BASIC MICROECONOMICS

Name: Course and Block: B

1. Based from your personal observations and readings, list down 5 economic problems
confronting our province today. Indicate possible measures or policy recommendations you
think is best fitting for the problems you identified. Do you find it easy to resolve? Why is
there great difficulty addressing these economic problems?

 The economic problems that our province is facing are inflation, poverty, high
unemployment rate, corruption, and shortage of sugar. Governments can use wage and
price controls to fight inflation. Poverty can be solved with quality education. The
solution for high unemployment rate is to create more jobs. To reduce corruption, expose
corrupt activities and risks that may otherwise remain hidden. Keep the public sector
honest, transparent and accountable. While, to solve sugar shortage, it is to import sugar.
It is not easy to resolve these problems because an economy cannot produce every single
good and/or service demanded by consumers and businesses

2. Explain how you can briefly apply Economics in your daily life.

 Economics is the knowledge about what is happening in our society. We should be aware
of it since every single thing we do will be affected and has effect to the economy. The
knowledge and wisdom we got from economics will help us be more competitive and
versatile in the real world.

3. Give 3 examples of trade-off that you faced recently in your life.

 Choosing to do nothing in the day so I have to trade off my sleep so I could do my school
works.
 I chose to spend time with my friend; therefore I was not able to clean the house.
 I gave my snack to my sibling so she would help me do the house chores.
4. What is your opportunity cost of going for college education?

 My opportunity cost for attending college includes food, clothing, transportation and any
number of other things associated with attending college.

5. Imagine yourself as a policy maker trying to decide whether to reduce the rate of
inflation. What do you need to know about inflation unemployment and the trade-off
between them?

 Unemployment and inflation are inversely proportional therefore reducing the rate of
inflation implies increasing unemployment rate. A trade-off involves a sacrifice that must
be made to get a certain product or experience.

6. Why are economic recommendations not always followed by government leaders or

policy makers?

 Economic recommendations are not always followed by government leaders or policy

makers because there are instances that these recommendations do not fit the problems
that the economy is facing.