Benedicto, Kim Gabriel M.

ECO 101
BSMT32 – B1 OS SPLIT Sir Delos reyes

Quiz #1
1. What is Economics?
the branch of knowledge concerned with the production, consumption, and transfer of wealth.
the condition of a region or group as regards material prosperity.

2. What is the importance of economics?

Economics is concerned with the optimal distribution of resources in society. The subject
involves.
- Understanding what happens in markets and the macroeconomy.
-Examining statistics about the state of economy and explaining their significance.
-Understanding different policy options and evaluating their likely outcomes.

3. What are the four basic economics questions

The four basic economic questions are:
(a) what goods and services and how much of each to produce.
(b) how to produce.
(c) for whom to produce.
(d) who owns and controls the factors of production.

4. Difference of microeconomics and macroeconomics

The difference between micro and macro economics is simple. Microeconomics is the study of
economics at an individual, group or company level. Macroeconomics, on the other hand, is the
study of a national economy as a whole.
Microeconomics focuses on issues that affect individuals and companies. This could mean
studying the supply and demand for a specific product, the production that an individual or
business is capable of, or the effects of regulations on a business.
Macroeconomics focuses on issues that affect the economy as a whole. Some of the most
common focuses of macroeconomics include unemployment rates, the gross domestic product
of an economy, and the effects of exports and imports.

5. What is the concept of opportunity cost?

In microeconomic theory, the opportunity cost, also known as alternative cost, is the value (not
a benefit) of the choice in terms of the best alternative while making a decision. A choice needs
to be made between several mutually exclusive alternatives; assuming the best choice is made,
it is the "cost" incurred by not enjoying the benefit that would have been had by taking the
second best available choice.
Quiz#2
1. What is the Law of Demand?
The law of demand states that other factors being constant (cetris peribus), price and
quantity demand of any good and service are inversely related to each other. When the
price of a product increases, the demand for the same product will fall.

2. What is the Law of Supply?

The law of supply is a fundamental principle of economic theory which states that, other
factors held constant, an increase in price results in an increase in quantity supplied. Law
of supply states that other factors remaining constant, price and quantity supplied of a
good are directly related to each other. In other words, when the price paid by buyers
for a good rises, then suppliers increase the supply of that good in the market.
3. What is Market?
A market is one of the many varieties of systems, institutions, procedures, social
relations and infrastructures whereby parties engage in exchange.

4. What is Demand Curve?

The demand curve is a graphical representation of the relationship between the price of
a good or service and the quantity demanded for a given period of time.

5. What is Supply Curve?

The supply curve is a graphical representation of the correlation between the cost of a
good or service and the quantity supplied for a given period.

Economics is the important you get to know how societies, governments, businesses,
households, and individuals allocate their scarce resources. Theeconomics can also
provide valuable knowledge for making decisions in everyday life. Economics is
concerned with the optimal distribution of resources in society

Assignment #1
1. What is Market Equilibrium?
In economics, economic equilibrium is a state where economic forces such as supply and
demand are balanced and in the absence of external influences the values of economic
variables will not change.

2. Diagram for Supply and Demand

In this diagram the supply curve shifts to the left. It leads to a higher price and fall in quantity
demand. The supply curve may shift to the left because of:

Higher costs of production

Higher taxes
Fall in productivity

Supply and Demand Shift Right

Recitaion

1. Who are the Consumers?

The consumer is the one who pays something to consume goods and services produced.
As such, consumers play a vital role in the economic system of a nation. Without consumer
demand, producers would lack one of the key motivations to produce

2. What is goods and services?

Definition of Goods & Services for Economics. Goods and services represent an important term
in basic economics. Goods are tangiblethings that can be consumed, such as clothes and food.
Services are actions people perform, such as haircuts or cleaning services.

3. What is the consumer test and preference?

Consumer preferences are defined as the subjective (individual) tastes, as measured by utility,
of various bundles of goods. They permit the consumer to rank these bundles of goods
according to the levels of utility they give the consumer. ... Ability to purchase goods does not
determine a consumer's likes or dislikes

4. What is consumer surplus?

Consumer surplus is defined as the difference between the total amount that consumers are
willing and able to pay for a good or service (indicated by the demand curve) and the total
amount that they actually do pay

Term paper: Importance of Economics

Economics is the important you get to know how societies, governments, businesses, households,
and individuals allocate their scarce resources. Theeconomics can also provide valuable knowledge
for making decisions in everyday life. Economics is concerned with the optimal distribution of
resources in society.
Economics is concerned with helping individuals and society decide on the optimal allocation of our
limited resources.
Economics is the study of how societies, governments, businesses, households, and individuals
allocate their scarce resources. Our discipline has two importantfeatures.

Economics is the study of how societies, governments, businesses, households, and individuals
allocate their scarce resources. Our discipline has two importantfeatures. First, we develop
conceptual models of behavior to predict responses to changes in policy and market conditions.

Economists are well known for advising the president and congress on economic issues, formulating
policies at the Federal Reserve Bank, and analyzing economic conditions for investment banks,
brokerage houses, real estate companies, and other private sector businesses. They also contribute
to the development of many other public policies including health care, welfare, and school reform
and efforts to reduce inequality, pollution and crime.

The study of economics can also provide valuable knowledge for making decisions in everyday life. It
offers a tool with which to approach questions about the desirability of a particular financial
investment opportunity, whether or not to attend college or graduate school, the benefits and costs
of alternative careers, and the likely impacts of public policies including universal health care and a
higher minimum wage.

The complementary study of econometrics, the primary quantitative method used in the discipline,
enables students to become critical consumers of statistically based arguments about numerous
public and private issues rather than passive recipients unable to sift through the statistics. Such
knowledge enables us to ask whether the evidence on the desirability of a particular policy, medical
procedure, claims about the likely future path of the economy, or many other issues is really
compelling or whether it simply sounds good but falls apart upon closer inspection.

Economics is also important for an individual. For example, every decision we take involves an
opportunity cost - which is more valuable working overtime or having more leisure time?
In recent years, behevioral economics has looked at the diverse range of factors that influence
people's decisions. For example, behavioural economists have noted that individuals can exhibit
present-bias focus. This means placing excess importance on the current time period and making
decisions our future self may regret. This includes over-consumption of demerit goods like alcohol
and tobacco and failure to save for a pension.