are goods consumed equally by all of us whether we pay or not.

8. They are costs or benefits of market transactions that are no reflected in the
prices buyers and sellers use to make their decisions.

9. It is a kind of economy where the government fits into whether as a purchaser

or borrowers of funds.

10. They are compulsory payments associated with income consumption or wealth
that individuals have.
ACTIVITY 4

NAME: Molao, Patrick M.

Present a table with its corresponding graph explaining the law of diminishing marginal utility.
TEST I.

Match Column A with Column B. Write the letters only.

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

TEST II.

Identify what is being described or being talked about.

1. It implies that the average product of a variable input will eventually decline as more of that input is
used together with fixed inputs.

2. It measures the peso value of inputs used over any given period to produce an item.

3. It is also known as unit cost.

4. It is the basic difference between the long run and the short run.

5. They are reductions in unit costs resulting from increased size of operations.

6. They are increase in average cost of productions resulting from problems in managing large-scale
enterprises.

7. It is the process of using the services of labor and equipment with other inputs to make goods and
services available.

8. It is a period of production during which some inputs cannot be varied.

9. It is an input whose quality cannot be changed in the short run.

10. It is an increase in output from one more unit of flat input when the quality of all other inputs is
unchanged.

TEST III.

Discuss the reasons for Diminishing Marginal Returns.

ACTIVITY 5

NAME: Molao, Patrick M.

TEST: Multiple Choice.

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

ACTIVITY 6

NAME: Molao, Patrick M.

TEST I.

Match Column A with Column B. Write the letter of the correct answer.

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.
11.

12.

13.

14.

15.

16.

17.

18.

19.

20.

ACTIVITY 7

NAME: Molao, Patrick M.

Answer the following questions.

As in the popular television game show, you are given an answer to a question and you must respond
with the question. For example, if the answer is “a tax on imports,” then the correct question is “What
is a tariff?”

a. The approximate share of world exports as a percentage of worlds CDP in 2008.

b. The approximate share of world foreign direct investment as a percentage of worlds GDP in 1980.
c. The number of countries that were members of the WTO in 2009.

d. This branch of international economics applies microeconomic models to understand the

international economy.

e. This branch of international economics applies macroeconomic models to understand the

international economy.

ACTIVITY 8

NAME: Molao, Patrick M.

Answer the following questions.

As in the popular television game show, you are given an answer to a question and you must respond
with the question. For example, if the answer is “a tax on imports,” then the correct question is “What
is a tariff?”

a. A type of tariff assessed as a percentage of the value of the imported good (e.g., 212 percent of the
value of apples).
b. A type of tariff assessed as a fixed money charge per unit of imports (e.g., $0.35 per pound of apples).

c. Of increase or decrease, this is how tariffs would be changed if a country is liberalizing trade.

2. Calculate the amount of tariff revenue collected if a 7 percent ad valorem tariff is assessed on ten
auto imports with the autos valued at $20,000 each.

3. Calculate the amount of tariff revenue collected if a $500 specific tariff is assessed on ten auto
imports with the autos valued at $20,000 each. What would be the ad valorem tariff rate have to be
collect the same amount of tariff revenue?
4. Calculate the trade-weighted average tariff if a country has annual goods imports of $157 billion and
annual tariff revenue of $13.7 billion.

ACTIVITY 9

NAME: Molao, Patrick M.

1. List the five reasons why international trade takes place.

2. Identify which model incorporates:

a. difference in technology
b. presence of economies of scale

c. differences in demand

d. differences in endowments