GROUP ACTIVITY #1

CRUZ, Angel Jericha E. | BSA-1E

August 24,2020

A. There were 3 authors who defined manec, as accountancy students whose definition you
consider that is related to your course and why?
- Economics and Accounting are already related in such a way that they both deal with
financial matters. But Managerial economics, as defined by Spencer and Siegelman, is the
integration of economic theory with business practice for the purpose of facilitating decision
making and forward planning by management, is what i think the most related to our course. It
is because it involves futuristic thinking. As accountants, we should be able to provide a
financial report that is beneficial in predicting the business's future in order for the
management to be able to plan ahead of time and make appropriate decisions.

B. What is the difference of normative and positive statements?

- Normative statements are based on opinions and cannot be supported with or refuted
by evidences since they are purely subjective while Positive statements are based on facts and
evidences

C. In your own words, state the difference between micro and macro economics.
- Microeconomics and Macroeconomics differ in terms of the scope of their studies.
Microeconomics deals with a bottom-up approach, studying the smaller or individual units of
the economy and their decision making behaviors. While macroeconomics goes on a top-down
approach and studies the economy as a whole.

REFLECTION:
In conclusion, managerial economics is a subject that is not just important to students
who are taking up BS Economics or Management but also, to us, BS Accountancy students. It is
because the subject and accounting are related in such a way that both involves decision-
making and analytical thinking. We can actually use these learnings as an accountant in the
future because sooner or later, we will be dealing with economics, may it be macro or micro.
And lastly, we should always make use of positive statements because as accountants, we are
to provide factual data to be able to faithfully represent a report or financial statement.
LOVERIZA, Anthony | BSA-1E
A. There were 3 authors who defined manec, as accountancy students whose definition you
consider that is related to your course and why?
- Based from the three definitions given, I consider Mansfield’s definition is the most
related. For it is alligned with the managerial economics that says, application of micro
economic techniques and theories to conclude with the most rational business decision to
attain the goal of the firm. Which is great in developing our decision making skils in the field of
finance or business in terms of addressing economic issues and in everyday life.

B. What is the difference of normative and positive statements?

- Normative statement expresses a value judment about wheter a situation is desirable
or undesirable. On the other hand, a Positive statement or descriptive concerns what “IS”,
“WAS”, OR “WILL BE”, and contains no evidence of approval or disapproval.

C. In your own words, state the difference between micro and macro economics.
- Microeconomics only focus on individual units and encourage the use of quantitative
method which are computational techniques in analyzing economic data. Whereas,
Macroeconomics focus on the economy as a whole and economic data is measured as an assist
for developing economic policies.

REFLECTION:
I’m now aware that managerial economics utilizes essential information about the
economy to come up with the most suitable economic principle and tools for the development
of the economy. Although this was our very first group activity, I was amazed by how each of
the member showed cooperation and the will to help each other. We were able to easily build
trust to one another, thus we were able to accomplish our task.
NAAG, Jov Axl | BSA-1E

1. Among the three definitions, the definition of Mansfield is the one which is very much
related to my course. According to him, "Managerial Economics is concerned with the
application of economic concepts and economic analysis to the problems of formulating
rational managerial decisions."
In accountancy, we also follow a standard concept and principles and use it in preparing the
Financial Statements. Accounting focuses on the analysis of different situations in order to
provide relevant financial information to the users.
2. Normative statements are subjective and carries judgment. It is a statement that can be
regarded as an opinion. On the contrary, Positive statements are facts that can be tested and
proven. It is objective and does not include opinions.
3. Microeconomics is the study of the behavior of individuals and business firms in the
market in order to understand their decision-making process and how they allocate their scarce
resources. On the other hand, macroeconomics is the study of the entire country’s economy as
well as the decision-making process of the government, capital market, and the industry. It
includes how the household and businesses affect the country’s employment rate, national
income, inflation rate, exchange rate, etc.

REFLECTION:
In conclusion, studying Managerial Economics is very significant, since it is very much related to
our course. Both Managerial Economics and Accounting involve analysis and proper decision
making. A single mistake can cause consequences. But since we are still students, we have to
learn how to accept our own mistakes and learn from it because it is part of learning.
The concepts and theories that we learned in microeconomics can be applied in Managerial
Economics. In microeconomics, we have studied the behavior of individuals and business firms
and how they allocate scarce resources. This concept and many other tools like regression
analysis will be applied in Managerial Economics to facilitate decision making process and the
consideration of alternatives
Experiencing difficulty in communication with other students and with our professor is very
prominent in our present case. During our first group activity, it was challenging for us to share
our ideas without actually seeing each other and we all struggled inside the group, but
somehow, we have built the feeling of trust with each other.

QUERIJERO, Franchesca | BSA-1E

 There were 3 authors who defined managerial economics, as accountancy students whose
definition you consider that is related to your course and why?
- among the definitions cited by the three authors mentioned, I think Mansfield's was
the most suitable or relevant one to our course since practicing proper analysis is necessary in
order to arrive consistently on the desired outcome.
 What is the difference of normative and positive statements?
- normative statements express a value of judgment and is characterized by the modal
verbs 'what could, should, would, ought to be' and it is derived from an opinion or differs in a
certain point of view while positive statements refers to the objectives and is verifiable.
 In your own words, state the difference between micro and macroeconomics.
- In my perspective microeconomics deals with the economic interactions of a specific
person, a single entity or a company thus it is the study of markets. This is the field that focuses
with the small-scale activities such as that of the individual or company. One of its main
objectives is to analyses the market and determine the price of goods and services that best
allocates limited resources among different alternative uses. Inversely, macroeconomics studies
the performance, structure, behavior and decision-making of an economy as a whole. It
generally focuses on global economics which involves the sum total of economic activity,
dealing issues concerning growth, inflation, and unemployment. These two varies mainly in
scale and also on what kind of approach it applies in economic situations. The main difference is
that microeconomics focuses at small segments while macroeconomics look at the whole
economy.

REFLECTION:
Since this was our first task as a group we were clueless at first as to how we could share
our inputs. Luckily my group mates were efficient which made our activity less stressful, we first
answered individually then finalized it. This activity was a good foundation for us to gel as a
group. I got comfortable with them easily and I learned that communication and trust is indeed
the key in making things work.
SANTILLAN, James Andrei | BSA-1E

1. Just like how Mansfield defined Managerial Economics as the application of economic
concepts and analysis to formulate rational managerial decisions for a firm or a business, as an
accountancy student we must be able to abide by the Generally Accepted Accounting Principles
(GAAP) to provide uniformity of data representation and credibility in handling financial
situations which would help on making proper decisions and interpretations of the financial
statements.

2. Positive economic statements are purely based on facts and objectivity of which are
actually viable while normative economic statements are based on opinions or judgements in a
certain situation.

3. Macroeconomics focuses more on large-scale analysis like the country or the

government of a nation which is like how they handle unemployment rates, the national budget
and etc. while microeconomics focuses more on smaller groups like businesses and firms
whereas for example they would know how to react to changing market values and arising of
new competitors.

REFLECTION:
In conclusion, managerial economics can be related to accounting since both has a
similarity on applying principles and theories that would help its users in decision-making.
Managerial Economics might have a different focus than that in Accountancy, but both aims to
provide proper information and doing a mistake is not an option as it would lead to a domino
effect of mistakes. We can also see that in the definition of the people that was given, those
definitions has some sort of similarities on what accounting does.
UY, John Jairon | BSA-1E

A. There were 3 authors who defined manec, as accountancy students whose definition you
consider that is related to your course and why?
1. I would choose Mansfield’s. In accounting, decision-making is expected after reaching
the interpretation of the whole accounting cycle. His definition of Managerial Economics is
similar to the analysis of the end-products of accounting to arrive at rational decisions and
steps to be followed.

B. What is the difference of normative and positive statements?

2. In its simplest sense, normative statements are subjective while the positive ones are
objective. Normative statements are mostly based on opinions to answer what a thing is ought
to be while positive statements can be tested because these are based on the objectivity of
what a thing was, is and will be.

C. In your own words, state the difference between micro and macro economics.
3. The two differ in scope as macroeconomics deals with the economic behavior of the
whole nation’s economy while microeconomics is more specific and deals with the economic
behavior of individual economic unit.

REFLECTION:
To conclude, Managerial Economics is similar to Accounting that these both aid in and
lead to decision-making process. Managerial Economics, however, is normative, where in
Accountancy, subjectivity has little place. In addition, Managerial has its main focus on
microeconomics as it also focuses on the internality of firms’ decisions to achieve the best
output out of limited resources.