APPLIED ECONOMICS

MULTIPLE CHOICE

1. It is a social science concerned chiefly with description and analysis of the production, distribution, and
consumption of goods and services.
ANS: A. economics
2. The willingness and ability to purchase a commodity or service
ANS:B. demand

3. The quantity or amount (as of a commodity) needed or available

ANS: C. supply
4. An economic good
ANS:D. commodity

5. A study of economics in terms of whole systems especially with reference to general levels of output
and income and to the interrelations among sectors of the economy chart that shows how all of the
jobs in a large company relate to each other
ANS:A. Macroeconomics

Exercise no. 1

1. It studies economic system as a whole rather than the individual economic units that make up the
economy.
ANS: b. macroeconomics
2. It is the means through which society determines the answers to the basic economic problems
mentioned.
ANS: d. economic system
3. Decisions are based on traditions years and passed on and practices upheld over the from generation to
generation.
ANS: a. Traditional economy decisions
4. The authoritative system wherein decision-making centralized is in the government or a planning
committee, Decisions are imposed on the people who do not have a say in produced what goods
ANS: c. common economy
5. Is the most democratic form of economic system
ANS: c. common economy
6. Refers to the value of alternative.
ANS: a. Opportunity cost
7. Is a condition where there are insufficient resources to satisfy all the need and wants of a population.
ANS: b. scarcity
8. Is when goods are scarce compared to its demand.
ANS: c. relative scarcity
9. Studies the decision and choices of the individual units and how these decisions affect the prices of goods
in the market.
ANS: a. microeconomics
10. Explains why there are some products that are very expensive in the Philippines.
ANS: b. absolute scarcity
11. is when supply is limited
ANS: b. absolute scarcity
12. Is about the nature of economic growth, the expansion of productive capacity and the growth of national
income.
ANS: b. macroeconomics

13. A division of Economics that is concerned with the overall performance of the entire company
ANS: b. macroeconomics

14. It is also concerned with the process of setting prices of goods that is also known as PRICE THEORY.
 ANS: a. microeconomics
15. Is production whose value measures both resource input and output of people.
ANS: a. heart of economic

Research Project:

Topic: Philippine’s GDP

Guide Questions:

1. What can you say about the Philippine GDP from 2000-2020?
Ans: the gross domestic product ( GDP) in the Philippines was worth 376.80 billion U.S dollars in 2019
according to official data from the world Bank.

2. What are the impacts of the GDP in the prices of goods and services in the Philippines?
Ans: the philippines, under the leadership off president Benigno Aquino III followed by Rodrigo Duterte,
is slowly steady emerging as a rising tiger, something that was highlighted by world bank.
 Lesson No. 2

Exercise no 2

1. As a student, what valuable lessons have you learned in terms of the allowance or money given by your
parents and what did you do to avoid the recurrence of negative situation like run out of money for school
related things?
ANS: Be content with little. There were numerous times growing up when money was tight. Nevertheless, my
parents were content in it. Live within your income. My parents always made adjustments in their spending
based on their income. They taught me the value of frugality when necessary. But more importantly, they
taught me the joy of living within my means. And also respect character is far for more value than anything
you can sell it for. Don’t trade it for something foolish like money, fame, power, or the entire world.

2. Give another example of econometrics and explain further.

ANS: Econometrics to measure things such as gross domestic product, inflation, or to predict changes in the
economy. Their models often forecast key economic measures and then compare those forecasts with actual
results.
Applied econometrics tends to focus on consumer behavior and predictive models of how something will
respond to specific changes in something else (for example, what plane ticket prices will be in Detroit if United
Air Lines stops flying there). Theoretical econometrics uses statistical methods such as regression analyses,
probability, and frequency distributions to model how well economic models work or don't work.
he concept of economics is largely regarded as a social science, but it is also a mathematical science. Much of
what we experience in the world can be measured: interest rates, wages, prices, rents, and changes in those
things. For this reason, econometrics can help verify and predict theories on how consumers behave, what
governments will do, and when things will change.
WRITTEN BY
Paul Tracy

3. List down at least 5 basic commodities that the government keep an eye to make sure price stays affordable
for the Filipinos.
ANS: rice, fish, meat, fresh vegetables, poultry meat.

4. Using the 5 basic economic problems, cite one example of commodity to answer the 5 questions.
ANS: 1. What to produce?

- Goods and services must be based on the needs of the consumers

5. If you are the economic planner, how can you resolve unemployment?
ANS: In an overpopulated country, it is really uncontrollable to minimise the growth of population. We may
solve the problem. Whole world made for human beings. The problem may mitigate through migration to the
less populated country. They need the quality and hardworking human resource/ manpower. It may reduce
the overpopulation and unemployment in an overpopulated country.
Research Project:

Topic: Natural-resource scarcity in the Philippines

Guide Questions:

1. What are the reasons why our country is experiencing natural-resource scarcity?

ANS: Resource scarcity is defined as a situation where demand for a natural resource is exceeding
the supply – leading to a decline in available resources. When we talk about scarce resources, we
usually imply that current use is unsustainable in the long-term. Scarcity can involve non-renewable
resources, such as oil, precious metals and helium. It can also involve potentially renewable
resources, which are being consumed faster than their ability to replenish.

Causes of scarcity
Demand-induced – High demand for resource
Supply-induced – supply of resource running out.
Structural scarcity – mismanagement and inequality
No effective substitutes.

17 October 2019 by Tejvan Pettinger

2. What do you think you can do to lessen the natural-resource scarcity in our country?

ANS: An increase in natural resource scarcity is defined as a reduction in economic

well-being due to a decline in the quality, availability or productivity of natural
resources. Simple in concept, the measurement of natural resource scarcity is the
subject of significant debate about which of the alternative indicators of scarcity,
such as unit costs, prices, rents, elasticities of substitution, and energy costs is
superior

3. If the rate of population increase is higher than increase in food production, what do you think will
happen to the people of each community?

ANS: A country's ability to feed itself very much depends on three factors: availability of arable land,
accessible water and population pressures. The more people there are, especially in poor countries
with limited amounts of land and water, the fewer resources there are to meet basic needs. If basic
needs cannot be met, development stalls and economies begin to unravel. In some poor countries,
attempts to increase food production and consumption are undermined by rapid population growth;
migration from rural to urban areas; unequal land distribution; shrinking landholdings; deepening
rural poverty; and widespread land degradation. Lower birth rates, along with better management
of land and water resources, are necessary to avert chronic food shortages. The increase in
population leads to an increased demand for food products, clothes, houses etc., but their supply
cannot be increased due to the lack of cooperate factors like raw materials, skilled labour and capital
etc. The cost and prices rise which raise the cost of living of the masses.
 Exercise No. 3

1. In this time of pandemic, give at least the top 5 goods that people spend money on and how the demand
for these commodities affect its prices?

2. Explain the each of the non-price determinant variables of demand.

Price is not the only economic variable that affects demand. Demand is also affected by a number of other
non-price factors, often called underlying determinants. If a good or service is a necessity then, assuming the
consumer has sufficient income, it is likely to be demanded irrespective of its price. The greater the need for a
product, the greater the demand. For example, college students are more likely to need academic textbooks
than retired people. Some needs, such as the need for food, are common while other needs are specific to the
individual, such as the need for particular medicines.

3. Explain the each of the non-price determinant variables of supply.

Supply is the willingness and ability of producers to create goods and services to take them to market.
Supply is positively related to the price given that at higher prices there is an incentive to supply more as higher
prices may generate increased revenue and profits.

Research Project:

Topic: Factors Affecting Supply and Demand in the Hospitality and Tourism Industry
Guide Questions:

1. Give at least 5 factors that affect the supply and demand in the hospitality industry.

ANS: Price fluctuations

Income and credit
Availabiity of alternatives or competitions
Trends
Commercial advertising

2. How does price affects tourism demand and supply in the Philippines?
Ans: price fluctuation in the Global and Local Economics can affect the level of demand and supply in turism in
local areas or globally.

3. How media does contribute to the demand in the tourism industry?

Ans:
Social media has made a huge impact on the tourism industry. Consumers engage with social networking sites
to research trips, make informed decisions about their travels and share their personal experiences of a
particular hotel, restaurant or airline. TripAdvisor in particular has had a wide-reaching effect on the industry.
It has 50 million unique monthly visitors who are actively seeking out travel information and advice from the
sources they trust the most: other tourists and holiday-makers.